In the automotive industry, small disruptions in the supply chain can have large consequences. A leading automotive supplier was in exactly that situation: a failure would have triggered a production stop at the OEM, with substantial financial and reputational damage. On top of that came global supply chain disruptions, cost pressure from the OEM and a newly introduced technology that was causing quality issues.
Analysis of the production processes, the supply chain and quality control showed that deep changes were needed. The action plan rested on three central measures: operational-excellence methods, optimisation of the production lines and staff training. In addition, strategies were developed against the global supply chain disruptions and the cost pressure. Particular attention went to the quality issues arising from the new technology.
Implementation required close cooperation between production, procurement and quality assurance. Performance was monitored continuously and the measures adjusted where needed. The result: productivity rose by more than 80%. Supply capability was secured, and new quality control mechanisms keep product quality consistently high.
The case shows that targeted, data-driven change can secure productivity, supply capability and product quality even when supply chain disruptions, cost pressure and technology problems come together.