Achieving operational excellence – becoming more efficient and more competitive

Improving operational performance will help our businesses improve their competitiveness and achieve their growth ambitions. Each of our 50 facilities around the world are working towards world-class operational performance and during the year Hydronic Engineering’s Polish plant in Olkusz, near Krakow was the first to achieve this significant milestone.

We assess operational performance using the renowned lean benchmarking system. When the Olkusz plant was first assessed two years ago, it recorded a score of 53%, which was considerably below a world-class performance score of 85% or more. A most recent assessment of the Olkusz facility resulted in a lean score of 88%, and the benefits are very evident. The plant’s original production line is now more efficient. It also operates on a smaller footprint freeing up additional capacity which has enabled a second production line to be installed without the need for any additional floor space. Inventory turns across the division have increased from four to nine and the installed capacity is better utilised. Furthermore, customer responsiveness has improved significantly with on time delivery now at 91%
compared with 82% 18 months ago.

A continuous improvement culture is now embedded throughout the Olkusz facility. While the team have secured world-class operational status, maintaining momentum and further improving the plant’s operational performance to increase the division’s competitiveness,remains an on-going target.