Rapid group wide implementation of a loss-based improvement management system

Brembo, Italy



Statement of the jury

The Jury awards Brembo with a special prize for the implementation of the cost deployment methodology across 29 plants within a span of two years with outstanding quality. The challenge of engaging all stakeholders of a worldwide operating enterprise, transitioning from a traditional approach to the powerful tool for cost management and improvement projects selection is a herculean task which deserves recognition with an Automotive Lean Production Award. 

Cost deployment is a crucial pillar of the World Class Manufacturing production system, a methodical approach used in manufacturing to systematically identify, evaluate, and assign costs to various loss factors within a company. It involves a series of steps that help understand the causal relationships between different losses and their budgetary impacts, with the aim to identify the improvement projects in a systematic way.

Cost deployment is far more significant than a mere tool – it represents a profound shift in perspective, leading to a radical mindset change, moving from a cost cutting to a loss reduction approach. In the cost deployment, the costs are split in ideal costs and losses. To identify the waste and losses and to define the ideal costs, the full commitment and engagement of various individuals in the company is vital. Certainly, the collaboration of the finance department is crucial due to the substantial one-off effort required from them. It must provide extensive data and overhaul its reporting system. Yet, it is equally important to engage every department (referred to as 'pillars' in World Class Manufacturing parlance) in identifying the perimeter and type of waste, calculating specific figures and deriving the efficiency improvement projects. 

The key to this successful transition was maintaining a pragmatic, rather than dogmatic approach, tackling this matter decisively, yet gradually. First, it is mandatory to involve all management levels, from C-level and Business Unit Management to department leaders across all 29 sites. Therefore, a lot of experience and persuasion to convince the organization of the benefits of changing the working method is needed. Luckily, Brembo has the advantage of highly knowledgeable and competent professionals with a World Class Manufacturing (WCM) background to spearhead the change.

The speed and quality of the rollout have made a strong impression on the jury, especially in terms of stratifying losses quickly. Take for instance the Curno System Plant close to Bergamo; here, approximately 1,000 workers manufacture calipers and brake modules. Within its scope, 147 processes were considered, identifying 28 different kinds of losses.

The comprehensive stratification of losses and the continuous effort to identify additional losses, bolstered by forthcoming digital projects providing a wealth of data to enhance cost deployment, enables effective prioritization of losses and lays the foundation for a journey of improvement. Brembo's approach of incorporating savings initiatives into budget planning ensures that budgets are established on actual data, rather than through negotiation. The jury is confident that Brembo is on a sustainable path to Operational Excellence.



The plant

Brembo leads the world in the design and production of high-performance braking systems and components for top-flight manufacturers of cars, motorbikes and commercial vehicles. Founded in 1961 in Italy, Brembo has a long-standing reputation for providing innovative solutions for OEMs and aftermarket. Brembo also competes in the most challenging motorsport championships in the world and has won over 600 titles. 

Guided by its strategic vision – “Turning Energy into Inspiration” – Brembo’s ambition is to help shape the future of mobility through cutting-edge, digital and sustainable solutions.

With over 15,600 people across 15 countries, 32 production and business sites, 9 R&D centers and with a turnover of € 3,849 million in 2023, Brembo is the trusted solution provider for everyone who demands the best driving experience.


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