Drive Technology
Achievements 2018
SHIFT TO THE FUTURE
The course is set
In early 2018, the Drive Technology Strategic Business Unit underwent strategic realignment to focus consistently on its core business of synchronizers. HOERBIGER is striving to achieve technological cost leadership in this field. Structurally, the overall organization of the Strategic Business Unit has again grown considerably leaner in response to growing competition and changing markets and to remain successful in the long run.
In the plants, the worldwide value-adding structure was redefined according to the following main criteria: focus on technology, capacity optimization, as well as procurement and production close to the customers’ manufacturing sites (“local for local”). Especially in the functional areas outside manufacturing, the ideal organization was redefined from scratch (“zero-base approach”) – as opposed to improving ad-hoc structures.
employees
1.932
EUR million in sales
416.6
Expanded market position
In 2018, the Drive Technology Strategic Business Unit solidified its leading position in the market, expanding through a number of newly acquired projects. Being the world’s largest automobile market, China played a key role in this development.
The joint venture with the Chinese synchronizer manufacturer HAONENG, which was founded in 2016 and has since become successfully established, created an excellent position for HOERBIGER to meet the challenges of China’s volatile automotive market. The two partners pooled their strengths, creating optimal value for the customer. The joint venture is able to offer proven and innovative components and system solutions at very attractive costs. The combination of access to the local market and customer focus – along with strong technology and high quality – is the crucial factor in the success with synchronizers.
New project launches and on-time delivery
One of the most distinguished automakers launched its series production with the DCT-Type synchronizer, unveiling the new transmission in December 2018 at the CTI Symposium. Still, HOERBIGER’s achievements are not confined to products. In 2018, the Drive Technology Strategic Business Unit raised delivery quality and reliability in all plants to the next level. Drive Technology successfully mastered the start of production with a renowned Chinese OEM in every respect. Additionally, the Strategic Business Unit’s professional procurement strategy was instrumental in coping with bottlenecks and rising raw material prices.
MISSION STATEMENT
As a unique system supplier to essentially all leading European and Chinese vehicle and transmission manufacturers, we focus primarily on the development and production of transmission synchronizers. Our goal is to continue to expand our position as a market, technology and cost leader and, in short, remain the partner par excellence when it comes to synchronizers. We expect to achieve particularly high growth in China.
Thomas Englmann
Member of the Executive Board and Head of the Drive Technology Strategic Business Unit
Key Objectives 2019
Initiatives 2019
Growth and profitability
The Drive Technology Strategic Business Unit will also strive in 2019 to bring its organization better into line with the rising requirements in the automotive business. The goal is to achieve continued profitable growth in the Strategic Business Unit in general, and in the Chinese subsidiary in particular.
Aggressive acquisition
Aggressive project acquisition in three areas will be key to these efforts: first, new projects for upcoming vehicle platforms; secondly, additional volumes for existing transmission platforms; and thirdly, contracts that, at present, are still manufactured in-house by the customer – in other words, gain further market share.
Competitiveness
New manufacturing processes will considerably enhance the competitive position of the Strategic Business Unit yet again. Closely tied to this is the comprehensive development of the employees, aimed at creating satisfied, engaged and high-performance teams. In addition, the Strategic Business Unit plans to employ the Value Engineering/ Value Analysis approach to a greater extent – for structural optimizations ranging from product development to production.
Efficient processes
As part of the STREAM project, Drive Technology is expediting the standardization of the process landscape. In 2018, the processes and IT systems at the locations in Penzberg, Germany, and Changzhou, China, were optimized. The continued implementation of the program is expected to boost the efficiency of the remaining German plants.
Key Objectives 2019
Growth and profitability
The Drive Technology Strategic Business Unit will also strive in 2019 to bring its organization better into line with the rising requirements in the automotive business. The goal is to achieve continued profitable growth in the Strategic Business Unit in general, and in the Chinese subsidiary in particular.
Aggressive acquisition
Aggressive project acquisition in three areas will be key to these efforts: first, new projects for upcoming vehicle platforms; secondly, additional volumes for existing transmission platforms; and thirdly, contracts that, at present, are still manufactured in-house by the customer – in other words, gain further market share.
Initiatives 2019
Competitiveness
New manufacturing processes will considerably enhance the competitive position of the Strategic Business Unit yet again. Closely tied to this is the comprehensive development of the employees, aimed at creating satisfied, engaged and high-performance teams. In addition, the Strategic Business Unit plans to employ the Value Engineering/ Value Analysis approach to a greater extent – for structural optimizations ranging from product development to production.
Efficient processes
As part of the STREAM project, Drive Technology is expediting the standardization of the process landscape. In 2018, the processes and IT systems at the locations in Penzberg, Germany, and Changzhou, China, were optimized. The continued implementation of the program is expected to boost the efficiency of the remaining German plants.
EXTERNAL PERSPECTIVE
THERE ARE PLENTY OF GOOD REASONS IN FAVOR OF DIGITAL PRODUCTION
Dr. Thomas Troll
Partner, ROI Management Consulting AG
Is Lean Production becoming outdated?
Many wonder whether it is still worthwhile to invest energy in Lean Production when soon everything will be digitized. Computers in production have always been an atrocity for purists of Lean Manufacturing. But they are wrong. There are plenty of good reasons in favor of digital production. It renders difficult-to-discern dependencies transparent, and networked structures are able to gain momentum. Digitization helps to cope with complexity where it cannot be reduced. At the same time, digitization will only unleash its full potential when it is based soundly on Lean Production. After all, even a digital mess is a mess.
The Drive Technology Strategic Business Unit intends to strengthen its position as a cost leader in the synchronizer market. What are the factors that matter?
Lean structures and cost leadership are closely interrelated. The “Future Drive Tech” project has shown us where we have leverage. By defining an ideal organization (“zero-base approach”), we have set the bar in the indirect labor area. This is now being implemented. Still, efforts to streamline production further must continue unabated. This applies to the German plants in particular. Ultimately, it will be very helpful to systematically evolve toward a “local for local” approach. In a cost-sensitive business such as that of the Drive Technology Strategic Business Unit, any unnecessary transport, handling or order processing step has to be closely scrutinized. In spite of focusing on lean processes and structures, it still holds true that the product itself lays the basis for cost leadership.