SUCCESS STORY MANUFACTURING SECTOR KOSTWEIN HOLDING GMBH

SUCCESS STORY MANUFACTURING SECTOR KOSTWEIN HOLDING GMBH

IGNITING THE PASSION FOR SUCCESS EFQM is a network of remarkable and like-minded organisations who share a common vision of Excellence, as a continuous Journey together. Through each Success Booklet, EFQM brings to you inspiring stories of people and companies who have successfully deployed the Model and experienced its many benefits. Here we take a closer look at how they did it... EFQM ENABLES YOU TO CONNECT, LEARN, ACT, ACHIEVE, SUCCEED The EFQM Excellence Model provides organisations with a platform and common language to share their experiences and learn from others. The desire to share, learn and innovate is what drives our economies forward. A derived observation is the fact that what was considered "best practice" yesterday rapidly enters the mainstream and becomes common practice today. To stay ahead, organisations need to adapt faster than ever. Introducing a proven practice from one sector to another is one way to achieve this... 2

THE JOURNEY TOWARDS EXCELLENCE......there is a continual improvement loop, feeding back the learning from the results achieved and using creativity and innovation to drive increased value for all the stakeholders.

MANUFACTURING SECTOR THE STORY OF KOSTWEIN HOLDING GMBH PLEASE PROVIDE A BRIEF SUMMARY OF YOUR BUSINESS Kostwein Group is a family business located in Austria with subsidiaries in Croatia and India. Our business model is the production of complete machines for global market leaders in the different branches of machine construction like packaging, tooling, printing, pharmaceutics and textile industry. In this "build-to-print" business, we offer our customers the highest quality, shortest lead time and best life-circle costs. We have 1100 employees that generate revenues of 170 MIO. WHEN DID YOU START USING THE MODEL? In 2012, we were rewarded as the most efficient company in Austria Fabrik des Jahres audited by the Frauenhofer Institut. After celebrating this important milestone, our leaders were asking to take the next steps in our improvement journey. In 2013, we learned about EFQM while participating in an Excellence day at BMW. The convincing factor to go for EFQM was the holistic and strategic approach. In a nutshell, for us, ISO is focusing on doing things right, and EFQM is focusing on are we doing the right things. So our goal for using the EFQM methodology was to achieve the next level in our strategy process. HOW DID YOU GET STARTED? The first step was for the top management to study the EFQM Excellence Model and identify the existing company philosophy: customer orientation, leadership style, process orientation and focus on people was already very much aligned with the EFQM model. The next step was the steering team (top management and all process leaders) working out a First application for an assessment by Quality Austria as well as having made a self-assessment. This step took about 3 months. 4

HOW DID YOUR JOURNEY CONTINUE? The next step in our journey to Excellence was a 2 day workshop with an external EFQM expert to evaluate the application and the maturity in real life. Over the next 2 months, we worked on improvements based on the feedback from this session. Already 6 months after starting to work with EFQM, we went for our first assessment by Quality Austria. As a first great success, we were awarded the "Recognised for Excellence 4 star". This was a great motivation for all our employees to continue our journey. The next step was an in-house training for our steering team by an EFQM trainer and 7 of our process leaders passed the assessor Training. WHAT VALUE DID IMPLEMENTING THE MODEL BRING TO YOUR COMPANY? WHAT CHANGED? Based on this newly acquired know-how, we wrote our next application which is now used as a guideline model for our Excellence Journey. One of our big learnings was to seriously plan all approaches before starting any deployment activity, and to understand the link between the different KPI s and KPR s. One year after the first assessment, we went for the second one and based on the results, we have been awarded the "Recognised for Excellence 5 Star" as well as the Austrian Quality Award in 2015. The high valuable feedback report from this assessment has been used for further improvement. WHICH ASPECTS OF IMPLEMENTING THE MODEL ARE YOU PARTICULARLY PROUD OF? WHAT ASPECTS OF THE IMPLEMENTATION WERE CHALLENGING? Thanks to the deployment of the EFQM model, we were able to develop the Kostwein Excellence model, of which we are very proud. As a family business with 96 years of company history, we strive for long term and sustainable success. Our culture, company values and leadership are the drivers for customer and employee satisfaction. In relation to the optimised processes of our excellence strategy, this message corresponds perfectly with our mission statement that we established 15 years ago. As a result of the employees' satisfaction and the optimised processes, we can see that operative excellence which assures in combination with customer satisfaction, long term growth and results. CAN YOU PROVIDE SOME RESULTS OR TANGIBLE EVIDENCE OF THIS VALUE/CHANGE AFTER A FEW YEARS? Based on the improved strategy process, we have been able to diversify our customer base. Adding additional value has increased and further developed the relation and partnership with our customers. Finally, this ended with significant growth of our revenues and results. In the yearly Trend survey (business magazine): we achieved 2nd place as Austria s Best employer and in the Austrian total ranking we have been ranked as Number 6. AS A RESULT OF IMPLEMENTING THE MODEL, HAVE YOU BEEN ABLE TO IDENTIFY IMPROVEMENTS IN ANY OF THE FOLLOWING? We have been able to identify improvements in employee satisfaction, customer satisfaction, society results, revenue, productivity and lead time.

WHAT DO YOU THINK ARE THE KEY BENEFITS OF IMPLEMENTING THE EFQM PHILOSOPHY? To use EFQM as a role model on our Journey to Excellence. This has significantly improved our strategy development process. We now have a clear guideline for all processes which respects the demands of all the different stakeholders. The recognition as Austrian Quality Award Winner is a strong marketing benefit and is appreciated and recognised by our customers. WANT TO KNOW MORE ABOUT KOSTWEIN HOLDING GMBH? Send your questions and enquiries to EFQM and we will make sure to get an answer for you. You can contact us at: info@efqm.org +32 2 775 3514 Hans Kostwein, Managing Director Koswein Holding GmbH 6

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