Stabilizing Operations and Managing Exit for a Tiered Automotive Supplier

Background:

A Tier 2 casting supplier responsible for critical Tier 1 and OEM components faced an escalating operational crisis. Antiquated equipment, outdated quality and maintenance systems, and a strained workforce pushed the facility to the brink. Part shortages, unstable schedules, and failing tooling threatened imminent OEM shutdowns and eroded confidence across the supply chain.

Crossover Solutions was brought in to stabilize supply, restore throughput, and create a structured exit and continuity plan for both the Tier 1s and OEMs.

Critical Issues:

• Delivery failures and material shortages jeopardized OEM production
• Unstable production schedules and missed shipments triggered daily escalations ​
• Aging casting dies and equipment created persistent quality and throughput issues​
• Lack of maintenance discipline amplified downtime and scrap
• Communication breakdowns across Tier 2 suppliers amplified risk
• No financial oversight or structured support for lower-tier suppliers

Approach:

Crossover deployed a 14-person cross-functional crisis response team to lead full-site operational schedule recovery. The team’s mandate was clear: stabilize first, then fix systematically.

Key Actions

• Stabilized supply flow and implemented quality gates to ensure only conforming product shipped
• Implemented immediate die and equipment maintenance programs, bringing in technical skill to correct systemic problems
• Working with management and leadership, assumed responsibility for daily operations—instituting SOPs, hands-on supervision, and structured reporting to Tier 1/OEM
• Reestablished control using visual production boards, shared capacity plans, and KPI dashboards
• Upskilled the workforce while capturing and transferring legacy knowledge from senior employees
• Instituted hourly and daily report-outs across casting, shipping, and assembly to increase transparency
• Partnered with ownership to assess long-term product mix and diversification strategies
• Developed comprehensive tooling and production transfer plans to safeguard OEM continuity

Results:

• Prevented customer shutdowns and restored shipping schedule adherence
• Restored WIP/FG inventory buffers across the operation
• Executed tooling transfers to alternate suppliers without disruption​
• Stabilized internal operations and aligned Tier 2 supplier performance
• Facility positioned for a managed future with engaged ownership and structured path forward