Business in the 21st Century How to Navigate the Economy s Roller Coaster

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1 The Ingenics Customer Magazine 2011 / Issue 01 Business in the 21st Century How to Navigate the Economy s Roller Coaster Most importantly, you will have to look at quality, and make sure it stays top-notch - in your products, in your procedures, and in the interaction between your processes and your people. After all, the fundamental issue is to empower and motivate your existing employees to increase their value creation. In the short run, this will help you to rapidly increase production as needed, allowing you to always perfectly meet fluctuating demand. And over the long term, synchronizing people and processes will help you overcome issues with personnel, including a decline in skilled labor, demographic workforce changes, and more which we re already noticing in a wide range of industries. Dear Reader, As the global economy continues to go through its ups and downs, companies are re-evaluating their strategies, looking closely at how they can do more with less in order to stay afloat no matter what the economic climate. So far, we re only seeing the tip of the iceberg. More is yet to come. But for Ingenics, the emerging trend is motivation enough to examine its reasons and offer solutions. The fact is, adapting processes to people is becoming ever more important. And that s exactly what Ingenics specializes in. True to our credo, designing systems and enabling people, our multi-functional industrial consultants offer end-to-end services, simultaneously focusing on people and processes to help you accomplish more with fewer resources - and achieve not only rapid, but also lasting success. Read on to see how our solutions are helping companies all over the world. For these companies, their main concern is how to optimize the relationship between resources and output. The answer is simple: it s all about increasing efficiency. But how? Don t worry! You won t necessarily have to invest in new facilities and new equipment to achieve this goal. But you will have to pay close attention to several key factors. Enjoy! Oliver Herkommer Managing Partner Jörg Herkommer Managing Partner content LeanOffice: Exceptional Space for Extraordinary Solutions ERP Solution in Record Time The Latest from the US: Mastering the Challenge of Economic Growth Happenings in China: BMW Launches New Plant in China in Seven Months Book Review

2 Exceptional Space for Extraordinary Solutions New Ingenics Offices in Hamburg Stylish. Streamlined. Lean. We ve recently opened a new office in Hamburg. Situated at the Atlantic Haus, it offers a breathtaking 360-degree view of the city. But what s truly impressive about the space is that it serves as a convincing real-world model for the power of office optimization thanks to its modern office concept, sophisticated workplace design, and consistent implementation of LeanOffice principles. As much as necessary, as little as possible: One Point Lessons, the central Kanban station, uniform boxes for consultants personal documents, and perfect order in the file cabinets Ingenics Hamburg is a truly lean office environment. When maximizing efficiency for the new space, we first focused on the basic floor design. Employees need take only a few steps from their workstation to access frequently used equipment and materials. Conference rooms and other public areas are strategically positioned by the front entrance, allowing visitors to enter without interrupting the regular work routine. But the real impact comes into play when we look into the heart of the operation the offices themselves. Built-in Efficiency Many companies wonder what s better: an open-plan space or individual cubicles. Our answer may sound paradoxical, but the most efficient solution is actually a combination of both. Why? Because office work is multifaceted; because times of concentration and times of communication require different environments; and because compromising on either one yields poor results in both. That s why we ve allocated a large portion of the office space to include silent as well as creative and communicative work islands, with additional silent offices situated just across the hall - providing perfect silos for any situation. And since personal items are stored in a central location in easily accessible, uniformly labelled boxes, employees can always choose the silo that best fits their needs. Change of Perspective The kind of quality solutions that Ingenics customers have come to expect require neither stereotypical environments nor creative chaos, but rather the systematic promotion of various perspectives. That s why we have built creative spaces in variable sizes, decorated with eclectic furniture in exciting colors that allow for a quick change of scenery, and help people unwind and keep their minds fresh throughout the workday. As for the interior design, we ve relied on professional advice. All of our equipment meets the requirements of the latest ergonomic standards, and sets the stage for maximum staff performance. Finally, we ve designed and implemented intelligent processes facilitated by transparent, powerful tools to ensure that workdays in our Hamburg office produce maximum value. Secure Processes A case in point: the Kanban system. Guaranteeing just-in-time part supply in production, Kanban also yields numerous benefits in office environments. No single person needs to keep track of material orders; all can focus on adding value - and no single person must take charge of ordering processes; all have more time to create value. Employees can use their spare time and dips in concentration to process the data collected in the Kanban boxes, following easy and clear directions. By shifting the Kanban card, they signal that the process is in progress. It s only a small step for the individual, but it is a big help for the office community. Work times are used more efficiently, and material shortages as a result of the person in charge being sick or on holiday are a thing of the past. Keep it Simple Another example that shows that small steps go a long way: Ingenics One Point Lessons. In our Hamburg office, questions like: How does the copier work or How do I use the flip chart never even come up. No one wastes time looking for the answer or asking colleagues for help. Instead, everyone s permanently in control, even during holiday times or staff changes. How? By using One Point Lessons that answer the most frequently asked questions, succinctly, in clear visuals placed directly where the questions arise. Similarly, cabinet visualization ensures a seamless, efficient workflow. Even rarely used documents and materials can be instantly accessed and properly filed back after use. At Ingenics in Hamburg, 5S is no longer an abstract ideal, but rather a practical standard that is reinforced during regular audits. In the office environment, just as in production, proven standards are the best breeding ground for a continuous improvement process. A rules round is also part of everyday life at Ingenics, eliminating problems before they even arise and promoting a lean spirit throughout the organization. Ultimately, all of these concepts in practice build the foundation for the final element of Ingenics Lean Office system: staff selforganization. Free from mental and physical distractions, employees are able to use their optimized work space to focus on what really matters creating value, and developing the best solutions for their customers business success. Come and See for Yourself Our new office in Hamburg is not only a place where we develop top quality solutions for our clients. It is also a training facility where we teach lean methods to up to 20 participants at a time. Feel free to call us to schedule a training session, or for a tour of our facilities. Can t make it in person? Download this handy Kanban Card to get a taste of how this ingenious approach can work in your office environment. Ingenics Tools for Lean Office Processes: Kanban Card Download now for free at Artikel: Mindestbestand: Optimale Bestellmenge: ProduKtiNformAtioNeN Artikelbeschreibung: Lieferant: Bestellnummer: Zusätzliche Informationen: KANBAN

3 Process Analysis and Optimization Ensures Success Ingenics at JEOL Germany: Selecting and Implementing an ERP Solution in Record Time Many companies struggle with a similar problem on the IT front: The need to focus on the day-to-day business leads to the introduction of one partial upgrade after another, causing them to increasingly lose sight of the big picture. As a result, they typically end up with isolated and often incompatible solutions. But this can all be avoided with the right approach. A case in point: JEOL Germany. The German subsidiary of a Japanese manufacturer of scientific equipment, JEOL Germany had long since planned to introduce a new ERP system to better support its specific requirements. When the company was put in charge of the JEOL subsidiary in Stockholm, the timing was ripe to put the wheels in motion. "With several locations involved, we had to find a way to map out all processes and their interaction so we could find a solution that leveraged existing synergies, yet effectively met all needs," explained CEO Dr. Siegfried Falch. Of course, we wanted to Phasen Activities Objectives Methods Duration Foundation Define Project Goals and Prerequisites Customize Implementation Approach Define Project Scope Coordinate Organizational Administration & Communications Strategic Evaluation Define: Corporate Goals Core Competencies The successful deployment of a new IT system depends not only on the software purchased, but also on the selection process. And in fact, a process-oriented approach is critical to helping companies select the most appropriate solution, introduce it in the most efficient manner, enable continuous improvement, and ensure lasting success. minimize the risk of spending time and energy on a solution that would ultimately prove lacking. That s why we turned to a third-party expert to help us make the right decision: Ingenics. The Difference: Process-Oriented System Selection What makes Ingenics a valuable partner for ERP selection? For one thing: expertise. Ingenics specialists tap into an in-depth knowledge of the ERP marketplace, making it easier to quickly and effectively zero in on the systems that are best suited for each company s needs. But there is another reason why working with Ingenics proves so beneficial. When our specialists first develop the specs for a new system, using a detailed checklist, they also engage in a comprehensive process analysis setting the stage for professional, integrated Module 1 Module 2 Module 3 Develop Specs Technology Needs Check IT Market Demands Check Site 200 Systems on the Market Organizational Evaluation Assess Status Define Target Processes Research Available Solutions and Data Validation Consolidate Results Contact Solution Providers Present Options Select Top Two Choices M a r k e t R e s e a r c h Systems Shortlist Final Selection Implementation System Selection Process Modeling Project Management 9 to 15 months Develop RFQ Finalize Cost Estimates Conduct Testing & Assessment Provide Recommendation Manage Contract Negotiations Complete Project 3-5 Systems Fine Tune Implementation Plan Decision & Contract Plan Data Transfer and Set-Up Develop Training Concept Manage Integration of Subsidiaries Adaptation process optimization. Once exact requirements are determined, this process-oriented approach helps to align the features available in various ERP systems to these requirements. All this can be done without disrupting ongoing operations. After identifying the best solution, Ingenics business unit manager Heiko Finn and his team help companies to negotiate the contract and implement the system. This ensures a seamless deployment that is perfectly in sync with customer needs, from start to finish. At JEOL, the early results are promising. Thanks to the new ERP system, the company s sales process has become greatly streamlined a critical edge in an industry where large projects usually take years to complete. Controlling has also been significantly improved. With Ingenics help, the entire project ran smoothly and to perfection, and is well on track to yielding a rapid and lasting ROI. JEOL Germany develops electron optical equipment and instruments for scientific and industrial research including electron microscopes (SEMs and TEMs). Coming to America: Mastering the Challenge of Economic Growth Ingenics cross-cultural competencies can help companies quickly ramp up production capabilities, without breaking the bank. With the economy continuing to recover, the American market presents a wide range of business opportunities for German manufacturers. But even as they ramp up production facilities across the US, German companies face a common challenge: how to continue to leverage their existing methods within an entirely different corporate culture. Increasingly they are turning to Ingenics, whose proven cross-cultural competencies and unique lean consulting approach have enabled hundreds of companies to effectively apply global practices at the local level to achieve success. When it comes to international business, the usual rules don t always apply. What works in one country doesn t necessarily work in another. Yet global businesses must have standardized practices in place to increase efficiencies across the board, while keeping costs at bay. Finding the right balance between global directives and local requirements is key. That s why many German companies coming to the US are now turning to outside specialists who are as familiar with German engineering practices as they are with US workplace trends specialists like Ingenics. With proven expertise in both German and US manufacturing operations, Ingenics provides them with the insight and support they need to improve efficiencies across multiple international locations, effectively and affordably. How? By enabling them to first analyze the status quo and understand its underlying workings, then systematically identifying and applying those elements that are responsible for long-term success. First Understand, then Act Accordingly Let s look at staff training as an example. With employee turnover rates typically higher in the US than in Germany, Ingenics helps German manufacturers adapt and accelerate their job orientation practices accordingly. However, bringing new personnel rapidly up to speed does not have to mean straying from the systematic work methods and high quality standards for which Germany companies have become famous. With well-defined, simply structured, properly documented, and transparent processes, new employees in the US can quickly learn to master even the most challenging tasks. In the production environment, for instance, clearly defined TAKT times and additional visualization enable route train conductors to rapidly master their jobs, even without prior work experience. Once all processes are properly designed, professional training is the icing on the cake, driving acceptance across all departments from top management to shop floor personnel and ensuring lasting results. Such training requires coaches who offer an industry insider s experience while keeping an eye on the big picture, understanding the needs of both the headquarters and its local subsidiaries, and combining lean manufacturing consulting expertise with cross cultural know how. These are the types of trainers and lean consultants you can find at Ingenics in Atlanta. To find out how you can benefit from our industrial engineering consulting services in the US, contact us today Paces Ferry Road Suite 1045, Atlanta, GA Phone contactica@ingenics.com

4 As Markets Set the Pace, Companies Turn to Unconventional Solutions to Charge Ahead 市场需求决定企业发展速度, 各公司突破常规方案, 共同开拓进取 BMW Launches New Plant in China in Seven Months 宝马七个月内将在中国开设新厂 With demand for German cars at an all time high in China, German car manufacturers are racing to ramp up their local production capabilities while keeping their budgets under control - charging ahead, while keeping a light foot on the brake. BMW is one company that has successfully risen to the challenge, staying true to the motto Think outside the box. 由于中国市场对德国汽车的需求创历史新高, 德国各大汽车制造商正卯足劲扩大各自在中国的产能, 而与此同时还要严格控制预算支出 高速前进时不忘轻踩刹车 宝马公司本着 解放思想, 突破常规 的理念, 成功应对挑战, 成为同行中的佼佼者 Though BMW already had plans to move to a new plant in China for the production of its next model, local demand was rapidly growing for its current 3Series, making it necessary for the company to increase manufacturing capacities immediately. The situation called for an interim site, one that could be completed within just seven months. To meet this aggressive goal - and plan the logistics layout and processes for production from the arrival of ready-to-install parts to the final assembly - BMW called on a trusted partner with proven experience in the Chinese marketplace: Ingenics. Together, BMW and Ingenics focused on: planning streamlined processes; defining staff, equipment, and structural building needs; developing individual training concepts to adequately prepare local staff for the tasks ahead; monitoring the implementation; and finally, supporting the launch. The project required maximum performance at every level, while balancing seamless adaptation to local requirements and conditions. While these may have seemed like routine tasks for BMW s experts and Ingenics logistics planner, the companies also faced some unique challenges along the way. For example: the new processes had to be synchronized with the plant layout of a site that was already selected and rented, encompassing four hangars in an existing industrial park. In addition, spending had to be kept to a minimum. Substantially changing the existing architecture was out of the question for an interim site. As a result, the processes had to be designed to adapt both in time and in space to existing physical conditions, which were less than optimal. Ramping Up Resources Just-in-Time The companies had only seven months from project start to finish. Seven months during which the collaboration between all parties involved, including BMW headquarters, the joint venture BMW Brilliance Automotive Ltd., BMW s SAP experts from South Africa, and various external partners, needed to work to perfection. Seven months during which Ingenics logistics experts were required to be on site around the clock. Seven months during which seamless communication between all project members was required - since every little misunderstanding, any minor delay would have jeopardized the timing and success of the entire operation. This was certainly one of the most unconventional tasks I ve ever faced, admits Dr. Jens Nitsche, Ingenics Partner and head of the Ingenics team for this project. But since BMW laid the groundwork, we could proceed without delay. According to Nitsche, proven methods and best practices always need to be adapted to the specifics of each project, but the necessary changes are rarely as complex as for this particular endeavour. Key tasks included: line side planning; conceiving material delivery; creating kitting and sequencing areas; timing and placing route trains; planning the ware- house structure including incoming parts; setting up special cargo carriers for kitting; and, last but not least, efficiently bridging the open spaces between the four facilities. Despite these challenges, BMW was able to successfully reach its ambitious project milestones in record time. How? By leveraging flexible, low-cost concepts, implemented in strict compliance with lean philosophies, and by keeping the project pace high and spending low. Simply Lean Today, BMW s interim production site sports two logistics and two assembly halls, each allowing for seamless expansion as needed. Best practices are at play throughout the facility. For instance, Kanban-scheduled route trains feature flow racks that enable highly efficient supply to the entire assembly plant. Many other flexible, low-cost concepts have been implemented in accordance with lean principles. The BMW project is a great example of how manufacturers can ramp up to deliver a top quality product in record time, without high costs. Tapping into its experience with BMW and other global clients, Ingenics is available to help manufacturers around the world realize even their most ambitious expansion plans. 虽然宝马已经决定在中国开设新工厂生产其新车型, 但中国当地对宝马 3 系的需求增长迅速, 因此提升产能势在必行且迫在眉睫 要在短短七个月内完成产能扩张, 只能选择临时厂房 为科学规划物流布局和包括零部件运输与组装在内的生产流程, 同时完成扩张目标, 宝马选择在中国市场具有实战经验且值得信赖的英见公司作为合作伙伴 合作伊始, 双方共同致力于 : 规划先进的生产流程, 置办生产设备, 遴选厂房 ; 招聘高素质本地员工并进行宝马独特的企业文化培训, 使其足以胜任工作岗位 ; 全程监督各项工作的进展, 确保整个目标的实现 整个项目的完成有赖于各方面的全力以赴, 包括参与者入乡随俗 因地制宜 物尽所用 人尽其才 上述任务对于这支由宝马专家和英见物流规划精英组成的合作团队自是驾轻就熟, 然而挑战不仅限于此 例如 : 生产线的建设必须与厂房规划同步 由于已经选定并租下工业园区一处带有四个大仓库的厂房作为厂址, 为使支出最小化, 不可能对现有厂房结构进行大规模的改动 因此, 生产线的设计就必须立足实际, 在项目时间和现有空间两方面都做出相应调整 汇聚力量 及时高效从项目的启动到落成, 合作双方只有短短七个月的时间 在此期间, 包括宝马总部 中德合资华晨宝马有限公司 来自南非的宝马 SAP 系统专家 以及其他参与此项目的合作者必须通力合作, 力臻完美 ; 在此期间, 英见的物流专家必须随时待命, 确保全天候的服务 ; 在此期间, 所有项目参与者必须实现无障碍沟通交流, 因为任何看似不起眼的沟通失误和短暂延迟都会影响整个工程按时保质地完成 英见合伙人 参与本次项目合作的领队 Jens Nitsche 博士认为 : 这是我所参与过的最不同寻常的项目之一 ; 鉴于宝马公司已经打好基础, 我们应该争分夺秒, 勇往直前 博士认为, 尽管实证理论和最优方法必须与实际情况相结合, 但这个项目所作的针对性调整的复杂程度是罕见的 关键任务包括 : 规划生产线 构思原材料输送 设立配套装配及顺序排列区域 调试并安装输送流水线 以发展的思路规划仓库结构 为配套装配提供专用运货工具 ; 最后, 有效利用四座厂房之间的空间 面对众多挑战, 宝马公司还是按时保质完成了其里程碑式的扩张项目 原因何在? 严格落实精益生产, 灵活多变 低投入 高产出, 确保整个工程进展快 成本低 精益生产 大道至简如今, 宝马的临时生产线由两个物流供给线和两个组装线组成, 每条生产线皆可根据需要进行无缝扩展 各种先进技术和操作规范贯穿整个生产流程 例如, 基于看板系统制定的输送流水线给整个组装线提供了高效支持 ; 其它灵活多变的 低成本的做法淋漓尽致地体现了精益生产的理念 宝马公司的这个项目是制造商追求短时间 低成本 高质量运营的经典范例 经过与宝马以及其他全球客户的成功合作, 英见公司愿全力协助全球制造商开拓进取, 大展宏图

5 Book Review "Too Big to Fail". By Andrew Ross Sorkin Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System and Themselves. Perhaps nobody understands the impact of the recent recession better than manufacturers. In the wake of the crisis they have been working tirelessly to restructure their businesses to become leaner and better prepared for any economic scenario. But what led to the downturn, and could we have spotted early warning signs? New York Times reporter Andrew Ross Sorkin seeks to answer these questions revealing the true stories behind the recent financial collapse in the United States a fascinating read for all who were affected by it. As an acclaimed reporter at one of the world s premier newspapers, Sorkin was able to interview many policymakers as well as key players at the Wall Street banks whose actions contributed to the fall of the economy. The result is a startling look behind-the-scenes at the relationship between the country s financial institutions and its government. Sorkin has kept most editorial opinion out of the story to offer a thorough chronology and compelling inside look at a situation that some have said reads like a fictional spy novel. The 11 th Ulm Dialogues May , City Hall, Ulm, Germany Visions, Strategies, and Methods to Shape the Future: Addressing Demographic Changes in Your Business. The prospect of exciting presentations, stimulating discussions, and valuable insights always turns our annual Ulm Dialogues event into a popular meeting place for international decision makers. This year, we address the growing challenge of integrating a changing workforce. The topic: Demographic Changes in the Workplace Breaking Down the Hype: How Companies Can Prepare for the New Reality of Business Ulm Dialogues 2011: Peter Hahne Expected to Keynote When it comes to aging workers, less skilled workers entering the market, and other demographic changes to today s labor force, everyone has something to say whether it s making the situation sound dire, or completely downplaying it. Ingenics experts and renowned speakers will discuss the changing workforce that often raises controversial yet rarely productive dialogue. Our program will include a thorough theoretical and strategic analysis of this emerging trend. TV anchor Peter Hahne will give the keynote address. And as always, all our presentations promise to be clear, concise, newsworthy, entertaining, and informative. To receive your personal invitation, please contact Selina Berendorf at News Ingenics is growing! We ve expanded our training facilities in Hamburg and Shanghai, and we ve opened a brand new office in Paris. True to our commitment to be available wherever you are, our larger presence allows us to offer consistent industrial engineering consulting services and reliable quality across all your global facilities. For a list of our offices around the world, please visit our new website: Contact information ingenics Corporation 2839 Paces Ferry Road Suite 1045 Atlanta, GA contactica@ingenics.com Phone Fax Ulm Stuttgart Munich Hamburg Paris Shanghai Atlanta