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    Case Study Automotive Final 05-12-15

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    Chennawit Yulue
    This case study examines an automotive safety products company that is the largest in the world, with $2.9 billion in annual revenue and 85 manufacturing sites globally. The company aimed to lower costs and increase throughput while preserving US jobs. It standardized Lean Dispatch manufacturing software across its 15 US sites to identify opportunities to reduce labor minutes per unit from 5 to less than 1. This resulted in an 80% increase in machine uptime, 80% reduction in labor minutes and product costs, and $90 million in savings over 10 years through continuous improvement initiatives. The standardization of Lean Dispatch software allowed the company to meet OEM cost and quality demands while preserving domestic manufacturing jobs.

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    Case Study Automotive Final 05-12-15

    Uploaded by

    Chennawit Yulue
    85 views2 pages
    This case study examines an automotive safety products company that is the largest in the world, with $2.9 billion in annual revenue and 85 manufacturing sites globally. The company aimed to lower costs and increase throughput while preserving US jobs. It standardized Lean Dispatch manufacturing software across its 15 US sites to identify opportunities to reduce labor minutes per unit from 5 to less than 1. This resulted in an 80% increase in machine uptime, 80% reduction in labor minutes and product costs, and $90 million in savings over 10 years through continuous improvement initiatives. The standardization of Lean Dispatch software allowed the company to meet OEM cost and quality demands while preserving domestic manufacturing jobs.

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    Automotive case study

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    This case study examines an automotive safety products company that is the largest in the world, with $2.9 billion in annual revenue and 85 manufacturing sites globally. The company aimed to lower costs and increase throughput while preserving US jobs. It standardized Lean Dispatch manufacturing software across its 15 US sites to identify opportunities to reduce labor minutes per unit from 5 to less than 1. This resulted in an 80% increase in machine uptime, 80% reduction in labor minutes and product costs, and $90 million in savings over 10 years through continuous improvement initiatives. The standardization of Lean Dispatch software allowed the company to meet OEM cost and quality demands while preserving domestic manufacturing jobs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    85 views2 pages

    Case Study Automotive Final 05-12-15

    Uploaded by

    Chennawit Yulue
    This case study examines an automotive safety products company that is the largest in the world, with $2.9 billion in annual revenue and 85 manufacturing sites globally. The company aimed to lower costs and increase throughput while preserving US jobs. It standardized Lean Dispatch manufacturing software across its 15 US sites to identify opportunities to reduce labor minutes per unit from 5 to less than 1. This resulted in an 80% increase in machine uptime, 80% reduction in labor minutes and product costs, and $90 million in savings over 10 years through continuous improvement initiatives. The standardization of Lean Dispatch software allowed the company to meet OEM cost and quality demands while preserving domestic manufacturing jobs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Case Study

    Automotive Industry—Tier 1

    Company Profile: Largest automotive safety prod-


    ucts company in the world, with about 85 sites in 29
    countries including Canada, US, Mexico, China and
    Brazil. Sites include batch processing of explosive gen-
    erants & discrete manufacturing of components. Ap-
    proximate annual revenue is $2.9B.

    Challenge: Lowering the cost of product and increasing


    throughput while preserving jobs in the US. OEM’s are
    constantly driving suppliers to lower costs and hold
    them to strict standards regarding quality and delivery
    timing. The need to reduce labor minutes per unit
    (LMPU) from 5 to less than 1 was the only way to meet
    the goals set by the leadership team and to preserve the
    jobs doing this work within the US.

    Solution: Standardize all 15 of the manufacturing sites


    on Lean Dispatch to identify opportunities to reduce
    LMPU and isolate & resolve impacts to production driv-
    ing up LMPU or other costs. This also needed to allow
    for the unique methods used at each of the sites. Stand-
    ardized key metrics to allow meaningful perfor-
    mance monitoring but allow
    unique local metrics based on the
    type of work in the plant.
    Case Study

    Value and Benefits: Increased Operational Availability. Real-time


    visibility and management of the floor. Detailed data during responses
    or for drill-down on paretos. Problem solving became a self-interest to Leading2Lean has con-
    the plant floor staff. Reduced MTTR as well as extend MTBF signifi- tinued to develop and
    cantly. evolve Dispatch and our
    plants are deploying it
    as our standard”. – Phil
    Anderson, Dir of IT

    Bottom Line: Overall 80% increase in ma-


    chine uptime & 80% reduction in LMPU
    and product costs. 10% recurring annual
    improvement goal & achievement in each
    department. $90M over 10 year period.
    Other improvements include:
     Over 100,000 Continuous Improvement
    suggestions implement in one year.
     Overall customer PPM reduced in
    88% in 2 years.
     `100% Productivity improvement over
    10 years.
     Reduced overall material cost/unit by
    20% and production scrap by 34%
    over 3 years.

    About Leading2Lean
    Leading2Lean is a leading provider of global cloud visual manufacturing exe-
    cution solutions that drives systematic improvements and key results to help
    manufacturers achieve operational excellence. Leading2Lean is changing
    the manufacturing industry so firms can build successful and sustainable
    continuous improvement cultures by providing leading technology and meth-
    ods that teach and empower people to achieve operational excellence and
    efficiency. You can visit us at www.leading2lean.com or call us at 1 877-225-
    5201.

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