This story is for CEOs who:
- Are unable to reverse the root causes of low engagement and poor productivity
- Face leadership gaps and turnover causing significant turmoil
- Need to align operations more quickly with changes in demand
The Challenge
The automotive supplier struggled with a disengaged workforce and low productivity in two remote plant locations plus a severe drop in demand. An entirely new leadership team had just taken over and was unfamiliar with plant capabilities and capacity. They needed help in responding to the change in demand with improvements in productivity, the size and skill of the workforce, and cost savings.
Management and other departments focused on Maintenance as the source of issues and plant underperformance. However, the SGS Maine Pointe analysis revealed that the company also needed to improve its operational efficiencies, planning, and communications.
Adding value and building capacity through OPEX and hands-on leadership
SGS Maine Pointe:
- Conducted root cause analysis; pulled together data to create real-time dashboards and give visibility to status of KPIs
- Worked from the shop floor through to the divisional president to identify problems and institute sustainable change through maintenance effectiveness and operational excellence
- Optimized operations, maintenance, and production scheduling to improve productivity, schedule attainment, and ability to meet metrics
- Identified the need to reconfigure a production line to meet higher demand for another product and used the freed up capacity to alleviate overtime
- Identified and mentored high performers to reach their potential, upskilling over 40 operators, managers, and supervisors
- Reduced overall production costs by synchronizing the internal supply chain, and rethinking make vs. buy decisions
- Transformed culture by building communication between operators and maintenance; between leaders, managers, and workforce; and between plants
Lessons learned for other executives
• Most manufacturing problems have multiple causes, rather than one scapegoat
• Quality and productivity increase when workers feel pride in the plant and equipment
The Results
- 6%-12% improved productivity
- 29% reduction in scrap in one plant
- $8.7 million impact on P&L
- 96%+ reduction in high risk oil leak areas
- Up to 25% improvement in schedule attainment
- Up to 84% reduction in maintenance break-ins
- 75% reduction in monthly scrap
- Brought operational excellence (OPEX) and rigor to maintenance and production
Realigning operations with demand in a fast-track sprint, focusing on profitability (CS303)
