Leading Supplier of Automotive Safety Components
Business Case
Summary
Supplier to automotive OEM’s in era of price deflation, causing eroding margins
Low cost overseas sourcing was a growing threat to market share
Connect processes, reduce changeover time, reduce batch
Shrink lead time to increase operational flexibility
| Metric | Before | After | Change |
|---|---|---|---|
| Labor efficiency average | 40% | 74% | + 34 ppt (+85%) |
| Manufacturing lead-time | 12 weeks | 4 weeks | - 8 weeks (-67%) |
| Capital cost | 100% | 82% | - 18 ppt (-18%) |
Sales have doubled during this 5-year engagement with:
– Limited headcount growth
– Reduced capital requirements