KUHN KRAUSE AND THE NEXT AGRICULTURAL REVOLUTION
P R O J E C T PA R T N E R S :
BRINGING AGRICULTURE into the DIGITAL AGE
With smart machinery and robotics, Kuhn Krause is resolving the agriculture sector’s biggest pain points and meeting the demands of digitisation
D
igitisation is transforming businesses across the globe – and the
the time savings, the agronomic
agriculture sector is no exception.
focus that we take in designing
With the world’s population mushrooming, consumer demands changing, and commodity prices becoming more volatile, the
and building our machinery,” he adds. Looking forward, the digital
agriculture sector is being pushed beyond tra-
agriculture market is expected to
ditional business models into the digital age.
triple in size to $15bn by 2021,
With 100 years’ experience in manufactur-
according to PA Consulting.
ing farm machinery, Kuhn Krause is a melting
With this in mind, Director of
pot of traditional agricultural values and tech-
Operations, Eddie Smith, says he
nological innovation.
has seen a seismic shift in the
It is perhaps this unique perspective which has thrust the American firm into the spotlight 04
“It’s all about the profitability,
way farmers operate. “I think we’ve seen a dynamic
as one of the leading agriculture and farm
change in the way farmers
machinery manufacturers in the market today.
approach business,” he explains.
“No matter what segment of the agricultural
“They’re no longer just trying to
industry we’re in, our mission is to build the
make a living for their families but
best equipment and deliver the best customer
are now increasingly looking
experience with that equipment,” explains
towards more technical aspects
Marketing Director Curt Davis.
of farming.
“That really comes from identifying and
“I think they’re better educated.
understanding the customer, understanding
They’re business people and they
their needs and providing the equipment that
run the farm more like a business.
solves the everyday problems many of the
They have expectations that their
farmers face with their operations.
fathers or their grandfathers
“This mindset helps us to create a differenti-
didn’t have, and so they are look-
able product in the marketplace, so that when
ing to derive value. They’re
a customer hears about our equipment they
looking for the latest and greatest
will immediately say to themselves, ‘This is the
technologies that can give them
solution I’ve been looking for’.
profitability.”
The agriculture sector is a difficult one to be in, but Davis believes technology is key to realising the market’s financial potential. “It’s paramount to have a good experience with the equipment, but it’s also important that customers realise the value and return on their equipment investment,” he says. “In today’s agricultural market, commodity prices are somewhat depressed. This is a worldwide situation, not just in North America, and so it’s very important for our customer to stay profitable. “They want to invest in machinery that is going to improve their profitability and decrease their cost of investment, whether it be through time, fuel or labour.”
“ It’s all about the profitability, the time savings, the agronomic focus that we take in designing and building our machinery.” — Curt Davis, Director of Marketing and Product Management
Whether it’s creating state-of-the-art equipment for livestock feeding and bedding, tillage, planting and seeding, crop protection and more, it seems innovation runs deep at Kuhn Group.
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“The sheer fact that Kuhn Krause has prospered for such a long period of time is a testament to the product and the people at the facility” — Eddie Smith, Director of Operations
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This is clearly demonstrated by the firm’s cutting-edge manufacturing facility. By investing in smart machines, Kuhn Krause’s technology provides operators with “instant feedback on the performance of
weld cells are helping to provide feedback, speed up operations and produce better quality products. “With all this technology, we
machines,” says Smith, which makes the
haven’t replaced any workers,”
manufacturing process faster and more effi-
Smith continues. “It has actually
cient.
given us more flexibility with our
Meanwhile, the firm’s million-dollar investment in smart machining centres and robotic
workforce and has improved our productivity and efficiency.
Kuhn – Invest in Quality 07
“The integration of technology is
standardising, sustaining and upholding
helping us make the interface
safety – the agricultural equipment firm is
between man and machine more
focusing on what matters: its products.
productive.” Pushing its efficiency further, the
In conjunction with this, Smith also champions the company’s use of Gemba walks, to
team at Kuhn Krause has also
gain insight into what’s happening on the
implemented a clearer, lean way of
shop floor.
working. Adhering to the 6S method of sorting, setting in order, shining,
“One of the main things we’ve done is that we set up a model area in each department,” Smith adds. w w w. k u h n n o r t h a m e r i c a . c o m
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“When a customer hears about our equipment they will immediately say to themselves, ‘This is the solution I’ve been looking for’” — Curt Davis, Director of Marketing and Product Management
“Once we validated that a process was converted and changed using
the skills and expertise of its team. “The sheer fact that Kuhn Krause
the lean methods, then we would
has prospered for such a long
expand it to other areas in that
period of time is a testament to the
department. When we wanted to
product and the people at the facil-
change something, we always went
ity,” observes Smith.
back to the model area to change it. “We also introduced spaghetti dia-
“I think from a manufacturing standpoint, one of the challenges
grams to reduce the flow or waste of
we’ve had is adapting to the differ-
time of material moving from point A
ent generations of workers
to point B. We had over a 40%
because today we have some
reduction in one department, in one
workers that are celebrating their
area, just by doing that.”
45th year with the firm. In some
Technology and new business
cases, we have taken our sea-
models have undoubtedly trans-
soned workers and placed them
formed the business, but when it
alongside some of the younger
comes to the success of Kuhn
workers to let them learn the new
Krause, the pair both also point to
technology. They’ve been very w w w. k u h n n o r t h a m e r i c a . c o m
09
receptive to doing that.” “Finding good people is always a challenge,” adds Davis. “It seems like in today’s world if you can find a good foundation of character, work aptitude and knowledge about the business, you can begin to build upon that with the specific things that they need to know for the industry and the company. It’s a constant challenge to find good people and to retain them but we’ve managed to
Over
10
350
employees work at Kuhn Krause.
achieve this.” Tapping into the latest industry knowhow, Kuhn Krause has not only hired the best talent, it is also developing strong industry partnerships to guarantee a superior customer experience. “For instance, one of the companies that we have an alliance with is Montag,” notes Davis. “Montag provides a fertiliser delivery solution which we attach to our strip-till machine called the Gladiator®. Both of those machines work together to really provide good value to the customer. It delivers a whole package to the farmer. That relationship with Montag has been very instrumental in increasing our market
position with the customers for the
Although the company’s roots lie
strip-till application of fertiliser place-
firmly in America, it seems Kuhn
ment.”
Krause remains optimistic about the
Now, looking forward, the agriculture equipment firm plans to continue the company’s historic leg-
future and is eyeing opportunities further afield. “In the next decade, we plan to
acy by embracing new and
continue to grow in the North Ameri-
revolutionary technologies.
can sector, both in the US and
“In the future, I predict we will con-
Canada,” Davis says. “Globally I see
tinue to increase our technology use
that we have many opportunities,
in all aspects of manufacturing,”
especially in growing and developing
reflects Smith.
countries where agriculture is vital to
“That will allow us to have flexibility.
produce enough food for the grow-
This is important because the agri-
ing population. Continued
culture market is cyclical, which
development in those growing and
means you need to able to flex-up
emerging countries are going to be a
and flex-down your manufacturing
priority for us.”
capability to continue to be profitable.”
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305 S. Monroe St. - Hutchinson, KS 67501 T 800-957-2873 www.kuhnnorthamerica.com