With a 23 per cent increase in productivity in two years, Grundfos A/S received the Productivity Award 2012 of the Confederation of Danish Industries (DI).
It is all about involving all staff in the process if productivity is to be increased. This is the experience Grundfos has been making for the past two years, in which productivity has increased considerably.
According to Niels Møller Jensen, MD of Grundfos A/S, which is the Group’s Danish production company, there is a clear connection between productivity and job satisfaction.
"Staff have been keen on creating results and this has made the process gain momentum, which is priceless", he said, continuing: "The award is tangible evidence that we have managed to speed up productivity and we are very proud of this recognition."
The award was handed over to Grundfos at the DI Productivity Conference 2012 in Kolding, Denmark on 8 May 2012.
"The winner of this year’s productivity award is awarded because, with a comprehensive and solid performance, they have obtained very fine results. The results are obvious not only in quality but also in increased flexibility and a raise in productivity to a new level with double-digit annual growth rates", said Jens Kristian Jørgensen, Head of Management Development and Productivity in DI.
Lean with a Grundfos twist
For the past few years, the Danish production company has been working with Lean, introducing its own version called ‘Grundfos Shopfloor Excellence’ (GSE). "We don’t deny the fact that, if we want to maintain production in Denmark, we have to make production more efficient. This is why we created our own model in which Lean and our values follow a common path, this demands quite a lot from employees and management", said Niels Møller Jensen.
The work with GSE has shown that it is possible to be effective and responsible at the same time which The Danish Trade Union 3F’s election of Grundfos as the best workplace 2011 is a good example of. According to Mr Møller Jensen, there is a clear connection between productivity and job satisfaction. "Staff constantly try to do their tasks in an easier and smarter way and when suddenly they see better results they become more happy staff members", he said.
Before, we aimed for an annual raise in productivity of five per cent. With the introduction of GSE, productivity quickly increased by 14 per cent in 2010 and 9 per cent in 2011. Among other benefits, this means the Danish production company has gained competitive edge and so work with GSE contributes to ensuring workplaces are not exported. "We have come a long way but we still lack some details in our factories. The good results encourage us to continue but, at the same time, we must be humble. The efforts must be dosed carefully because Grundfos Shopfloor Excellence is a new way of working", said Mr Møller Jensen.
Picture: Grundfos best in productivity (Image: Grundfos)