Benchmarks & Client Cases

Strat to Action within the Automotive Industry

The Challenge

Value Stream Analysis
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
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 (tonnes/man-year)

Sales (tons/year)

Sales increased by 20% each year.

Productivity (tonnes/man-year)

Productivity (tons/man-year)

Productivity increased by 12.5% each year.

Scrap (ppm)

Scrap (ppm)

Scrap rate reduced by 21% each year.



Are you interested in Kaizen Institute's consulting services?

We assist client teams in achieving great results by putting breakthrough paradigms into action.

Are you interested in Kaizen Institute's training courses?

Kaizen Institute's distinctive training program includes learning the theory and practice and gemba visits.

arrow up