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On a new course: Alstom a Success Story by Staufen.AG

Can 13 trains really be built in only 18 months? However, the company also faces challenges. China’s two largest state-run train manufacturers merged to form a megacorporation, putting pressure on Alstom’s profitability. Among other things, this affects the Salzgitter site, where some 2,500 people work, which is why Alstom turned to Staufen for support in 2015. The consultants’ task was to help them keep optimizing. The core of their approach: transparent shop floor management. Time was of the essence, because a major project from Deutsche Bahn, the German railway system, came rolling in. Alstom Salzgitter had to complete 13 entire trains within a mere eighteen months, and they had to comply with many detailed specifications. This project was a major challenge given the complexities of the rail technology sector and its demanding regulatory environment. There was no time for errors: their new shop floor management method had to work seamlessly from the outset.

Can 13 trains really be built in only 18 months?
However, the company also faces challenges. China’s two largest
state-run train manufacturers merged to form a megacorporation,
putting pressure on Alstom’s profitability. Among other
things, this affects the Salzgitter site, where some 2,500 people
work, which is why Alstom turned to Staufen for support in 2015.
The consultants’ task was to help them keep optimizing. The core
of their approach: transparent shop floor management. Time
was of the essence, because a major project from Deutsche Bahn,
the German railway system, came rolling in. Alstom Salzgitter had
to complete 13 entire trains within a mere eighteen months, and
they had to comply with many detailed specifications. This project
was a major challenge given the complexities of the rail technology
sector and its demanding regulatory environment. There was
no time for errors: their new shop floor management method
had to work seamlessly from the outset.

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ON A<br />

NEW<br />

COURSE


<strong>On</strong> a <strong>new</strong> <strong>course</strong><br />

<strong>Alstom</strong> Salzgitter had only<br />

18 months to build and deliver<br />

13 complete trains to Deutsche<br />

Bahn – an ambitious goal<br />

with a lot riding on it,<br />

literally and figuratively.<br />

2 STAUFEN. | ALSTOM


COMPANY<br />

PROFILE<br />

<strong>Alstom</strong> was founded in France in 1928, and today it operates in<br />

over 60 countries. This giant of the transport industry gets people<br />

where they need to go and offers an extensive range of products<br />

and services: <strong>Alstom</strong> produces the high-speed TGV train, as well<br />

as manufacturing urban trains, subways and trams, and provides<br />

services, infrastructure, signal technology and digital mobility<br />

solutions.<br />

With almost 33,000 employees, <strong>Alstom</strong> generates annual sales of<br />

€7 billion. The high-tech corporation is powered <strong>by</strong> values, including<br />

team spirit, trust and action. Most recently, however, it is also<br />

being powered <strong>by</strong> hydrogen. <strong>Alstom</strong>‘s Coradia iLint is the world‘s<br />

first hydrogen fuel cell train: in other words, <strong>Alstom</strong> is really on<br />

the move.<br />

Can 13 trains really be built in only 18 months?<br />

STARTING<br />

POINT<br />

However, the company also faces challenges. China’s two largest<br />

state-run train manufacturers merged to form a megacorporation,<br />

putting pressure on <strong>Alstom</strong>’s profitability. Among other<br />

things, this affects the Salzgitter site, where some 2,500 people<br />

work, which is why <strong>Alstom</strong> turned to <strong>Staufen</strong> for support in 2015.<br />

The consultants’ task was to help them keep optimizing. The core<br />

of their approach: transparent shop floor management. Time<br />

was of the essence, because a major project from Deutsche Bahn,<br />

the German railway system, came rolling in. <strong>Alstom</strong> Salzgitter had<br />

to complete 13 entire trains within a mere eighteen months, and<br />

they had to comply with many detailed specifications. This project<br />

was a major challenge given the complexities of the rail technology<br />

sector and its demanding regulatory environment. There was<br />

no time for errors: their <strong>new</strong> shop floor management method<br />

had to work seamlessly from the outset.<br />

STAUFEN. | ALSTOM 3


Employees as the engines<br />

of change<br />

APPROACH<br />

Employees were integrated into the process from the outset to<br />

ensure that the entire workforce was on board.<br />

A 30-member project team led the way and set a good example.<br />

Working together, the group successfully demonstrated for<br />

the first time what the current state of communications was in<br />

Salzgitter and how it needed to change. The members of staff<br />

came up with the slogan, “I’m on board,” publicized it on site and<br />

motivated the other teams. More and more employees became<br />

involved and contributed ideas about how to make shop floor<br />

management more efficient.<br />

The project team rolled out shop floor management with four<br />

pilot projects, strategically positioned in critical areas: development,<br />

construction, production and supply chain. <strong>Alstom</strong> and<br />

<strong>Staufen</strong> introduced open and regular communication between<br />

team members and the departments in these areas, generated<br />

central figures and values for daily tasks and long-term targets,<br />

and created well-coordinated decision-making processes. Everywhere<br />

they turned, the <strong>new</strong>ly trained staff could see for themselves<br />

how their work proceeded calmly and expediently, thanks<br />

to clear guidelines, transparent key process indicators and <strong>new</strong>ly<br />

defined escalation hierarchies.<br />

4 STAUFEN. | ALSTOM


5<br />

Four pilots that became<br />

two hundred<br />

The progress in the pilot projects was so apparent that other<br />

teams and departments took the initiative and implemented<br />

the <strong>new</strong> methods as well.<br />

Initially there were four pilot project dashboards documenting<br />

targets and approaches; within a short time, the number rose<br />

to 200. Employees underwent intense coaching and received<br />

guidance, at their <strong>new</strong>ly created development centers, over<br />

200 managers had to put their strengths and weaknesses to<br />

the test. Managers learned how to encourage team-based work<br />

and move it forward. When problems arose, the teams were<br />

able to present their case clearly using facts and figures. Managers<br />

felt that employees again took real pleasure in making decisions<br />

and finding solutions independently. The <strong>new</strong> sense of<br />

openness also helped to break down the silo mentality between<br />

departments that had taken root in the company; a global way<br />

of thinking evolved; in its place.<br />

STAUFEN. | ALSTOM 5


6 STAUFEN. | ALSTOM


Changes that arrived on schedule<br />

RESULTS<br />

Productivity improved at the site in the first year and, at the same<br />

time, downtime and waiting time declined dramatically. And the<br />

best <strong>new</strong>s of all: <strong>Alstom</strong> reached its destination. It fully met its delivery<br />

target: all 13 trains were ready on schedule. Deutsche Bahn<br />

acknowledged <strong>Alstom</strong>’s good work <strong>by</strong> awarding it the Supplier of<br />

the Year Prize in 2016.<br />

After this successful sprint, <strong>Alstom</strong> managed to implement lasting<br />

changes in its operations and staff. Among other things, it opened<br />

its own Lean School, the best way to make the site ready to face<br />

the future. Now <strong>Alstom</strong> Salzgitter is right on track and travelling full<br />

speed ahead.<br />

STAUFEN. | ALSTOM 7


ABOUT STAUFEN<br />

Inside every company there is an even better one.<br />

With this conviction, <strong>Staufen</strong> <strong>AG</strong> has been advising and qualifying<br />

companies and employees for more than 25 years.<br />

340<br />

employees<br />

69<br />

Mio. € revenue<br />

17<br />

languages<br />

>90<br />

BestPractice Partner<br />

7.000<br />

seminar participants every year<br />

PUBLISHER<br />

STAUFEN.<strong>AG</strong><br />

Consulting.Academy.Investment<br />

Blumenstraße 5<br />

D-73257 Köngen<br />

+49 7024 8056 0<br />

contact@staufen.ag<br />

www.staufen.ag<br />

CONTACT PERSON<br />

Christoph Heine<br />

Director Sales<br />

+49 7024 8056 169<br />

c.heine@staufen.ag<br />

INSIDE EVERY COMPANY<br />

THERE IS AN EVEN BETTER ONE.

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