Efficiency and sustainability in automotive production

The company has as its principle the continuous search for improvement and excellence in its operational processes. To strengthen employee involvement and promote a culture of innovation and quality, it implemented a quality-focused program. This program aimed to engage all employees in identifying problems and proposing solutions supporting sustainable growth and continuous process improvement.

In this case study, we explore how implementing this program positively impacted the company and improved efficiency and productivity while reinforcing the values of collaboration and transformation.

The company and its commitment to the automotive sector

Founded in the 1980s, the company has established a strong presence in the automotive industry, primarily focusing on motorcycle manufacturing. It is guided by the core values of delivering agile, economical, and high-quality transportation solutions to its customers.

The company stands out for its commitment to product quality and operational safety, as well as its strong concern for environmental preservation, demonstrating its alignment with ESG criteria.

With a portfolio of over 33 motorcycle models, continuous improvement is part of the company’s DNA. It constantly pursues corporate sustainability, promoting teamwork in waste elimination (Muda) and aligning its sustainable development goals with the ambition of creating smart factories by 2030.

Overcoming quality challenges through continuous improvement

Despite its strong position in the motorcycle manufacturing market, the company faced several challenges that hindered constant evolution and the excellence of its processes.

The key challenges identified included:

• High changeover times: Paint changeovers were quite long, requiring significant employee time on this process and resulting in increased overtime hours.
• High maintenance costs: Maintenance costs were considerable for equipment and assembly lines.
• Limited storage space: The storage was limited and impacted the supply chain and the unpacking and storage processes for essential materials and components.
• High carbon footprint: The carbon footprint was high, with around 8 tons of CO₂ emissions.

Implementing a production efficiency project

To address the challenges identified, the company implemented a program focused on enhancing quality, aiming to promote a culture of continuous improvement and engage all employees in identifying and solving problems. The program involved employees in multidisciplinary groups focused on safety, quality, productivity, and environmental issues, always aligned with the company’s strategy and culture.

The program was built around three key objectives:

• Promoting quality: Applying methodologies such as 5S, Kaizen tools, and defining strategic priorities.
• Employee engagement: Involving everyone, from operators to team leaders, in identifying problems and developing innovative solutions.
• Continuous improvement: Establishing a continuous improvement cycle based on employee feedback and proposed actions.

“Continuous improvement is part of our DNA. It’s a pillar for fostering initiative and employee participation.” – Company president

As part of this project, multidisciplinary groups were created to address safety, quality, and productivity issues. Around 20 teams participated, with only three recognized for their innovative ideas that significantly impacted processes.

Actions and programs implemented for sustainable production

The program rolled out the ideas developed by the three standout groups in multiple phases, supported by regular check-ins to track progress and share best practices.

Some of the actions implemented based on the contributions of these groups included:

• Group 1: Through the contribution of this group, it was possible to achieve a 41% reduction in the time it takes to change the color of parts by unifying the application of black color. Previously, seven different black shades were used, but the selection was narrowed to just two—resulting in increased production line capacity, reduced environmental impact, and fewer hours required from each employee during the process.

• Group 2: Achieved an 80.2% reduction in maintenance costs for the screws used in motorcycle frames on the assembly line. This was made possible through a screw redesign that improved safety and maintained required productivity levels.

• Group 3: Developed an accounting module that cut accounts payable conciliation time by 72%. This solution eliminated duplicate invoice payments, secured early payment discounts, and enabled faster detection of billing errors.

“These initiatives have contributed to the transformation of the work areas, in line with the company’s culture and sustainability.” – Production director

Tangible results achieved

Following the implementation of ideas from the quality-focused program, the company successfully promoted knowledge sharing, creativity, and innovation that contributed to the synergy of the company’s strategies, thus consolidating its commitment to continuous improvement.

The results achieved were substantial across several areas of the company. In addition to those previously mentioned, the following outcomes stood out:

• Cost reduction: Welding process costs were reduced by 83%, and maintenance costs decreased by 87%, resulting in approximately $273 million in savings.
• Reduction in overtime: Overtime hours per employee dropped by 3.57%, equating to a reduction of around 112 hours per person.
• Reduced carbon footprint: The amount of CO₂ emissions was eliminated, reflecting a strong commitment to sustainable production.
• Excess inventory: Excess inventory was eliminated, with a 35% optimization in physical space usage.

The program’s implementation positively impacted the company, not only by solving operational challenges and cutting costs but also by strengthening the company’s culture of collaboration and continuous improvement. Employees at all levels were actively engaged, driving a shift in mindset and encouraging the ongoing pursuit of innovative solutions. With the success of this program, the company reaffirmed its strong commitment to operational excellence and sustainability within the automotive industry.

“Every satisfied customer is the result of our efforts.” – Company president

We are committed to respecting our clients’ confidentiality. While we have altered or omitted their names, the results are genuine.