More than half a million investments in production layout renewal
Lumikko’s goal is to be the best partner in thermal management solutions. Alongside strong partnerships, we aim for for profitable growth. To achieve these goals, continuous development must remain at the core of our operations. One concrete forward was completed this year: the renewal of our production layout. This was a significat investment, totaling more than half a million euros.
Seamless collaboration between Product Development and Production
Since the beginning of Lumikko’s story, design and production have operated under the same roof. This has brought clear benefits to both customers and Lumikko through seamless collaboration. Lumikko’s in-house production has decades of experience in manufacturing high-quality thermal management solutions.
Simplified, the production of thermal management solutions often include:
1) Electrical subassembly (such as harnesses and electrical panels)
2) Mechanical assembly (subassemblies, final assembly, finishing)
3) Soldering work (e.g. pipe connections, refrigeration circuit assemblies)
4) Electrification (e.g. connecting actuators to electrical panels)
5) Pressure testing for all devices’ refrigerant and fluid circuits
6) Testing each manufactured device according to customer requirements
In addition to these, the production hall preciously included product development testing, as well as space for component storage.
“One of the main goals of the layout renewal was to utilize the entire factory space as efficiently as possible for device manufacturing.” describes Director of Supply Joonas Pakkanen.
”We outsourced storage and picking operations to a local 3PL partner nearby. This allows our inventory to adapt to changing customer needs, especially regarding storage services.”
”We relocated product development testing to a dedicated separate area away from product testing.”
As a result, innovation, testing and product development now have their own dedicated space. This storage space freed up from the hall has been utilized for production needs. In addition, we invested in measurement equipment, new workspaces, and environmental testing capabilities to accelerate high-quality product development and customer projects.
Faster delivery times, better reliability, and higher quality
Quality and delivery times have always been essential for Lumikko. To safeguard and improve them, this was the right time to make a change.
”We aim for growth. To continue serving customers with top quality, we must always look ahead. To enable revenue growth, we analyzed material flows in detail, standardized work methods, and eliminated unnecessary steps”, says Pakkanen.
The project began with comprehensive work studies, analyzing the time spent on manufacturing and identifying both value-added and non-value-added work steps. This was followed by detailed calculations and simulations to define work phases, assembly areas,and future growth needs.
The result is a flexible production system that adapts to varying requirements. Our renewed production now supports both highly customized projects and larger-scale serial production. Flexibility and scalability are key.
“In the entire project, I am most proud of our team. We went through a total transformation together. Everyone in production was involved, and the attitude toward change was extremely positive. Everyone contributed,” praises Pakkanen.
Better working conditions, ergonomics and safety
In addition to customer focus, improving employee ergonomics and safety was a driver of the production changes. Worstation and assembly carts were supplied by a Finnish partner specializing in customized workstation solutions.
“The biggest improvements in ergonomics were fully adjustable electric workstations and assembly carts, where height and even tilt can be customized”, says Pakkanen.
As part of the layout renewal, the hall’s ceiling lights were replaced with LED fixtures. Fresh air masks, clearly marked testing areas, reduced storage inside the hall, and localized exhaust systems at workstations further enhance safety.
“With the new practices, we also launched comprehensive risk assessment, identifying hazards related to both work safety and environmental safety.”
Dedicated space for prototyping
Prototype manufacturing for customer projects and product development requires experience and deep expertise in thermal management. In the new layout, prototyping and development activities were moved to a separate, dedicated area.
“Having a separate space for prototyping is also beneficial for customers. Confidentiality-sensitive projects are now handled in a closed area, without special arrangements when visitors come to production”, explains Hannu Rintala, cold installer with 35 years at Lumikko.
On the production side, Tero Luokkakallio, a test operator with 25 years at the company, highlights that each assembly line now has its own test station. Adjustable workstations, better lighting, and more space have all improved working conditions.
Both Rintala and Luokkakallio have a long history with Lumikko. What has kept you satisfied in Lumikko’s production?
“A positive atmosphere has been there from the beginning and has remained,” says Rintala.
“There has always been plenty of work for 25 years,” says Luokkakallio.
Unique products and hands-on work
Production Supervisor Niko Mäkelä has been with the company for four years. What are you proud of in Lumikko’s production?
“Hands-on work and the uniqueness of our products,” describes Mäkelä.
Mäkelä recalls how the renewal process was not without challenges:
“When the new production plan was presented in the fall, it was a big change – everything was different. But we were able to share our views, and the plan was adjusted accordingly. Despite the challenges, we stayed on schedule, and today the hall is more spacious and modern.”
Lean Six Sigma, Factory Physics and production employee knowledge as the foundation
The renewal was based on proven concepts like Lean Six Sigma and Factory Physics, complemented by the practical expertise of Lumikko’s production employees.
“Lumikko’s staff commitment, open-mindedness, and culture of experimentation are admirable. We started with a theoretical framework and calculations, then employees refined the practices with their insights. This combination sparked a positive cycle where new improvement ideas constantly emerge”, explains Pakkanen, our Supply Director and Lean Six Sigma Black Belt owner.
Standardization was central to planning, implementation, and continuous development. Reducing process variability not only eliminates waste but also enables more reliable data collection, supporting continuous improvement and daily management.
“Overall, the change elevates the quality, clarity, and delivery capability of our operations”, summarizes Pakkanen.
Watch the production presentation video below
Read more about Lumikko’s development: