Fundamental Changes in Switchgear Cabinetsforcesuppliers to Rethink Product Concepts

Press release30SC15
NewsMarch 2015

Fundamental changes in switchgear cabinetsforcesuppliers to rethink product concepts

Managing complexity

(Ladenburg)The market for switchgear cabinets is undergoing sweeping change. Supply agreements and mass-produced parts are a thing of the past. Today’s market is all about ordering and buying on demand, often to tight deadlines. To survive, suppliers have to cope with increasing levels of complexity and respond to quick turnarounds. Sedotec, the leading supplier of switchgear cabinet systems to the electrical industry, is already gearing itself to future demands with a host of intelligent solutions. Even if customers do have crushing deadlines, they can bank on SEDOTEC for punctual, accurate deliveries – largely thanks to ideas adopted from the cream of the crop in flow manufacturing.

“We are already doing things differently than just a few years ago. But at the same time, we’ve held on to the things that make us so powerful;practices that are still as good as they’ve always been,” states Dirk Seiler. “It was this forward thinking that allowed us to anticipate changes in the switchgear cabinet market and even stay several steps aheadin some areas,” continues Seiler, managing director of Sedotec. A systematic shift away from production based on Taylorism toward lean and agile processes was central to the changes that were implemented.By focusing on customer desires and simultaneously placing emphasis on adding value, Sedotechas leapt into the futurein one fell swoop. This process is by no means complete or a one-off initiative, however. Instead, it is just another step in a continual and systematic change process with the ultimate aim of developing lasting and sustainable production methods. To this end, Sedotec has already introduced a lean benchmark concept in the switchgear production plant of its subsidiary in Mittweida, where output is precisely geared to the requirements of its switchgear system partners.

To make it possible to produce parts in batches as small as a single item, Sedotec has already succeeded in introducing the efficient and lean principles of shopfloor management. Doing so places the focus on day-to-day operations. Despite requiring fewer materials and resources, products are now made quickly in a much wider variety, actively adhering to the principle of zero errors. The changes at Sedotec were introduced with the support of the lean systems mentor Arnd D. Kaiser of Lean-Online.de: “The key to introducing lean processes is implementation across the board, for all shifts, and to make it a permanent part of everyday operations. It’s the only way for it to succeed.”

Batch sizes of 1, in 10 days around the world

The company is drawing on the overarching philosophy of lean processes to adjust to the continuing trend towards individualisation, which, as in many other areas, is marching on relentlessly through the switching system and switchgear cabinet market. Traditional supply agreements used to mean standard components had to be produced in one go, in batches of up to 10,000; these days it is all about agility, variety, punctuality and batch sizes of just one item.

By emphatically focusing the entire production and logistics system on parts made to order and project manufacturing, Sedoteccan produce to a variety of requirements. For example, any of a good 100,000 parts required for ABB’s MNS system can be produced on demand as a single item and delivered to locations anywhere in the world within just 10 working days.“It’s practically impossible to predict what’s going to be ordered tomorrow, for which project and in which country, but we’re still in a position to deliver on time with zero errors,” states Seiler.This is only possible because company logistics have also been systematically streamlined into efficient, waste-free processes. StatesSeiler,“The lean management philosophy brought to us by Mr Kaiser was a huge help.” One example of a recent order: 90 crates were picked, packed and shipped off to a customer in Dubai, without error, in ten working days.

Production flows similar to the automotive industry

A strategic thinker, Seiler turned to carmakers for inspiration to succeed with such a radical transformation. According to the lean production expert Kaiser, who also works with a major automotive company from Bavaria, “A central premise is teamwork, involving the entire workforce every day, looking at business processes in production and administration. To make sure you maintain a good overview, it helps to map out the value stream right from the beginning.” The switch in production – away from component manufacturing based on warehouse stock, towards flow manufacturing based on orders – has resulted in more added value and variety, with less use of resources, less wastage and practically zero errors.

Working in teams and delegating as much responsibility as possible to individual workers – underpinned by a proactive approach to continuous improvement processes – may be more challenging for some, but generally people also find this way of working more fulfilling. As a result, Sedotec is successfully gaining the upper hand on complexity, and both internal and external customers involved in the process are delighted with the punctual deliveries and reliable fulfilment of zero-error orders.

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((About Sedotec))

An innovative concept, Made in Germany

SEDOTEC GmbH & Co. KG manufactures and supplies switchgear cabinets and cabinet parts to the worldwide electrical industry and is an established global expert. Working to the highest standards, the company has over 50 years of experience producing sheet metal, copper parts and electrical assemblies in Germany. Around 80% of its output is exported to countries throughout the world. The company employs over 100 people, generating sales of over €20 million through 12,000 square metres of production at its sites in Ladenburg (south of Frankfurt) and Mittweida (Saxony). VAMOCON, the company’s own brand for low-voltage switchgear cabinet systems, is a perfect example of how the Ladenburg-based business successfully merges innovative thinking with ultimate quality and punctual delivery.

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