Strat to Action within the Automotive Industry

Problem

In 2009, the company was near to closing its doors.
A number of problems contributed to the posting of negative results at the end of the year:

• Product quality issues: scrap index at 14%

• Delays in orders: production delay of 780 tonnes and special freight costs represented 20% of total transport costs

• High production costs: OEE from bottleneck equipment at 67% in an industry where energy is the major cost share

• Loss of 50% of the business

Root Causes

• Lack of basic stability

• Problems with communication amongst team members: each team had its own production plan and the impact of problems in one section was not projected through the value chain

• Lack of visibility of company results

• Little involvement of the CEO