Samsung, Hyundai, Kia, Daewoo, LG... - Cherry Corporation

TECHNOLOGY CONTEST – “THE BEST PRODUCTION PLANT”
MANAGING DIRECTOR WITTE (left), FOUNDER MAIWALD At the top with specialised electronics and top-class service
journal “L’Usine nouvelle”, was held in
Germany for the ninth time and in France
for the eleventh time.
In all the categories that go into the assessment
and decide the quality of a production
plant - whether strategy, product development
or service (see page 84) - the
people in Auerbach were rated “Excellent”,
or at least “Good”. “They know exactly
where they’re going. They master their
processes standing on their heads.
Particularly amazing is the enthusiasm
with which the management and workforce
unswervingly seek improvements,” praises
Insead juror Ludo Van der Heyden.
WHU juror Arnd Huchzermeier regards
Cherry as a lesson in how companies -
even way down in the value chain - can
avoid becoming the plaything of market
forces. “The company profiles itself with a
clear service spectrum, acts instead of reacting
and pursues a distinct growth path”.
The jurors were similarly impressed by
another three plants: BuS Elektronik in
Riesa, near Dresden, the equipment products
division at Fresenius Medical Care
Deutschland in Schweinfurt and SRI Radio
Systems in Durnach, near Kempten. They,
too, refuse to simply capitulate in the face
of the assault by the low-wage competiti-
on; they fight back with their own
strengths. The reward for their commitment:
The jury voted them jointly into
second place.
ESPECIALLY STEEP WAS THE CAREER
CURVE of BuS Elektronik. Dieter Folkmer,
an engineer from the former state-owned
Robotron Elektronik Riesa, was convinced
he could find an adequate market niche as
a contract manufacturer of circuit boards.
After 30 years as a top developer at
Siemens, Werner Maiwald from Munich
shared that view and, in 1991, came up
with the money to found a limited liability
company. Two years later, the pair took
over the core business of the former
Robotron. Since then, things have only
looked up.
The Saxons have specialised in producing
electronic modules and, increasingly, complete
systems that are needed in relatively
small batches. For customers like Motorola
or Bosch building up their own production
line is not worthwhile. But the volumes are
too small to interest the major, global, contract
manufacturers like Solectron and
Flextronics. BuS is flourishing nicely in this
niche. Revenues have exploded since 1994
from 7 million to over 56 million, while
the workforce has grown from 119 to
almost 450 in the same period. And the
BuS Elektronik
Operational strategy
Product development
Supply chain management
Organisation and personnel
Service and partner management
Continuous improvement
2. PLATZ
Deficient
Adequate
Satisfactory
Good
Excellent
profits are good. “Meanwhile
we’ve become the region’s
second-largest employer,” says a
delighted Maiwald.
At their customers’ request, the people in
Riesa take development and purchasing of
the parts needed off their hands. “No
Chinese competitor can offer this service”,
says BuS managing director, Werner Witte.
“The word spreads and brings us more and
more customers”.
ITS GOOD REPUTATION is the lifeblood
of the Schweinfurt plant of Fresenius
Medical Care (FMC). The Dax-rated company
turned over some 6.2 billion dollars
last year, above all in the USA. The plant
supplies some 1,500 treatment centres
around the world with dialysis equipment,
which helps almost 123,000 kidney sufferers
purge their blood of poisons. FMC
operates many of these centres itself. The
fact that the Schweinfurt plant builds the
best equipment, and at moderate prices,
has made it world market leader. But for
plant manager Christoph Sahm that’s no
reason to let up: “We have the ambition to
build on our position by improving every
day.”
In the jury’s opinion, they’re doing so very
successfully. The people in Germany’s
Franconia region already earned a place on
the winner’s podium as far back as 1999.
“Since then they’ve made enormous progress”
praises WHU expert Huchzermeier.
One of the plant’s strengths is its high
innovation tempo. “No competitor can
keep up with that”, says Huchzermeier.
Close contact with doctors and patients
ensures the usefulness of new products.
For instance, the Schweinfurt team is
always observing how its customers handle
the machines to pick up pointers for easier
operation. Another source is the machine
data they obtain via a network and then
evaluate. The FMC developers are currently
working intensively on equipping the
devices with sufficient intelligence for
them to largely manage and control themselves.
“That significantly reduces treatment
costs, a key selling argument”,
explains Sahm.