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Automotive- 122
The Situation:
OEM Manufacturer for the automobile industry was experiencing quality and customer service issues and wanted to maximize the utilization of the nine manufacturing facilities to improve the profitability of the business. The Highland Group was asked to support the client in addressing their quality and customer services issues and in improving their overall profitability.
The Driver Goal:
- To improve the basic profitability of the business by the end of the 3rd quarter
- To increase the utilization of current installed capacity by the end of the 3rd quarter
- To become World-Class in quality and customer service by the end of the 3rd quarter
- To have continuous improvement become integrated into the culture of the company
Actions Taken:
- Created a Goal Roll Down and translation process
- Restructured the organizations in nine plants and in the headquarters with the involvement of the union
- Designed and implemented a System for Managing with focus on plant scheduling in nine plants and created the necessary training programs for management and supervisory staff for effective use of the system
- Put a Preventative Maintenance Program in place in all plants
- Instituted a Barrier Identification and Resolution process
- Implemented quality programs that involved shop floor employees with a reward and recognition element
- Designed and implemented a Purchasing System
The Results:
- Exceeded current year budgeted results by 15%.
- Reduced support staff by 23%
- Increased overall productivity by 38%
- Improved direct labor efficiency by 38%
- Improved on time delivery by 35%
- Reduced quality rejects by 38%
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