How Seco Tools turned challenges into success with Integral Management
Seco Tools is one of the leading producers of Inserts and Tools for Manufacturing of Metal Components. Worldwide Seco Tools employs some 4,000 people and has collaborated with IntegPartner since 2011.
Challenge
In 2011 Seco Tools was challenged by key customers because of poor delivery reliability which threatened Seco Tools position as a premium tools supplier to the automotive and aerospace industries. Because of quite low yield in the insert production processes a lot of time and material was wasted which negatively affected the profitability. Previously there had been many attempts with improvement projects and task forces, but the positive effects had only been temporary.
Goal
The management team agreed on three focus areas: Increased yield, Increased stock availability and Reduced lead-times. The targets were set to 96% yield (from 90,3%), 97% stock availability (from 92,1%) and standard lead-times in production from 42 days down to less than 25, within a year.
Solution
The conclusion in the management team was that what was needed was to involve and engage all employees and to allow each team to provide their best contribution to one or more of the focus areas.
Execution
First step was to fully onboard the management team, with extensive training in Integral Management. This was followed by extending the training to other managers and team leaders on how to translate the Seco strategy to their working environment and to coach them on how to involve and motivate all employees. Through Strategic Dialog the strategy was streamlined and was presented to all employees in continuous Co-Worker Seminars. Twice a year there was a follow-up where strategic direction was adjusted, and victories celebrated.
Result
In 2013 the delivery precision stabilized around the 95-96% level and the dialog with key customers could focus on value-added activities. The yield reached 94% in 2013 and increased to a sustained world class level of 96% two years later. Finally, the standard lead-times in the Fagersta production unit reached below 25 days in 2014, the learnings were then applied to all production units in the years to come.
Insights
Compared to previous improvement efforts this way of working with Integral Management provided a true and sustainable step-change in performance. However, it took some time before all co-workers were able to take a step across the line and be fully committed – but once that happened the results improved quickly. The learning for the management team was to have stamina, keep pushing and be consistent.
Value testimonial
”Today we have a Strategy Engine in place that involves the whole company. It makes our strategy happen faster and with more power, but it has also made us much quicker to move, we respond faster to our very volatile markets!”
Anders Eriksson, Head of Strategy
” Our productivity has increased 44,8% since 2012 and even more important is our increased yield. We had been stuck below 92% for several decades, now we are averaging between 95-96%!”
Anders Björklund, Head of Global Operations
“Our leaders are getting better and better at mobilizing the local expertise and creativity among our co-workers. They are better at teamwork both inside their own team, but also when cross-functional efforts are needed!”
Per Norell, Head of Global HR
“We have made more progress in Mexico (by far) in the last 12 months than in the previous 10 years. This was accomplished by creating a common sense of purpose and including everyone in the process. We had contributions from every area of the business and you can feel the shared pride in our accomplishments.”
Rob Keenan, Head of Seco North America
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