Case Study - Operational Excellence in the Automotive Industry

Situation: Tackling Operational Inefficiencies in the Automotive Industry

A leading Japanese automotive manufacturer faced multiple issues with its operational efficiency and financial performance. CCO was called in to identify immediate opportunities for improvements in throughput, scrap, labor, and overtime – which were all affected by multiple factors limiting overall performance. Activities that limited performance included lack of process discipline, old equipment, poor predictive and preventative maintenance, extended change-over times, low throughput velocity and high-cost of quality.

Approach: A Customized Operational Excellence Program for Immediate and Sustainable Benefits

CCO immediately arrived at the plant to implement its Operations Excellence (OpEx) model. OpEx sets up a process where the team begins a cadence of connecting every day to identify performance standards, problems, solutions, and owners.

Phase 1: Rapid Implementation of the OpEx Model in Automotive

CCO's team first performed an assessment, which would identify, address and execut corrective actions. We created an Accountability Room on site at the plant, which served as the communications hub for all disciplines within the organization. Together, they practiced the discipline and communication needed to fix problems. We recommended the groups meet in this room once a day for roughly 30 minutes to stay on track with priorities and deadlines.

Phase 2: Accountability and Real-Time Performance Metrics

CCO's experienced manufacturing operators worked with the plant's leaders and workers to assemble the necessary data to understand how an operation is performing. We worked with them to define the facility's capacity plan based on the current assets and equipment, staff and processes, and the optimum potential throughput. Next, we set up production goals and began monitoring shift-to-shift, day-to-day and so on.

Phase 3: Data-Driven Insights and Corrective Actions

Rather than swoop in, find the high-level problems, and then leave a slick presentation and high dollar invoice, we worked with the plant management as an extension of their team on a daily basis, some nights and weekends too (we rarely upcharge for this “extra” work as we consider it essential for expediting the transformation of your operations). We analyze the data, discuss the implications and options and develop the plan with you … and we stay there assisting you in the execution, ensuring the value of our experts is fully received and translated to value, for you.

Optimizing Automotive Manufacturing Operations

CCO’s experienced automotive manufacturing consultants worked with the plant’s leaders and workers to gather the necessary data to understand operational performance.

The automotive industry is undergoing a seismic shift, with electric vehicles and software-defined vehicles becoming increasingly prevalent. Customer demands are changing, and traditional business models are being upended. CCO's strategic approach ensures that our clients stay ahead of these trends, solidifying their position as industry leaders.

Results: Significant Impact on Operational Excellence and Profitable Growth

In just four months, CCO delivered impactful results:

$3 MILLION in savings from shift/labor productivity
$2 MILLION in savings from operational throughput improvement
20% OEE improvement

Plus, CCO built a sustainability plan that enabled the client to maintain its performance after CCO's departure.

CCO’s Unique Expertise as one of the Top Automotive Consulting Firms

As one of the top automotive consulting firms, CCO brings deep industry expertise to the table. Our global industry sector lead oversees a team of seasoned consultants, ensuring that we offer the most comprehensive automotive services in the industry. This is particularly important in an era of electric vehicles and digital transformation, where consumer preferences are rapidly evolving.

CCO specializes in diagnosing and solving complex operational challenges, as well as implementing the correct solutions quickly. We leverage the principles taught by Taiichi Ohno and Toyota Production System to produce high-quality results at the lowest costs – and in a short amount of time. We deliver maximum value from tools such as Kaizen, Poka-Yoke, KanBan, JIT, SMED, Gemba walks, Heijunka, Hoshin Kanri and the 3 Ms – Muri, Mura and Muda.

We adopt a practical, results-driven philosophy to carry out our work, bypassing conventional consultant jargon and promptly addressing areas that require improvement. Our approach emphasizes utilizing exceptional personnel, processes, agility, and involvement to achieve enduring operational superiority for all organizations.

Insights into Technology Companies and Automotive Suppliers

Our insights extend beyond the manufacturing floor to include technology companies that are driving innovation in the automotive industry. We also work closely with automotive suppliers, ensuring that the entire value chain is optimized for efficiency and profitability.

Sustainability and Future Plans in the Automotive Sector

Moreover, CCO built a sustainability plan, enabling the client to maintain performance after our departure. This is part of our long-term strategy to ensure sustainable improvements in the automotive industry.

CCO's Operational Excellence Services—Your Roadmap to Achieve Excellence in the Automotive Industry

CCO’s focus on operational excellence and continuous improvement has been a game-changer in the automotive industry, setting new benchmarks in automotive management consulting.

CCO is not just another name among automotive consulting firms; we are a consulting partner committed to sustainability and preparing businesses for the future. Our strategies are designed to offer both immediate improvements and long-term sustainable growth, addressing current challenges while laying the groundwork for future successes.

AUTOMOTIVE CASE STUDY

Achieving Revolutionary Operational Excellence in the Automotive Industry with CCO

Transforming a Japanese Automotive Manufacturer Through Continuous Improvement and an Operational Excellence Program

Key Metrics:

$3M

$2M

20%