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OEM Manufacturer

NEEDS-BASED RESULTS

 

OEM Manufacturer

SITUATION

Original equipment manufacturer (OEM), experiencing quality and customer service issues, wanted to maximize the utilization of its nine manufacturing facilities to improve profitability.

DRIVER GOAL

  • Improve the basic profitability of the business.
  • Increase utilization of current installed capacity.
  • Become world-class in quality and customer service.

RESULT

  • Reduced support staff by 23%.
  • Increased overall productivity and direct labor efficiency by 38%.
  • Improved on-time delivery by 35%.
  • Reduced quality rejects by 38%.
case study image, CS-122

Case Study

Maximize Utilization & Improve Profitability

Issue

An original equipment manufacturer (OEM) for the automobile industry, experiencing quality and customer service issues, wanted to maximize the utilization of its nine manufacturing facilities to improve profitability.

Highland Approach

After working with client leadership to define overall Driver Goals for the initiative, The Highland Group conducted a Discovery and Design process during which the team identified improvement opportunities and built a roadmap to address key issues. The team also implemented a System For Managing that would translate high-level goals into specific, measurable, and attainable tasks on the shop floor.

Actions Taken

  • Created a goal roll-down and translation process.
  • Restructured the organization’s nine plants and headquarters with the involvement of the union.
  • Designed and implemented a System For Managing with focus on scheduling in nine plants and created the necessary training programs for management and supervisory staff for effective use of the system.
  • Established a preventive maintenance program 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.

exceeded current year budgeted results by

15%

while integrating continuous improvement into the culture of the company

Related Information

subject matter-based

Presenting Analyst

John is a Senior Executive and Presenting Analyst at The Highland Group with more than 30 years of leadership experience in management consulting. He has led hundreds of global consulting engagements that delivered an array of operational improvement solutions with total client benefits exceeding $1 billion dollars.

Senior Consultant

Supply Chain

Laurence has more than twenty years of industry and consulting experience in all areas of supply chain management – including inventory management and procurement – and in Total Working Capital management.

Project Leader

Oil & Gas

North America

Tom is a senior project leader with over 25 years of international management consulting experience in the oil and gas, utilities, manufacturing, financial services, telecommunications, media and aerospace industries. He has served Fortune 500 and Global 2000 companies in 15 countries across North America, EMEA and Asia.