8-12 Weeks
4 – 6 Months
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Industry: |
Global Automotive Supplier
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Company Size: |
5,000+
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Project Location: |
United States
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Problem Statement: |
Despite several management changes and restructuring programs, our client had pressing profitability issues at their two US manufacturing sites. The distribution warehouses in both locations were identified as low-performing departments and had substantial financial drains with highly negative P&L impact. If a fast turnaround and significant headcount reduction could not be achieved within the next 6 months, the closure of one of the two plants would most likely be unavoidable.
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Meeting: |
Definition of high level goals and prioritization of first steps |
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Deep Dive: |
Perform gaps and inefficiency analysis in main distribution warehouse to reveal process waste, ratio- and cost cutting potentials
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Hypothesis: |
Fix broken processes and eliminate operational waste to reduce shop floor headcount by >25%
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Project: |
1 consultants 12 weeks |
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Deliverables: |
Revamped shift model implemented
Order picking process and material flows redesigned and optimized Shop floor headcount reduced by 34% (5 months after project start) |
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Bottom Line Impact: |
Shop floor headcount reduced by 34%
Annual savings >$1.1 M |
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Waste Analysis
