Simplifying processes, reducing bureaucracy, empowering employees – this is one of the tasks of the Transformation Hub. Now one of the first measures is being implemented: higher release limits for goods and services.

Wednesday18.06.2024
 

It began in the CEO kick-off round in mid-January 2024, which focused on the following topic: How can FORVIA HELLA be made faster, more agile and thus fit for the challenging competition on international markets? The ideal solution is to simplify processes and structures, reduce bureaucracy, and empower employees. Under this strategic umbrella, the participants put together various work packages, which will be bundled and consistently driven forward in a newly founded Transformation Hub. One work package is dedicated to the topic of 'Lean Work'. Under the direction of sponsor Stefan van Dalen and Heiko Lässig as well as project managers Diana Toda and Delia Lazarov, ideas and measures are being developed to streamline structures and processes that make the entire company faster, more flexible and thus more adaptable to volatile markets.

Focus on workflows

"One focus of lean work is the optimization of the almost countless workflows in the company," explains Stefan van Dalen. "There are many starting points there to quickly achieve noticeable improvements with relatively little effort." Heiko Lässig adds: "We concentrated on areas with a particularly high number of approvals and specifically looked for potential for streamlining there." One of these potentials was found in the Electronic Procurement Workflow (ePW). Here alone, about 50,000 applications are started every year, which take far too long to reach final approval due to the many approval steps.

More speed, more personal responsibility

Until now, top management has had the final say on many cost-related purchasing decisions. But not all the details are always known. Therefore, several loops were usually necessary to clarify open questions and gather the necessary information for decision-making. As a result, to authorize payments usually takes a lot of time – time that can be used much more sensibly. This is exactly where the team led by Stefan van Dalen and Heiko Lässig came in: "It simply makes sense to shift a larger part of the approval processes from the top level to middle management," explains Heiko Lässig. "Because colleagues are closer to day-to-day business and can therefore make decisions much faster. This will significantly speed up the approvals and all subsequent processes." Another advantage is the appreciation that employees are shown with the transfer of additional responsibility. "We enable employees outside the top levels to decide more things independently and act responsibly themselves," says Stefan van Dalen. "This conveys trust and certainly also contributes to motivation."

Redistribution in the millions

Specifically, the upper limits on the purchase of goods and services have been increased at all clearance levels, in some cases massively. The various levels authorized to release – management board, upper management circle, site manager (plant or R&D site) or central division manager, senior manager and department head – recorded increases of up to 400 percent. For example, a site or central division manager was previously allowed to release costs of up to 200,000 euros. With the new limits, up to 750,000 euros are now possible. Department heads, who were previously allowed to release costs of a maximum of 75,000 euros, now have a budget cap of 375,000 euros. With the new regulation, around 80 percent of approvals will be shifted from the top management level to the downstream levels. The first measure of the Lean Work team is convincing across the board: it saves time, conveys appreciation and opens up the opportunity for many participants to work more independently. The new limits have been in force since 15 June 2024 and are automatically stored in the electronic systems.