Stabilised Supplier Achieves Tier-1 Capability

INDUSTRY: Automotive Manufacturing

Situation.

Supplier was air freighting 100% of their supply, and it was costing to the OEM $2m – $3m per month for a 8-month time period. The OEM was ramping up and needed the supplier to be Tier 1 capable and to ensure sub supplier were capable of meeting the OEM requirements.

STAGE 1:

SERVICES: Crisis Management, Logistics, Production Ramp-up.

ACTIONS.

• Incorporated material and scheduling tools for supplier and OEM.
• Daily / weekly material reviews, including sub-suppliers.
• Production scheduling tools.
• Schedule planning reviews.
• ProductionNet – to drive focus on availability and OEE.
• Tooling capacity increases.
• Reject reduction.
• Deployment of support to sub-supplier.

Result.

• Freight cost reduction in moving 100% air freight to sea freight for all 4 product lines, resulting in supplier being 2 months ahead of schedule.
• Reduced material downtime through improved sub supplier management.
• Tier 1 compatible for tools and processes.
• Rapid deployment of additional tooling.
• Reject rates reduced by 7% pts to 8%.
• OEE improved by approximately 30% pts, resulting in OEE levels of 89%.
• Production rates exceeding current demand ramp up plan and contracted volumes.

Project Return

$23.3M+ savings in air freight

STAGE 2:

SERVICES: Logistics, Program Launch

ACTIONS.

CRISIS MANAGMENT to PROGRAM LAUNCH

• OEM increased volume by over 220% in 2023. Seraph role moved from Crisis Management to Program Launch to successfully navigate ramp up volume.
• Program management – developed a detailed timeline covering all aspects of the launch and internal structure to manage activities and actions.
• Supply chain management – focused on critical supplier capacity and readiness planning/execution.
• Equipment installation and capacity management – built detailed plans for bank builds in anticipation of new equipment installations, support equipment capacity and installation, layout and improved material movements.
• Warehouse management and process – developed layout of warehouse and material movements and flow (both physical and system movements).
• Manufacturing readiness – with respect to shopfloor management processes, headcount planning, PM processes and ramp up.

Project success to date in the crisis mode, as seen by the OEM, is resulting in the project extension to a Program Launch for the vehicle manufacturer’s massive, planned volume increases in 2023.