Automotive
Crisis Management
Stabilising Operations and Clearing Customer Order Backlogs
How rapid intervention stabilised operations, reduced backlog, and restored delivery performance for a manufacturing client.
INDUSTRY: Automotive Manufacturing
SERVICES: Crisis Management
Situation.
Our client’s overall OEE was resulting in excessive overtime, growing backlog and a weak leadership team. The warehouse was unorganized resulting in lost material and late shipments. There were 140,000 pieces past due overall, delaying $1.5M in revenue from their largest customer.
Actions.
- Realigned and corrected scheduling processes
- Trained PCL team on proper production planning and communication.
- Reorganized warehouse
- Set up and managed recovery plan
- Utilized Seraph SOS 2.0 to establish standard work, train supervisors and specific leaders.
- Filled key roles in organization
Result.
- Improved OEE performance by 28%
- Reduced overtime requirements for molding shop by 80%
- Stabilized operations increasing OEE:
- Reduction in overall inventory levels and increased shipping performance (e.g. 400 % increased output for service parts to largest customer).
- Reduced past due to largest customer by more than 90% in 45 days, while simultaneously reducing them across all customers.
- Transitioned work (handover) to new leadership
