2011 annual report - ALNO

SINGLE-ENTITY AND GROUP MANAGEMENT REPORT | Economic report35Objectives for productionObjectives for distributionThe introduction of a new Wellmann range in Enger wasone of the main factors influencing the ALNO Group'sperformance in 2011. The enormous technological andorganizational challenge of manufacturing very differentproduct groups in a single plant has been mastered successfully,albeit with more effort than originally planned.At first, it proved difficult to meet the market's high levelof demand, for the new Wellmann product was receivedmore favourably than expected and replaced the formerproduct more quickly than planned.The level of all-round service offered by a manufacturer forthe kitchen as a product is becoming increasingly important.This concerns all areas, from order acquisition tologistics and delivery of the manufactured kitchens. Logisticsin particular is a major cost factor. Both the quality ofthe logistics process and the issue of further cost optimizationare major objectives for the future strategic orientation.A team involving relevant partners has already been set upto improve the ALNO Group's distribution services and toidentify options for an even more sustainable structure.The changeover in production is now complete. As in theother plants, attention in Enger now focuses on continuousoptimization of the production processes. In view ofthe complexities associated with introduction of the newproduct in Enger, there has been no further transfer ofproduction from Pfullendorf to Enger, nor is this planned forthe time being. Optimum utilization of the available productioncapacities will be clarified systematically.A team of plant managers is therefore developing a basicstrategy for the Group as regards the future structure of itsplants. Core issues include the following:• Optimizing Group production capacity in the light ofincreasing fluctuations in the production quantitiesrequired per week and per day.• Defining core production competences for individuallocations, such as component production, also for theALNO Group.• Establishing the vertical range of manufacture for theindividual plants; in Pfullendorf, for example, the verticalrange of manufacture has been increased through thein-house production of glass and ceramic fronts, thusmaking production more flexible and more cost-efficient,as well as improving quality management.Objectives for the administrative sectorOngoing efforts to standardize processes will be continuedin all administrative areas of the ALNO Group, such asaccounting / controlling, IT and Human Resources, as wellas in the holding company's central functions. During theperiod under review, SAP/HCM were introduced throughoutthe Group to standardize payroll accounting and timemanagement at all German locations; these efforts werebrought to a successful conclusion when the system wentonline on 1 January 2012.A major IT project was launched in Pfullendorf in 2011with the aim of introducing SAP to completely replace allmodules in the process chain, from order handling throughsales to process data management, finance and controlling,production, materials management and quality, by2014.Individual locations are increasingly taking over tasks forother locations, too, in order to achieve correspondingoptimizations. Relocating the ALNO holding company fromDüsseldorf and closing down this location completely hasalso helped to reduce administrative expenses and atthe same time led to a sustainable reduction in the costburden.