Blog The division is restructuring: Soběslav now features the Manufacturing and Assembly divisions.

After ten years, a change has come to the divisional structure of the holding company. The reasons for shifting to a technological setup were explained in an interview by Miroslav Dvořák, CEO of MOTORU JIKOV Group a.s.

The beginning of the year marks a significant change in the organization of the divisions within MOTOR JIKOV GROUP. Can you elaborate on the change?

It's a shift from a product-based structure to a technology-based one. For the past decade, our divisions were organized around products. Each division handled a specific product line or a particular customer. For example, we supplied riveting guns for Stanley, truck parts for Swedish Scania, automotive components for Brose, Mitsubishi, Aisin, golf cart and quad parts for EZ-GO, or our CNG filling stations. Over the course of the year, we worked on a new restructuring plan, and starting January, our production and sales processes will be aligned by technologies: casting, machining, assembly, supported by the Divisions of Molds and Special-purpose Machines. Consequently, two new divisions will be created. Instead of the MOTOR JIKOV Strojírenská a.s. Industrial Products division, there will be a Machining Division headed by Milan Vančata, and instead of the Special Machining and Manufacturing division, there will be an Assembly Division led by Jiří Slíva. Responsibilities for each division are assigned to the respective directors, who will remain at the helm of the new divisions.

What effects do you expect from the new organization?

The change brings a number of synergistic benefits. Firstly, at the workforce level, we're placing specialists where certain technologies are processed. This will foster specialization and the training of experts tailored to each division's focus. Previously, we had machining in three divisions, requiring expertise in this area across all three, which was inefficient. A similar situation existed with machinery equipment. When machining was distributed across three sites, requests for investment in machining tools came from three different directors, complicating resource allocation. Now, everything will be specialized, which significantly improves machine utilization. Additionally, we are now investing in entire automated and robotic systems rather than isolated casting or machining centers. A casting machine that once cost fifteen million sees total costs rise to thirty-five million with peripherals and automation. Machining centers with robots can reach up to sixty million. This restructuring aims to increase the number of highly skilled specialists, reduce costs, boost productivity, and optimize investment utilization. The change will also impact our corporate software interface, which links processes and streamlines teamwork. After five years, we will implement an upgrade emphasizing technology and design areas.

Automated systems are a key element of Industry 4.0. Will they take away jobs?

Production has been increasingly automated since the Industrial Revolution. This is not a new idea nor a sudden shift where everything changes overnight. In my view, it is a natural evolution of industry. Those who want to stay competitive must follow this path. We have already started… Moreover, we are currently facing a shortage of labor, with neither skilled workers nor operational staff available on the market. The circumstances are favorable for this shift. Regarding the term Industry 4.0 itself, I believe it is a good “marketing campaign” that provides much-needed support to industry and technical education.

What is your outlook for the group's development in the coming years?

In 2017, we anticipate a revenue growth of one hundred million CZK to 1.6 billion CZK — the same increase as in 2016. Over the next three years, we aim to reach a turnover of two billion CZK, which would align with our production capacity utilization.