Case Study: Streamlining Operations and Driving Growth for a Tier-1 Automotive Supplier
A Tier-1 automotive supplier, specializing in under-hood and interior components, faced increasing pressure to improve efficiency, reduce costs, and enhance product quality. Their existing manufacturing processes were outdated, leading to inconsistent output and difficulties meeting the stringent demands of their automotive clients. They needed to modernize their operations and implement lean principles to remain competitive.
The Challenge
A Tier-1 automotive supplier needed to modernize its manufacturing operations to enhance scalability, improve efficiency, and meet the growing demands of the automotive market.
The Process
One of our partners implemented a comprehensive operational excellence program, including:
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Process Mapping and Optimization: The team meticulously mapped the supplier's manufacturing processes for both under-hood and interior components, from incoming raw materials (ferrous and non-ferrous metallic tubular products) to finished assemblies. This involved analyzing every step, identifying bottlenecks, and documenting variations in equipment and procedures. The team paid particular attention to the secondary operations involved in producing these components.
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Lean Implementation: They then implemented Lean principles throughout the manufacturing process, focusing on eliminating waste (material, time, motion, etc.), reducing cycle times, and improving flow. This involved training plant personnel on Lean methodologies, including 5S for workplace organization and value stream mapping to identify non-value-added activities. We also helped them implement Kanban systems for inventory control.
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Equipment Evaluation and Optimization: The team evaluated the existing manufacturing equipment (including the 100+ machines/equipment you mentioned building/modifying) at the supplier's facilities. This led to recommendations for upgrades, repairs, and replacements to meet specific product requirements and achieve statistical capabilities. They wrote detailed specifications for new equipment and oversaw its implementation, including training machine operators, skilled tradesmen, and engineers on the new equipment's capabilities and maintenance procedures.
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Quality Assurance and Statistical Process Control (SPC): The team worked with the supplier to implement robust quality assurance and control measures, including Statistical Process Control (SPC) to monitor and control process variations. This helped ensure consistent product quality and meet the stringent requirements of their automotive clients.
Key insights and results.
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Increase Production Efficiency: Streamlined processes and optimized equipment led to a measurable increase in production efficiency. For example, the team helped reduce the lead time for a key under-hood component by 15%.
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Improve Product Quality: Implementing SPC and enhancing quality control measures resulted in a significant reduction in product defects and improved consistency. This led to increased customer satisfaction and fewer returns.
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Reduce Costs: Eliminating waste, optimizing resource utilization, and improving equipment performance resulted in significant cost reductions in areas like raw materials, labor, and energy consumption.
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Enhance Scalability: The modernized operations and optimized ERP system provided the supplier with the scalability needed to meet the increasing demands of the automotive market.
