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Breakthrough in quality and costs

Challenge

A second tier supplier of metal components for the automotive industry  experienced great pressure upon its cost structure – and hence its prices. But a low price is not necessarily the decisive criterion. For many clients quality, speed and reliability are more important.

Meeting these criteria required not only a different approach to quality management, but also a simplification of the underlying processes. In fact, a “step change” was needed.

Approach

Our analysis was not about using a set of ratios to define the potential for improvement, we looked at the real details. We used a combined top-down and bottom-up approach.

Top-down goals were set that would determine the success of the business. Together with people involved in the business processes, we uncovered what was working well and needed to retained and what needed to be improved. Specific and measurable targets were set together with the managers involved; thus ensuring their buy-in.

In a joint team with client task-forces the implementation of required changes were addressed. Our distinctive approach ensured positive energy, local ownership and sustainability of results.

zero-based

Share of A-quality components increased from 20% to 90%.

On time delivery performance better than SLA targets.

Improved productivity, resulting in € 4.3 million cost savings.

Faster time to market of new products.

A new and integrated organisational structure, aligned with the end-to-end order fulfilment process.