To meet and anticipate the growing level of demand, increase its market share, and remain the number one motorcycle manufacturer in the world, Harley- Davidson has undertaken several expansion projects. One such project was located in Kansas City. This facility began full production in 1998 and produced the Harley-Davidson's Sportster models. This facility was to operate on a teambased structure that was completely new for Harley-Davidson. The facility has three distinct groups—the plant leadership group (overall focus is plantwide issues and operation objectives), the process operations group (overall focus is processwide issues and strategies), and the natural work group (overall focus is daily operations and actions). All employment in the facility is team-based. Every employee throughout the organization belongs to a group or, at times, multiple groups. Under this system, manufacturing productivity has increased by 88 percent, with a 50 percent reduction in scrap and damaged components. Production costs declined between 30 and 45 percent. Prior to the installation of the system, the customers had to wait anywhere from 16 to 24 months for their motorcycle. Customer satisfaction with the Harley-Davidson Sportster has improved by 200 percent, and the waiting period has been reduced to two weeks or less.

Source: Joe Singer and Steve Duvall, "High-Performance Partnering by Self-Managed Teams in Manufacturing," Engineering Management Journal, December 2000, pp. 9–15.