Huf UK

Source: Manufacturing Digital

Date :19/02/2008 09:04:34

Robert Smith joined lock manufacturer Huf UK as MD in 2006 and is in the process of turning the company around. He explains to Exec how he intends to do this

Written by Lucy Mowatt and produced by Kiron Chavda

As part of a German company with subsidiaries all over the world, Huf UK is a business that is often responsible for delivering leading technologies to the car access, security and immobilisation (CASIM) markets, with a reputation for supplying quality to premium brands. In order to keep up with the industry, Robert Smith, MD in the West Midlands, says: “It’s about bringing in a different view and a different culture to the business” and he intends to do just that.

Robert Smith explains; “Huf first came to Willenhall because it was the centre of the lock industry in the West Midlands.” Based across two sites in the region, the UK subsidiary has been delivering locks and handle systems to the automotive industry for 20 years. There are numerous other lock manufacturers nearby and that there is real manufacturing expertise in the area.

“In total, across the two sites, we employ 332 people, including myself,” Mr Smith says. It is a company that is focused upon training its people to the highest standard, spending between £70 and £100,000 on external training every year. “Most of the Management Team are on a Masters degree or involved with some kind of research,” he explains. The company is also aiming to train every member of staff to NVQ Level 2 where appropriate. Twelve people have also been entered into a scheme to attain green belt accreditation in Six Sigma processes.

“We’ve trained people so well that they’ve become very approachable, and we almost accept it will happen,” says Robert Smith. He is proud that the company has got such well qualified staff because it means that they are being trained in the right way. The company does have succession planning in place, but when the opportunity to promote internally is not available, people inevitably move on.

For 2008, Huf UK is looking at developing an apprenticeship scheme too, in an attempt to improve the recruitment pool for the future. “We’re not only going to open that up internally, but we’re going to go into schools and try to make it attractive for youngsters to go into industry,” Robert Smith explains. He says that manufacturing is still perceived to be a “dirty business” and young people do not want to be involved. As such, apprenticeship schemes will attempt to reverse this trend.

Business turnaround

The Managing Director explains that he himself undertook an apprenticeship scheme, and since then he has gained experience in the automotive industry, holding a Masters degree in Lean Manufacturing. He is now in the process of turning this subsidiary company around. “Huf UK, for a few years, had not necessarily performed to its potential. I came in a couple of years ago following a period where the company had operationally done well, but not performed to the level it should have,” he states, before saying that it is expecting to end this year in profit, rather than making a loss as it did in 2005.

With a strong background in lean manufacture, Smith has looked at value streams and the business has improved significantly. “In the way we flow materials we have made lots of changes,” he says. The company now uses some lean techniques and everyone is encouraged to take an interest. “We have an internal quarterly magazine, for which I write articles that are normally focused on one of the tools,” Smith says, before going on to explain that they have recently appointed a Supply Chain Manager to make sure that these processes are maintained throughout all business transactions.

“My job for the next couple of years is to be a bit more outward facing and to understand a little more about the customer base and how we can support them.” He says that customer perceptions often count against them though. He says that one problem is that the UK is not seen as a low cost manufacturing country, so companies look for suppliers in Eastern Europe or Asia instead. “We have to convince them that we are just as competitive and on their doorstep,” he asserts. “We can offer many other benefits in terms of logistics costs, customer liaison and service.”

In turn, this should redress the balance of exports against domestic sales; 80 percent of output is currently exported, with 40 percent going to one company in Germany. Robert Smith explains that it is imperative to change this in order to create a balanced client portfolio that is not overly reliant on one brand.

Market changes

Many UK manufacturers, not just Huf UK, find that automotive companies only take into account the unit cost of their product, rather than the total cost, which means that they are more likely to obtain supplies from low cost countries. Mr Smith says that this is often the least cost effective method of purchasing. “They might have to carry three weeks worth of inventory because their supplier is abroad and it takes time for deliveries to get to them...or if they have a quality problem it will take time for the supplier to be reactive,” he says.

Huf UK can supply its customers with a Just-in-Time delivery service, or deliver in sequence from its production line, while also being able to react quickly to any changes in demand. The MD is aiming to raise awareness of Huf’s capabilities, fighting what he calls the “presumption that buying from the UK must be expensive, which means that we don’t get the opportunity to go to the table and talk.”

The quality of Huf UK’s products is high too. It holds the TS 16949 certificate for the automotive industry and the Q1 certificate from Ford in acknowledgement of these standards. “Quality has to be embedded in the process,” Robert Smith says. He says that most of its premium brand customers are happy to rely on the TS certificate because its audits are so stringent.

Green awards

In 2007, the company retained the ISO 14001 certificate. In fact, the company has been so dedicated to implementing these environmental processes that was given a gold award by Sandwell Borough Council for its efforts. By the middle of 2008, Huf UK is hoping to qualify for Platinum status thanks to its continuous focus on the environment. “We know our carbon footprint and we plan to reduce it by 20 percent in the next 18 months, and a further 20 percent in the twelve months after that,” Robert Smith says. He also explains that they recycle where possible and have set up agreements with a number of customers to ensure that used packaging is returned so that it can be recycled.

With such commitments and a renewed focus on building new business, Huf UK is looking towards safeguarding its future and growing its profits.

Click here to read the corporate brochure on HUF UK