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Case Study 8 - Building a New Automotive Tier 1 Factory

Client: Manufacturer of automotive convertible top assemblies

Challenge: Convertible top supply program operating at no margin; quality performance issues; eliminate late shipments

Our Role: Develop, implement and manage an improvement plan to reduce costs, improve the quality, and improve communications with the customer

Implementation Strategy:
  1. Develop a focused factory strategy and opened a facility near the customer and dedicated to their products
  2. Deploy Key Lean Manufacturing Tools
    • Visual Factory Management
    • Mistake Proofing
    • Single Part Flow / Cellular Manufacturing
  3. Develop and Deploy Business Operating Systems and Balanced Scorecards
  4. Modify fabric cutting techniques to improve material utilization
  5. Implemented new manufacturing techniques and deployed 5S methodology
Results achieved:
1. Reduced delivered defects by 100%
2. Improved gross margins from 0% to 28%
3. Received “Most Improved Supplier” award from customer for 2002

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