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Developing the Hyvinkää Component Factory’s production planning and sourcing

Konecranes Group’s turnover and personnel more than doubled from 2004 to 2006. During this rapid expansion the production site and supplier network also expanded, especially in the developing market areas.

The Hyvinkää Component factory is number one production site that serves all Konecranes Group's divisions by manufacturing mechanical and electrical components and trolleys for different cranes. At the beginning of 2006, the management of the Hyvinkää Component factory was facing a dilemma: Its operation organisational models needed to be updated at the same time as production was running at full capacity and its main ERP-systems were being renewed.

Consequently, theHyvinkää Component factory was experiencing difficulties in responding to the increase in demand. Delivery times were increasing and order backlogs were growing. Purchasing had turned into be hunting for availability from suppliers who were also being challenged by the rise in demand. It was a negative cycle that had to be stopped.

A broad and close development of operations together with client’s key personnel

Wedo Consulting Ltd was chosen to become the development partner for the Hyvinkää Component factory. Wedo’s professionals worked closely together with Konecranes’ manufacturing and purchasing management and personnel from spring 2006 to summer 2007.

The co-operation resulted in the following successes:
  • Production processes were defined and development targets were identified
  • Necessary changes regarding operations and organisation were defined and pre-requisites for their implementation were created
  • During spesially planned sessions changes were communicated for 35 key resources
  • Sourcing and purchasing processes were unified and improved significantly
  • A development model for the component factory’s different units was designed and implemented

Building confidence in succeeding

All production managers stated on several occasions that the key success factor in the development programme was the strong commitment and belief of Wedo’s professionals that difficult Engineer-to-Order business challenges could be met and solved.

“The comments of my key people convinced me”, said Juha Anttila who was appointed new director of the Hyvinkää component factory in spring 2007.

”We succeeded in crossing boundaries between different manufacturing, engineering, sales and purchasing units. Moreover, we were able to bring the viewpoints and recommendations for action developed in conjunction with Wedo to several other on-going development programmes within Konecranes. For example, operational requirements for ERP-systems.” ,concludes Wedo Consulting Ltd’s partner Toni Pieskä.

”Co-operation was exemplary during our year in Hyvinkää. It was great to see and experience the improvement of operations during the program.” stated Wedo’s Senior Consultant Lasse Ukkonen.
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