 |
| Jouni Niinikoski (left) presented the Salko project “Improvements without investments” for interested delegates at a Tekes conference in Helsinki on Oct 27th. Here with Teke´s director Tuomo Alasoini. |
The highly successful outcome of this project, involving all of the company’s staff and operations, resulted in Salko being named Company of the Month in June by Tekes.
“Result together”
Hydro Aluminium Salko OY, wholly-owned subsidiary of Hydro Aluminium Profiler, works with sales, machining and surface treatment of aluminium extrusions. Founded in 2001, Salko has developed dynamically but during 2007 the management experienced a situation with declining profits. Against this background, a development project was started together with the Finnish state financed development centre Tekes that covered both economic support and external consultants. The project, which was called “Result Together” focused to begin with mainly on improving and developing the company’s financial result but soon involved most of the aspects of the company’s business with such things as productivity, stock turnover and salary structure.
 |
| Salko works with sales, machining and surface treatment of aluminium extrusions. Among other things Salko works with machining, surface treatment and assembly of aluminium window frames for a major Finnish window producer. |
Everybody involved
The project has involved all of the company’s staff and operational responsibility and decision making have successively been moved from the management offices down to the factory floor.
“The most important thing we learned at the start was that the staff should be far more involved in decision making,” says Jouni Niinikoski, factory manager at Salko. “Fifty people judge new ideas more creatively than one can!”
Organisationally, groups were created related to each part of the business – lacquering, assembly, cutting and so on. Measurable targets and parameters were established for the business as a whole and each part aimed at improving operations and making them more efficient. The targets were not just about numbers and production results but also covered ambitions for involvement, working groups and the working environment. Already after six months one of the working groups could show an improvement in productivity from 25 to 42 units per hour with the same members of staff!
“The greatest challenge was in persuading the staff that things could change,” explains Vesa Niininen, Salko’s staff representative. “And with this project things have really changed.”
Three cornerstones
There were three cornerstones that were decisive for the project’s implementation and success according to external consultant Jarmo Koivisto. The first was that the management dared delegate responsibility to others and believe that the staff would carry out the necessary changes. The second was the creation of a management group with the right people in each part of the business and the third was the change in Sako’s organisational culture. With increased responsibility came a flatter organisation with increased individual responsibility and commitment.
Positive results
The project, which has so far achieved very positive results, received considerable attention in Finland resulting in being named Tekes’ Company of the Month in June this year. At a big Tekes conference in Helsinki Oct 27th, the Salko project was presented under the title “Productivity improvements without investments” by Jouni Niinikoski, who received great attention and many questions after his speech.
The development project continues with new targets being set for the future and Salko is in a state of continual development.
“The work with change gives us a better chance to manage both present economic situation and future challenges!” says Atle Larsen, Managing Director of Salko. “The project also give valuable and useful experience for other units within Hydro”.
Tekes
Tekes works with innovative companies and research centres in Finland. Each year Tekes finances around 1,500 business-related research and development projects and upwards of 600 development projects in universities and research institutions. Support is primarily aimed at projects that create long-term advantages for the economy and the community. Tekes is a non-profit organisation.
Teke´s Development program of industrial life helps work places to find new modes of operation, with which they can meet the future challenges. The projects of the program improve the welfare and productivity of the work places and involve cooperation of both management and personnel.
The results of the development project
at Hydro Aluminium Salko OY 2008 - 2009
Increased productivity 32%
Reduced stock level by 53%
Reduced waste in production by 44%
Health-Environment-Safety index up 33%
New benefits system implemented
Better working environment
in the factory
