TitanX focuses on keeping lead times short to improve cash generation
You have had an exciting journey together with EQT and have expanded your production footprint substantially in China, Mexico and Brazil. Now the TitanX journey continues with Tata Autocomp. What will be TitanX overall focus the coming years?
– From an Operations perspective we are focusing on consolidating our new plants into our organization and aligning ways of working across the group. At the same time we are in a ramp-up phase in these countries, so we are of course also focusing on developing the markets and increasing TitanX’s brand awareness. The general market conditions at our existing markets are excellent at the moment and there is continous on-going discussions on how to be able to meet increasing volume requirements, while at the same time remaining flexible and not over-stretching, Niklas Ingesson says.
TitanX spent significant effort to further improve cash generation during the last years. What have been the most successful improvement that TitanX have made, and what still remains your biggest challenges?
– The biggest improvement that we have seen is a change in mindset and establishment of a cash flow culture. Earlier, the focus was very much on volumes, top-line and EBIT – but now everybody understand the importance of keeping lead times short and having a good cash generation. This goes all the way from top management to the shop floor.
– Another big win was increasing the understanding and cross-functional work between sourcing, logistics and production which have led to less sub-optimization and smoother work flows. I think the biggest challenge is the daily work of balancing the order-to-delivery cycle with other requirements in regards to service levels and so on. You need to be on top of these questions all the time, ensuring good monitoring solutions and an agile organization, to really outperform.
Big data and digitization are driving significant change in many industries. Do you see this in your industry and how do you work to leverage modern IT solutions and data?
– This is definitely something that we see within the automotive industry, where for example trucks are going online with increasing possibilities to closely monitor vehicle parks and performance. From our perspective the biggest improvements so far have been in relation to production. As an example we are now monitoring our machine park and tools very closely and matching data with quality and scrapping information to understand when maintenance is required. It allows us to be very proactive in our maintenance work and has allowed us to have very low quality deviations, something that we take great pride in.
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