10-Year-Old Freudenberg-NOK Grows Up Fast as a Benchmark in Lean Manufacturing
9 July 1999
10-Year-Old Freudenberg-NOK Grows Up Fast as a Benchmark in Lean Manufacturing
PLYMOUTH, Mich., July 8 -- Virtually unknown after it was
formed just 10 years ago, Freudenberg-NOK -- which has established itself as a
benchmark in lean systems, tripled its sales and has become an industry leader
in innovative approaches -- is a prime example of a true business success
story.
"After 10 years of building relationships, empowering employees and
creating a lean culture, Freudenberg-NOK has established itself as a global
force in the automotive supply industry, thanks to its associates," said
Joseph C. Day, president and CEO of Freudenberg-NOK. "Through our GROWTTH(R)
program, our associates are continually pushing to make us better. With their
continued commitment, we plan to continue growing well into the next
millennium."
GROWTTH -- which stands for Get Rid Of Waste Through Team Harmony -- has
helped Freudenberg-NOK boost productivity, enhance quality, improve delivery
and increase customer satisfaction. The program emphasizes teamwork and
communications, increasing efficiencies in the use of time, labor, materials
and space and striving continually to improve performance. The company and
its global affiliates have conducted over 12,000 kaizen (continuous
improvement) projects which have created a manufacturing environment that has
enabled Freudenberg-NOK to reduce its reject rates by 96 percent since 1992
(from 1,300 to 50 parts per million).
"Through Freudenberg-NOK, we've been successful at taking a Japanese
heritage in lean systems and a German standard of precision and Americanizing
it," Day said. "This unique combination of global forces and our strong
vision to be the best has helped Freudenberg-NOK become a benchmark in lean
systems and a leader in innovative thinking."
With more than $720 million in sales in 1998, Freudenberg-NOK has more
than tripled its annual sales in the first 10 years. More importantly, it has
grown in global stature from a fledgling joint venture to being a full partner
in the global multi-billion dollar Freudenberg and NOK Group.
Today, Freudenberg-NOK is North America's leading supplier of precision
seals, molded rubber and plastic components, vibration-control devices and
automotive rebuild kits. Customers include all major domestic automakers and
leading systems suppliers. The partnership is headquartered in Plymouth,
Mich., and employs 6,000 associates -- who will be celebrating the company's
anniversary at local events held throughout the summer -- at its 21 facilities
throughout the Americas.
Always driving innovation, Freudenberg-NOK was the first supplier to offer
its customers total engine sealing, total transmission sealing and complete
noise, vibration and harshness (NVH) packages. The company also is a pioneer
in developing cost-down strategies for automakers, and recently introduced a
new customer satisfaction metric system called PATTH, which stands for
Priority Action Through Team Harmony.
Freudenberg-NOK was formed in 1989 through a joint venture of two
companies which collectively have over 200 years of business experience in
producing seals, molded products and vibration controls -- Freudenberg and Co.
of Germany and NOK Corp. of Japan.
The partnership's roots trace back to 1849 through Freudenberg --
celebrating its 150th anniversary this month -- which evolved from a family-
owned leather tannery to the $3.5 billion privately held company it is today.
The global alliance between the two companies began through a licensing
agreement in 1960. Working together for more than 40 years, Freudenberg and
NOK have expanded their dynamic synergy to provide specialized technology to
customers around the world.
The Freudenberg and NOK Group ranks among the world's top 20 automotive
suppliers and is one of only eight in the top 100 that have global balance in
each of the three major automotive markets -- Asia, Europe and North America.
Through a global network of facilities spanning 24 countries with some
23,000 automotive employees worldwide, the supplier group offers its
automotive customers globally integrated products, including sealing packages
for transmissions, engines, brakes, axles and steering, NVH (noise, vibration
and harshness) components and packages, and all rubber, plastic and PTFE
components for suspension, electrical and fuel systems.
The Freudenberg and NOK Group also offers an extensive portfolio of
precision-molded products for the aerospace, appliance, business machine,
fluid power, marine, medical, off-highway equipment and recreational vehicle
markets. For more information, visit the Freudenberg-NOK web site at
http://www.freudenberg.nok.