A Successful CASE Automotive Turnaround in the Automotive Industry

Situation: Addressing the Challenges in the Automotive Industry

A high-volume automotive component manufacturer in the automotive industry was grappling with customer demands for a critical part.

The plant was the sole manufacturer for a specific part and shipping to OEMs, and to internal sister facilities around the world.

As a result of this situation, the customer experienced backlogs, the supply chain underwent frequent last-minute scheduling changes, changeovers became more frequent, overtime increased, costs rose, and there was an excessive amount of premium freight.

CCO was called in to rapidly fix this situation after two other consultants had failed to deliver results.

Why CCO? Not Just Among Automotive Consulting Firms, But A Partner in Business

CCO, one of the top automotive consulting firms, was called in after two other consulting firms failed to deliver. CCO's unique approach in the automotive industry sets it apart from other automotive consulting firms.

Approach

The project was delivered in three phases in 150 days – with positive results beginning in 60 days.

Phase 1: Improve production line throughput

Upon arrival, CCO implemented its Operational Excellence (OpEx) methodology. This involved station-by-station analysis, interviews with management and shop floor teams, and examination of customer production history, maintenance processes, and employee training.

CCO implemented its Operational Excellence (OpEx) method promptly upon arrival to the plant. Diagnosis of the situation included a station-by-station analysis of each production line and interviews with management and shop floor teams.

The CCO team also analyzed customer production history, maintenance processes, production planning and employee training.

A Scrum Board process was established to identify issues across all departments, making Sprint backlog items visible to all employees. The strategy paid off; staff motivation and enthusiasm grew as the first few Sprints were successfully completed.

In order to resolve the immediate issues, CCO implemented a Scrum Board process to identify easy-to-fix problems across all plant departments and to make Sprint backlog items visible for all employees.

As CCO and the client focused on the lowest performing lines in a large manufacturing complex, the Scrum Board served as a communication, accountability and progress-monitoring tool – which is also commonly utilized the CCO OpEx method. The client's dedication and enthusiasm grew after the successful completion of the first few Sprints and achieving positive outcomes . The foundations of real improvement were being set in process, and the staff finally felt highly motivated on the production line.

Phase 2: Fix the shop floor infrastructure

In line with the needs of today's automotive industry, a balanced line flow was prioritized. Nine months of production data were analyzed, and a Total Productive Maintenance (TPM) Plan was rolled out. Operators were trained and certified, contributing to both individual and organizational growth.

Flow Model Used to Identify Maintenance Needs and Establish Priorities

While establishing a balanced line flow was the top goal of this turnaround, achieving increased velocity was also an urgent necessity. In order to understand the overall process, the existing flow of the production line was evaluated based on the previous flow parameters, and an analysis of nine months of production data was conducted.

Total Productive Maintenance (TPM) Plan Delivered

As the early improvements were noticed on the shop floor, the increased engagement among staff was leveraged to get buy-in for a TPM Plan. Operators were trained in techniques that enabled safe and timely maintenance at the operator level. Certificates were issued to operators that passed both written and skills-based training, including on-the-job performance reviews of expected TPM tasks.

Up Time Monitoring Process Installed and Standards Set

An initial forecast for throughput and defective and/or poor-quality parts was made. By week six, both of these metrics displayed progress aligned with the forecast.

Improved Spare Parts Plan Implemented

As new balance in the line was established, there was work required to establish a business-appropriate spare parts inventory. Financial goals had rationalized spare parts, and inventory cost was high. Repair times were unnecessarily long and expensive. Expedited procurement and lost production far outweighed the result of establishing the correct spare parts inventories. Even though costs in spares were added, the total cost of manufacturing dropped – to the bottom line.

Phase 3: Creating Velocity on the Shop Floor

With these improvements and efficiencies in place, attention turned to the primary metric of success of machine utilization (MU). MU reflected a drop of 5% in the first month, but by the second month, it had increased 25% versus the baseline. At this point, the client’s team was fully able to take control of the processes and solutions CCO had helped them establish and keep the improvements and momentum going.

Results: A Turnaround Strategy That Works in Today's Automotive Industry

Within just 60 days, key metrics showed significant improvement:

60% increase in production line throughput with realized quality improvements
50% reduction in defective and/or poor quality parts per hour
50% decrease in repair times after implementing improved spare parts plan.
Overtime and expedited freight costs were eliminated, significantly benefiting the company’s bottom line.

The impact of these improvements has had a marked effect on the operations, morale and profitability of the facility. CCO’s get-it-done philosophy allows the firm to rapidly analyze problems and work shoulder-to-shoulder with the client’s team to turn around a manufacturing operation. This unique approach is why CCO's clients often don't refer to us as just consultants. We utilize highly skilled personnel, efficient processes, agility, and collaboration to deliver operational excellence for businesses.

Leading a Successful CASE Automotive Turnaround for EU Auto Manufacturer in the Automotive Industry

A Top Automotive Consulting Firm Delivers Unparalleled Results

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