Benchmarks & Client Cases
Strat to Action within the Automotive Industry
The Challenge
Value Stream Analysis
Problem
In 2009, the company was near to closing its doors.
A number of problems contributed to the posting of negative results at the end of the year:
• Product quality issues: scrap index at 14%
• Delays in orders: production delay of 780 tons and special freight costs represented 20% of total transport costs
• High production costs: OEE from bottleneck equipment at 67% in an industry where energy is the major cost share
• Loss of 50% of the business
Root Causes
• Lack of basic stability
• Problems with communication amongst team members: each team had its own production plan and the impact of problems in one section was not projected through the value chain
• Lack of visibility of company results
• Little involvement of the CEO
The Solution
Way from $7.4m to $30m Profit
• KAIZEN™ Transformation Program (2009-2012)
• Breakthrough Hoshin Deployment based on Voice Of the Customer (2013-today)
• Organization by Value Stream (“small companies”)
The Results
This transformation increased EBITDA by 150% in 6 years.
Sales (tons/year)
Sales increased by 20% each year.
Productivity (tons/man-year)
Productivity increased by 12.5% each year.
Scrap (ppm)
Scrap rate reduced by 21% each year.
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