In order to successfully carry tradition and experience into the future at its headquarters in Germany, the automotive supplier Hirschvogel relies on the Hoshin Kanri method. Only with systematic implementation strength, a vision can be turned into operational excellence.
8580 – these four numbers are used by the German Institute for Standardization (DIN) to summarize six manufacturing processes for the production of solid bodies. One of them, “forming,” can be found in all its facets in Denklingen, Bavaria, Germany. “Here at the Hirschvogel Group‘s main plant, we cover the entire spectrum: from classic manual work with gripping tongs on hand forges to fully automatic systems that adjust their speed using servo control, to Industry 4.0 and optimized process steps including AI support,” says Markus Obholzer, plant manager in Denklingen and thus supervisor of almost 2,000 employees.
In the world‘s largest integrated factory for massive metal forming, it is clear that DIN 8580 does not stand for brute force, but for the art of forming hundreds or even thousands of precisely manufactured components from a six-meter-long metal rod. Just as in art, there is no apprenticeship for metal forming. “Cutting machine operators, lathe operators, and welders are classic industrial professions with IHK (Industrie- und Handelskammer: German training program provides vocational education and training through a dual system) qualifications. But metal forming as an apprenticeship does not exist. That is why we have a very diverse workforce with different professional backgrounds. But that also means that the knowledge employees in the factory collect and pass on is our greatest asset,” says Obholzer.
Anyone who accompanies Markus Obholzer on his walk through the factory halls will experience a lesson in walk the talk – despite the ear protection, which is mandatory almost everywhere. Because eye-to-eye contact also works without many words when the Hatebur press next door, which costs 25 million euros, spits out 70 red-hot parts per minute for the automotive industry. Regardless of whether it is transmission shafts, differential bevel gears or the wheel carriers for the rear axle, Hirschvogel produces for almost all major automotive manufacturers and their system suppliers.
Markus Obholzer, Plant Manager in Denklingen
But that also means that the knowledge employees in the factory collect and pass on is our greatest asset
Markus Obholzer plant manager, HIRSCHVOGEL Umformtechnik GmbH
Focus on technology and cost leadership
Thanks to the combination of experience and state-of-the-art production facilities, Hirschvogel is considered a global technology leader. But with the transition from the combustion engine to the electric car, the requirements are changing: the drive train requires fewer parts, volatility on the demand side is increasing, and price wars are becoming more intense. Therefore, it was clear: “In order to maintain the Denklingen site at its current size in the long term, we have to prepare for tomorrow today. To ensure that this strategy is implemented consistently, we opted for the Hoshin Kanri method (note: Japanese for “compass management”), but we knew that we could only implement a change project of this magnitude with an experienced partner. For this reason, we brought Staufen on board as a consultant,” explains plant manager Obholzer.
Expanding Hirschvogel‘s technological leadership while achieving cost leadership at the same time is a challenge that Uwe Vogel, partner at Staufen, is keen on. “Realigning a plant with 9 departments, 20 production areas and around 50 master workshops is a very exciting task,” enthuses the experienced Hoshin Kanri expert, “especially when you meet partners on-site who ensure their future viability in a timely and consistent manner.”
Left: Markus Obholzer, Plant Manager in Denklingen Right: Uwe Vogel, Partner Staufen.AG
Involve employees from the start
The decision to choose Hoshin Kanri was made out of a position of strength, but against the backdrop of a necessary reorientation. In keeping with the company motto “Traditionally Innovative”, a concept was developed that combines five main goals:
Save jobs! Hirschvogel Umformtechnik wants to remain an attractive employer in the region, even if not as many components for combustion engines will be needed in the future.
Expand green business! The manufacturing of components, e.g. for electric motors, takes place at Hirschvogel in the Green Business division, which is set to continue to grow.
Increase productivity! Through targeted automation and optimization of processes, more components can be produced and delivered to the customer in fewer hours. At the same time, costs need to be reduced.
Reduce inventory! In an increasingly volatile market, high inventory levels are becoming a financial risk. Therefore aim is to optimize warehousing while simultaneously reducing lead times.
The Hoshin Kanri project has also ushered in a new corporate culture at Hirschvogel. While the view of the huge steel warehouse between the halls used to be marked by pride in the success it manifested, today Markus Obholzer believes it is important to keep inventories low and to ensure clarity and transparency, both visually and in terms of process organization. In the newest hall, the production line is therefore being set up from the outset in such a way that “historically grown” inefficiencies such as transporting workpieces from one corner of the hall to the other and back again are no longer an option.
Obholzer sees the development: “At the beginning of the transformation, main focus was on getting the employees involved and strengthening solution-oriented collaboration. Problems are no longer escalated, but solved directly at the source. We are now continuously implementing optimization activities and can see the success in the reports.”
A digital heart for operational excellence and efficient leadership
In parallel with process optimization, digitalization is being driven forward in Denklingen. Markus Obholzer‘s office is just a few meters away from a digital team board on which all important key figures are visualized using the Valuestreamer software. This digital Shop Floor Management is the heart of operational excellence and efficient management at Hirschvogel and, according to Obholzer, is also a model for other areas: “We have real-time access to our figures and can use the data together with related areas such as maintenance, quality, or product development.” The goal is to establish end-to-end standards that are used consistently as a control and management tool.
Dr. Christian Hinsel, Vice President of Hirschvogel Holding and responsible for Operational Excellence across the group, can only underline this: “The principles and methods of Lean and Operational Excellence are of enormous importance, especially in times of volatile market developments. Operational Excellence enables us to continuously increase productivity and optimize inventories.”
New thinking and proven action
Plant manager Markus Obholzer draws a positive conclusion: “We have redesigned the way we work in many ways and are striving for impressive improvements, such as halving inventory while maintaining a consistently high level of delivery reliability or halving lead times. We have been able to expand our corporate vision to include the premise of ‘thinking anew, acting in a proven way’. This is not an empty phrase, but a lived change to secure the future of our site and the Hirschvogel culture.”
The company
In 1938, the engineer Willy Hirschvogel founded the “Hammerwerk Hirschvogel OHG” with his brothers Anton and Hans in Denklingen, Germany. The first forming unit was a used board drop hammer. Today, Hirschvogel is a development partner and manufacturing specialist for automotive components made of steel and aluminum. The independent, family-owned group of companies employs around 6,500 people at 9 production sites worldwide. Total sales in 2023 were 1.5 billion euros.
Uwe Vogel holds a degree in mechanical engineering, is a systemic coach and organizational developer. He is a trainer at Staufen Academy. Uwe Vogel is a leading expert in the area of strategy, sales and service. He has headed up a large number of integrated international transformation programs in groups in many different industries and has over 20 years of international management experience in the machine tool industry (including as Managing Director of TRUMPF Asia Pac 2001-2008).
As a consultant, Uwe Vogel has been engaged in the profit-oriented concepts and implementation of strategic initiatives (Lean Transformation, restructuring, strategic realignment) for many years. Uwe has also gained many years of experience as a coach for top management with a strong market and customer focus.
Staufen, your reference for Operational Excellence. As the leading top management consultancy for operational excellence, we enable our clients to improve results in all areas along the value chain.
