SERVICES: Restructuring and Turnaround; Logistics, Crisis Management
Seraph was invited to execute an operational improvement and recovery project for a Tier 1 automotive company. While the issues at hand were quite vast, working with Seraph allowed them to implement a detailed strategy to create double OEE (Overall Equipment Efficiency).
While preparing for the launch of a flagship Original Equipment Manufacturer (OEM) vehicle, the tier 1 supplier fell short of meeting the targeted quality and production requirements. Their 8-hour workdays, on average produce 300 pcs, which was 52% of the production rate required by the OEM. Prior to working with Seraph, the facility added two additional shifts to increase production to meet the demand, but lacked a proper implementation plan, putting the staff, leadership, and the entire organization under extreme stress, as there was risk of shutting down the OEM costing the Tier 1 millions of dollars.
Monitoring production data with the implementation of operational fundamentals to increase OEE
Seraph quickly then implemented its MDI process (Managing Daily Improvements), which include implementing and tracking:
Standard shift handovers for supervisors
Leader standard work and cadence
Fast response to production issues
Development of standardized processes
The Seraph team also incorporated ProductionNet into the workflow, which tracked Key Process Indicators (KPI’s) related to OEE, identifying the main contributors to underperformance and provided pareto charts of the highest contributing factors of downtime and defects. With this real time live data, the team was able to have a focused and structured approach to resolving assembly concerns.
FROM INCREASED PERFORMANCE TO PRODUCTION NUMBERS SLIDING BACKGROUNDS
Within one month, the manufacturing plant was able to increase production by 200 pcs, bringing their capacity to 500. The client was elated with the progress and felt things had returned to being stable, and Seraph’s involvement was no longer needed.
It was in Seraph’s view, that change had only been impacted for a one month time period, and it was too soon to change course. The facility was not stable yet. The manufacturing plant quickly took a turn for the worse, dropping to 200 pcs, which was the lower level since the project was initiated. Once the Seraph team was back involved, production steadily increased to achieve a staggering 1200 pcs.
Seraph achieved significant progress with our client in just nine weeks:
72.44% OEE (31% increase from project start)
85% improvement in quality
50% reduction in downtime
50% increase in jobs per hour
Long-term sustainable processes
Rapid return on investment (ROI)
Increased customer satisfaction
A global enterprise consulting firm that partners with business leaders to handle their most complex problems in areas such as supply chain, operations, and manufacturing challenges while delivering long-term operational and leadership improvements. Seraph has extensive on-site industry experience in the automotive, private equity, defense, medical device, electronics, energy infrastructure, and engineering sectors. The Seraph leadership team brings vast expertise across; crisis management, mergers, acquisitions, due diligence, restructuring, turn-around services, product launches, and logistics. Our four-phase process has been proven to provide quick payback and positive ROI, which is measured throughout customer engagement. Learn more at www.seraph.com and follow Seraph on LinkedIn.
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