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Best available technology only
Welding is a process in which preparation and getting it right in one go play a crucial role. The ISO 3834-2 certification acquired by Kesla in 2018 helps ensure a good result.
In 2011, Kesla launched a major KESLA 2015 investment programme. The most significant investments were made in 2013 and 2014. In total, the company invested over €10 million in its production during the decade. According to Production Director Paavo Hopponen, the investment policy is clear:
Paavo Hopponen’s Kesla career began at a time of strong growth. Many recruitments were made, more temporary labour was hired and the subcontracting chain was increased. “There were no prejudices or mental limitations, we just boldly sought growth. All means were used, since demand was high. The rapid pace eventually lasted for less than two years, and then the world economy and Kesla with it went into recession. There were layoffs ahead and also redundancies. At the time, even the production manager was only working half-time.
During the period of sluggish demand, Hopponen had plenty of time to start reforming Kesla’s production management system in cooperation with the financial management. The first inventory items were transferred to the new ERP system at the end of 2010.
The ERP system changed the company’s delivery method, which switched to product configuration. Configure to order (CTO) is a principle whereby when placing an order, the customer specifies the configuration of the product. After that, the product is manufactured on the basis of a pre-planned offering of products and equipment. The ERP system made product sales, specifications, configuration and assembly more flexible.
At Kesla, all personnel are involved in quality development. Pictured are Quality Manager Tero Tanskanen, Assembly Operator Jarmo Riikonen and Production Director Paavo Hopponen.
KESLA 2015
At the beginning of the new decade, the company launched the KESLA 2015 investment programme. One of the most significant individual investments was a new finishing line. The line was launched in March 2014. In addition to improving quality, the investment of around €3 million made it possible to increase production. “Surface finishing had to be brought to a better level, with particular pressure from the Central European market. In addition to the quality of the powder-coating, the investment also enabled better cost-effectiveness and reduced environmental burdens.
Kesla’s old painting shop only did wet painting. In the Central European climate, wet painting proved problematic – corrosion protection had to be improved.
Another bottleneck requiring investment was the machining of large pieces. Critical capacity had to be brought in-house. There was also room for improvement in test driving, the functional testing of products before delivery to the customer. With technological solutions, the whole package from design to production and deliveries was whipped into shape.
The KESLA 2015 investment programme included many other individual investments: Modernisation of the surface finishing at the Kesälahti factory as well as a fine-ray plasma cutter with a bevel head, investments in storage and material transfer, development of mass customisation, adoption of the LEAN operating model and an ISO quality system certified in 2012.
Cyclic business
In 2014, Yle’s foreign news headline asked “What makes the crisis in Crimea serious?” (Yle 20 March 2014). Russia had decided to extend its state borders to Crimea. EU countries agreed on Russian trade sanctions. Kesla had just had time to finish the biggest projects of its extensive investment programme. The company went into financial distress, and investments stopped. “Business is cyclical, we must adapt to the rise and fall of world politics. There will be no average investment solutions. We will seek the best available technology that will serve us for the next ten years.” Hopponen is proud that Kesla’s production workers actively come up with ideas and suggestions on how to develop and improve the various stages of production. “Obviously, one part of the development of production is benchmarking, i.e. monitoring our investment and machine development and that of other actors in the sector.”
The machining centre of the Joensuu factory was completed in 2014. It still represents the very top of its field. The photo shows CNC Operator Eero Huurinainen.
O tempora, o mores
While working in tool manufacturing at Perlos, Paavo Hopponen became accustomed to brightly lit, almost laboratory-like spaces. Precision was at the heart of Perlos’ activities, which served mobile phone manufacturers. When the end was already in sight for Perlos, Paavo Hopponen responded to a job advertisement in the newspaper. Kesla was looking for a Production Director. On the 2 April 2007, Hopponen was looking at the factory premises of his new workplace from the point of view of the Production Director. Hopponen had experience in the machine engineering industry at the beginning of his career, but he was still was startled by the darkness and stuffiness of the production facilities. “I was also surprised that people were smoking on factory premises, even though the Tobacco Act had banned it long before. There was a tough-guy atmosphere,” says Hopponen. Jari Nevalainen, who was CEO at the time, said that the smoking would stop since even the law protected non-smokers. Nevalainen advised Hopponen that the new production manager should not intervene, at least not duringhis very first week working there.
Oh, what times! Oh, what customs! In more than ten years, the cultural change in Kesla’s factory premises has been huge. The darkness, dust and smoking are long gone.
The KESLA 2015 project modernised the surface finishing line of the Joensuu factory. In surface finishing, the product receives a nanoceramic primer as well as a zinc interlayer and surface powder coating, which together provide good corrosion protection and wear resistance. Pictured is Production Director Paavo Hopponen, who led the project.
