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MOTOR JIKOV GROUP > REPORT > The Division is changing their layout; Soběslav has new Machining and Assembly Divisions
The Division is changing their layout; Soběslav has new Machining and Assembly Divisions

A new organizational structure has come to the division after ten years. Miroslav Dvořák, CEO of MOTORU JIKOV Group a.s., explained the reasons for the transition to this technological arrangement in an interview.

The beginning of the year was marked by major changes in the organization of divisions of the holding company JIKOV MOTOR GROUP. Can you change describe the changes?

This concerns the transformation of the product structure to technology. We’ve had the divisions arranged by products for 10 years. Each division had a specific product line or for a given customer, for example, delivering riveting guns for Stanley, parts for Scania trucks from Sweden, passenger cars for Brose, Mitsubishi, Aisin, golf carts and four-wheelers parts for EZ-GO, or our CNG filling station. During the year we worked on a new restructuring plan and by January we will set the process of production and trade, according to the technologies: foundry, machining, assembly with the support of Forms and Dedicated Machines a.s. The Machining Division will have industrial products under the leadership of director Milan Vančata and the Special Machining and Production Division will be under the Assembly Division under Jiří Slíva. These divisions are assigned to the responsibility of the individual directors, who will stay on in the new divisions.

What can you promise about the effect of the new arrangements?

This change brings a number of synergy effects, initially at the workforce level, where we have experts and specific types of technology, led by specialization and education experts for each division with a particular focus. Previously, we had three machining divisions, so we had to have experts for these activities in all three divisions. A very similar situation is also in machinery equipment, where I was getting requests for investments in machine tools from three different directors in three different places which was complicated, so we solved usage in every situation. Now we all will specialize making the possibility of using the machines far higher, despite the fact that today are not taking a single casting or machining centres, but all units are automated and robotized. Casting machines, which cost CZK 15 million, are now complemented by peripherals and robotics that cost CZK 35 million, even CZK 60 million with machining centres along with robots. The whole effect of this restructuring should lead to an increase in the number of professionals with higher qualifications, cost savings and increased productivity and ultimately to the optimization and higher utilization of the investment. This change will have a secondary effect on our company’s software interface that connects processes and facilitates teamwork, and after five years there will again be implemented with an emphasis being placed on technology and construction.

Automated units are one element of the so-called Industry 4.0. But doesn’t it take jobs from people?

Production has been automated basically since the industrial revolution, so it’s not a new idea and it’s not rapid changes where we say let’s do it tomorrow and everything works. In my opinion, it’s the normal development of the industry, and if one wants to succeed and be competitive, they must proceed in this way. And we’ve already started this … we’re in a situation where we lack manpower and experts or the people for normal operation in the labour market, so all changes are underway. Regarding the actual catchword “Industry 4.0”, I think it is a good “marketing campaign” that brings much needed support for industrial and technical training.

What is the outlook for the group in the coming years??

We expect revenue growth of one hundred million crowns to 1.6 billion in 2017. It is the same growth as in 2016. Over the next three years, we are aiming for a turnover of two billion, which would correspond to our production capacities.