Production development through reorganisation management
Production plays a significant role at VEO as it covers about a third of the company’s operations. During 2019, there was a lot happening on the production side; Mikko Tolvanen started as the new Production Director of VEO’s switchgear factory, management responsibilities were clarified and the whole team took part in implementing major changes.
Switchgear production successes in 2019
Operational purchasing as a part of the production department
Previously, operational purchasing at VEO was managed by the procurement department. One of the most significant changes during 2019 was to transfer operational purchasing as a part of the production department. Material flow has now improved as a result of the change, and the entire chain runs more smoothly from purchasing through production to customer delivery.
During the year, the production unit also introduced regular and structured team meetings as part of the weekly work routine. VEO understands that the health and safety of the company’s employees is vital for the business to operate successfully. A safety-first mentality has now been implemented in all production operations, which explains why team meetings in the switchgear factory always start with a safety review. This new emphasis on safety has increased overall job satisfaction as well as employer appreciation, which will in the long run also increase productivity.
A renewed initiative scheme
A model in which development only flows in one direction does not carry far. VEO’s factory in Vaasa, Finland has more than 150 employees, who are all experts in their respective areas. To fully utilise this in-house knowledge, communications must run smoothly in both directions. Therefore, a decision was made to renew and simplify the already existing initiative scheme. It is now much easier for everyone to participate when it comes to development. Thanks to the new scheme, more initiatives have emerged and are now being implemented faster than before. The renewal of the initiative scheme involves the entire production team and helps to further develop the switchgear production processes.
Knowledge management and goal setting
In the past, one of the bigger challenges the production unit faced was having to deal with a lack of properly functioning indicators. Therefore, during 2019, the unit has focused on setting more precise indicators and targets as well as related incentives. Among other things, indicators have been set for production efficiency, inventory value and rotation, and suppliers’ delivery accuracy. Through the renewed resource management system, project management is now also able to view production resources more openly.
“I have been working at VEO for a year now, and what a year it has been. A lot of work has been done, and a lot has been achieved. We had a clear direction of where we wanted to go when we started to develop the production – and we have done well as a result. I am particularly happy that we have succeeded in adding a more can-do attitude and team spirit at the factory. There is a confidence to continue the development work from here onwards.”
We had a clear direction of where we wanted to go when we started to develop the production – and we have done well as a result.