Case Study

Automotive / Powertrain

Background

  • Tier 1 Supplier — Precision Machined Powertrain Components
  • Global Powertrain platform, mature product
  • Fully automated operations underperforming to demand
  • Supplier filed for court protection due to financial distress
  • Supplier past due to OEM demand

Key Business Issues

  • No maintenance spending
  • Overseas pipeline exhausted
  • Asset deterioration
  • Infrastructure deterioration
  • Inexperienced management team
  • No shop floor supervision
  • High turnover of skilled resources

Results

  • Inserted team to take over operations, established stabilization / fulfillment plan
  • Implement Preventive Maintenance systems
  • Improved throughput with a combination of hands-on technical skilled trades and production supervisory staff
  • Rebuilt all assets, tooling and reprogramming automation equipment
  • Product launch at a new supplier
  • Program Managed entire process - bank builds, business transfer, product launch and PPAP

By the Numbers

> $200M
OEM profit exposure risk mitigation > $200M
< 35% to > 85%
OEE Improvements < 35% to > 85% in 4 months
> $25M
Premium Freight reduction > $25M