Environment, Initial Position, Task

Proceeding, Achievement

Company:
Producer of customer specific hydraulic components and systems for mobile and stationary hydraulic/ automotive/ trucks, 1.050emp./160Mio.€/a (2007)

Responsibility:
Business Unit Manager and member of the executive board (assigned responsibility for sales, R&D, calculation and logistics) 550emp./90Mio.€/a

Initial Position:
Growth potentials identified and first achievements but profit level is not satisfying and increasingly under pressure because the costs are too high compared to the competition. Securing of current business and new business is only possible with lowered price level.

Task:
Improvement of the competitive position to secure current business and growth chances.

Proceeding:
Planning and set-up of a new production plant in Poland for cost optimised production of relocated and new product lines, after an analysis and evaluation of different options in Eastern Europe respective cost level, availability and qualification of labour force, logistics, political stability, subsidies, etc.

Reduction of labour costs and considerable increase of efficency through:

• Negotiation and closure of a site continuation agreement, converting from
  piecework to teamwork and introducing the collective agreement tariff
  
• Introduction and controlling of a continual improvement process "PRO" for increased
  productivity, cost savings and prevention of waste  
  
• Reduction of the cycle time for prototype construction by 30% and achievement of the customer’s requested date in more than 90% of cases with savings of approx. 20%, as well as accelerated testing for customer and internal optimisation projects, meeting the increasing demand through reorganisation and expansion of the trial and prototype construction area
  
  

Achievements:
Cost reduction of 10-15% for relocated and new products at the new location in Poland.

Reduction of labour costs in  headquarter and master plant of 7% at increased productivity.

Correspondent increase of the competitiveness enables a prolongation of current customer contracts at partly improved margin and the development of previously not accessible market segments.