Lumikko aims to be the best partner in thermal management solutions. In addition to the best partnership, we strive for profitable growth. To achieve these goals, continuous development must be part of the company’s core. One concrete development project was completed this year – our production layout renewal. This was a significat investment, totaling over half a million.
Since the beginning of Lumikko’s story, design and production have been under the same roof, benefiting 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 housed a product development testing alongside the test operation and space for component storage needed for production.
“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 located 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 the test operation.”
Now, innovation, testing and product development have their own peaceful space, and the space freed up from storage is utilized for production needs. Additionally investments were made in measurement equipment, workspaces, and environmental testing in the product develompent testing area to expedite high-quality customer and product development projects.
Faster delivery times, improved delivery reliability, and even better quality
It is well-known that quality and delivery times have always been important for Lumikko, and to ensure their continuity and improvement, it was the right time to make a change.
”We aim for growth, and to continue serving customers with quality, we must always look ahead. To enable revenue growth, we delved deep into material flows, standardizing work, and eliminating unnecessary steps from tasks.” says Pakkanen.
The project began with comprehensive work studies, investigating the time spent on manufacturing devices and identifying value-added and non-value-added work stages. This was followed by detailed calculations and simulations to phase the work and determine the required assembly areas, keeping future growth in mind.
After planning, we entered the implementation phase, resulting in an adaptable production system that caters to varying needs. Our production now facilitates optimal handling of customized projects and larger-volume serial production for diverse products. Flexibility and scalability are key.
Better working conditions, ergonomics and safety for employees – without forgetting the environment
In addition to customer focus, partnership, and growth, a significant driving factor for production changes was the improvement of work ergonomics and safety. The supplier for workstations and collection and assembly carts was a domestic partner specializing in customized workstation solutions.
“From the perspective of employee work ergonomics, the most essential innovations were fully adjustable electric workstations and assembly carts, where height and even the tilt of the work surface can be adjusted,” says Pakkanen.
As part of the layout renewal, the hall’s ceiling lights were replaced with LED fixtures, contributing to overall comfort. Additionally, fresh air masks, clearly delineated test areas, elimination of unnecessary storage, and localized exhaust systems at workstations enhance safety.
“With the new practices, we also began comprehensive risk assessment and identification of hazardous situations related to both work and environmental safety.”
Cold installer Hannu Rintala, who has worked in the company for 35 years, and test operator Tero Luokkakallio, with 25 years of experience, have witnessed various phases of Lumikko’s production over the years.”
Proto manufacturing related to customer projects and internal product development requires experience and deep knowledge of thermal management systems. In the new layout, proto manufacturing and product development activities were moved to their own dedicated space. Rintala has transitioned primarily to the new product development area to manufacture prototype devices related to customer projects.
“Having a separate space for prototyping is also beneficial from a customer perspective. Now there’s no need for special arrangements when visitors come to production, as confidentiality-sensitive matters are already in a separate closed area.”
On the production side, Luokkakallio works as a test operator. Previously, there was a centralized area for testing, but with the changes, each phased assembly line now has its own test station, with special attention to safety.
“Adjustable workstations and improved lighting have enhanced working conditions. There’s also more space, although during the ramp-up phase, some items are still finding their place.”
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.
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.”
“The process of renewal and the implementation of new practices naturally came with challenges, even though the change was successfully executed according to the planned schedule. Everyone agreed that the timing for the change was right.
“When the new production plan was presented to employees in the fall, it required some adjustment because everything changed completely. However, we had the opportunity to share our perspectives, and the plan was adjusted based on that,” recalls Mäkelä.
“Despite the challenges, we stayed on schedule during the renewal process, and the new production is very stylish with more space,” says Mäkelä.
Lean Six Sigma, Factory Physics and production employee knowledge as a base for the renewal
Lumikko’s mindset and the foundation for new practices draw from concepts such as Lean Six Sigma and Factory Physics. To complement these, valuable experiential knowledge from production employees was utilized to improve work methods and techniques.
“Lumikko’s staff commitment, open-mindedness, and culture of experimentation are admirable. During the change, we initially created a conceptual framework based on theory and calculations, and employees contributed their valuable insights on practical implementation. This new way of doing things has sparked a positive cycle where continuous improvement ideas are constantly generated,” explains Pakkanen, our Supply Director and Lean Six Sigma Black Belt owner.
Central to planning, execution, and ongoing development has been standardization across various areas, making all activities more predictable. Reducing variability in processes allows not only waste elimination but also better data collection for continuous improvement and daily management. Component set collection, visual guidance, efficient space utilization, clear material flows, and phased production processes are factors enabling capacity scaling to meet future customer needs.
“Overall, the change elevates the quality, clarity of work, and delivery capability of our operations,” summarizes Pakkanen.”
