Sennheiser 2011 Annual Report Download - page 31

CONSOLIDATED MANAGEMENT REPORT 2011
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CONSOLIDATED MANAGEMENT REPORT 2011
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PRODUCTION COMPANIES
The production site in Wennebostel posted a 21% year–on-year jump in turnover in 2011 as against 2010. This
increase was mainly the result of increased turnover from wireless microphones in almost all product lines. 2011
was highlighted by optimization. The location’s competitiveness was improved for the long term using instru-
ments such as CIP workshops, value flow analyses and shop floor management. The go-ahead was given for an
effective system of performance indicators (KPI) to optimize production controlling, as well as to make utiliza-
tion and cost deviations transparent.
The Irish Sennheiser site in Tullamore saw sales of headphones rise. This, together with a decline in the sales of
acoustic transducers, resulted in a slight drop in turnover overall as against 2010. Sennheiser Consumer Electron-
ics GmbH’s sites in Tullamore and Singapore together posed a decline in turnover of 23%; this was as a result of
a targeted and structured reduction in headphone inventories following a buildup in 2010. The key innovation
at the Tullamore site in 2011 was the 24/7 shift pattern introduced for the so-called CAM (Chassis Assembly
Machine), used for the fully automated production of high-grade headphone transducer chasses. While the
KH 120 speaker was added to the production range at Tullamore, manufacturing continues to focus on head-
phone transducers and headphones.
The site in Albuquerque, New Mexico, USA was marked in 2011 by the switch from direct deliveries to the
American Sennheiser Electronic Corporation subsidiaries to supplying logistics company Sennheiser Logistics
Services GmbH (SLS) from the warehouse in Chicago. Sennheiser developed its own lean management roadmap
in New Mexico, increasing the efficiency of material flow by adjusting the site layout. Annual turnover remained
stable.
The sites in Wennebostel, Tullamore and Albuquerque have been part of the Supply Chain Division organizational
structure since 2011. The division will formulate a multi-year strategy in 2012 and increase efficiency and output
in the medium term using profitable and innovative projects. Technical measures to modernize the manufactur-
ing of microphones and high-quality headphones were implemented in 2012. A more precise manufacturing
cost analysis will uncover immediate optimization potential using the performance indicators.
LOGISTICS
Last year saw the construction of the central warehouse and associated distribution logistics completed.
The central warehouse in Chicago was incorporated into SLS at the beginning of the second quarter. Ever since,
the US B2B and B2C market has largely been supplied by SLS from Chicago.
The B2C project in Europe for Sennheiser France S.A.R.L. was completed in September 2011. French customers
are now largely supplied directly from the central warehouse in Osnabrück.
The share of B2C deliveries for Sennheiser Electronic Asia Pte Ltd. from the central warehouse in Hong Kong was
increased further, which then reduced delivery transport and handling costs even more.
Turnover-related logistics costs fell by 20% year on year by significantly cutting consumer product air freight,
cheaper freight rates as well as additional cost cutting.
This year we aim to optimize processes once the central warehouse structure and the relating distribution
structure have been implemented. The key objectives here are improving product availability and delivery reli-
ability as well as increasing supply chain efficiency.
QUALITY MANAGEMENT
The adjustment to the organizational structure in line with the redefined structure in 2010 was successfully
completed in 2011. The approach selected for the project – to use employees’ initiative to clarify interfaces and
responsibilities – was a resounding success. Some of the modifications to the organizational structure under-
taken during the course of the year support the initiated process and the willingness to strive for continuous
improvement.
The certification of the quality management system pursuant to ISO 9001 since 1994 was successfully main-
tained. Our certificate was renewed following an audit carried out in February 2012. Despite already possessing
much experience with this management system, the change in certification partner – after many years of posi-
tive and successful cooperation with the previous provider – revealed new aspects and ideas of how to continue
to improve our processes and procedures.
We will assess the form and function of our process documentation in the course of introducing and disseminat-
ing the idea of lean management within our company. The realignment to be implemented will result in leaner
documentation, consequently designed to deliver added value for those both involved in and responsible for
the processes. It will also avoid unnecessary work.
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