‘It is also possible to work profitably in Germany’
staufen magazine 2024 | No. 7
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Kiekert AG
Just a few years ago, the automotive supplier Kiekert – a technology leader for locking and drive systems – was on the verge of collapse. In an interview, Chairman & CEO Jérôme Debreu explains why he chosed to make a turnaround in high-wage Germany rather than relocating production abroad.
Interview with JÉRÔME DEBREU – Chairman & CEO, KIEKERT AG
Kiekert AG has achieved an impressive turnaround under its new management. Is this boost in performance also due to the fact that Kiekert is being run like a family business?
Exactly, I am very family-oriented, loyal and stable, and I run Kiekert like a family business owner. This means that we think and plan in decades rather than in quarters. I have a permanent contract and enjoy complete entrepreneurial freedom. The company was previously ruined by American private equity firms.
You relocated parts of the production back to the main plant in Germany. How can traditional industrial companies remain internationally competitive in a high-wage country like Germany?
It‘s true, people think I‘m crazy. But costs aren‘t the only deciding factor. We can‘t be the global market leader from Germany and close our own headquarters just to make more profit. Our developers can only be innovative if they see their ideas implemented locally. Benchmark engineers need a benchmark factory and vice versa. What‘s more, it‘s possible to work profitably also in Germany. Just a few years ago, the workforce at our headquarters in Heiligenhaus (northwest in Germany) was not working at full capacity. We therefore invested in new, more efficient production technology. We are now planning to move two more production lines from abroad back to Germany. Instead of cutting jobs, we want to create 250 new jobs by 2030. We want to build a new headquarter from Our soul is back!
Jérôme Debreu – Chairman & CEO, Kiekert AG
Our developers can only be innovative if they see their ideas implemented on site. Benchmark engineers need a benchmark factory and vice versa.
JÉRÔME DEBREU Chairman & CEO, KIEKERT AG
How will Kiekert‘s production be distributed across its locations in the coming years? What are the company‘s long-term growth plans?
In order to make Kiekert future-proof, we have to develop people and products where our customers are. We call this “localization” or, better, “re-localization”. In this way, we are building up the ability within the company to anticipate, i.e. to predict trends and market developments internationally and to react to them at an early stage. You don‘t learn that by only talking to people online. You have to be on site. Accordingly, we are currently investing in our international presence. We have opened a sales office in France, are founding a subsidiary in India and will open a factory in Spain. More locations will follow.
What positive experiences did Kiekert have with the recent changes at the Czech plant? Is this a pioneering example for other plants in the company?
With the new concept for Shop Floor Management, we have gained transparency in the production processes, broken down silos, improved our processes and now work together much more efficiently. Overall Equipment Effectiveness (OEE), i.e. the effectiveness of the entire plant, has shown noticable improvement and will continue to increase; this is a great success. Since our plants are not completely comparable internationally, we cannot transfer the concept 1:1 to the Czech Republic, but we will certainly use parts of it elsewhere.
About Kiekert
Kiekert AG is the world market leader for automotive locking systems and a traditional company with a 167-year history. Kiekert supplies over one hundred car brands with intelligent security locking systems.
1857
Foundation
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5.000
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KIEKERT IN THE CZECH REPUBLIC
A HIGHLY EFFICIENT AND LEAN FACTORY ACCORDING TO LEAN STANDARDS AS THE GOAL
In order to get the Kiekert plant in Přelouč, Czech Republic, back on track, old patterns of thinking and existing silos had to be broken down. Concepts for stabilization and increasing efficiency in the areas of production, logistics and quality led to a significant increase in operational KPIs and an improvement in the financial situation.
Focusing on core topics and working in cross-functional teams also improved transparency and processes. In addition, communication and collaboration were optimized by setting up a cascading Shop Floor Management system. Karl Lambertz, plant manager in the Czech Republic, is convinced of the cooperation with Staufen: “There wasn‘t just one problem, but we had many small and sometimes larger problems. We were able to solve this with a comprehensive, holistic approach.”
Karl Lambertz – Vice President Europe & Managing Director, Kiekert CS s.r.o.
The PMO and the associated weekly project reviews and monthly steering cycles help to evaluate the changes made and measure their success. The changes are also visible in the project KPIs and in Shop Floor Management. “Staufen provided hands-on support from day one. The consultants quickly built trust at all levels of the company – from the shop floor to top management – and made an important contribution through their structured approach. Staufen created a positive atmosphere and also empowered the employees on the path to transformation,” praises Karl Lambertz.
The path has paid off. The most important levers for improving results have already taken effect. Prioritizing the topics according to their potential contribution has also proven successful to use forces and resources in the best possible and targeted way. According to plant manager Lambertz, this will continue: “In the long term, we are aiming for a highly efficient and lean factory based on lean standards. This requires a completely new value stream concept with a new line design. This will require further changes. Concept ideas for a possible target image have already been discussed with Staufen.”
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Geopolitical upheavals, intensified international competition, innovation cycles that are becoming increasingly shorter – in a recent Staufen study, “Performance Drivers 2024” eighty-three percent of the organizations surveyed stated that they have rarely had to face such a wide range of challenges as the ones they face today. Nonetheless, organizations are still under pressure to push their strategic investments, even in times of immense cost pressure. Understanding how each decision affects the profit and loss statement (P&L) is, therefore, all that more important.
Robin Broll is a proven financial expert and Head of the Global Practice “Performance Improvement and Strategy Execution” at Staufen AG. Mr. Broll has extensive experience in leading complex, international C-level transformation programs and has a strong focus on measurable and sustainable P&L improvement in all his projects. Before joining Staufen in 2019, Mr. Broll worked as a consultant in the operations team at Droege Group in Düsseldorf. Robin Broll holds a Master’s degree in Finance & Accounting from the University of St. Gallen (HSG). He is married and comes from Lake Constance.
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