Benefits for Manufacturers Pursuing Performance Excellenceilpex.org › wp-content › uploads › 2018 › 02 › Concentric-Rockford.pdf · 2/27/2018 9 17 Concentric Rockford Concentric

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The Concentric Rockford Journey

Benefits for Manufacturers Pursuing Performance Excellence

Who is Concentric Rockford?

Concentric Rockford2

Concentric Birmingham Ltd UKEmployees:229Headquarters /R&D/Manufacturing

Concentric Hof GmbH GermanyEmployees: 182Manufacturing

Licos TrucktecGmbH GermanyEmployees:65Manufacturing/R&D Concentric Pune, Pvt

India Employees:140 Manufacturing

Concentric Pumps Suzhou Co. Ltd ChinaEmployees: 35Manufacturing

Concentric Rockford Inc USAEmployees: 200Headquarters/R&D/ Manufacturing

Concentric Itasca Inc USAEmployees: 74Manufacturing & Distribution

Engine & Hydraulic Engine only Hydraulic only

Alfdex AB SwedenEmployees: 80Manufacturing

Concentric Chivilcoy ArgentinaEmployees: 166Manufacturing

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Who is Concentric Rockford?


“Concentric’s manufacturing footprint enables us to provide a local service to our global customers. The business is well balanced between US and Europe.”

Hof, Germany

Rockford, IllinoisHydraulics R&D

Suzhou, ChinaItasca, Illinois

Birmingham, UKEngines R&D,Head-quarters

Pune, IndiaMarkdorf, Germany

Landskrona, SwedenJV with Alfa Laval

Chivilcoy, Argentina

Key Markets


Construction Agriculture Material Handling

Aerial Lift Truck & Bus

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Key Markets


Key Markets


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Key Markets


Key Markets


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Key Markets


Concentric AB Vision and MissionØ VISION: To deliver sustainable growth for every application in the

markets we serve. We will achieve this by:– Developing world-class technology with innovative solutions that

meet the demands of our customers/end-markets– Capitalising upon our global infrastructure and being adjacent to our

customers– Business excellence in all we do (CBE)

Ø MISSION: Concentric’s purpose is to design, develop, and manufacture high-quality, customer-focused solutions for hydraulic and engine applications within our global end markets.


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Concentric AB ValuesØ Customer-focused

• Sustainable products - leverage collective expertise, measurable improvements in total cost of our products

• Customer satisfaction - meeting customer expectations of value, quality and delivery

Ø Achievement through our people• Integrity – ethics, honesty in all things we do

• Teamwork – people pulling together in the same direction to exceed expectations

• Resilience – accountability

• Openness – collaboration and transparency

Ø Business excellence in all we do• Performance – quality and safety in all we do

• Process – ownership and empowerment, best in class

• Change – continuous improvement


• 125,000 Square Feet - 20 Acres

• Facility Constructed in 1963; Expanded in 1979 and 1989

• 200 Employees

• Primary Products: External Gear Pumps, Pump/Motor Packages, Fluid Motors, Flow Dividers, Hydraulic Valves, Complete AC and DC Power Systems

• Manufacturing Capabilities: Conventional, CNC and Specialized Machining; Precision Boring; Mid-Volume and Short-Run Assembly; Manual and Automated Test Facilities

• Volume: Approximately 634,000 Pump Sections and 154,000 Power Systems Annually

• ISO 9001 (Quality): Certified Since 1994

• ISO 14001 (Environmental): Certified Since 2002


Concentric Rockford’s Journey

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• 2011 separated from Haldex and became Concentric• Who are we? Need to do some sole searching!!

– What’s our methodology for sustainability and innovation?◦ 6Sigma◦ TPM◦ Kaizens◦ Lean Manufacturing◦ Haldex Way (Toyota Way)◦ ISO◦ KPIs



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• 2011 – CEO decided EFQM/Baldrige was the new way!





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Concentric Rockford’s JourneyThe Lincoln Foundation for Performance Excellence is a statewide not-for-profit organization that strives to be the leader in "Helping Illinois Organizations Excel." This is done through the deployment of a continuous improvement model patterned after the Malcolm Baldridge Criteria by providing a verifiable, proven process for continuous performance improvement.

Founded in 1994, The Foundation seeks to help Illinois organizations continuously improve their performance by encouraging, developing and highlighting excellence among five sectors: industrial, service, health care, education, and government agencies.

Organizations seeking to improve their performance and competitive position by using The Lincoln Award Criteria for Performance Excellence may also receive statewide recognition if they become award recipients and enable organizations to share each other's best practices.

Founders:Advocate Health CareAmocoArcVentures, LLCBank One CorporationBlueCross BlueShield of Ill.Caterpillar, Inc.CitibankTellabs, Inc.

Commonwealth Edison CompanyDeere & CompanyDeloitte & Touche Consulting GroupThe Grainger FoundationNorthwestern HealthcarePrice Waterhouse LLP

What is it?

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Concentric Rockford’s JourneyPast LFPE recipients

2010Crawford, Murphy & Tilly, Inc. - Springfield - BronzeUnited Cerebral Palsy Land of Lincoln - Springfield - Bronze2009No Recipients2008United Cerebral Palsy Land of Lincoln - Springfield - Bronze2007Delta Dental of Illinois – Lisle – Silver2006Delta Dental of Illinois – Lisle – SilverZF Sales & Service NA LLC – Vernon Hills - SilverAdvanced Technology Services – Peoria – BronzeSerenity Packaging Corporation – St. Charles – Bronze2005Caterpillar Wheel Loader & Excavator Div – Aurora – SilverRobert Bosch Corp – Aftermarket Div – Broadview – SilverDelta Dental of Illinois – Lisle – Bronze

2004Akzo Nobel Aerospace Coatings – Waukegan – BronzeBison Gear & Engineering Corp – St. Charles – BronzeMTM Recognition – Princeton – BronzePreco Electronics, Inc. – Morton – Bronze2003Grainger Parts Div – Northbrook – BronzeVIVA USA – Rolling Meadows – Bronze2002Dana Brake and Chassis – McHenry – SilverGrainger Industrial Supply – Lake Forest – SilverTechnivista – Highland Park – Bronze2001No Recipients2000Zellweger Analytics – Lincolnshire – SilverUnited Process Group – Chicago – BronzeGlenayre Electronics – Quincy – BronzeTormohlen Motor Sales – Freeport – Bronze



DOES PERFORMANCE EXCELLENCE PAY?

Studies by the National Institute for Standards and Technology, universities, business organizations, and the U.S. General Accounting Office have found that investing in quality principles and performance excellence pays off in increased productivity, satisfied employees and customers, and improved profitability - both for customers and investors.

Do you want to improve your organization’s performance on the critical factors that drive success?

Are you looking for a cost-effective way to gain outside perspective on your organization’s strengths and opportunities for improvement?

Are you looking for ways to energize and motivate your employees?

Do you want to improve your organization’s bottom line?

GOAL: To have a business improvement model in lieu of Haldex Way.

Why?

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• March 2011 – Entire Leadership team attended the 7 monthly webinars for each of the Categories by Joe Kilbride.

• Attended site visit for sister plant• Wrote first application for 2012 cycle

– Received Bronze award




Concentric Rockford’s JourneyILPEx Award Recipient List (Manufacturing Companies 1995 – 2015)GOLD1995 - Honeywell’s Micro Switch Division, Freeport

SILVER1997 - Nascote Industries, Inc., Nashville2002 - Dana Brake and Chassis, McHenry2002 - Grainger Industrial Supply, Lake forest2005 - Caterpillar Inc., Wheel Loader & Excavator Division, Aurora2005 - Robert Bosch Corp., Aftermarket Division, Broadview2011 - Anderson Packaging, Inc., Rockford

BRONZE1997 - Flexible Steel Lacing Company, Downers Grove1997 - The Chicago Faucet Company, Des Plaines1998 - Helm Group, Inc., Freeport1999 - Elkay Manufacturing Company (Cordley/Temprite Division), Savanna2003 - Grainger Parts Division, a division of W.W. Grainger, Inc., Northbrook2004 - Bison Gear & Engineering Corp., Saint Charles2011 - Concentric Itasca, Inc., Itasca2012 - Concentric Rockford, Inc., Rockford2013 - Concentric Itasca, Inc., Itasca2014 - Concentric Rockford, Inc., Rockford

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2012

2014

2016

2018+?

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Leadership• Established one set of VMVs for entire corporation so we are

aligned & working toward common goal.• Improved communication and transparency of operations. –

Employee Satisfaction w/Leadership motivation and inspiration.

• Forced us to think about succession planning beyond leadership roles. – Employees a sense of advancement.

• Focus on Community – Making us a more attractive place to work for new employees.


Key Benefits

Strategy• Not created in a vacuum• Requires input from more than just leadership team• Turns plans into action with accountability• Focuses on key SAs and SCs with action plans• Deployed throughout the organization with alignment to

employee personal goals/objectives• Long term planning is not short-sided thinking


Key Benefits

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Customers


Key Benefits

1

2

3

4

5

6

2012 2013 2014 2015 2016 2017

CSS Overall Satisfaction Results

O/A Sat. ACSI 1

2

3

4

5

6

2012 2013 2014 2015 2016 2017

CSS vs Competition Results

vs Competition

Customers and New Opportunities


Key Benefits

3.20

%

3.25

%

3.37

% 4.23

%

4.95

%

5.33

%

0%

1%

2%

3%

4%

5%

6%

7%

8%

2012 2013 2014 2015 2016 2017

Product Innovation (% of Sales)

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3.90 4.10 4.20 4.29 4.454.71

1

2

3

4

5

6

2012 2013 2014 2015 2016 2017

WFS Overall Engagement Results

O/A Engagement

3.834.05 4.13 4.28 4.36

4.58

1

2

3

4

5

6

2012 2013 2014 2015 2016 2017

WFS Overall Satisfaction Results

O/A Satisfaction

Employees


Key Benefits


2012 2013 2014 2015 2016 2017PPM 1,886 1,465 1,292 603 499 297

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Parts

Per

Mill

ion

Customer Quality PPM (Overall)

Key BenefitsOperations

02468

101214161820

2010

2011

2012

2013

2014

2015

2016

2017

2018

# of

Fin

ding

s

ISO QMS & EMS External Audit Findings

QMS EMS

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Key BenefitsFinancial• Good organizational performance• Beneficial trends

• Get Leadership Team involved early and often– 1st Category and has highest pt. value (process categories)

• Don’t just answer the ≈ 250 questions - done!– Start w/Org. Profile and get feedback– Send some of your leaders/managers to examiner training

◦ help understand criteria and ADLI and LeTCI

– Define KEY approaches and continually evaluate them w/facts and data◦ Not every process is a key approach

• Integrate into how you run the business– This is not the flavor-of-the-month


Lessons Learned

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• Get over the fact that when you get a feedback report it might be calling your baby ugly!!!– Company X does not have an effective fact-based, systematic

approach to evaluate and improve …………………..– The approach is not fully deployed …………………..– Alignment???? Integration????

• 50% is really good• TRUST THE PROCESS!!

– This is a journey and not a sprint


Lessons Learned

Documents

Benefits for Manufacturers Pursuing Performance Excellenceilpex.org › wp-content › uploads › 2018 › 02 › Concentric-Rockford.pdf · 2/27/2018 9 17 Concentric Rockford Concentric