Reducing Scrap at an Automotive Parts Manufacturer
Client Background & Challenges
A Tier 1&2 Automotive steering and suspension component supplier was contending with excessive scrap rates and time-to-market. This led to decreasing revenues and customer confidence and satisfaction, as well as increasing costs at one of the organization’s facilities with $130 Million in revenu
Approach & Analysis
The SSA team identified a number of key issues, including:
- Data scattered throughout different production lines with limited ability to detect changes in process with defect rate.
- Highly complex manufactured parts.
- Lack of sufficient process and procedure training.
- Lack of change management effort during design launch.
- No standardized maintenance documentation.
- No in-depth analysis of failure reasons.
- Front cradle window non-fill defect. Several parts in a row being run with same defect before recognizing pattern and taking action to control.
To solve these problems, SSA & Company made the following contributions:
- Documented issues and key measurement points.
- Performed failure diagnostics to determine likely failure modes.
- Facilitated Root Cause Analysis.
- Trained operators to identify scrap precursors.
- Optimized start-up & transition procedures for greater efficiency and effectiveness.
- Implemented process mistake proofing methodology.
- Created Preventative Maintenance schedule for operators.
- Installed shop floor visual management system.
- Conducted operator training on surface appearance before failures.
- Perform Mold Touch Up (MTU) to restore performance.
Results & Value to Client
The efforts of the SSA team helped reduce total scrap by 50% in three months, slashed the scrap cost per part processed by 75%, and delivered a cost savings run rate estimated at $1.1 Million annually.
Related Capabilities and Expertise:
More Client Impact Stories:
- Optimizing the Order to Cash processes of a $300 million education company in order to contain A/R
- Leveraging Operations Data and Analytics to Optimize the Global IT Infrastructure of a Multi-Billion Insurance Firm
- Designing a New Operating Model for the Entire Middle Office of a Leading Brokerage Firm and Redefining Transaction Processing
- Inventory Reduction and Cash Flow Improvement at a $1.2B Automotive Company
- Assessing the Value of a Potential Acquisition for a PE Firm: Due Diligence Identifying Cash Flow and Operational Performance Upsides