Standardization as a driver for growth. How LEAN thinking built the foundation for NEPower’s production transformation

Standardization as a driver for growth. How LEAN thinking built the foundation for NEPower’s production transformation

When Jani Kujala joined Nordic Electro Power (NEPower) as Production Director, he brought a clear conviction: regardless of industry, sustainable operational performance is achieved by first establishing stability, clarity, and systematic ways of working.

Today, NEPower operates according to LEAN thinking, where standardization and operational stability form the foundation for continuous development. Within this framework, the 5S method is applied as a key practical tool to create and sustain a stable production environment in an increasingly complex energy sector.

Kujala’s professional background consists exclusively of organizations that have been awarded first-prize LEAN recognitions, providing a strong and consistent foundation for the approach now applied at NEPower. This experience has shaped a pragmatic and results-driven view of LEAN, grounded in real operational environments rather than theory alone.

“At its core, LEAN is about making daily work flow better,” Kujala explains. “By benchmarking others and critically reflecting on our own processes, we avoid becoming blind to our inefficiencies.”

Building a culture on a stable foundation

NEPower’s production has grown rapidly in recent years. Before expanding broader LEAN practices, the company deliberately focused on stabilizing operations and establishing shared standards. At this stage, 5S offered a concrete and easily understood method for creating a common baseline across production.

“We were not constrained by legacy operating models,” Kujala says. “The team recognized the practical benefits immediately. Once the fundamentals are in place, no one wants to return to the disorganized starting point.”

Standardization plays a central role in this transformation. When tools, materials, and ways of working are clearly defined and visible, onboarding becomes faster and unproductive searching is eliminated. At NEPower, standards are not viewed as restrictive rules, but as enablers of systematic improvement.

“Without a standard, you are not really improving,” Kujala notes. “You are just changing habits. A shared standard provides the foundation from which real development becomes possible.”

LEAN in a project-based and customized environment

The production of substations and Battery Energy Storage Systems (BESS) differs significantly from repetitive assembly-line work. Each project is unique, with delivery timelines often extending over several months. In such an environment, variation is high and the cost of errors is significant.

Rather than applying traditional mass-production metrics, NEPower relies on standardized project management practices. Large projects are broken down into manageable sub-entities governed by common principles, enabling precise control of schedules, costs, and quality.

“You cannot manage unique projects with mass-production logic,” Kujala explains. “But by standardizing how projects are planned, monitored, and executed, we achieve a high level of predictability despite the complexity.”

This approach demonstrates that LEAN is not limited to serial production. In highly customized and project-based operations, standardization is often even more critical.

Quality and trust as competitive advantages

A stable, LEAN-driven production environment also plays a key role in building customer trust. During Factory Acceptance Testing (FAT), customers see firsthand that NEPower’s operations are controlled, systematic, and safe.

“In the electrical industry, quality and safety are non-negotiable,” Kujala concludes. “When customers visit our facility and see a standardized and well-managed operating environment, it immediately builds confidence in how we work.”

5S at NEPower – A foundational tool within LEAN

At NEPower, 5S is understood as a leadership and work-management tool rather than a housekeeping exercise. Its purpose is to establish and maintain the stable foundation required for all other LEAN development.

• Sort: Remove all unnecessary items from the workplace
• Set in Order: Define and clearly mark locations for tools and materials
• Shine: Maintain conditions where abnormalities and safety risks are immediately visible
• Standardize: Establish shared and visible ways of working
• Sustain: Maintain the level through audits and daily continuous improvement

By placing standardization and stability first, NEPower has created a solid platform for growth, continuous improvement, and long-term competitiveness in a demanding and rapidly evolving energy sector.