Hiab SRM², Case Study 2, published on October 10, 2016 by Hans Lindblom, VP Hiab Global Sourcing.

Fortaco Estonia, one of Hiab’s preferred suppliers, has achieved great results as an outcome of a Continuous Improvement Project implemented at the Business Site Narva. Examples of Hiab products include inner booms, extensions, outrigger beams and the biggest bases. This time, the project scope was boom components supplied to MAU Zaragoza, one of Hiab customers.

The achieved results were significant

Hiab has invested in supplier relations management (SRM) and preferred suppliers. The achieved results at Fortaco Business Site in Narva were significant:
Production productivity increased 10%.
Total component cost reduced 4%.
Project lead time, from start to end, reduced by 30% compared to the previous project.

Implementation of improvements

The first major improvement implemented was a new layout with a clear material flow and 5S principle (sort, set in order, shine, standardise and sustain).
Minimising the overprocessing was another improvement. Together with the Quality and R&D in Zaragoza the clear instructions were created regarding grinding. And the next step to improve the jig design. Thanks to the Zaragoza Loader Cranes crew for their support !
A fact-based monitoring of the component production process was made and filmed, and results were analysed.
The key enabler for the success is a long-term relationship and a continuous improvement approach. Further success factors are openness and the great team.