[ COLLOQUIUM 01/2017 THE MAGAZINE OF THE THOMAS GROUP]

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Brianne Robbins
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dimensions in trade shows Page 04 PROCESS MANAGEMENT Continuous improvement

1 [ COLLOQUIUM 01/2017 THE MAGAZINE OF THE THOMAS GROUP] MAIN TOPIC: EXPLORING NEW DIMENSIONS THOMAS AT IFPE IN LAS VEGAS Exploring new dimensions in trade shows Page 04 PROCESS MANAGEMENT Continuous improvement is the order of the day Page 06 SMART ACTUATION Proven expertise applied to new areas Page 08

2 [ LATEST NEWS ] EDITORIAL Dear Readers, One of the secrets of success lies in how you deal with change a real challenge in dayto-day work. Hardly any other market is currently experiencing such a radical transformation as the automotive industry, a process that is affecting much, much more than just the vehicle of the future with all its components. Manufacturing processes, logistics systems, and, last but not least, we ourselves as human beings also need to adapt in line with a changing market. After all, it is ultimately we who design, manufacture, and use vehicles for our own benefit. How we as a company are adapting to changing market conditions and what this means for the other markets we serve in addition to the automotive sector this issue of Colloquium has all the answers. Come with us on our journey to new dimensions in markets and the world of work. Yours faithfully, Dietrich Thomas Markus Krauss THOMAS AROUND THE WORLD CONTENTS Thomas at IFPE in Las Vegas exploring new dimensions in trade shows PAGE 04 THOMAS AS ORGANIZER Process management continuous improvement the order of the day PAGE 06 THOMAS AS STRATEGIST Smart actuation proven expertise applied to new areas PAGE 08 THOMAS AROUND THE WORLD Thomas on the move PAGE 11 THOMAS IN THE FUTURE News from the Thomas construction site welcome to the Innomotion Park! PAGE 12 Imprint

[ THOMAS NEWS ] in brief THOMAS AT BAUMA CHINA China is becoming an increasingly important market that will continue to grow ever more attractive.

Together with its Chinese partner Burker Technology, the company showcased its products and expertise across 32 square meters of exhibition space.

Jens Krallmann, head of the Mobile Hydraulics division. We are completely satisfied.

3 [ THOMAS NEWS ] in brief THOMAS AT BAUMA CHINA China is becoming an increasingly important market that will continue to grow ever more attractive. With Thomas stepping up its focus on having a local presence, its participation at bauma CHINA in Shanghai from November 22 to 25, 2016, marked a key milestone. Together with its Chinese partner Burker Technology, the company showcased its products and expertise across 32 square meters of exhibition space. The week of the trade show featured a number of very promising meetings with some high-caliber contacts and was extremely successful overall, summed up Dr. Jens Krallmann, head of the Mobile Hydraulics division. We are completely satisfied. Thomas currently has purchasing, supplier quality management, and distribution operations in China in brief PARTNERSHIP WITH KOBLENZ UNIVERSITY OF APPLIED SCIENCES Finding good up-and-coming talent in engineering-heavy industries is no easy task. Back in 2016, therefore, Thomas partnered with Koblenz University of Applied Sciences, where the company funds one of a total of three Deutschlandstipendium grants. This partnership also involves attending student fairs such as Praxis@Campus, which the university hosted on April 4, The aim is to get to know the next generation of specialists, particularly those doing engineering degrees, explains Domenique Remmel, HR Manager at Thomas. We ve been very happy so far with our partnership with the university. www. facebook. com/thomas Magnete in brief I LIKE: THE THOMAS FACEBOOK PAGE There is now no escaping social networks, whether you are a user or a company. Thomas has also been an active player in this field for some time now with its web app, Xing and LinkedIn profiles and YouTube account, which were joined in March 2017 by its new Facebook page. As well as the latest updates from the company, it gives our followers some fascinating insights into our dayto-day work at our head office in Herdorf and at some of our other sites. For instance, when the first concrete pillars are erected on the construction site for the new production building or a student receives an award from the chamber of commerce and industry for the dissertation they wrote while with us, then a Facebook update is certainly called for. Like us and come with us a little way on our journey! 03

MARCH 7 11, 2017 THOMAS AT IFPE IN LAS VEGAS EXPLORING NEW DIMENSIONS IN TRADE SHOWS An inevitable consequence of growth is that, although Thomas can now be found exhibiting at more trade shows than

4 MARCH 7 11, 2017 THOMAS AT IFPE IN LAS VEGAS EXPLORING NEW DIMENSIONS IN TRADE SHOWS An inevitable consequence of growth is that, although Thomas can now be found exhibiting at more trade shows than ever before, the standard required of its presentations at those fairs has also increased. The reach and positioning of the Thomas brand in the mobile hydraulics sector have both undergone a major transformation in recent years, explains Dr. Jens Krallmann, head of the Mobile Hydraulics division at Thomas. And we want to reflect this change in our new trade fair strategy as well just like with our products, we also set the highest standards for ourselves in terms of our quality and image. After appearing at bauma in Munich and Shanghai and the Aachen Colloquium armed with a new booth design and more space, the company therefore decided to exhibit at IFPE (International Fluid Power Exposition) in Las Vegas with its revamped stand. THE LEADING TRADE SHOW IN THE INDUSTRY Together with CONEXPOCON/AGG, which runs concurrently, IFPE is the construction sector s biggest trade show in America. Led by its U.S. site in Brookfield, Thomas has been exhibiting at this fair for more than ten years now. This year saw over 400 companies showcasing their wares in Las Vegas. The key trends shaping the industry were digitalization and the opportunities it presents for automated machinery and functions. New manufacturing technologies were another area of focus, while the trade show also featured as one of its highlights the unveiling of the world s first 3D-printed digger. SOPHISTICATED BOOTH DESIGN Sales Manager Heinz Strickler from the Brookfield site in the United States helped to supervise the development of the new booth design right from the outset. As well as our team, visitors were also impressed, he says happily. We put an awful lot of time, ideas, and work into the idea. The booth should reflect who we are as a company meaning our areas of expertise and products, but also our values and image. Quite a challenge, in other words. Seeing just how well received the booth has been makes me think we did a really good job, Strickler adds. A giant five-meter-high gateway ensured that the booth, which itself spanned 37 square meters, attracted the requisite attention even from a distance. The experts from Thomas used a highly detailed interactive presentation on a monitor to explain the company and its areas of expertise to interested visitors. The integrated mix of communication media that we used at IFPE took us a big step forward, Heinz Strickler concludes. THE TRADE SHOW A NETWORKING MARKETPLACE Thomas USA CEO Mathew Alagna is very happy with the caliber of the contacts he made: For us, the IFPE is a genuine marketplace for interpersonal networking. There s no better way to communicate face to face with existing and potential customers. The new exhibition booth brought us a great deal of positive attention and will prompt us to press on with our trade show activities in this regard.

5 [ THOMAS AROUND THE WORLD ] 05

[ THOMAS AS ORGANIZER ] INTERVIEW WITH SABINE PFRIEM, HEAD OF THE MANAGE- MENT SYSTEMS BUSINESS DIVISION How would you describe the work that the division does?

This means unleashing our methodological expertise, a particular strength of ours.

7 [ THOMAS AS ORGANIZER ] INTERVIEW WITH SABINE PFRIEM, HEAD OF THE MANAGE- MENT SYSTEMS BUSINESS DIVISION How would you describe the work that the division does? In its role as service provider, the Business Process Development central division helps the business divisions to formulate and implement lean, economical processes. This means unleashing our methodological expertise, a particular strength of ours. Transferring the optimized processes thus created into suitable IT solutions enables us to keep on becoming more efficient, gaining us a competitive edge, and making our customers happier. The ever-faster pace at which market requirements are developing is repeatedly throwing up new requirements, some of which lead to new organizational projects. Digitalization is only one of the trends in the mix. What exactly does process management mean at Thomas? Our job is to create lean, efficient processes within the company, to keep on improving them, and to adapt them in line with market requirements. My division encompasses the IT, Lean Management, and Quality Management departments, all linked by Business Process Development. This entails using different methods of developing business processes, such as those based on lean management and Six Sigma principles as well as on project management techniques such as PRINCE2 and Scrum. Another key influencing factor is increasing digitalization within the company, which is bringing lasting change to processes and making a uniform, transparent set of process documentation ever more important. Why is precisely now the right time to set up this new company division? The company has seen extremely strong growth and this trend is continuing. This is creating greater independence for the business units that are emerging out of old processes and seeking new process solutions on their own. We need to combat this tendency by creating suitable process standards so as to prevent resources from being wasted and ensure our quality standards and certification requirements are being met. And then there are also new process requirements that have to be integrated into the expanding structure such as Compliance and HSE Management. But process management has much more to it than digitalization within the company, doesn t it? Of course! But digitalization is the biggest development among many at the moment. Business process development in industry is extremely important as far as digitalization is concerned. However many different reasons there might be for introducing process management in the first place, let alone giving it its own department as we have done, the aims are always the same. So what are the aims of process management? The focus of our activities is always on the customer. In other words, it s always a question of meeting the customer s requirements as efficiently, transparently, and flexibly as possible. And without compromising on quality either. Incidentally, that means that the company s staff are also heavily involved as part of change management. These new challenges require a strong willingness and capacity to embrace change. We need the understanding, loyalty, and support of our colleagues if we are to conquer this. 07

Smart actuation PROVEN EXPERTISE APPLIED TO NEW AREAS E-mobility, smart cars, connected driving you will struggle to find an issue making more waves in the industry at present than the future of

Media giants, carmakers, and complete newcomers from all manner of different sectors are jostling on the market in a bid to accelerate new mobility and get a piece of the success for themselves.

to refocus one s efforts and even reinvent oneself to a certain extent.

As far as Thomas s products are concerned, the following pronouncement is as relevant today as it was then: The working speed and sensitivity offered by today s drive technology depends primarily on

This also means that developers have to understand whole systems and not just individual components or applications.

8 Smart actuation PROVEN EXPERTISE APPLIED TO NEW AREAS E-mobility, smart cars, connected driving you will struggle to find an issue making more waves in the industry at present than the future of driving. Media giants, carmakers, and complete newcomers from all manner of different sectors are jostling on the market in a bid to accelerate new mobility and get a piece of the success for themselves. Talking to Thomas CEO Markus Krauss about the future strategic focus in turbulent times Like many companies, Thomas has also been impacted by the latest trend in the mobility industry there is a need to refocus one s efforts and even reinvent oneself to a certain extent. The demand for mechatronic components is constantly increasing in modern vehicles, in which the integrated systems interact and communicate both with each other and with external systems. As far as Thomas s products are concerned, the following pronouncement is as relevant today as it was then: The working speed and sensitivity offered by today s drive technology depends primarily on the quality of the electromagnetic actuators being used. (Bernhard Kirsch, Electromagnetic Actuators, Munich 2015). This also means that developers have to understand whole systems and not just individual components or applications. If you can t see beyond the end of your own nose, you ll never get the bigger picture. And you really need this kind of system-level understanding for innovations where, for instance, functions are clustered together, Markus Krauss explains. A vehicle can only be as smart as its component parts. So what do smart actuators need to be able to do? Essentially, they have to be as compact as possible while also integrating as many functions as possible in a single system. We pool all these functionalities under the sense think act model, he adds. For Thomas s products, this means that they are fitted with sensor systems (sense) and use integrated forecasting, controlling, and diagnostic functions to detect deviations at an early stage, make decisions and, if applicable, report them (think). Finally, they use all this to determine a specific function in the form of changes to fluid (pressure, volume flow) or mechanical variables (force, distance) (act). We monitor our environment incredibly closely (sense), analyze the market, develop smart solutions (think), and then implement them (act). The question that Thomas has been asking itself, not least since the emissions scandal, is therefore: How can our actuators make vehicles fitted with the engines of the future safer, more efficient, and more sustainable? The solution that Thomas is proposing can be encapsulated in the term smart actuation (see chart). In a nutshell, this means that we develop solution ideas for innovative vehicles and mobility concepts that are fitted with an unpre-

[ THOMAS AS STRATEGIST ] SENSE Integrated sensors detect physical variables such as distance, pressure/ force and temperature.

This requires appropriate hardware and software components. ACT After a decision has been made, it is implemented in real life, e.g. a movement.

cedented proportion of new sensor systems, software, and electronics these days, Markus Krauss explains.

areas like electronics, sensor systems, and plastics technology is helping to put the company in a good position.

The concerted efforts of our staff from different specialist backgrounds are producing innovative, integrated solutions for our customers.

9 [ THOMAS AS STRATEGIST ] SENSE Integrated sensors detect physical variables such as distance, pressure/ force and temperature. THINK The data and values recorded have to be processed and analyzed to provide a basis for making decisions, which then need to be communicated reliably. This requires appropriate hardware and software components. ACT After a decision has been made, it is implemented in real life, e.g. a movement. The focus here is on electromagnets and electric motors. Expertise in hydraulics/pneumatics (valve/pump technology) as well as mechanics and cinematics are also key. cedented proportion of new sensor systems, software, and electronics these days, Markus Krauss explains. A whole host of developments and products at Thomas are already kitted out with smart components (see the Smart Products diagram on the following page) and the work being done to expand areas like electronics, sensor systems, and plastics technology is helping to put the company in a good position. Markus Krauss is confident: We have built up some outstanding skills in our company. The concerted efforts of our staff from different specialist backgrounds are producing innovative, integrated solutions for our customers. And they are appreciative too: Over the past few years in particular, we ve worked on a great many highly complex projects that were uncharted territory for us as well. Customers are won over by the fact that we combine, connect, and integrate our skills in electronics, sensor systems, and actuators in a single system in the best possible way. It creates products that give them unique technical and commercial benefits. Part of Thomas s strategy is to develop its employees expertise in a targeted way. Market Requirements electrical connected autonomous shared Thomas-Competencies sense think act 09 Smart Actuation Customer Benefits

[ THOMAS AS STRATEGIST ] SMART PRODUCTS AT THOMAS CareFil Electrohydraulic Actuator EHA An easy-to-operate dosing pump for feeding patients enterally A self-regulating, hydraulic control/regulating

We are also developing new production methods and supply chain processes that meet the new requirements [see the article Intelligent Production from Colloquium 2/2016, Ed.], explains Markus Krauss.

This really is a project that s bringing us on both technically and with regard to the competition as well as delivering a huge boost to our in-house expertise at Thomas.

A company is only fit for the future if it is able to identify trends and adapt to them on a strategic and operational level a fact not lost on Thomas, says Markus Krauss: Markets are extremely

However, you also need to learn to keep calm and consider very carefully which train to jump on and which is probably better to let past.

10 [ THOMAS AS STRATEGIST ] SMART PRODUCTS AT THOMAS CareFil Electrohydraulic Actuator EHA An easy-to-operate dosing pump for feeding patients enterally A self-regulating, hydraulic control/regulating unit with bus Powerpack capability for mobile equipment A compact unit/system comprising a motor, hydraulic pump, control logic, and power electronics in a single component, e.g. for automatic or dual-clutch gearboxes The products are only one piece of the puzzle. We are also developing new production methods and supply chain processes that meet the new requirements [see the article Intelligent Production from Colloquium 2/2016, Ed.], explains Markus Krauss. Over the past few years, we have devised a production method our Thomas Production Standard (TPS) that follows the Industry 4.0 principle. This really is a project that s bringing us on both technically and with regard to the competition as well as delivering a huge boost to our in-house expertise at Thomas. We will gradually be aligning much of our production set-up with TPS in the coming years. A company is only fit for the future if it is able to identify trends and adapt to them on a strategic and operational level a fact not lost on Thomas, says Markus Krauss: Markets are extremely fast-paced, so as a company you need to be capable of responding. That can also be stressful after all, you re responsible for a great many staff. However, you also need to learn to keep calm and consider very carefully which train to jump on and which is probably better to let past. Regardless of the commercial side of things, at Thomas it s ultimately all about the people behind the processes. For this reason, products for combustion engines will remain a key focus at the company over the next few years, especially since the market for which Thomas develops and manufactures is itself undergoing a process of change and is not going to radically alter overnight. The team in Herdorf is optimistic about the future, says Markus Krauss: We are helping to shape the market, assisting our customers with the development of new technologies and utilizing the expertise that we have built up over the past few decades. Our stated aim is to remain a fount of ideas and a leading innovator in the future, too.

[ THOMAS AROUND THE WORLD ] THOMAS OUT AND ABOUT Come and meet us face

Contact us and we will gladly arrange an appointment. Nov.

9 11, 2017 AACHEN COLLOQUIUM Eurogress Aachen booth 31 CAREERS FAIR

INTERNATIONAL MOTOR SHOW VDA Young Entrepreneurs booth (trade press

11 [ THOMAS AROUND THE WORLD ] THOMAS OUT AND ABOUT Come and meet us face to face at the following events. Contact us and we will gladly arrange an appointment. Nov. 10, 2017 Sep , 2017 Oct. 9 11, 2017 AACHEN COLLOQUIUM Eurogress Aachen booth 31 CAREERS FAIR FAMILY BUSINESSES Schüco International KG Bielefeld 67 TH INTERNATIONAL MOTOR SHOW VDA Young Entrepreneurs booth (trade press days), Frankfurt am Main Hall 4.1 E41 Oct. 12, 2017 VDI EXPERTS DAY IN KIEL with Jeannette Kemper and Dr. Axel Müller (product management for exhaust gas and thermal management)

[ THOMAS IN THE FUTURE ] News from Thomas s construction site WELCOME TO THE INNOMOTION PARK Work on the new building has officially begun, the access road is now finished, and a new name has also

It is now flanked by crash barriers and newly planted trees and has an official name as well. On May 3, Herdorf town council voted to christen the road Innomotion Park.

On the site itself, a 300 m³ fire water reservoir has been created and the first big prefabricated concrete components the pillars for the new building were erected in late May.

12 [ THOMAS IN THE FUTURE ] News from Thomas s construction site WELCOME TO THE INNOMOTION PARK Work on the new building has officially begun, the access road is now finished, and a new name has also already been decided it s all go on the construction site. Right on schedule, work began in spring to tarmac the new access road that runs from the L285 straight to the new production building. It is now flanked by crash barriers and newly planted trees and has an official name as well. On May 3, Herdorf town council voted to christen the road Innomotion Park. Innomotion is a portmanteau of innovation and motion, making it an excellent fit for Thomas, a company that has had to keep on reinventing itself in the face of technological and social change. On the site itself, a 300 m³ fire water reservoir has been created and the first big prefabricated concrete components the pillars for the new building were erected in late May. As well as the actual building work, several other projects relating to the new facility are also under way. Our job also includes devising and implementing the necessary safety strategy at the same time as doing the construction work, explains site manager Andreas Kipping. Thomas is also introducing new room design and floor plan ideas into its new building. It goes without saying that the world of work has changed significantly over the past few years, and we re no exception, Kipping adds. And we re now trying to reflect that with some new office layouts. We want to take the findings we gain from these projects and use them for all our other buildings in future. Something else that goes without saying is that the next few issues of Colloquium will tell you what exactly these findings are and how things are coming along with the new building in general. IMPRINT Thomas Magnete GmbH Innomotion Park Herdorf, Germany Phone Liable in accordance with German press law: Katja Teixeira Corporate Communications and Marketing August 2017, all information subject to change without notice dergoldenefaden.de

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