Parker Hannifin
How MES Softli helped Parker Hannifin increase net profit by 166 Million CZK
"SoftLi MES has been a true game changer for us. With detailed production monitoring, we can optimize processes and establish realistic standards based on real data. Most importantly, employees clearly see it as a supportive tool, not a monitoring system.“
Michal Kupec
Managing Director – Location Manager, Parker Hannifin
About the client
Parker Hannifin is an American multinational company specializing in the development and manufacturing of motion control technologies and systems. With over 55,000 employees and annual revenues of around $20 billion, it is a global leader in its field.
The company’s Czech office in Chomutov spans 30,000 m² and employs over 520 staff, uniquely hosting seven different divisions all in one building.
Each division manages its own finances (P&L). The product line spans filters, hydraulics, fuel systems, pumps and hoses. Notable clients include Volvo, Ford, MAN, Iveco, John Deere, Komatsu, ABB and Atlas Copco.
Advantages of having seven divisions under one roof
"Each division tends to move with a slightly different market rhythm. When one market is up, another may be down. This allows us to move employees between divisions according to current demand. That’s also why we were among the few companies that did not have to lay off staff during COVID," explains the company’s managing director.
Production relies heavily on simple machinery and manual work.
"The current automation level is quite low, but we are working to improve it. We mainly use assembly tables, presses, glue machines, screwdrivers, and test benches."
Before implementation: paper, pencil and messy data
"Even though we had a standard for tracking production through the Parker Lean System, all records were on paper. Retrieving last year’s data meant digging through boxes to find the right document," recalls the plant manager.
The system included:
Hour-by-hour production performance, noting any line stoppages or quality issues
Weekly and monthly reports with manually prepared Pareto charts
"It wasn’t a matter of staff deliberately altering data. The shift workload was just so complex that the records were often inaccurate. That’s why we wanted data to be available online and completely transparent," remembers the plant director.
Why we chose MES SoftLi?
"SoftLi offered a pilot project solution at a reasonable price. We were able to test the system and see how much data we could collect. Throughout the trial, we also received excellent support," explains Parker’s CEO regarding the decision-making process.
Implementation: one line per week
From the pilot project, the system has expanded to 45 lines and machines. “We are able to implement one line per week – from wiring and hardware installation to IT cabling and full system setup.
Game changer in manufacturing
Today, we can pinpoint problems with complete accuracy. When we see that overall OEE is affected by the ‘Availability’ parameter, we can immediately identify which line, during which shift, and at what exact time the issue occurred.
The director highlights the detailed data analysis as the key benefit:
„For instance by analyzing Performance Parameter in OEE, we can see a line was producing 3 seconds faster on average than the system’s expected times.”
"We don’t tell people ‘you must work faster’; instead, we set standards based on the actual speed of production. At the same time, we analyze negative deviations and explore ways to improve the work, whether by rebalancing the line or implementing ergonomic enhancements."
Staff have embraced the system
"We conducted an internal survey, and employees recognize that MES SoftLi is not a tool for monitoring them, but a system used by both management and production staff that benefits everyone. It has even fostered a healthy sense of friendly competition among them," praises the Managing Director.
Results that speak for themselves
The combination of MES SoftLi with Kaizen activities and increased automation has delivered:
Increase in market profitability by 3.7 %
Growth in net profit by 166 million CZK
"This advanced MES system, combined with Andon and a paperless factory, is unique among Parker branches in Europe. We are preparing a showcase for our foreign colleagues to present what we’ve established in Chomutov," concludes the Czech branch director, who aspires to make it the best Parker Hannifin plant worldwide.
