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OEM Supply Chain – Powertrain (Global Supply)
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