Reference KettenWulf Betriebs GmbH - Lean Processes
An allocation framework for the simplification of bid management
Initial Situation and Project Goals
In March 2008 UNITY began working on the project to optimize bid management at KettenWulf Betriebs GmbH. The aim of the project was to create a decision-making process that optimizes the allocation of client enquiries to production plants during the bidding stage. Alongside the cost reductions it will produce, this project was designed also to deliver in other areas, such as in that of guaranteeing the fulfillment of clients’ quality requirements. In order to implement this decision-making process in the company quickly, a “framework” was developed with which the most suitable production plants can immediately and easily be selected for any client enquiry that comes in.
“Working with UNITY we have developed a framework that enables us to allocate potential production orders to a plant already at the bidding stage, optimally in terms of performance and cost. Therefore, we are now in a position to avoid costs of approx. 5 % of our turnover which result from errors that follow incorrect allocation decisions.”
Günter Wulf, Managing Partner, KettenWulf Betriebs GmbH
Tasks of UNITY
The main task of UNITY was to analyze the bid management process, the products, and the technological capabilities of various production plants. Building on the results of the analysis, it was possible to identify and formulate criteria with which to allocate client enquiries most efficiently to a suitable plant. A decision logic was drawn up for these criteria that makes it possible to embed them in a multi-level process, thereby ensuring that the required targets are fulfilled in the most efficient way. After a successful, manually conducted test phase, the framework was implemented in the company’s existing ERP system.
Benefits for the Client
With the standardization of the allocation process, the way the company prepares bids has been made significantly more efficient. Today decisions are made systematically and swiftly. In the past, allocation decisions were based on the specific know-how of individual employees. Today, this implicit knowledge is documented in the framework and is available to all employees. The framework was agreed upon by all functional areas and must be used for allocating enquiries to production sites. In this way, decision quality has been improved and the number of mistakes has been reduced. Costs resulting from errors, losses from poor product quality, and potential harm to the company’s reputation are now proactively eliminated.
KettenWulf Betriebs GmbH
During its 80-year history, KettenWulf, founded in 1925 in Kückelheim, Germany, has developed from a simple manufacturer of link chains to one of the world’s leading manufacturers of conveyor chains, drive chains, and sprockets. More than 1100 employees work in development, production, and sales at 10 locations in Europe, America, and Asia to find customized solutions in conveyor and drive technology. The high-quality products of KettenWulf are used all over the world in a broad range of industries. Among its most important clients are companies in the escalator, bulk material handling, automotive, and many other industries.
