IDEAL Fensterbau Weinstock

A project was launched to optimize the production of wood windows, which served as a so-called lighthouse project, a prime example of transformation at IDEAL Fensterbau, and was intended to serve as a model for other areas of purchasing and sales. Together with Staufen AG, the goal was to break up old structures in the wood business and improve processes:                   

In the wood window product area, there was a lack of transparency regarding the profitability of the product portfolio at the start of the project. There was no product costing or contribution margin accounting based on cost causation – so there was no transparency in the profit and loss drivers of the extensive product portfolio with many different product variants. Although sales of wood windows remained stable, it was difficult to meet the high market demand as production was limited to an output volume of approximately €7.0 million per year. Overall, no profits were realized. The situation was perceived as unsustainable by management, executives and employees alike, and there was a high level of dissatisfaction at all levels of the organization. 

Compared to plastic window production, wood window production is characterized by a higher vertical range of manufacture and a higher proportion of manual activities. There was clear room for improvement in both lead time and on-time delivery.  

Production was not lean, so overall process efficiency needed to be optimized. 

THE CRITICAL TRIAD OF STRUCTURES, PROCESSES, AND PEOPLE 

A combined top-down/bottom-up analysis was used to identify areas for action in the core operational processes. An implementation concept was derived with three primary action areas: 1. product portfolio & costing, 2. production, 3. leadership & culture. 

The Staufen consulting project focused on the examination of the strategic orientation with regard to the product portfolio and capacities of the wood window production at the Traben-Trarbach site. The scope of the project included order processing through to delivery of the windows, as well as production and logistics, including planning and control. In addition, a review of current optimization and change activities and existing planning calculations needed to take place.  

In the short term, an analysis was conducted to analyze and quantify the potential for improvement at the wood window plant in Traben-Trarbach. This included productivity, cycle time, and management processes. Based on the identification and evaluation of the potential for improvement in operational metrics, an EBIT improvement potential was derived and used as the target for the project. 

Productivity in the wood window factory was to be improved by 20%. Improvement levers were identified and their effectiveness evaluated. A roadmap for implementation was developed together with the executives. In the long term, the professionalization of processes was necessary in order to achieve the medium-term sales growth of the entire company to €50 million. 

ANALYSIS PHASE: 

The project began with a combined top-down/bottom-up analysis to identify areas for action and improvement in core operational processes. On this basis, it was possible to design action value streams in line with a future economic product portfolio and to create an implementation concept. 

IMPLEMENTATION PHASE:

In addition, a new performance and team-based compensation system was introduced for production employees. During the BestPractice visits, the employees of IDEAL Fensterbau were able to benefit in person from the experiences of successful industrial companies. These range from initial implementation projects to the development of end-to-end value creation and management systems. In general, the internal and customer communication structures were also reviewed and adjusted accordingly. The tasks, competencies, and responsibilities of each employee were clearly defined.  

The project example makes it clear: excellent processes + excellent leadership = excellent results. 

In line with the project objectives, a good “return on consulting” was achieved. The introduction of a product portfolio costing system enabled the company to optimize its material cost ratio. Productivity in manufacturing was significantly increased, including through the introduction of a new value stream analysis, which also improved the personnel expense ratio. Finally, changes in leadership and culture, such as training and a new compensation model, led to increased employee satisfaction.  

Optimizations in production have significantly increased productivity – financially, this has resulted in a much improved personnel expense ratio. A newly implemented product costing system with a new pricing logic has contributed to improved margins and significantly improved the material cost ratio. Overall, there was a measurable improvement in earnings in the wood windows business, with EBIT up more than 5 percentage points. 

Staufen has now firmly established itself as a permanent management consultant for IDEAL Fensterbau thanks to its eye-to-eye approach, comprehensive understanding of the company, and significant project successes. In the course of the cooperation, a strong trust in the consultants and their skills has developed, so that they are regularly consulted for further operational decisions.  

For the planned transformation of the other plants with plastic window production, the expertise of the Staufen consultants will be further called upon in the coming years. The transformation project is currently being extended to other parts of the company to continue the success story that began in 2020.