Strategies to improve productivity in the automotive industry

The automotive industry is a highly competitive sector where operational efficiency and innovation are crucial in maintaining a competitive edge. In this context, the company, which has a long tradition in motorcycle production, has implemented a comprehensive set of continuous improvement initiatives to optimize its production processes. This case study explores the challenges encountered, the strategic approaches adopted, and the results achieved, highlighting the impact of operational transformation on productivity, quality, and safety.

Continuous improvement as a pillar in the automotive industry

Active in the automotive market since the early 1990s and based in Europe, the company in focus stands out in the motorcycle manufacturing sector by embodying three core values: style, sophistication, and performance.

As part of a renowned automotive group, the company operates in a global market with over 750 dealerships across 90 countries, where it has demonstrated consistent and stable growth in recent years.

Its operations focus on engine and vehicle assembly while driving continuous improvement initiatives that enhance productivity, quality, and safety. These efforts aim to optimize automotive production and improve competitiveness in the global market.

Challenges in implementing continuous improvement

The company faced multiple challenges at different levels within the organization. The implementation of a continuous improvement culture and operational transformation highlighted the need to overcome the following challenges:

Inefficient stock management and low operational efficiency

The company struggled with stock management, which led to high operating costs and material waste, often resulting in scrap. Reorganizing inventory flows was essential for optimizing logistics processes.

Lack of leadership engagement

Building a Lean culture, from leadership to shop floor operators, was necessary to ensure the long-term sustainability of continuous improvement initiatives.

High rejection rates

Reducing rejection rates posed a significant challenge, as these failures increased waste and disrupted operations. Most of the waste was associated with operational failures during assembly and picking processes, which raised the scrap rate and compromised process efficiency.

Poor workplace organization

Issues such as misidentification of materials and tools resulted in delays in locating the correct items and increased errors during picking activities. Ineffective workspace organization compromised production flow, causing delays and operational errors that negatively impacted quality and productivity.

Barriers to adopting new technologies and processes

Introducing new tools, such as error-proofing templates, proved to be challenging. Adapting to new technologies, automating processes, and eliminating outdated practices, such as paper documentation, required significant effort and engagement from the employees.

Strategic approach to operational improvement

To overcome the previously identified challenges, the company implemented a series of targeted initiatives:

Kaizen Workshops

A total of 21 Kaizen workshops were conducted, involving around 107 employees. These workshops resulted in 665 improvement ideas, of which 582 were successfully implemented.

Process digitization and optimization

By eliminating paper-based documentation, the company enhanced real-time visibility and updates of information.

SMED

The company introduced the SMED (Single-Minute Exchange of Die) tool to reduce setup times. This resulted in a 40% reduction in setup times, significantly increasing both productivity and operational efficiency.

Improvements in quality and safety control

Quality and safety improvements were a central focus throughout the operational transformation. These improvements were reflected in:

• Implementing error-proofing templates for distribution axes.
• Automating picking lists.
• Optimizing employee ergonomics.
• Reorganizing warehouse logistics using the 5S methodology.

Results achieved

The implementation of continuous improvement initiatives led to significant gains in several indicators:

• Ergonomics and safety: Ergonomic improvements, such as reducing the weight of the roller conveyor that transports mobile cab assemblies and reorganizing the workspace, improved working conditions by increasing ergonomics by 78%.
• Quality: Quality improved significantly, with a 12% reduction in the overall rejection rate. Waste caused by mix errors was eliminated, along with coding errors in the picking lists. The implementation of automated picking lists and the use of error-proof templates helped minimize operational failures and improve the accuracy in these processes.
• Productivity: Productivity rose by 15%, driven by logistical reorganization and reduced travel distances within the plant. Additionally, introducing error-proof boxes and reorganizing setup processes led to a 40% reduction in setup times.
• 5S methodology: Implementing the 5S methodology and new visual signage on pallets resulted in zero identification errors.
• Logistics optimization: Through logistics optimization, the company achieved an 86% reduction in daily transport needs and a 60% reduction in material collection cycles.

The company demonstrated how applying Lean and Kaizen methodologies can significantly transform the automotive industry. By adopting a structured approach, engaging teams, and optimizing processes, the company successfully increased productivity, reduced waste, enhanced operational efficiency, and lowered costs, consolidating its position in the automotive sector.

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