Fujitsu Siemens' Factory Honored with Industrial Excellence Award

4/8/2003 - Fujitsu Siemens Computers’ factory in Augsburg has won the international Industrial Excellence Award 2003. Created by the French management school INSEAD and the German business school WHU (Graduate School of Management), the competition examines process quality, including customer and supplier integration, innovation management and strategy implementation. The key criterion is the ability to adapt quickly and flexibly to constantly changing market conditions.

Fujitsu Siemens Computers came out on top against a number of major competitors. The factory in Augsburg, which produces mainboards, SCENIC Professional PCs and Intel-based PRIMERGY servers as well as other equipment, gained top marks in the Supply Chain, Operational Strategy, Product and Process Development, Human Resources and Knowledge Management categories.

“I am very proud that Heribert Göggerle, who is responsible for our supply chain, and his team have brought this award to Augsburg”, says Peter Eßer, Executive Vice President Volume Products and Supply Operations at Fujitsu Siemens Computers. “As a manufacturer in the fast-moving IT industry we are reliant on constantly improving and optimizing our processes along the entire value creation and supply chain. Augsburg demonstrates that it is possible to produce profitably, even in Germany. Key to this success is the spirit of partnership and cooperation that exists between workforce, works council and management, particularly in the flexibility with which employees adjust to seasonal fluctuations in orders. This award is further confirmation that our strategy is the right one.”

“The breathing factory” and supply chain flexibility
One aspect singled out for special praise by the jury is the factory’s “excellent supply chain management”, providing high levels of volume and product flexibility and placing the focus on asset management. The idea behind the “breathing factory” concept is to optimize resources and even out fluctuations in demand. The results speak for themselves: the end-to-end lead time, i.e. the time between the customer placing the order and shipment of product to the customer, was cut from 10.5 days in fiscal 2000 to 8.1 days in fiscal 2001. Delivery reliability rose from 87 to 93 percent in the same period. Running inventories have been halved in the last two years.

Building to order brings competitive advantage
The company also gained plus points with its build-to-order strategy. Build-to-order production not only eliminates equipment stockpiles: it also enables Fujitsu Siemens Computers to offer its customers considerable flexibility in terms of their device configurations. Even those PCs and servers destined for the value-4-you distributor program, in which a limited range of configurations is available, are not built until an order has been received. The jury sees a clear competitive advantage in build-to-order production, not only in terms of customer intimacy but also in relation to productivity.

Other success criteria for Fujitsu Siemens Computers include strong quality management, corporate strategy closely intermeshed with the supply chain strategy, tight integration of the workforce in process improvements and the use of knowledge management. A lasting competitive advantage, and with it long-term company success, is created primarily through internal and external benchmarking in the search for best practices. The application and communication of this know-how within the organization was rated as being very effective. The jury was also very impressed by the strong focus on an integrated supply chain based on tight web-based integration of customers and suppliers.

Industrial Excellence Award 2003 – the competition
This year marks the ninth anniversary of the INSEAD-run Industrial Excellence Award. The German version is now in its seventh year. The Chair for Production Management at the WHU (Graduate School of Management) has been involved in organizing and running the program since its inception. In a competition spanning the whole of industry and extending across national boundaries, all companies in Germany and France are invited to pit themselves against the best in their own and other sectors in terms of their management quality. Winners of the award in past years include Siemens, Alstom and Procter & Gamble.

Computer production in Augsburg at a glance
The Fujitsu Siemens Computers computer factory in Augsburg ranks among the most advanced in Europe. Founded in 1987, the plant employs around 1,000 people in the production of commercial PCs, Intel-based PRIMERGY servers and business notebooks, as well as keyboards and system boards. Production capacity varies according to order volumes, with up to 10,000 PC units per day being built in a total area of 77,000 square meters comprising eight lines and 16 cells (smaller production units). FSC’s pan-European supply chain management for the professional sector is also controlled from Augsburg.

The site stands out by virtue of its high level of automation and outstanding flexibility in terms of R&D, production and logistics. It is also highly competitive in terms of the global market. Last September the Fujitsu Siemens Computers supply chain was awarded a Ken Sharma Award from i2 Technologies.

The Industrial Excellence Award 2003 will be presented on 23 June 2003 in the context of a two-day management conference organized by INSEAD and WHU in Augsburg.

About Fujitsu Siemens Computers
Fujitsu Siemens Computers is the leading European computer company. Serving the needs of large corporations, small- to medium-sized enterprises and consumers the company operates in all key markets across Europe, the Middle East and Africa. It offers a unique choice of world-class computer technology and innovative IT infrastructure solutions. Embedded in a global cooperation, Fujitsu Siemens Computers takes advantage of the strengths and the innovative power of its parent companies Fujitsu Limited and Siemens AG.

“Powering the Information Age” is the company´s vision. Fujitsu Siemens Computers will enable people to freely access information and services anywhere and at any time with world-leading products, services and solutions, thus ensuring people´s success within a knowledge-based society. The strategic direction is focused on Mobility and Business Critical Computing as the key drivers of the Information Age in the 21st century.

The company offers everything for enterprise computing, ranging from best-in-class Intel- and Unix-based servers to mainframes and enterprise storage solutions. It is also one of the leading providers of notebooks, PDAs, workstations and PCs to business customers, and is the No. 1 supplier of computers in Europe for home users.

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