Boosting Productivity Together
A company’s productivity depends not just on the performance potential of its machines and equipment. It is the willingness of employees to go the extra mile and to forge new paths jointly as a team that really makes production processes more efficient and customer-friendly.
This can be seen, for example, in the successful optimisation of production at our factory in Wetter an der Ruhr, where highly motivated, committed staff work together to find solutions that have brought about astonishing improvements in performance. We are currently in the process of transferring these approaches to increasing production efficiency to our facilities all over the world. In this way, successful teamwork is permeating the integrated Demag Cranes Group.
Laureate prize for Wetter plant in “Best Factory” competition: Dr. Rainer Harkort (right) and team.
Creative, dedicated – and highly motivated: production team.
Efficient production line layout for DC series chain hoists.
Restructuring Completed – Impressive Increases in Efficiency and Customer Satisfaction
Demag Cranes is one of the world’s leading suppliers of industrial cranes and crane components, harbour cranes and terminal automation technologies. As a company focused on profitable growth, we intend to continually expand and reinforce this market position. Demag Cranes is aware that this ambitious goal cannot be attained solely through innovative, high-quality products and services geared to meet market requirements. Speed and adherence to deadlines in the face of widely varying customer needs are additional criteria vital to customer satisfaction.
Thanks to the process optimisation achieved at Demag Cranes’ Wetter production facility, we have had commendable success in fulfilling the growing customer need for shorter delivery times by producing solid results: we have been able to reduce component processing time by an average of 70 percent. This improvement was utilised for order-driven assembly of our components. It now takes only four days from order intake, rather than six to date, for the majority of our rope hoists to reach the distribution centre. Five years ago, this took 15 to 20 days.
Our successful restructuring has produced more than just added value for our customers. The benefits of the new processes for Demag Cranes include significantly higher efficiency and, therefore, markedly lower costs. As it stands now, we only manufacture parts when there is an order for them. The result: profitability is rising and we are becoming increasingly competitive in a difficult market environment. For these reasons, we also consider our successfully completed restructuring project to be a clear commitment to the Wetter site and to manufacturing in Germany, as well as an essential contribution to securing the future of our Company.
Cell Production Replaces Workshop Production
One of the key factors in the success of the restructuring process at our largest production facility worldwide was the switch from workshop to cell and linear production. Previously, after each process step, the manufactured parts had to be stored in buffer storage facilities, which was a time-consuming and costly procedure. Thanks to the new manufacturing structure, the necessary steps are performed in immediate succession.
What may sound simple to the layman was one of the most extensive investment projects in the history of Demag Cranes and took several years. The measures required to accomplish this goal included breaking down material flows, organising products in new part families and assigning them to one of five segments. In total, Demag Cranes invested approximately EUR 14 million in the modernisation of its production infrastructure. Among other things, the success of this project is reflected in the massive reduction in processing time. At the same time, we succeeded in cutting back inventories, i. e. working capital, considerably. New, state-of-the-art machining centres were installed that can complete all process steps from turning to milling. Intensive staff training guarantees that each employee is capable of performing all of the steps and does not just remain specialised in a single task.
- Wetter an der Ruhr production plant
Oldest Production Facility Remains Trendsetter in New Technologies and Processes
It was in Wetter an der Ruhr in 1819 that the history of today’s Demag Cranes Group began with the establishment of “Mechanische Werkstätten Friedrich Harkort”. Over the years, the factory became the largest of all the Group’s production facilities worldwide. Today, the Wetter plant produces crane components and light crane systems for customers around the globe. The product range includes rope and chain hoists in addition to the KBK crane construction kit. The plant additionally produces wheel block systems and geared motors that are sent across the world through the distribution system. In May 2010, Demag Cranes received the “Best Factory/Industrial Excellence Award 2010” for its pioneering segmentation of the plant Wetter. The prize is awarded annually by INSEAD business school and the Otto Beisheim School of Management (WHU) in Vallendar near Koblenz.
Amazing Feat by Employees
The entire project was developed and implemented exclusively by our own employees over a period of several years. This reflects the extraordinary creativity and motivation of our workforce. Transparent communications and the opportunity to gain additional qualifications as part of the change process proved to be further motivating factors.
Prestigious Award in Prominent Competition
Our plant in Wetter took second place in the prominent “Best Factory/Industrial Excellence Award 2010” industry competition and was recognised for excellent production management. The international jury praised our first-rate production management solutions and acknowledged our excellent management quality. This award is also a challenge to Demag Cranes to continue to increase efficiency and customer focus on an ongoing basis. With our highly motivated and committed team, we are well positioned to shape the future of the Company successfully and impress customers with new products and services. In order to exploit this competitive advantage more effectively worldwide, we will apply the processes and structures successfully tested in Wetter to other locations internationally.
