Case Study: Tier-1 Supplier Strengthens APQP Compliance

INDUSTRY: Automotive Manufacturing

SERVICES: Assessment. Production. Operations. Staffing. Engineering and Maintenance. Quality.

Situation.

A tier one automotive supplier was shutting down their customer due to low JPH (Jobs per Hour) performance caused by downtime, scrap-rework, and performance efficiency. Seraph’s assessment uncovered specific areas to target to improve JPH and reduce customer downtime at the JIS (Just in Sequence) plant. 

Actions.

3 key work packages:

WORK PACKAGE 1

Recovery Management

Objective:
Improve production output to required RPH 45 to appropriate targeted headcount.

Deliverables:

• Managed the turnaround project to a sustainable operating cadence.
• Supported plant manager and local leadership team.
• Evaluated organization, executed structural recommendations and competency evaluations.

WORK PACKAGE 2

Production Readiness

Objective:
Reduced downtime occurring at the customer by increasing JPH and performance efficiency.

Deliverables:

• Trained frontline leadership.
• Increased production to requirement while delivering desired quality.
• Deployed daily management system to drive increase in JPH from 27 to 45.

WORK PACKAGE 3

Engineering / Maintenance and Quality

Objective:
Established an efficient equipment maintenance and contingency system, minimized downtime, reduced scrap and first pass yield to target levels.

Deliverables:

• Developed contingency plans for all assembly processes.
• Developed a review process to improve PM (Preventative Maintenance) activities.
• Reduced rework and scrap.
• Developed a robust process for spare parts management.

Key Improvements.

• Identified and supported improvements in management shortcomings, gaps and competency issues. 
• Defined KPIs that drove operations toward the JPH and quality targets, making these visible on the floor and reviewed daily in tiered meetings.
• Reduced headcount by identifying ways to reduce over budget resources, while defining needed RTR (Required To Run) to reach required JPH of 45 and then 52.
• Revised work instructions to reflect best methods to achieve targeted JPH.
• Transitioned subassemblies away from building to sequenced call-offs, to building to a managed buffer feeding the main production line. 
• Updated and implemented standard escalation process related to a JIS operation.
• Contingency playbook created which included an implementation project action plan and timeline for each station and process.
• Used machine data to create paretos to identify top issues causing scrap and rework to drive permanent improvements for elimination of top issues. 

Results.

• Seraph reduced target line headcount by 3.8% and overall headcount by 6.2%.
• JPH increased by 44.4%, maximum JPH per hour increased by 43.9%*.
  • *JPH numbers were not higher due to limited number of call offs.
• Plant downtime decreased by 63%.
• Customer average vehicles lost decreased by 100% when comparing the 4 weeks before Seraph’s arrival to the last 4 weeks of the project.