Operational Excellence in Practice

How can companies recognize that their production is not running at optimum performance despite high capacity utilization?
In this podcast episode, we talk about the three stages of sustainable optimization – from stable machines and processes to management systems to forward-looking planning and the use of technology.

Stephanie: Welcome to our Supply Chain & Friends podcast. Today we're talking about operational excellence and the three stages of sustainable optimization.
Joining me in the studio are Hans Huber, CEO of STREMLER AG, and Bernhard Gottwald, Senior Project Manager and experienced expert.

When you look at well-utilized plants, how can you tell that performance is not yet optimal, even though a lot of work is being done?

Bernhard: A very clear first indication is disruptions. If employees have to regularly intervene in systems, this is a clear sign that the process is not running smoothly.
Inventories are also an important indicator – whether in the process, between stations, or directly at machines. Where material accumulates, there are usually friction losses.
Hans: I look particularly at the flow of materials – both within a line and between lines.
How much material is there, and how is it arranged? The more material is visible, the more likely there is potential for optimization.
Bernhard: This is often easier to see with highly interlinked machines than in areas with a lot of manual work.
When automated systems come to a standstill, it is very clear. In manual areas, you have to look more closely.

What needs to be in place at the machine, process, and resource levels to ensure stable performance?

Bernhard: From a technical perspective, machines and systems must first run stably—with a clearly defined sequence and an appropriate cycle time. This is the basic requirement, regardless of the type of system.

Hans: And these cycles must be synchronized with each other.
There is the machine cycle, but also the cycle of people and processes – especially where manual input is required. Often, a machine would theoretically be faster, but in the overall system, a slightly slower but more stable cycle makes sense. Only when stability has been achieved can you gradually accelerate.

Bernhard: However, this does not apply indefinitely. In certain processes, such as machining, it is not possible to slow down arbitrarily – otherwise the process will no longer function technically.

So it depends heavily on the product?

Bernhard: Exactly – on the product, the machining process, and the entire manufacturing process.

Where can performance be improved particularly well?

Bernhard: Here's an example from the food industry, in the area of packaging: There, we were able to get packaging machines running significantly faster than before. Together with the team on site, we made targeted interventions in the processes and ramped them up step by step.

What are your specific levers?

Bernhard: We analyze the process parameters very closely:
Which processes interact with each other? What can be parallelized?
A simple analogy: you can move faster with your left and right hands than with just one. We take the same approach to technology—what can happen simultaneously, what can be accelerated, and where are the limits?

Hans: The goal is always to achieve the highest possible cycle rate while maintaining a high level of stability. This not only leads to better results, but also to a calmer working atmosphere. Downtime is reduced and overall effectiveness increases.

So you focus on machines and employees – where else?

Hans: Clearly in the workflows and their interaction, as well as in the underlying processes. This can go as far as adjusting the layout or line structure.

Bernhard: We often find that materials have changed over time – for example, due to cheaper purchasing. These materials then behave differently and influence the process. This also needs to be checked.

Once these initial optimizations have been implemented, how do you stabilize performance in everyday use?

Bernhard: Then we look at the processes surrounding the line:
How is it controlled? How does material get into the line? And how do people work together? This is often where there is great potential.

Hans: Shifts are an important factor. If you compare early, late, and night shifts, there are often significant differences in performance.
This raises the question: Is it due to processes, qualifications, training, or how strongly teams identify with the goals?

These goals are reflected in the management system. How is this established?

Bernhard: Most companies have management systems—shop floor boards, key performance indicators, standards. We take a close look:

• What information is recorded?

• Who participates in the Gemba Walk?

• Are skilled workers from the shifts really involved?

• And above all: Are measures documented and consistently followed up?

Hans: We consider all levels of the organization—from the shop floor to production management and executive management. The decisive factors are how well everyone understands the respective challenges and how strongly all levels are aligned with common goals.

What role does technology play in the optimization process?

Hans: Technology has an impact on several levels. On the one hand, in the production processes themselves – machines, automation, production flow. On the other hand, it affects the control and planning level, for example through production data acquisition or production planning systems, which allow for better distribution of capacity utilization and volume. 

What are currently the biggest challenges facing companies?

Bernhard: The issues are very diverse – technical, organizational, in the supply chain. Given the current economic and political conditions, there is no single issue that is equally dominant everywhere.

Hans: Companies operate in cycles – underutilization and overutilization alternate. When underutilized, the focus is on controlling costs; when overutilized, the focus is on delivery capability. Added to this are short-term changes, such as staff shortages or disruptions to individual lines. The question is: How do you respond to this – and how do you become proactive?

What has inspired you most recently?

Bernhard: When you try things out together with the team and suddenly achieve a 30% increase in performance – that's a great feeling. When that has a lasting effect and brings real added value to the company, it makes the work very fulfilling.

Hans: We also had projects where planned investments in the seven-figure range were not necessary. Nevertheless, the goals were achieved – simply by making better use of the existing infrastructure. This is a strong result not only for production, but also for management and controlling.

 Any final words?

Hans: Always question existing assumptions. Be bold in your approach to the company and critically review your own production system. With sound analysis and clear recommendations for action, it is often possible to achieve results that would previously have been considered impossible – with positive effects on employees, KPIs, finances, and the organization.

Bernhard: There is nothing more to add.

Thank you for the nice conversation.

Hans Huber has been CEO of the STREMLER AG since August 2025. Bernhard Gottwald is Senior Project Manager and an experienced expert in Operational Excellence.
The interview was conducted by Stephanie Stremler.