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FeedsHome: Issue 5 2008 › Cover Story › Stronger together
Stronger together
06/10/2008 | Channel: Automotive, Energy Management, Production Management
Håkan Dahllöf, president of TMHE, is looking forward to the challenge of leading the company in the future, as he told Libbie Hammond
Toyota Material Handling Europe (TMHE) began operations in 2006 to manage the Toyota and BT materials handling business in Europe. Since then, Toyota and BT operations have been integrated at the European level and in most local markets.
Håkan Dahllöf was appointed TMHE president in April 2008. He explained in more detail how the organisation came into existence: “TMHE is, in fact,the European regional organisation of the Toyota Material Handling Group (TMHG), which in turn is part of Toyota Industries Corporation (TICO). To strengthen its position in Europe and globally, TICO bought BT Industries Group back in 2000 in the largest acquisition in TICO history.” He continued:
“The creation of TMHE has resulted in a stronger organisation that is closer to its customers and better able to meet evolving market needs.”
His role as president may be fairly new, but Håkan has years of experience with both BT Industries and Toyota, as he began his career at BT back in 1990. In 2002, he became chief financial officer (CFO) of BT Industries Group, and it was at this time that he and a colleague in Japan discussed exploring more of the synergies between BT and Toyota. “Our idea was aimed at the front line with the customer, meaning we needed to integrate BT and Toyota’s distribution networks,” he explained. “We performed and submitted an analysis which turned out to be a good ‘teaser’ and were given the assignment to develop. As a result, Toyota and BT sales and service operations have been merged in a number of countries where it was decided that this would provide even better service and support to customers.
“We did the strategy and planning and then I was asked to take on the responsibility for the implementation in Europe, which was actually the biggest area of restructuring. So I ran that for two years, and then I was asked to take on the role of
president for Europe.”
Håkan made the integration sound quite simple but in fact, it involved some complicated decisions. “TMHE covers the whole of geographical Europe, and the areas were serviced by old sales companies from BT, sales and distribution operations from Toyota, plus a lot of independent distributors and dealers. This meant when we were doing the configuration, we had to decide how to create a united company. This could involve the merging of two owned operations or putting the whole area in the hands of one independent – this option may mean selecting one and cancelling another. Alternatively we could acquire the other independent and merge the operations - so there were many different solutions we could choose from. After analysis we made the decisions and now in more or less all countries today we appear as TMHE and the customer is faced with one sales man and one service team.
“We are through most of the work from a technical point of view, but because we are dealing with people and cultures it will still take a couple of years before we really are one truly seamless company.”
The market has responded very favourably to the changes that have taken place. “The reactions from both customers and our front end people have been very positive, because they feel we now have a much stronger offer,” he explained. “Now in most countries we have one point of contact through an integrated TMHE network. This brings us closer than ever to our customers, and broadens the offering by combining the full product line-up of Toyota counterbalanced forklifts and BT warehouse equipment in addition to our growing portfolio of services and business solutions.”
As part of TICO, TMHE manufactures its range of products according to the rules of the Toyota Production System, the world-famous integrated approach to production, which manages equipment, materials, and people in the most efficient manner while ensuring a healthy and safe work environment. TPS is based on two principles - just-in-time production and jidoka - and Håkan highlighted how the latter principle refers to the ability to stop production lines in the event of problems such as equipment malfunction, quality issues, or late work. “Whenever you find a quality defect you stop the line,” he explained. “This means you don’t mass produce a less than perfect component. The staff along the assembly lines are empowered to stop the line if there is a problem, so that we are always producing standardised work.”
TPS is primarily designed to drive quality, and of course it drives efficiency as well. Håkan explained that this concept was keeping TMHE competitive despite the influx of cheaper options from low-cost countries. He said: “There are a lot of different concepts tied up in TPS, and one is takt time, or the time which should be taken to produce a component on one vehicle.” Adhering to takt time allows TMHE to efficiently produce different types of trucks in the proper sequence in line with customer orders. This keeps production on schedule and permits flexible response to change in sales. “Because we are producing to a certain takt time we are more productive and therefore it is possible for us to pay Western average salaries, and still stay competitive,” he said.
“TPS involves a lot of different stages, but perhaps most importantly, the constant checking and reviewing ensures the highest quality.”
As well as the benefits of more efficient manufacturing, the integration of BT and Toyota also meant that TMHE can now offer a full range of materials handling equipment to customers, whatever their application need.
“In the past you could say that BT targeted retail and logistics, primarily electric and indoor, while Toyota was targeting a variety of customers in industrial, and had a much better feel for outdoor materials handling, with its counterbalanced business,” Håkan commented. “But now we’re offering a combined range we try to meet the materials handling need of any customer.”
In order to meet these needs, TMHE has an ambitious development programme underway, that looks to review and renew the range. Over a twoyear period, TMHE will be introducing all new counterbalanced and warehouse models addressing 70 per cent of the European market potential. This process started in 2007 with the launch of the Toyota Tonero engine-powered forklifts, and in 2008 TMHE used the CeMAT exhibition as a launch pad for the all-new BT Levio pedestrian powered pallet trucks and BT Staxio pedestrian powered stackers, as well as a variety of other new products.
“These were very well received,” said Håkan. “Levio and Staxio are interesting concepts because we have the ability to adjust the specification to the customers’ needs, and both ranges have been engineered for easy, intuitive operation, which in turn helps to optimise customers’ safety and productivity.”
Alongside Levio and Staxio, CeMAT also provided a preview of the new BT Reflex reach truck and Toyota 48-volt electric counterbalanced models that will be introduced later in 2008, as well as the Toyota Hybrid Concept Forklift, which had previously been displayed only in Japan. This is a hybrid forklift model featuring technology inspired by the Toyota Prius. It combines an internal combustion (IC) engine, electric generator and battery in a design that allows the truck to operate with optimum fuel/emissions efficiency. The concept forklift is designed to cut CO2 emissions and fuel consumption significantly while delivering the same performance as conventional IC forklift models.
“There is a lot of focus on environmental technologies in our industry,” said Håkan. “There is no hocus pocus here - the Toyota hybrid concept is already proven and driving round the roads in over a million Toyota Prius.”
He continued: “One of our main reasons for showing the new truck was to get some feedback from customers on how much they value the environmental approach, and if it’s enough to encourage them to pay for a somewhat more expensive truck. So we used CeMAT to look at their willingness to adopt a hybrid concept, and it was quite successful, as we learned there is a genuine interest out there.”
This sort of hands-on research with customers is typical of the TMHE approach, and the organisation has R&D and production facilities close to its European customer base, while drawing on the global knowledge and resources of its parent organisation. Both Staxio and Levio were released following the results of extensive customer research, as Håkan explained: “That is what we see as one of our strengths - we have sales companies in each and every country, and through them we have a direct dialogue with customers and a systematic approach as to how to catch customers’ demands. If we decide to launch a new product we take them into account, and there are also some point of reference customers that we work with during development and some will also run a preserial trial, so that we get that feedback, which is also very important.”
Another way that TMHE reaches its customers is through its comprehensive services and solutions offering. Håkan emphasised the importance of services to TMHE. “Half our business is comprised of the services around the products, and that is where we can differentiate ourselves,” he said. “Our services and solutions include structured service programmes, rigorous performance standards, and highly trained service engineers, and this means customers get the quality and reliability they require. We can offer simple maintenance all the way up to full service contracts - there are a variety of solutions depending on the customers’ needs. Sometimes the service business of TMHE can be overlooked but is in fact very, very important to us – of our 8500 staff in Europe, 5000 are in the service area.”
TMHE has already seen some very exciting developments in the short time it has been in existence, and the transition into one seamless organisation has been handled skilfully by Håkan, right from the initial strategy to overseeing the company’s future. “It has been such a privilege to come through this whole process - being acquired as part of BT, then being trusted to run the strategy work on the integration, and then project managing the change in Europe,” he concluded. “To be asked to take over as president meant I am able to participate in the entire process, and I feel that this has been a great opportunity to accompany the organisation on an amazing journey, right up to delivering the end results.”
Håkan Dahllöf was appointed TMHE president in April 2008. He explained in more detail how the organisation came into existence: “TMHE is, in fact,the European regional organisation of the Toyota Material Handling Group (TMHG), which in turn is part of Toyota Industries Corporation (TICO). To strengthen its position in Europe and globally, TICO bought BT Industries Group back in 2000 in the largest acquisition in TICO history.” He continued:
“The creation of TMHE has resulted in a stronger organisation that is closer to its customers and better able to meet evolving market needs.”
His role as president may be fairly new, but Håkan has years of experience with both BT Industries and Toyota, as he began his career at BT back in 1990. In 2002, he became chief financial officer (CFO) of BT Industries Group, and it was at this time that he and a colleague in Japan discussed exploring more of the synergies between BT and Toyota. “Our idea was aimed at the front line with the customer, meaning we needed to integrate BT and Toyota’s distribution networks,” he explained. “We performed and submitted an analysis which turned out to be a good ‘teaser’ and were given the assignment to develop. As a result, Toyota and BT sales and service operations have been merged in a number of countries where it was decided that this would provide even better service and support to customers.
“We did the strategy and planning and then I was asked to take on the responsibility for the implementation in Europe, which was actually the biggest area of restructuring. So I ran that for two years, and then I was asked to take on the role of
president for Europe.”
Håkan made the integration sound quite simple but in fact, it involved some complicated decisions. “TMHE covers the whole of geographical Europe, and the areas were serviced by old sales companies from BT, sales and distribution operations from Toyota, plus a lot of independent distributors and dealers. This meant when we were doing the configuration, we had to decide how to create a united company. This could involve the merging of two owned operations or putting the whole area in the hands of one independent – this option may mean selecting one and cancelling another. Alternatively we could acquire the other independent and merge the operations - so there were many different solutions we could choose from. After analysis we made the decisions and now in more or less all countries today we appear as TMHE and the customer is faced with one sales man and one service team.
“We are through most of the work from a technical point of view, but because we are dealing with people and cultures it will still take a couple of years before we really are one truly seamless company.”
The market has responded very favourably to the changes that have taken place. “The reactions from both customers and our front end people have been very positive, because they feel we now have a much stronger offer,” he explained. “Now in most countries we have one point of contact through an integrated TMHE network. This brings us closer than ever to our customers, and broadens the offering by combining the full product line-up of Toyota counterbalanced forklifts and BT warehouse equipment in addition to our growing portfolio of services and business solutions.”
As part of TICO, TMHE manufactures its range of products according to the rules of the Toyota Production System, the world-famous integrated approach to production, which manages equipment, materials, and people in the most efficient manner while ensuring a healthy and safe work environment. TPS is based on two principles - just-in-time production and jidoka - and Håkan highlighted how the latter principle refers to the ability to stop production lines in the event of problems such as equipment malfunction, quality issues, or late work. “Whenever you find a quality defect you stop the line,” he explained. “This means you don’t mass produce a less than perfect component. The staff along the assembly lines are empowered to stop the line if there is a problem, so that we are always producing standardised work.”
TPS is primarily designed to drive quality, and of course it drives efficiency as well. Håkan explained that this concept was keeping TMHE competitive despite the influx of cheaper options from low-cost countries. He said: “There are a lot of different concepts tied up in TPS, and one is takt time, or the time which should be taken to produce a component on one vehicle.” Adhering to takt time allows TMHE to efficiently produce different types of trucks in the proper sequence in line with customer orders. This keeps production on schedule and permits flexible response to change in sales. “Because we are producing to a certain takt time we are more productive and therefore it is possible for us to pay Western average salaries, and still stay competitive,” he said.
“TPS involves a lot of different stages, but perhaps most importantly, the constant checking and reviewing ensures the highest quality.”
As well as the benefits of more efficient manufacturing, the integration of BT and Toyota also meant that TMHE can now offer a full range of materials handling equipment to customers, whatever their application need.
“In the past you could say that BT targeted retail and logistics, primarily electric and indoor, while Toyota was targeting a variety of customers in industrial, and had a much better feel for outdoor materials handling, with its counterbalanced business,” Håkan commented. “But now we’re offering a combined range we try to meet the materials handling need of any customer.”
In order to meet these needs, TMHE has an ambitious development programme underway, that looks to review and renew the range. Over a twoyear period, TMHE will be introducing all new counterbalanced and warehouse models addressing 70 per cent of the European market potential. This process started in 2007 with the launch of the Toyota Tonero engine-powered forklifts, and in 2008 TMHE used the CeMAT exhibition as a launch pad for the all-new BT Levio pedestrian powered pallet trucks and BT Staxio pedestrian powered stackers, as well as a variety of other new products.
“These were very well received,” said Håkan. “Levio and Staxio are interesting concepts because we have the ability to adjust the specification to the customers’ needs, and both ranges have been engineered for easy, intuitive operation, which in turn helps to optimise customers’ safety and productivity.”
Alongside Levio and Staxio, CeMAT also provided a preview of the new BT Reflex reach truck and Toyota 48-volt electric counterbalanced models that will be introduced later in 2008, as well as the Toyota Hybrid Concept Forklift, which had previously been displayed only in Japan. This is a hybrid forklift model featuring technology inspired by the Toyota Prius. It combines an internal combustion (IC) engine, electric generator and battery in a design that allows the truck to operate with optimum fuel/emissions efficiency. The concept forklift is designed to cut CO2 emissions and fuel consumption significantly while delivering the same performance as conventional IC forklift models.
“There is a lot of focus on environmental technologies in our industry,” said Håkan. “There is no hocus pocus here - the Toyota hybrid concept is already proven and driving round the roads in over a million Toyota Prius.”
He continued: “One of our main reasons for showing the new truck was to get some feedback from customers on how much they value the environmental approach, and if it’s enough to encourage them to pay for a somewhat more expensive truck. So we used CeMAT to look at their willingness to adopt a hybrid concept, and it was quite successful, as we learned there is a genuine interest out there.”
This sort of hands-on research with customers is typical of the TMHE approach, and the organisation has R&D and production facilities close to its European customer base, while drawing on the global knowledge and resources of its parent organisation. Both Staxio and Levio were released following the results of extensive customer research, as Håkan explained: “That is what we see as one of our strengths - we have sales companies in each and every country, and through them we have a direct dialogue with customers and a systematic approach as to how to catch customers’ demands. If we decide to launch a new product we take them into account, and there are also some point of reference customers that we work with during development and some will also run a preserial trial, so that we get that feedback, which is also very important.”
Another way that TMHE reaches its customers is through its comprehensive services and solutions offering. Håkan emphasised the importance of services to TMHE. “Half our business is comprised of the services around the products, and that is where we can differentiate ourselves,” he said. “Our services and solutions include structured service programmes, rigorous performance standards, and highly trained service engineers, and this means customers get the quality and reliability they require. We can offer simple maintenance all the way up to full service contracts - there are a variety of solutions depending on the customers’ needs. Sometimes the service business of TMHE can be overlooked but is in fact very, very important to us – of our 8500 staff in Europe, 5000 are in the service area.”
TMHE has already seen some very exciting developments in the short time it has been in existence, and the transition into one seamless organisation has been handled skilfully by Håkan, right from the initial strategy to overseeing the company’s future. “It has been such a privilege to come through this whole process - being acquired as part of BT, then being trusted to run the strategy work on the integration, and then project managing the change in Europe,” he concluded. “To be asked to take over as president meant I am able to participate in the entire process, and I feel that this has been a great opportunity to accompany the organisation on an amazing journey, right up to delivering the end results.”