Stewart & Stevenson Will Open Fabrication and Welding Center at its Medium Tactical Truck Facility

New Center is Part of a $10 Million Plant Expansion Program



Apr 23, 2001, 01:00 ET from Stewart & Stevenson Tactical Vehicle Systems, LP

    HOUSTON, April 23 /PRNewswire Interactive News Release/ -- Stewart &
 Stevenson Tactical Vehicle Systems, LP (TVSLP) today announced it will add a
 fabrication and welding center to its Family of Medium Tactical Vehicles
 (FMTV) production facility in Sealy, Texas. The new center is expected to
 create over 100 additional positions and enable TVSLP to manufacture selected
 FMTV components in-house.
     The fabrication and welding center is part of a $10 million expansion
 program that began last year with the implementation of "lean assembly"
 processes at the Sealy facility. The fabrication upgrades will improve
 quality, facilitate one-piece flow and increase TVSLP's core competencies
 through vertical integration in fabrication and welding. The facility is using
 the newest technologies in fabrication and integrated design and manufacturing
 software, compressing cycle times, improving quality and lowering the life
 cycle cost of the FMTV product.
     The Sealy facility, located 50 miles west of Houston, is specifically
 optimized to produce the FMTV, which the company has been making for the U.S.
 Army, National Guard and U.S. Air Force since 1991.
 
     New Fabrication and Welding Center
 
     TVSLP is converting existing space made available by "lean assembly"
 implementation, and expects to have the facility complete by mid-year 2002.
 The center will expand TVSLP's Original Equipment Manufacturer (OEM)
 competencies through the fabrication of an additional 200 FMTV truck
 components, which are currently purchased elsewhere for assembly by TVSLP.
     The fabrication center will take advantage of the latest technology in
 forming and cutting sheet and plate using lasers, high definition plasma and
 computer numerically controlled (CNC) presses and shears.
     TVSLP's engineers already use Pro/ENGINEER, a three-dimensional, solid
 model computer aided engineering software. This virtual prototype design and
 testing software will be integrated with the planning and fabrication software
 at the new center.
 
     Other Components of the Expansion Program: Implementation of
     "Lean Manufacturing" and  "One-Piece Flow" Processes
 
     The $10 million expansion program, of which the new fabrication center is
 a part, began in April 2000 with the implementation of lean manufacturing and
 one-piece flow processes similar to those pioneered by Toyota. The move to
 lean manufacturing was based on the plant's solid foundation of a fully
 implemented and stable MAPICS enterprise resource planning (ERP) system. The
 facility has consistently maintained a high accuracy of inventory (97
 percent), bill of material (99 percent) and production schedule (100 percent).
 With these necessary building blocks, TVSLP was able to upgrade quickly to
 lean assembly, thereby reducing cycle time. As a result, inventory turns have
 doubled.
     Material flow (parts distance traveled and times handled) also has
 improved by increasing the number of entry docks and reducing stored
 inventory. The centralized receiving and storage area was replaced by five
 separate point-of-use receiving docks that directly feed the assembly cells
 throughout the paced line.
     In addition to the $10 million investment in lean manufacturing processes
 and fabrication capabilities, TVSLP has already spent $1.3 million on its
 recently renovated Engineering and Research & Development Technical Center.
 TVSLP is also completing an addition to its FMTV test track that will mirror
 the off-road conditions at the U.S. Army Aberdeen Test Center in Maryland.
     The Sealy plant already has the largest electrodeposition top coat paint
 system ("E-Coat") in the southern United States -- a process which helps
 ensure corrosion prevention. The FMTV vehicle is the first truck to have
 passed the Army's 22-year corrosion resistance test.
 
     Founded in 1902, Stewart & Stevenson Services, Inc. (Nasdaq:   SSSS)
 provides power systems, parts and services to the following industries:
 Military, Marine, Oil & Gas, Agriculture, Industrial, Highway & Transit and
 Airline Ground Support. The corporate Web site is http://www.ssss.com .
 Stewart & Stevenson Tactical Vehicle Systems, LP (TVSLP) is the primary
 contractor for the U.S. Army's Family of Medium Tactical Vehicles (FMTV),
 which includes 2.5 and 5-ton trucks in 14 variants with 85% commonality. More
 information can be found at http://www.fmtvtruck.com .
 
     This press release includes forward-looking statements within the meaning
 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934. Stewart & Stevenson believes that its expectations, as
 expressed in these statements, are based on reasonable assumptions regarding
 the risks and uncertainties inherent in achieving those expectations. These
 statements are not, however, guarantees of future performance and actual
 results may differ materially. The most important factors that may cause
 actual results to differ from our expectations are the risks of cancellation,
 adjustment or termination of the contracts with the government and our ability
 to introduce competitive new products and services on a timely, cost effective
 basis.  Other risk factors are listed in Stewart & Stevenson Services, Inc.
 annual report to the Securities and Exchange Commission on Form 10-K for the
 year ended January 31, 2000, and Quarterly Report to the Securities and
 Exchange Commission on Form 10-Q for the three months ended October 31, 2000.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X16063578
 
 

SOURCE Stewart & Stevenson Tactical Vehicle Systems, LP
    HOUSTON, April 23 /PRNewswire Interactive News Release/ -- Stewart &
 Stevenson Tactical Vehicle Systems, LP (TVSLP) today announced it will add a
 fabrication and welding center to its Family of Medium Tactical Vehicles
 (FMTV) production facility in Sealy, Texas. The new center is expected to
 create over 100 additional positions and enable TVSLP to manufacture selected
 FMTV components in-house.
     The fabrication and welding center is part of a $10 million expansion
 program that began last year with the implementation of "lean assembly"
 processes at the Sealy facility. The fabrication upgrades will improve
 quality, facilitate one-piece flow and increase TVSLP's core competencies
 through vertical integration in fabrication and welding. The facility is using
 the newest technologies in fabrication and integrated design and manufacturing
 software, compressing cycle times, improving quality and lowering the life
 cycle cost of the FMTV product.
     The Sealy facility, located 50 miles west of Houston, is specifically
 optimized to produce the FMTV, which the company has been making for the U.S.
 Army, National Guard and U.S. Air Force since 1991.
 
     New Fabrication and Welding Center
 
     TVSLP is converting existing space made available by "lean assembly"
 implementation, and expects to have the facility complete by mid-year 2002.
 The center will expand TVSLP's Original Equipment Manufacturer (OEM)
 competencies through the fabrication of an additional 200 FMTV truck
 components, which are currently purchased elsewhere for assembly by TVSLP.
     The fabrication center will take advantage of the latest technology in
 forming and cutting sheet and plate using lasers, high definition plasma and
 computer numerically controlled (CNC) presses and shears.
     TVSLP's engineers already use Pro/ENGINEER, a three-dimensional, solid
 model computer aided engineering software. This virtual prototype design and
 testing software will be integrated with the planning and fabrication software
 at the new center.
 
     Other Components of the Expansion Program: Implementation of
     "Lean Manufacturing" and  "One-Piece Flow" Processes
 
     The $10 million expansion program, of which the new fabrication center is
 a part, began in April 2000 with the implementation of lean manufacturing and
 one-piece flow processes similar to those pioneered by Toyota. The move to
 lean manufacturing was based on the plant's solid foundation of a fully
 implemented and stable MAPICS enterprise resource planning (ERP) system. The
 facility has consistently maintained a high accuracy of inventory (97
 percent), bill of material (99 percent) and production schedule (100 percent).
 With these necessary building blocks, TVSLP was able to upgrade quickly to
 lean assembly, thereby reducing cycle time. As a result, inventory turns have
 doubled.
     Material flow (parts distance traveled and times handled) also has
 improved by increasing the number of entry docks and reducing stored
 inventory. The centralized receiving and storage area was replaced by five
 separate point-of-use receiving docks that directly feed the assembly cells
 throughout the paced line.
     In addition to the $10 million investment in lean manufacturing processes
 and fabrication capabilities, TVSLP has already spent $1.3 million on its
 recently renovated Engineering and Research & Development Technical Center.
 TVSLP is also completing an addition to its FMTV test track that will mirror
 the off-road conditions at the U.S. Army Aberdeen Test Center in Maryland.
     The Sealy plant already has the largest electrodeposition top coat paint
 system ("E-Coat") in the southern United States -- a process which helps
 ensure corrosion prevention. The FMTV vehicle is the first truck to have
 passed the Army's 22-year corrosion resistance test.
 
     Founded in 1902, Stewart & Stevenson Services, Inc. (Nasdaq:   SSSS)
 provides power systems, parts and services to the following industries:
 Military, Marine, Oil & Gas, Agriculture, Industrial, Highway & Transit and
 Airline Ground Support. The corporate Web site is http://www.ssss.com .
 Stewart & Stevenson Tactical Vehicle Systems, LP (TVSLP) is the primary
 contractor for the U.S. Army's Family of Medium Tactical Vehicles (FMTV),
 which includes 2.5 and 5-ton trucks in 14 variants with 85% commonality. More
 information can be found at http://www.fmtvtruck.com .
 
     This press release includes forward-looking statements within the meaning
 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934. Stewart & Stevenson believes that its expectations, as
 expressed in these statements, are based on reasonable assumptions regarding
 the risks and uncertainties inherent in achieving those expectations. These
 statements are not, however, guarantees of future performance and actual
 results may differ materially. The most important factors that may cause
 actual results to differ from our expectations are the risks of cancellation,
 adjustment or termination of the contracts with the government and our ability
 to introduce competitive new products and services on a timely, cost effective
 basis.  Other risk factors are listed in Stewart & Stevenson Services, Inc.
 annual report to the Securities and Exchange Commission on Form 10-K for the
 year ended January 31, 2000, and Quarterly Report to the Securities and
 Exchange Commission on Form 10-Q for the three months ended October 31, 2000.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X16063578
 
 SOURCE  Stewart & Stevenson Tactical Vehicle Systems, LP