At the beginning of 2025, Freudenberg Sealing Technologies (FST) transferred the previous Corporate Lead Functions Quality Management & HSE, Lean/GROWTTH & Sustainability and parts of Supply Chain Management (SCM) into the new Corporate Lead Function Operational Excellence. Tobias Chomsé has taken over the management of the newly created function as Senior Vice President Operational Excellence.
In Brief
Operational Excellence Philosophy: Operational Excellence is seen as an integral system that affects everyone at FST. The goal is to maximize added value for customers by integrating continuous improvement into business processes from the start, avoiding mistakes early on.
Areté Project: The Areté project aims to continuously improve within continuous improvement, modernizing methods where it makes sense. This project emphasizes the importance of collaboration with divisions and lead centers to achieve greater success together.
10x Approach: The philosophy of corporate excellence at FST is synonymous with exponential value creation. This ambitious approach is aiming for radical improvement rather than incremental.
Sustainability and Innovation: FST is committed to achieving carbon neutrality by 2045, integrating sustainability into operational excellence. The company is also focused on digital transformation, artificial intelligence, and automation to enhance agility and resilience.
Tobias, how about your first six months in your new role?
I quickly noticed that the organization reacted with interest to the new position. A lot of questions have come up, which I think is positive. We plan to provide more information about our goals and tasks over the next few months, whether in town halls or on our revised Sharepoint website.
It is important for me to emphasize one thing: Operational Excellence is not just the responsibility of our Corporate Lead function. Operational excellence is an integral system that affects everyone at FST. We have a common goal: to maximize added value to our customers. This starts at the root of our business: Even if the topic of product design or product development is not part of my area of responsibility, we as a team want to make a greater contribution to this as well. In other words, we want to integrate continuous improvement into our business processes right from the start. After all, it is important to avoid mistakes from the scratch instead of eliminating them later when a lot of time and money has already been invested.
Does that mean you tackle the issues together with Divisions and Lead Centers?
Exactly. We see ourselves as a partner to the organization. [IG1] With the Areté project, we have already started to put continuous improvement on a new footing – in other words, to continuously improve within continuous improvement, to question our methods and to modernize where it makes sense. Our customers are the people who decide and drive business at FST and who are responsible for our success. To achieve this, we need to be in dialog with everyone involved so that we can become even more successful together. This has long been part of our corporate culture, and we want to build on this.
Where are you focusing?
One of the main tasks for me personally this year is reframing. This means that we want to support our employees in finding solutions to the tasks they are given. We have already made good progress with Areté, but we are not quite there yet. We have looked very closely at the business, FST has been transformed in recent years and will continue to change. We have to adapt our methods and strategies accordingly.
the new lead function deals with.
I understand corporate excellence to mean a holistic and transformative view of the way we at FST create added value for our customers. To achieve this, everyone has to work hand in hand. This includes all employees and all functions, for example HSE, quality and sustainability. The proven methods and skills we apply in lean and GROWTTH are important for this. Strategic supply chain management and, ultimately, end-to-end processes in the product life cycle are also important.
For me, corporate excellence is synonymous with exponential value creation. In other words, we are not aiming for incremental improvement, but radical improvement. We don’t just aim to become better, we are ten times more ambitious. This philosophy is called 10x, or as I like to call it: ‘Mission to Mars’. That may seem overambitious, but we should set ourselves big, lofty goals!
What have you set out to do?
At FST, we want to offer our customers maximum benefit, drive innovation and be ready for the market quickly. We can see just how important this is in the automotive industry. Chinese OEMs are extremely fast, much faster than their Western competitors. We therefore need to become more agile, more resilient. We have to adapt to changes more quickly. At the last Freudenberg Global Innovation Forum, the focus was on digital transformation and artificial intelligence. How do we want to use this in the future? Where do we stand when it comes to automation and data analysis? These are all key levers for corporate excellence. We should also see the topic of sustainability as a competitive advantage; Freudenberg is committed to both ecological and social responsibility.
We still have a lot of potential, for example in the area of proactive problem solving. In other words, anticipating problems and thus preventing them. This saves resources and time.
The GROWTTH team recently developed a vision. This includes the slogan “Prevent Waste”, i.e. avoiding waste instead of eliminating it from existing processes afterwards. We need to internalize this and integrate our methodological expertise into development right from the start. By this I mean both product development and process development.
In other words: different disciplines need to come together at an early stage?
Exactly. This also includes clarifying whether there is customers interest for an idea, whether we have the necessary technologies and whether our materials meet the requirements profile before the actual development work begins. To this end, it is essential to bring the various specialists together as early as possible. In short, we need to develop a culture of continuous improvement. We don’t want to be satisfied with anything in the long-term, but constantly question and improve ourselves and our systems.
In preparation of the DIALOG 2024, the Freudenberg Group included “Operational Excellence” as an additional pillar in the Freudenberg House of Excellence. What were the reasons for this?
The integration of the new strategic pillar into the House of Excellence is a clear and direct response to the dynamic and increasingly volatile global market conditions. We live in a VUCA world. This term stands for volatility, uncertainty, complexity and ambiguity.
Against this backdrop, our traditional, incremental improvement approaches are no longer sufficient to secure and expand our leading position. Competition is becoming ever faster, and customer demands on us are increasing. Today, it is no longer enough to deliver first-class quality – this is a prerequisite. Besides, maximum speed is expected. Customers clearly expect sustainability in products and processes. Global uncertainties, supply chain disruptions and much more make our business even more difficult. The vulnerability of global supply chains has been drastically demonstrated to us in recent years. For me, operational excellence is the key to a robust and adaptable supply chain.
We see technological change as an opportunity – I’m thinking of artificial intelligence, the Internet of Things and advanced analytics. All of this offers us opportunities to take our processes to a new level. Because we don’t just want to become better, we want to become excellent. We call this 10x. To achieve this, we need self-optimizing systems or predictive quality, for example, i.e. the ability to predict the quality of products or processes through advance analyses. Operational excellence offers (future) methods for achieving these ambitious goals and leveraging both synergies and untapped potential.
Do you benefit from the fact that so many different areas of responsibility are combined under the newly created function?
In my view, HSE, quality, sustainability, GROWTTH and SCM are inextricably linked and form the backbone of our operational performance. The common denominator is the pursuit of excellence in every process step and systematic value creation. All of these areas are geared towards eliminating waste and risks, making optimal use of resources and maximizing output for our customers and stakeholders. What does that mean in concrete terms? Each area is essentially a process that can be optimized, measured and controlled. Process optimization unites us, as does the path towards data-driven decisions. Whether it’s safety analyses, quality indicators, emissions or supply chain performance – it’s all about data that helps us take well-considered decisions and bring about improvements.
The topic of risk management is becoming increasingly important for FST. We have the longest history and greatest expertise when it comes to HSE. Ultimately, it is always about minimizing health and environmental risks. We are already really strong in this area. Our quality management has the task of minimizing product risks, while SCM manages supply chain risks.
Does this mean that bundling under one roof creates synergies?
Absolutely, it’s clearly a strategic move. By bundling the divisions, we are able to break down mental or department-based silos for the first time. We can now share best practice across the company, unleash our full potential, give ourselves a competitive edge and create added value for our customers.
We release considerable synergies that allow us to grow beyond the sum of the individual parts. We achieve holistic optimization along the entire value chain. This is important because, in theory, a quality problem could also have its origins in SCM.
We now have an integrated risk management system. For example, we are introducing a business continuity management system together with all divisions and lead centers under the direction of Supply Chain Management by the end of 2026. This is similar to the familiar Crisis Management System. The triggers are often the same. This can be a natural disaster or a political event. Crisis management focuses on protecting life and limb as well as our property. At the same time, Business Continuity Management ensures that we can continue to provide our customers with services in an emergency. This is vital, especially in view of possible cyberattacks. We therefore need to address this issue and define how we can establish solutions to remain capable of acting in such situations.
Continuous improvement, lean and GROWTTH are universally applicable tools and systems. They enable us to create efficiency, high quality and sustainability. All areas of operational excellence ultimately help us to deliver products and services that ideally not only meet the expectations of our customers, our stakeholders and society, but even exceed them.
Under the umbrella of the new corporate function, we can use our resources much more efficiently. To give you an example: There is a data analyst in our SCM team who can analyze HSE or quality data just as well. For this reason, we established the Operational Transformation and Analytics department on July 1. By using shared platforms that enable the development and implementation of AI and automated solutions, we can accelerate the digital transformation across divisional boundaries.
Which other FST departments are on board here?
I am in close contact with IT and T&I. We are thinking very specifically about how we can harmonize our systems in order to create the data quality we need. A sensible data architecture is the basis for us being able to think about AI at all. With the right data, we can make strategic decisions more easily and therefore become faster.
So we achieve greater innovative strength through a creative environment?
Exactly. With a more creative environment, we promote collaboration. New ideas often emerge at interfaces. For example, we have introduced a global OPEX Core Team in which experts and managers from different disciplines work as equals – which again breaks down silos and hierarchies. At the same time, we can develop talent holistically. And we can gain a deeper understanding of the interrelationships in the operational value chain.
How do you define your own role in view of this diversity and range of topics?
The new Corporate Lead Function offers a very diverse range of tasks. I see myself as a strategic architect. My mission for the next few years is to anchor the 10x approach in the organization. This is the biggest lever for enabling exponential growth. In a way, I see myself as a conductor who leads the orchestra of operational excellence into a harmonious and powerful symphony.
As ‘conductor of the orchestra’, it is my job to ensure that the entire team closely cooperates. Ultimately, we can only be successful together. We have to get people on board, the new construct has to grow. To do this, we need a common basis.
From an engineering perspective, I like to be a technology scout. By that I mean that I am constantly looking for information outside the company: Which technologies can help us to better achieve our goals. I think that this kind of external benchmarking is good for our company. How do customers see us, where do we stand compared to the competition? This is also crucial with respect to our incubators, where we are often breaking new ground.
[IG1] In the Areté project, FST scrutinized its continuous improvement tools; it then added additional tools to the methodology it has been using successfully for years. What results do you see here?
For me, the Areté project was a decisive step in taking our foundations for continuous improvement to the next level and preparing us for 10x. This means that we design quality and robustness into our products and processes right from the start. This reduces costs and avoids rework. And it makes us significantly faster. After all, ‘time to market’ is becoming increasingly important. This massively increases customer satisfaction, especially when we think about new product and market potentials such as our incubators. The incubators will also significantly change our risk due to the high volumes. Imagine we produce a part in the three-digit million range every year and then suddenly discover a design problem. Thanks to the RedX method, we can carry out more in-depth root cause analyses and find more sustainable solutions. Where we scratched the surface in the past, we now get to the root of the problem.
Everything to do with sustainability efforts is also part of your area of responsibility: what new ideas is FST pursuing to achieve the goal of “carbon neutrality by 2045”?
Ultimately, we will achieve ‘carbon neutrality by 2045’ by integrating sustainability issues into operational excellence. This underlines our conviction that ecological responsibility and economic success must go hand in hand. Incidentally, carbon neutrality by 2045 is also a 10x target, which means it is part of our ‘Mission to Mars’. If we want to achieve this goal – organically, not by purchasing certificates – we are talking about circular materials management. This also means that we are researching new, more sustainable materials together with other business groups, as well as processes to minimize our ecological footprint. AI-supported efficiency is needed if we want to further reduce our energy consumption. We want to accelerate the expansion of renewable energies at our sites and are also looking for innovative concepts for energy storage. A blackout can occur at any time, possibly due to cyber attacks. We therefore have to evaluate what is not only good for the environment, but also makes us more resilient as a company. If our systems are linked to a battery storage system, for example, we have an emergency power supply relatively quickly so that we can at least shut down our machines in a controlled manner.
What about sustainability in the supply chain?
We have to look at the entire supply chain and work together with partners to reduce CO2 throughout the entire product development process and also make procurement practices more sustainable. Despite our global positioning, we have to allow for regional differences. Let’s take India as an example. We have a very different energy mix here than in Europe. Electrification does not work there ad hoc due to a lack of infrastructure.
Electromobility will also not work equally quickly and equally successfully in all countries. It is therefore important to take measures with a sense of proportion when it comes to sustainability and to allow for regional solutions.
FST stands for top quality. How do you intend to ensure this in future, including for new products for new applications?
Premium quality is a decisive competitive advantage. That brings me back to the 10x approach. The motto is to do more, not less. Not just improving a process or a product a little bit, but becoming ten times better. To achieve this, it is necessary to rely on digitally supported strategies in future. I see ‘quality by design’, i.e. right from the start, as a central pillar. Quality must already be taken into account in the product and process development process. The aim is to avoid errors before they even occur.
Thanks to digital twins, we have already come a long way in simulating products, even if this is becoming increasingly challenging for complex applications. Let’s take the new mixing plant being built in Weinheim as an example. This is by far the largest investment that FST has ever made. Long before we break ground, we need to create a digital twin so that we know for sure that what we are doing will achieve the expected level of excellence. With the help of 3P projects, we have simulated many things in advance.
We have integrated quality management systems and quality standards that are integrated into the entire value chain – from production to customer feedback, so to speak. Every complaint is customer feedback, but negative feedback also leads to continuous learning loops. It allows us to incorporate rapid feedback mechanisms and analyze field data, the evaluations of which we in turn incorporate into the design. This allows us to continuously improve our quality.
“We all take care!” has helped FST reducing the number of accidents at work to a low level. What’s your plan to keep it that way?
‘We All Take Care!’ is a fantastic initiative and goes far beyond HSE. We have drastically improved our safety levels over the last 20 years, which is reflected in the key figures. We are already at a very, very high level. In such supposedly comfortable situations, we need to be careful not to become complacent or inattentive. The 10x approach here is called ‘predictive safety’. We have to prevent accidents from happening in the first place. We have already come a long way in modern cars, for example with brake assistants or parking sensors. If we want to transfer this to our business, we need systems, sensors, video analyses or wearables – in other words, electronic devices that are worn on the body, such as smart clothing or data glasses. These can be used to identify potential risk situations in real time.
But it is also about human, behavior-based issues. We want to understand behavioral patterns that can lead to security-relevant actions and develop preventive measures and training to counteract this. Employees of newly acquired companies can face challenges when they have to adapt to our high safety requirements. After all, the Freudenberg Security Standard FSS5 goes far beyond legal requirements.
What starting points for more operational excellence do you see in SCM?
I see enormous starting points for operational excellence in supply chains, again from a 10x perspective. The supply chain must not only be efficient, but above all resilient, agile and transparent. I see the main starting points in AI-supported demand forecasts, inventory optimization and the approach of thinking and acting holistically. With artificial intelligence, we should be able to predict demand more precisely and optimize our inventories dynamically. In other words, the aim is to reduce excess stock and improve our ability to deliver. Incidentally, we are already quite advanced in this respect with the software from Celonis. This system helps us to analyze, understand and optimize business processes based on data. We have currently launched a project to improve our working capital, for which inventories are a key factor. We are aiming for complete digital end-to-end transparency across the entire supply chain, from office supplies to the end customer.
SCM also includes sensor technology, such as that used by the mixing facility to track mixtures. Here again, we are talking about predictive risk management, which can be used to anticipate potential disruptions. These could be material problems or supply chain disruptions, geopolitical events, natural disasters or financial failures at suppliers. If we anticipate the threat of problems and proactively take countermeasures, this helps us to secure our supply chain. However, we cannot solve this on our own. We need to partner with suppliers and customers across the supply chain.
Sustainability, i.e. green logistics, also plays an important role in SCM and procurement. We need agile supply chain networks in which we work with our partners in order to build supply chain structures that are as flexible and modular as possible and can adapt to changing market conditions, customer requirements or disruptions. We are currently working on measures to deal with the threat of tariffs. Celonis is also helping us here. We receive automated transparency at the “push of a button”. This allows us to check what alternatives we have and how we can adapt our supply chain.
