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
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.
