Christmas Greetings The Grob family and management team

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1 INTERNATIONAL Christmas CONTENTS Christmas Greetings The Grob family and management team GROB Technology Leading role in technological innovation extended GROB motor spindle build Talking torque and rpm the GROB motor spindle GROB Production Major production shake-up in Mindelheim GROB Service Strong connections to the customer Workplace safety at GROB Workplace safety implemented through training and education GROB ANNIVERSARIES Honoring the company s top ambassadors GROB Training GROB vocational training gets top ratings GROB Occupational Health Get fit for new challenges with Drums Alive The production systems business Supplier to the new VW plant in Siláo Awards Two top awards mark a successful year for GROB GROB branches Worldwide investment in sales pays off Universal machines Five years after their launch a specialized technology center in the new Hall 9 GROB Bluffton Booming auto industry lifts GROB Systems B. GROB do Brasil Record sales translates into excellent prospects

2 DEAR COLLEAGUES, dear business partners, friends of GROB, DEAR COLLEAGUES, (Right to left) Dr. h.c. Burkhart Grob, Margret Grob, Christian Grob 2012 was one of the most successful years in the company s history and for now the high point of a five-year upswing. In the five years since 2007, LOOKING BACK That was 2012 our company has undergone fundamental change. Key elements in our successful investment campaign have included the new plant in China, the extraordinary level of investment in our plants in São Paulo and Bluffton and, not least, the new Hall 9 in Mindelheim and the construction of the H10 logistics hall and the B5 office building. The total investment drive was worth well over 170 million US$. It is thanks to your support that in a short period of time, the investments made in recent years have transformed a medium-sized business into an industrial complex with a global presence and branches worldwide functioning as one. With your overwhelming commitment, you have once again proved your loyalty to our company, thereby securing the basis for further success shared in the future. You all deserve our heartfelt thanks. Without you we would not have been able to overcome quite so superbly the challenges of the relocation and restructuring in the production plants. Your commitment has not only enabled us to complete the investment project on time, but has also made a significant contribution to the company in true GROB family tradition. Our company is now well placed and also well able to hold its own amid all the international competition over the long term. All of this is underpinned by the current strong order book and the sound prospects for projects in the years ahead. With this positive outlook, we would like to wish all of our employees, our business partners and friends of GROB a relaxing Christmas season with your loved ones, enjoyable New Year festivities and a contented, healthy and prosperous The Grob family (Left to right) Dr. Klaus Mäusl, Alfred Höbel, German Wankmiller, Ira Hensel, Peter Vogl, Wolfram Weber, Jochen Nahl, Uli Gneiting In the past financial year we have turned out more machines than ever before, but the backlog at year-end is still heading towards a historic high mark. The numbers from the company s headquarter in Mindelheim alone reflect GROB s outstanding progress. It is worth noting that the output in the 2007/08 financial year was somewhat over 430 million US$, and in the 2012/13 financial year, the company produced machines worth around US$ 980 million. That is more than double. With the completion of the H10 logistics hall mid-2013, floor space at the Mindelheim plant will have grown from 580,000 sq.ft to more than 1 million sq.ft, just short of doubling in size. As well as all the building construction work, the investment has largely been made in updating machinery and capital equipment with the aim being to achieve an output of 20 machines per week, i.e. about 900 machines per year. The crucial element here is the production. The sequencing of standardized and automated production processes governs working procedures in all areas. A development that separated labor and processes affecting specialized departments all the way down to the individual employee. The ever-growing involvement of our company in international competition means we must be constantly looking across borders. The decisive action taken at our Mindelheim headquarter is the key factor in maintaining our leading position. In addition, we are strengthening our activities in the highdemand regions of North and South America, plus of course Asia/China. The largest overseas investment was in Dalian/ China with the establishment of our fourth production plant. A manufacturing plant which not only makes an additional contribution to the group s production volumes, but also from the sales strategy point of view plays an important role in the broader context of our Asian sales campaign. For us, it opens up a new sales opportunities in the highly competitive Chinese market, opportunities that we can only get from a local plant in the country. At our Bluffton site, the production area has been increased by a hall expansion of just under 100,000 sq.ft to 375,000 sq.ft and in São Paulo considerable investment was made in new, more efficient production machinery and facilities. This ensures that all of our subsidiary plants abroad contribute to the expansion of GROB s market position worldwide. The positive development of our company since 2007 would not have been possible without the systematic development of new machines and component groups. In addition to the G module, the modular special machine, complete automation and lastly the assembly technology have progressed in several stages to near perfection. Over the last year, the upheaval, the new direction and the huge restructuring work demanded a lot from everyone. Frequent operations changes required a high degree of flexibility. Weekend and holiday work was just as much part of the routine as was flexibility with vacation plans. All those involved coped with this particular situation and the challenges that arose in an exemplary manner and in the true GROB tradition. Overall, you can be proud of what has been achieved at GROB. Proud of your personal contribution for the good of our company and the excellent prospects that lie ahead. Based on the strong current order book and the new projects available in the market, we expect rising order volumes in the coming years, as we progress towards the billion euro mark in sales. International markets, mainly in Asia and America, but also in India and Russia, will play a major part in this respect. Given our worldwide presence and the investments made on a global scale, we are fully prepared to meet the needs and desires of our customers throughout the world. We would like to thank you for your outstanding commitment and dedication. We wish you all a merry Christmas and a prosperous and healthy The GROB management team GROB Dalian - Start of production in March GROB Dalian - First machine is shipped in November GROB Mindelheim - Hall 9 starts operations GROB Mindelheim - Work starts on new B5 office block GROB Mindelheim - Modernization of production facilities in Hall 5 GROB Sao Paulo - Investment in new production facilities GROB Sao Paulo - Stand at the Feimafe trade fair GROB Mindelheim - Awards from Daimler AG and SGM 1

3 GROB Technology Leading role in technological innovation extended At the International Exhibition for Metalworking (AMB) event in Stuttgart in September of this year, GROB showcased not just its newly-developed G550T mill-and-turn machine but also, for the first time, its intelligent spindle nose, both of which provided impressive proof of the company s claim to be in the vanguard of technological innovation. The response from the trade and the media was very positive. G550 + intelligent innovation = G550T The basis for the G550T is the tried-andtested G550 universal machine. To mill and turn on one machine at the same time required the development of two new component groups: A rapidly rotating B axis and a motor spindle with ultra-precise radial tool positioning. Although the B-rotary table was designed for 800 rpm and a maximum interference diameter of 900 mm, the GROB developers still faced a major challenge: how were they to do bearing with automatic post-lubrication, to keep GROB s reputation for a long service life intact. Furthermore, to eliminate wobble, an automatic unbalance detection system has been integrated with an accuracy normally only seen on grinding machinery. A high dynamic range with high rigidity squaring the circle When it came to the development of the motor spindle, the challenge for the GROB engineers was just as tough. The demands on a spindle for milling and turning could not be more different. When milling, the spindle must be designed to cope with dynamic loads at different speeds and also with very frequent stops and starts for tool changes. Turning requires a precisely positioned tool with high rigidity, so that the cutting edge can be fixed in the zero degree position with zero movement. And here too the result was impressive: a motor spindle with 340 Nm torque and a maximum speed of 10,000 rpm. And it goes without saying with GROB there is the option of a fully hydraulic-free version. This combines maximum dynamic range with optimum energy efficiency. the same kinematics and, of course, also with a turning function. The chip-free tool change a hot topic in machine tool engineering Ensuring a chip-free tool change has been a hot topic in the world of automotive mass production for many years. That is why the tool change points in the spindle and the tool magazine are thoroughly cleared with compressed air, sometimes even rinsed off. Tool holders are brushed off before loading into the spindle. Nevertheless, it is estimated that about one in 5,000 workpieces do not achieve the required quality because of a chip in spindle tool change. With a cylinder head, for example, that can mean that the bore for the valve guide could be several hundredths of a millimeter too wide. An error that at subsequent production and assembly stages has to be identified and repaired at considerable cost. Not without reason, the watchword in the machine tool industry has to be: the only good tool changes are no tool changes. Several different approaches have been tried to solve the stray chip problem that spindle nose. With this GROB innovation, after an automatic tool change, the tool interface checks with ultra-precision for the presence of chips. Because this chip-in-spindle check is also cycle-time neutral and no alterations are required in the machine s working area, for many machining centers this development is an excellent way for improving reliability during an automatic tool change. What happens is that sensors in the spindle nose detect any asymmetric deformation caused by chips at the tool fixing point and assess it. The information is transmitted via high frequency radio signals to the machine control, which then flags up the faulty tool change. The energy for the sensors in the spindle nose is supplied through one stationary and one rotating induction coil. The combined electronics and gauging technology affects only the design of the spindle face. The reading is taken when the spindle is at a standstill immediately after tool clamping. When the reading is taking place, the feed axes move to the new machining position. The accuracy of the system is impressive. Chips are reliably detected, which at a distance of 150 mm from the face contact on the HSK A63 toolholder can cause a change in concentricity at the tool of only 0.01 mm. It is immaterial whether the chips are in the tool taper or in the face contact area. Further test runs despite overcoming a baptism of fire Intensive tests are currently being carried out to establish the limits to the system s vibration and shock resistance. The system with five spindles has already passed a baptism of fire in large-scale production. Elaborate gauging technology and regular calibration are no longer necessary. Its main area of application lies in production where ultra-precise drilling is required in aluminum or in safety-related valve units in automotive braking systems. Over thirty orders within two months of its launch are proof of the intelligent spindle nose s positive reception. It is expected that after further experience in the field and test runs, the Final assembly of universal machines in Hall 9 system will find even wider applications. With the intelligent spindle nose, GROB is putting its leadership in technology to the test in the area of tool changing. After intensive development in recent years has speeded up tool changing on GROB machining centers and reduced chip-tochip times, now with the introduction of intelligent spindle nose the reliability of automatic tool changing is set to improve significantly. The G550T the new mill and turn machining center GROB motor spindle build Talking torque and rpm the GROB motor spindle The launch of serial production for GROB s new G550T mill-and-turn machine was an impressive occasion. There was huge demand for information on possible applications, technical data and details. GROB engineers at the AMB machine tool trade fair in Stuttgart were once again able to prove that they are leaders in their sector. Compared to the competition the new GROB milland-turn machine offers two significant advantages: first, when machining on the G550T, a workpiece can be fixed horizontally or at a slightly oblique angle facing down, so that the chips drop out of the part. When cutting internally on conventional machines, e.g. on rims, with a vertical spindle and an upright B-axis, the removed chips can remain inside of the part and may interfere with the machining process. Second, on the G550T it is possible to work on parts with maximum interference diameter and maximum tool length. This is an option that only a few machines can offer. All of the above advantages are attributable to the G550T s unique axis alignment. justice to the completely different requirements of the two machining processes in one single mounting? Milling requires a high degree of rigidity, stability and high positioning accuracy. For turning, a high rpm and a good dynamic range are required, but without any negative temperature load on the rotary table. The problem was solved by the use a special Classic mill and turn machining on an aluminum part Chip in spindle The G550T is the perfect tool for machining components such as pump housings, turbine parts, basic machine tool components and also large components for the commercial vehicle industry can be machined in a single clamping without reclamping. Components that require high precision milling and drilling as well as a dynamic turning. Set-up times can be reduced and reclamping errors avoided. With this innovation GROB reaches not only a large proportion of existing customers, but also completely new target groups and markets with completely new workpieces. New target groups, which may well widen in the foreseeable future, when GROB can offer, not just the G350 and G550, but also a larger machine with can arise when changing tools. Regardless of whether the chips were detected via unbalance meters, by means of external sensors for measuring concentricity or by special sensitive tool clamping systems with a linear motor, these solutions always extended the so-called chip-tochip time for the tool change or else they interfered far too much in the design of the motor spindle. An intelligent spindle nose for an ultra-precise tool change After several years of collaboration with two industrial associates from the Allgäu region of Germany, GROB engineers have finally found a solution for dealing with chips during a tool change: the GROB motor spindle with an intelligent Five years after restarting the production of motor spindles at GROB, this department has found a new home in Hall 9. The whole process, i.e. machining, assembly, measurement, commissioning, testing, service and repairs, now takes place on one area covering approx. 21,500 sq.ft. Some 35 GROB specialists are hard at work here on the precision production of various spindle types. Motor spindle building at GROB has a tradition stretching back over 20 years. In the mid-1990s, the company produced spindles in small batches using asynchronous motors, with HSK A63 at 15,000 rpm. In 2007, following a strategic pause, during which reliable suppliers produced synchronous motor spindles for the G-series, GROB once again resumed development and production. Now, in the R & D department in our engineering group, a group of three designers are busy working on optimizing and developing GROB motor spindle technology. Spindles in many variations GROB motor spindles are considered to be extremely reliable, robust when used continuously and of high quality. And they have gained for GROB considerable recognition and praise from its international customers. For some years now the company has been making motor spindles in series production with torques of 35 Nm and 64 Nm. These spindles have rpms of 10,000, 12,000 and 18,000. In total, more than 1,400 spindles of this type have been produced and sold. The range of GROB motor spindles is being continuously expanded by more new developments. A few weeks ago Motor spindle assembly in Hall 9 the third spindle type in the GROB series successfully passed all tests and endurance trials with flying colors. This spindle type, with a torque of 160 Nm and a maximum speed of 16,000 rpm, can be used on automotive industry machinery and also on our G350 and G550 universal machines. A completely new development for the G550T Due to the launch of the new GROB G550T mill and turn machine, a motor spindle, which brings together the properties of a mill and turn spindle, has had to be designed from scratch (see also technical article). When used as a milling spindle, there must be very rapid acceleration times to maximum speed (16,000 rpm) and short deceleration times to standstill for tool changes. To achieve this, the asynchronous motor was designed to very compact dimensions. One astonishing characteristic of GROB motor spindles is their acceleration. They can go from zero to 16,000 rpm or 18,000 rpm in only 0.45 or 1.0 second respectively. For this, the balls in the ultra-precise hybrid bearings must accelerate to a speed of about 90,000 rpm in the shortest possible time. What is currently the 4th and final spindle type in the GROB motor spindle range has a torque of 340 Nm and, with its special design, is only used in universal machines. This spindle has already successfully passed all tests and field trials too. GROB motor spindles are a key component of the G-modules in the automotive industry and on universal machines. They are absolutely essential if GROB machines are going to perform reliably. 3 4

4 GROB Production Major production shake-up in Mindelheim Order and shipping volumes doubling; a re-organization of almost all production areas in the shortest time possible, no interruptions to an expanding output and a 20 per cent increase in personnel. This was the challenging situation that the entire Mindelheim workforce faced at the end of last year. More than a Herculean task, which it has to be said was accomplished without a hitch. Component group assembly on tool magazines in Hall 6 The GROB Group is going through a period of change. Not just because of new products, new customers or new markets. Change happens all the time GROB has been around for nearly 90 years now. The changes to the production processes really are new and they affect all GROB plants, but especially the company headquarters in Mindelheim. Five years ago, factory processes were driven by dates and customer projects. Today, production at GROB follows streamlined schedules. The entire company is geared to the production cycle in assembly (similar to the automotive industry) a transformation bringing huge changes to the specialized departments, plus new divisions of labor and processes. Material handling volumes have multiplied disproportionately and this has resulted in huge changes to productivity figures, but at the same time we cannot allow inventory to grow unnecessarily. The only way to manage this was, and still is, with the use of SAP. In the end GROB had no choice but to follow this course of action, if it was to claim to be a leader amid stiff international competition, while at the same time growing the business. A new plant structure needs detailed planning In mid-2011, that was the position and those were the key facts and the main considerations behind GROB s new strategic direction. But actually it was about much more, more than just higher, faster and further. It was about much more than just increasing production to keep pace with the market. If it was about producing more, then it would have been enough to increase production capacity. The aim was actually something much greater: not just how could the GROB Group generate more sales, but also what would be the best way to safeguard these sales? How can processes be streamlined to further improve the company s profitability? And how can these objectives be met, while at the same time retaining maximum customer satisfaction, i.e. meeting all delivery times with products of GROB s usual quality. All-in-all, the task ahead would be an extremely tough logistical and organizational challenge requiring some very complex maneuvers. All change One particular challenge at the planning stage lay in the fact that the production department would have to be changed. Virtually all production halls were to be fully, or at least partially, included in the re-organization. Not only was new production capacity to be created, but in fact all production areas were to come under close scrutiny and, where necessary, re-structured. As a result, in the production department, for example, the entire organizational structure was to move away from classic shop floor production methods; the focus was instead to be on the process or the product. So, for example, large parts are to be produced in Hall 5, small parts in Hall 3. Also, during the relocation phase, all areas in assembly were streamlined with improved productivity and throughput time the priority. Some of the individual measures are up and running, such as the pre-assembly of the console during primary processing time. The latter is then married up to the main mechanical assembly groups on the pre-assembled guide bed, saving just under a week of throughput time. The basic idea behind the plan was to create the pre-conditions for further streamlining. One good example of this is the expansion of the motorspindle department into a standalone production unit, where manufacturing, assembly, inspection, repair and testing all take place under one roof. Flexible production system for machining large parts in Hall 5 An extremely tight schedule Due to a massive increase in incoming orders (a doubling within one year), it was clear very early on at the planning stage that there would be pressure on completion dates. The slightest delay to a single stage could have triggered an unstoppable chain reaction. So the plan was under enormous time pressure. No sooner were the plans finalized that all the sub-contractors involved, such as construction companies, removal firms, etc. were asked at short notice to increase their capacity, so that the schedule could be maintained and ongoing production losses kept to a minimum. No delays or losses in quality were acceptable. To ensure that this happened, there was close collaboration between the various relocation projects and every stage of increased output. Maximum co-operation from the workforce In order to minimize losses to production time, almost all re-location work was carried out in weeks with bridge days (i.e. when there is a mid-week public holiday) or during plant and Christmas holidays. Without exception all the employees who were directly affected showed a high degree of commitment and flexibility. Work continued even at weekends and on public holidays; vacation plans had to be adapted to fit in with relocation plans. So a large part of the removal work into Hall 9a took place at Easter Personnel in facility management, IT and logistics also had to be particularly flexible. On many weekends, production machinery had to be back up and running for Monday, the Kanban blue boxes for the assembly departments returned or the IT infrastructure for production installed. Everyone was willing to co-operate with any emergency measures, such as extra shifts or new shift patterns. Planning the key to the re-organization Right from the start of the project, it was made clear to all involved that achieving the targets depended to a large extent on the quality of both outline and detailed planning. Just how complex the planning task was, was clearly evident from the specifications manual which detailed the targets in universal machines. As the true nature of the Herculean task emerged, several planning strategies were devised, discussed, rejected and Production cell for machining guide beds in Hall 8 restored. Until finally it was decided to adopt the plan, which was eventually implemented: universal machines would be separated from production system machines by hall and Hall 6 would be set aside exclusively as a pre-assembly area for production system machines (Hall 8). Furthermore, small parts and sheet metal production would be sited in Hall 3 with large part production housed in Hall 5. The new hall arrangement has many advantages Now the new hall arrangement is complete, production in Mindelheim is much more efficient and cost-effective. In the production systems business, Hall 8 (systems final assembly/g-modules) and Hall 6 (pre-assembly of their mechanical component groups) are physically and organizationally closer together. The resulting shorter distances dramatically improve communications and co-ordination. The plan supports a pull system, in which final assembly, working in close coordination with pre-assembly, draws component groups from Hall 6, thus streamlining material flow. The individual parts from the logistics area (Hall 1) now take the shortest path to final assembly via pre-assembly (Hall 6). The universal machines area in Hall 9 forms a new, stand-alone business unit, with sales, the Technology and Applications Center (TAC), service, logistics, pre-assembly, final assembly and shipping all under one roof. Physical proximity ensures optimum material flow and communication channels. Because of the high Kanban content, proximity to the warehouse and to final assembly, pre-assembly, for example, means greater flexibility and efficiency. Another advantage of this self-contained business unit is that employees on job enrichment and job rotation can work increasingly across the various component groups as well as in pre- and final assembly. This makes their working environment more interesting and increases flexibility in staff deployment. Major investment in the manufacturing area in Halls 5, 4 and 3 Under the restructuring plans for Mindelheim, a new manufacturing strategy with investment in new production facilities for the machining of large parts was developed (Hall 5). The aim here is to carry out the entire machining process for part families (= ready-to-install parts from a single source). Using a process-oriented production structure, the throughput time for all components is significantly reduced and in sheet metal production increased vertical integration can be achieved. With the addition of the powder coating plant (Hall 4), for the first time, GROB now has at its disposal a totally new technology and it forms the basis for far-reaching streamlining measures in sheet metal fabrication. In addition to the new Trumpf laser cutting machine (Hall 3) with integrated sheet metal storage, all welding workstations were also modernized taking ergonomic factors into consideration. Personnel recruitment and training One of the hardest tasks was increasing the workforce size and providing the new employees with the required skills. In the current calendar year, no fewer than 412 new co-workers were hired. It was a truly mammoth task for the GROB s personnel team to recruit the new workers and then to prepare them for their new roles in double quick time. Regardless of their latest job, all employees undergo a 4-day introduction program. They are then skilled up for their specific task in the specialized departments, with each department responsible for organizing the detailed training. From plan to implementation Right from the outset, the practical implementation of the new arrangements in Mindelheim provided for the creation of the space needed for a turnaround of the entire production operation. This involved the clearing of Halls 3 and 6, storage and then their renovation. Running in parallel to the relocation and renovation work, a planning team was preparing a new assembly structure in the main component group section for G-modules. The aim here was to ensure no slippage with the current order book. Plans included new measures for streamlining assembly, thereby enabling higher output in pre-assembly. The production lines were re-synchronized and prepared for a doubling of output. Equipment for machining small production parts could now be moved into the first section of Hall 3. A total of 62 metal cutting machines were moved out of Hall 5 into Hall 3. The task of facility management, maintenance and the IT department was to bring the machines on stream, so that the scheduling for customer projects was not adversely affected. Generally speaking, every machine was ready to start production again after three days. To create additional space in Latest Trumpf laser cutting machine in Hall 3 Hall 3, the electrical and fluid warehouse was moved to Hall 7. With the relocation of the component group pre-assembly work for universal machines and the motor spindle section into the nearly completed Hall 9a in March 2012, this part of Hall 3 could now undergo a major overhaul (floor coating, painting, installation of doors, etc.). With the addition of the new Trumpf laser cutting machine, the welding workstations and the transfer of sheet metal production (Hall 2), it was possible to complete Hall 3 in April/May. Finally Hall 2 was set up for fluid pre-assembly and then integrated into the production process. While these removals were taking place, the second section of Hall 9b was finished and made ready in record time. Now the remaining departments from universal machine, fixture and spindle build were able to make the move to their ultimate home in Hall 9. Looking forward streamlining logistics and the construction of a new logistics hall And the final stage, at least for now, in the re-organization in Mindelheim is the construction of a new logistics hall. It has an important place in securing growth at GROB and, when complete, it will provide the urgently-needed, additional space for logistics and ensure that materials are available to meet the growing demands of the GROB production in Mindelheim. In addition, further measures are needed to streamline the entire logistics toolkit. Only then can GROB Mindelheim claim to have squared the circle. With this new plant structure in place, we are entering a phase in which Mindelheim s potential can be maximized with the capacity for further growth. 5 6

5 INTERNATIONAL GROB Service Strong connections to the customer From field installations to after-sales marathons service at GROB means much more than just the maintenance and repair of the sophisticated production lines and the state-of-theart universal machines worth more than 4 million euros that leave the four GROB plants every day. It s a task which demands a high level of technical knowledge on the part of our service staff, plus streamlined logistics and above all a high level of commitment. Even though the service department is considered to be the final link in the production chain and few people are fully informed about the functions it performs, there is no dispute about its importance. Hardly any other area in the company communicates so intensively on a dayto-day basis with all the other specialized departments as our service colleagues Field installation project team have to. A look behind the scenes makes that clear very quickly. Field installation project coordination the final lap before production launch at the customer s premises Our service staff track GROB machines from about six weeks before shipping from Mindelheim until the expiration of the warranty a period which can last for up to 36 months. There is a whole manual of logistical issues to sort out, particularly when installing at new locations starting with the facilities available, flight connections, and where to stay when on site. In parallel and working together with the various specialized departments, the field installation team must be assembled and the number of members and their skills agreed to. Everything especially in the delivery phase must move rapidly, but at the same time maximum care must be observed. In short: everything must be right! Global staffing logistics ensures optimum operating times An experienced team takes care of the 280 GROB staff engaged in field installation work across the globe. The integrated fleet group manages 150 vehicles for assembly operations, books more than 1,500 flights and every year applies for more than 150 visas. When site planning, service staff from the various branches and service locations have to be scheduled in as and when they are available. Additional contract personnel may have to be provided subject to the state of the local economy. So that the GROB technicians at over 50 installations sites worldwide can enjoy optimum working conditions, the required tools must be available on site when assembly begins. To be sure everything that might be needed is there, the contents of GROB standard tool cabinets needs careful planning. In the last 18 months alone, twenty of these tool cabinets worth over a million euros have been sent to their destination. Work on site not always predictable Once the assembly work or sometimes a machine conversion is in progress, GROB service staff has to be ready. They will monitor, in collaboration with the project management team, how things are progressing. Any emerging problems have to be resolved in good time with the aid of specialized departments in Mindelheim. But not everything always goes to plan. Often, the situation at the customer s premises is not quite as expected: coolants have not been filtered as required, tools can drift during drilling, suddenly there is a pillar in the hall that did not appear on the paperwork in Mindelheim, etc... Now, what is required are technical knowledge, problem solving skills and flexibility. After sales service project team Practically every solution to a problem and any deviation from the plan require some consignment from Mindelheim and some considerable logistical effort. A newly created AV site group manages requirements internally, supplies on a daily basis on average 12 orders or 50 items worldwide to our sites and provides information on the current status. All with the aim of ensuring fast and efficient machine re-assembly at the customer s premises. For a year, field installations have been supported by newly-established service support bases in Stuttgart, Salzgitter (both Germany) and the new GROB service branch in Györ (Hungary). A total of 30 specialists are based precisely where GROB customers operate their machines. Each base has a small office with the appropriate facilities and storage area in order to keep response and travel times to a minimum. After-sales takes over customer care Once the final inspection has taken place, after-sales takes over customer service duties. But that does not mean that the issues go away or that we absolve ourselves of any responsibility. From this point on, all customer inquiries are channeled through the newly-established call center (24 hours, 360 days a year) to a technician on our Complaints and Support Management hotline. If necessary, specialists from our Teleservice can make contact with the customer s machine at any time via a data cable and provide immediate assistance. If rapid assistance by phone or data cable is not feasible, one of GROB s 15 emergency call-out technicians will travel to the customer. Often, even at weekends. Last year alone, they covered over 150,000 miles on call-outs. The GROB service support centers worldwide stock important spare parts for the universal machine and project Spare parts service project team business and these are available on short notice. If necessary, they can be shipped at any time. Every day spare parts worth more than US$ 130,000 are forwarded to all four corners of the world. Last year their total value was US$ 32 million. A wide range of services Continuous Improvement (CI) specialists Teleservice project team throughout the world can be put to work on fault analysis and, working in conjunction with our development department, carry out any remedial work that may be necessary. Reliability and Maintainability (R&M) specialists are expert partners in matters related to equipment reliability and machine service life costs, but also in cost per part considerations. Our experienced staff can assist customers with instrumentation in the far-from simple field of motor spindles. In a newly established repair center, service staff can overhaul sophisticated component groups such as circular tables and slides. Increasingly, GROB service technicians are being asked to repair or answer enquiries about machinery, which was supplied over 25 years ago. GROB specialists in after-sales services annually provide services worth over US$ 6.5 million. The customer is at the heart of our everyday routine GROB s guiding principle applies every day and none more so than in the service department, 360 days a year. Workplace safety at GROB Workplace safety implemented through training and education Workplace safety at GROB does not just mean compliance with legal regulations. Issues around health and safety are addressed every day across the whole company right up to senior management level. Extensive training sessions and seminars are used to explain to staff not only any obligations as required under employment law, but the courses also provide guidance on the implementation of those obligations on the workshop floor. When it comes to integrating Occupational Safety and Health (OSH) into the organization and processes at GROB, it s not just about the formation of an isolated OSH system involving a few specialists, but also about the development of skills at every level. And so to do justice to this policy, the training of GROB employees in OSH matters has become an essential requirement. For a long time now all management levels and especially in the production department have been involved in this further education system and have been learning, at multi-day trade association seminars for example, valuable skills for effectively incorporating good OSH practice into everyday operations. Theory with good practical relevance At these training sessions, participants are taught the organizational tools, such as how to successfully manage, by using a wide variety of internal intervention techniques for example, and in co-operation with other agencies the necessary OHS measures. Providing guidance on the legal regulations and statutory provisions, as well as raising awareness of any special responsibilities within the company and how they can be co-ordinated effectively are also on the agenda at such training seminars. Participants can expect an educationally-balanced mix specially tailored to the needs of management of theoretical debates, round table discussions and case studies. At management level these seminars play a major part in ensuring compliance with our corporate policies in relation to OSH. Thematic seminars for management The seminars have varying objectives, depending on the needs of the different levels of management. So, in the seminars run for senior managers, key topics can include background legal information, how to effectively incorporate OSH into operational procedures and management-relevant expertise of human and commercial factors in OSH. In the supervisors seminars the emphasis is primarily on the roles and responsibilities of line managers in OSH, about the internal organization of OSH, about the company-wide OSH system and its rules and regulations. The prevention of accidents at work and work-related health and safety risks, the preparation of risk assessments and information about certain risk and stress factors also play a key role in the training here. Specialist seminars for employees in production At the specialist seminars for employees in production, it is primarily about the safety-related design of working procedures. Here topics can include those risk factors, which may exist in specific activities within the company and also the measures that need to be taken to eliminate or, at least minimize, any resulting risks. Although these seminars are concerned mainly with technical issues, the focus is actually not solely on the technology. Safety at work crucially depends on methodical procedures and on the social skills of the individual and is therefore also an important part of these seminars. The implementation of any findings gained in further training can contribute, particularly in production, to better design at the workplace and improvements to procedures, which then play an important part in the prevention of accidents at work. 7 8

6 GROB ANNIVERSARIES Honoring the company s top ambassadors Anniversary celebrations 10th anniversary 25th anniversary Josef Adam Mechanik Detailkonstruktion Stefan Albrecht Mechanik Detailkonstruktion Manfred Bauer Fertigung Führungsbett/Ständer Michael Baur Vormontage Elektro Stefan Bleyer Inbetriebnahme Mechanik Hubert Blöchl Elektrokonstruktion Sabine Böck Mechanik Detailkonstruktion Michael Burianski Inbetriebnahme Mechanik Norbert Dimpfl Fluidinstallation Karl Donderer Mechanik Entwurfskonstruktion Christian Dzalbs GROB Dalian Hubert Eisenschmid After Sales Service Anton Endreß Inbetriebnahme Elektrik Christian Frey Produktionslogistik Frank Gaugler Inbetriebnahme Elektrik Thomas Gleich Fertigung Schleifen Thomas Graf NC-Programmierung Markus Hartmannsperger Inbetriebnahme Mechanik Jürgen Hecht Fluidkonstruktion Karl-Heinz Hehn Fluidkonstruktion Martin Herz Fluidinstallation Norbert Hiller Vormontage Universalmaschinen Thomas Hofmann Elektrokonstruktion Sabine Holzmann Technische Dokumentation Georg Jousma BL Elektrokonstruktion/Elektro IBN Walter Keim Konstruktion Entwicklung Erwin Kleiber Elektrokonstruktion Georg König Vormontage Fluid Albert Lochbrunner Vormontage Fluid Armin Lutzenberger Blechmontage Herbert Mähle Projektmanagement Franz Maier Prozessinbetriebnahme Werkzeug Christian Mann Mechanik Detailkonstruktion Andreas Maurus Informations-Technologie Robert-Michael Miler Vertrieb Universalmaschinen Alexander Möbus Fluidkonstruktion Armin Müller Mechanik Entwurfskonstruktion Edwin Nägele Mechanik Detailkonstruktion Bodo Nittel Fertigung Komplettbearbeitung Alfred Pfandzelter Elektrokonstruktion Manfred Rau Inbetriebnahme Elektrik Michaela Rausch Mechanik Detailkonstruktion Franz Reisch Mechanik Detailkonstruktion Robert Renz Projektierung Georg Riedenauer Elektrokonstruktion Carmen Rösch Betriebsrat Elmar Rößle Fertigung Komplettbearbeitung Karl Schmid Service Ersatzteile Reinhold Schmid Elektrokonstruktion Bernd Schmidt Elektrokonstruktion Helmut Schneider Elektrokonstruktion Jürgen Schneider Elektrokonstruktion Hubert Scholze Vormontage Mechanik Rudolf Schön Inbetriebnahme Elektrik Kurt Seitel Fertigung Automation Anton Sirch Vormontage Motorspindel Wilhelm Stingl Baugruppenfertigung G-Module Georg Vollmar Elektroinstallation Mark Wachendorf Vormontage Elektro Eckhard Weigele Mechanik Entwurfskonstruktion Herbert Wieser Elektrokonstruktion Martin Wild Elektrokonstruktion Herbert Wind Fertigungsleitung Helmut Wissigkeit Fertigung Großteile Alois Wittmann Blechmontage Maximilian Wörz AL Inbetriebnahme Elektrik Alois Zimmermann Informations-Technologie Thomas Adler Fertigung Kleinteile Marco Bärwolf Technische Dokumentation Verena Bihlmaier Service Projektkoord. Außenmontage Christian Böck Elektrokonstruktion Turgay Cankaya Montage Transportsysteme Robert Degenhart Mechanik Entwurfskonstruktion Michael Denk Leitung Vormontage Motorspindel Florian Dorn Inbetriebnahme Elektrik Markus Dreimann Mechanik Entwurfskonstruktion Stephan Freiding Prozessinbetriebnahme Martin Gedler Konstruktion Werkzeugtechnologie Sebastian Glöckler Elektrokonstruktion Michael Gräfe Service Projektkoord. Außenmontage Rainer Hämmerle Fertigung Instandhaltung Markus Hartl Mechanik Entwurfskonstruktion Markus Heinzelmann Mechanik Detailkonstruktion Hans-Detlef Hora Mechanik Entwurfskonstruktion Maximilian Huber Informations-Technologie Sergej Ivanov Fertigung Drehen Andreas Jodeit Fertigung Komplettbearbeitung Jörg Juskowiak Mechanik Entwurfskonstruktion Martin Kallweit Konstruktion Werkzeugtechnologie Johannes Kaufmann Inbetriebnahme Mechanik Martin Kirsch Vormontage Elektro Viktor Klett Fertigung Kleinteile Andreas Kluch Montageleitung Universalmaschinen Maximilian Kolb Inbetriebnahme Elektrik Reinhard Lippert After Sales Service Christoph Lutzenberger Inbetriebnahme Elektrik Tobias Maier Mechanik Detailkonstruktion Stefan Maucher Operativer Einkauf Robert Mayer Mechanik Detailkonstruktion Christian Mayr Informations-Technologie Thomas Merk Konstruktion Werkzeugtechnologie Christian Mückenheim Fluidkonstruktion Jürgen Nawratil-Selzer Vormontage Schaltschrank Ingo Nitsche Elektrokonstruktion Florian Oberhoffner Inbetriebnahme Elektrik Judith Rögele Mechanik Detailkonstruktion Lars Rosenbaum Inbetriebnahme Elektrik Waldemar Rott Fertigung Motorspindel Thomas Ruf Projektierung Jürgen Samberger Mechanik Entwurfskonstruktion Andre Scheibenbogen Inbetriebnahme Mechanik Marian Schlögel Vormontage Fluid Christian Schropp Inbetriebnahme Mechanik Sabrina Schweiger Personalmanagement Steffen Setz Leiter Produktionseinheit Konstruktionsmechanik Stefan Spöcker Zeichnungsdokumentation Manfred Spöttl Inbetriebnahme Mechanik Christina Stegmann Informations-Technologie Jürgen Strang Vormontage Elektro 40th anniversary Anton Bäurle Montage Universalmaschinen Georg Brüchle Fertigung Drehen/Fräsen Ernst Drexel Fertigung Support Wolfgang Fleschutz Fertigung Support Hermann Frommel Logistik Produktionssteuerung Heribert Loock Inbetriebnahme Elektrik Günther Ludwig Fertigung Werkzeug Franz Lutzenberger Fertigung Sonderbaugruppen Anton Mayer Fertigung Werkzeug Peter Miller Fluidkonstruktion Max Müller NC-Programmierung Josef Pfleghaar Blechmontage Emil Proksch Mechanik Detailkonstruktion Alois Sedelmaier Inbetriebnahme Mechanik Anton Senner Fluidinstallation Anton Waigel Geometrie Retired employees with links to the company of between 30 and 40 years Werner Groitl 38 Jahre Kaplan Mustafoski 33 Jahre Bernd Perzewski 32 Jahre Hermann Ruf 36 Jahre Paul Schweiger 35 Jahre Jochen Tietz Mechanik Detailkonstruktion Gerhard Weihrather Informations-Technologie Christoph Wissigkeit Konstruktion Werkzeugtechnologie Claudia Zillober Verwaltung Produktion Markus Zingerle Inbetriebnahme Mechanik Peter Zollitsch Elektroinstallation Alexander Zucktriegel Inbetriebnahme Elektrik Our pre-retirement part-timers and retired employees who have worked for the company for between 30 and 40 years and those celebrating 40 years with the company 9 10

7 GROB Training GROB vocational training gets top ratings The new generation of GROB apprentices on their Onwards and upwards together getting to know you field trip at Klosterwald, near Ottobeuren, Germany Increasing numbers of applicants despite the difficult demographics. The number of apprenticeship places with GROB is at a historically high level. The battle for the next generation is underway, but GROB Mindelheim has done its homework and put together an attractive training package. Rapid expansion at GROB s Mindelheim plant has given the training department an extra incentive to go in search of suitable new recruits. It s an almost impossible task: how is the company to satisfy the constantly rising demand for young talent against a backdrop of falling students finishing high school. Before the financial crisis in late 2008 an average of 40 youngsters were being trained in all specialist departments. Next year, the company needs suitable trainees to fill around 60 apprenticeship places, an increase of around 30 per cent. The Teamwork the only way to build a raft is by working together 11 competition is tough and the battle for the next generation is getting tougher. The gap between the increasing demand (+12.2%) for suitable recruits and the decreasing number of students finishing high school (-5.4%) is widening. GROB is not the only company looking for talented youngsters. For a long time now, other sectors in the region have been competing for the skilled workers of the future. Recruitment program is having an effect It s a development identified at GROB some time ago and which includes a whole raft of measures. It s enjoying some success. The evidence for that is to be seen in the ever-increasing applicant numbers of recent years. This has been achieved primarily as a result of a comprehensive recruitment program ranging from career guidance in the 7th grade at the Mittelschule (middle school), a multi-pronged recruitment campaign using all the latest media channels, through to the GROB Training Information Week just before the application stage so all-in-all a varied combination of information sources. Info Week with the multi-media truck One highlight of this summer s recruitment program was the GROB training department s Info Week, with the M&E Infotruck, sponsored by the Bavarian Metal and Electronics Industry, as the focal point. For four days, the huge vehicle was parked on the GROB site and interested youngsters were invited on board to find out more about vocational training at GROB. Well in advance, all the relevant schools in the region across all ability ranges were sent circulars informing them about the Training Info Week at GROB. And the truck proved to be very popular among young people. It was a multi-media truck with something for everyone: from programming a CNC machine and scientific experiments to online careers research all of the themes were devised to appeal to young people and with plenty of scope for interactive investigation. And GROB was also represented: on the first floor of the truck, in addition to carrying out their own careers research, young people could gain an in-depth picture of GROB. As well as acquiring information on possible apprenticeships, at the same time they got to see how a family-run company with a world-wide reach is set up. All the information events finished with an hour-long tour of the plant. On the production and assembly shop floor, the youngsters were able to A class from Mindelheim s Marist College before boarding the Info Truck get a personal insight into the machine tool industry and see for themselves for the first time what a job in the production department would be like. The options for jobs at a later stage in the specialized departments were of course of particular interest to them and these were discussed in detail as and when appropriate. A wide range of options in the GROB trainee recruitment program As well as the Infotruck and Training Info Week, colleagues in the training and human resources department made sure GROB was well represented at the numerous careers fairs. Collaboration with Mindelheim s Marist College and the town s Mittelschule has always been very successful. One new idea is to offer a student from the Marist College a long-term internship. We call this initiative Try it, i.e. applicants are urged to come in and give it a go. At what phase of a project can you imagine your later training taking place? At the design and engineering phase as a technical product designer, at the production phase on a metal cutting machine or in quality control at the end of the process? The number of students on work experience, or taster sessions, has been going up for years too. This year, the training department welcomed over 137 students, a new record, and even then not everyone could be accommodated. On Girls Day 2012, a group of interested female students was given an insight into the commercial and technical trades. Escorted by trainees, the girls tried their hand at what would for them be new assignments, such as pneumatic planning, compressed air drives and time controls. Tied together as a team rock-climbing as a way of pushing the boundaries Investment in training The quality of any technical training is largely dependent on the hardware, the machinery available in the training department. And this year too GROB has invested a considerable amount of money in equipment for the training department. At the end of February, a new conventional milling and turning machine was installed for rudimentary and advanced basic training. Later on in the year the training department took delivery of the second, long-awaited G350 with Heidenhain controls and also an advanced turn-mill center, which can demonstrate more effectively the different machining processes. Award for a trainee in the vocational college The high quality of GROB training can be seen from new awards presented to our trainees. On February 17, one of our former trainees, Frank Michael (industrial mechanic), was honored at a ceremony for his outstanding performance in the vocational college. His average grade was 1.28 (1.0 being the best grade). For this he received as a souvenir the traditional Johann Bierwirth clock and a digital picture frame with many pictures of the GROB plants and from his training period. Stefan Wilhelm also put in a fine performance. In his final examination as an electronics technician in automation technology, he scored an average grade of 1.4. GROB Occupational Health Get fit for new challenges with Drums Alive Lose weight, improve your health and get fit with Drums Alive. With a special fitness program developed for GROB employees, the company s Occupational Health team is once again setting new standards in preventative care for the workforce. Prevention that not only helps, but is also great fun for the participants. A study by the German Federal Statistical Office revealed that one in every two people is overweight (51% of the adult population 60% men and 43% women). And the proportion is increasing. Obesity is already widespread among many young adults and with an ageing population, the numbers are increasing. The main cause of obesity in Germany is lifestyle. More and more time is being spent in front of a computer or a television. Exercise only happens rarely. People are more likely to consume junk food than take part in sports. Over the long term, the consequences of obesity are: heart and circulatory diseases (heart attacks), diabetes, high blood pressure, strokes, physical weakness, lung and breathing problems, social problems, emotional damage, impaired co-ordination and lots more. Lose weight and improve your health To combat these diseases, in 2011 for the first time, GROB developed and successfully implemented a special anti-obesity program under the slogan Lose Weight and Improve Your Health. For those taking part the aims of this fitness program were primarily reducing weight, improving individual capability and encouraging physical activity, while at the same time boosting motivation and self-esteem. So exercise units lasting between 15 and 60 minutes were held three times a week. After ten weeks, the participants were expected to continue with the program but to work out on their own. At 26 weeks after the start of the program, all those who took part were re-examined. And the results were impressive: in Group 1 four participants had lost a total of 40 pounds already within the first 10 weeks. A result that was so good that in the spring of this year, a follow-up course was started. Fit with Drums Alive In addition, as part of our occupational health promotion campaign, in early Get fit in winter with team trainer Rebecca Stimpfle 2012 another course called Drums Alive started up. Once a week a group of 15 met up to perform this latest sports activity together. Beats, balls and exercise combine in this new and exhilarating sport. It s about drumming to get fit. Drums Alive is fun and reduces stress. It s the perfect way you can clear your head and unwind mentally and it is not just a power program; it also includes quiet phases such as wellness beats, where the aim is relaxation. Through repetition of penetrating rhythms, Drums Alive gets the energy forces flowing, giving a big boost to mind, body and soul in equal measure. It combines elements from physical therapies with themes from music, sound and dance therapy, thereby bestowing in a variety of ways the benefits the body needs. But all that apart, the participants had a lot of fun, while leaving their everyday worries behind. This is why there will be new follow-up courses for this second activity, too. 12

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