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Process Optimization at an Auto Parts Supplier

    How have we helped?

    We’ve seen many manufacturers face constant challenges in cost, quality and delivery. Through each step, we work with our clients and stakeholders to solve these challenges — approaching each issue with practical, pragmatic and sustainable solutions. Our aim is to provide reliable infrastructure for our clients to continue succeeding now and in the future. These case studies are designed to walk you through how we’ve confronted challenges and the results of putting our solutions into action.

    In this comprehensive case study we cover:

    • The supplier’s main issues revolving their production timing, quality issues, capacity and external constrictions. 
    • Our recommended strategy by focusing on implementing the right lean processes to reduce costs and improve quality.
    • The benefits of using visual cues to alert all operators. 
    • How our solutions positively affected the factory floor, increasing morale and productivity. 

    Find out how this supplier stopped losing over $2 million monthly and started saving approximately $38 million in 18 months.

    Challenges

    Morale was low as operators were working seven days a week, without time off in over 70+ days. In addition, the poor production control meant that they incurred high costs when expediting shipments to its clients.

    Solution & Result

    To develop an effective action plan for the facility, we used the following high level strategy:

    • Identify and evaluate issues – that were impacting production.
    • Raise awareness – within the organization regarding existing issues.
    • Implement Standard Work – to further uncover and resolve production problems.

    MTG saved the factory approximately $50m in 18 months.

    MTG reduced headcount by 60% through shifting redundant employees to other areas where labor was required.