Quality is not accidental, it is the result of effective business processes by KORN CONSULT GROUP®

Shop Floor Optimization

Initial Situation

KORN CONSULT GROUP was contracted to assist a global player in the supply of lightweight metal automotive components. The company was founded over one hundred years ago and specialized in products for the automotive industry 1955. There are more than 4,200 employees in eight production plants worldwide. The company is a specialist in lightweight vehicle body engineering and chassis components, and its products can be found in automobiles produced globally.

This is a Case Study for this global family-owned metal processing company that required external support to affect change in the organization. The company was faced with increasing pressure from their customers to improve quality, provide more innovative products, and offer better customer service.

  • The organization’s supplier performance scorecard with critical customers were falling below acceptable levels
  • Problem resolution process with manufactured parts supplied to key customers failed to meet the customers’ expectations (root cause analysis and implementing corrective actions)

Targets

The company asked KORN CONSULT GROUP to address deficits in quality and sustainability.

Approach

A total of 8 manufacturing locations were part of the project scope. A pilot plant was selected to roll out the template used to implement the improvements for the entire organization. The KORN CONSULT GROUP 4-phase model approach was used to resolve the problems faced by the organization. A Pilot plant was chosen to begin the roll-out.  The TOP-DOWN Approach was taken whereby the Executive Board was instrumental in partnering with KORN CONSULT GROUP to identify the critical success factors for the project.

PHASE 1

  • Commitment of Executive Board + EXR of all locations with signature
  • Elaboration of the quality strategy and integration into the corporate strategy
  • Development and agreement of the visualization concept and the continuous communication
  • Definition of the KPI‘s and responsibilities for the target agreements
  • Coordination of ongoing executive board reviews to the project progress

PHASE 2

  • Target agreement commitment of the defined KPI‘s with all responsible for pilot plant location
  • Start implementing the visualization and continuous communication on pilot plant location
  • Creation of the project plan including the schedule for the pilot plant location

PHASE 3

  • Implementation via workshops with the employees at the pilot plant
  • Shop floor management / daily business support
  • Monitoring and continuous communication of visualization
  • Tracking of the project plan
  • Recording of KPI’s and monitoring of target agreements set with Senior Managers

PHASE 4

  • Evaluation of KPI’s and the project plan at the pilot plant location
  • Creating Lessons Learned topics
  • Prepare the roll-out plan for the remaining seven global locations

The implementation plan in each manufacturing site included three work packages:

1.Establish a control loop for nonconforming materials to save costs internal and external while improving customer satisfaction

  1. Work out a complete process description and define the appropriate responsibilities
  2. Operational implementation in production and optimize the process
  3. Introduction of shop floor meetings for short-term error reduction

2.Communication from Top-Down & Visualization of new Corporate Quality Logo

  1. Create implementation plan, responsibilities for communication TOP DOWN for the next 12 months
  2. Start implementation TOP DOWN
  3. Implementation Workshop TOP DOWN –  target agreements with Senior managers
  4. Start visualization of new corporate Quality Logo in the plant

3.  Create an Information Board on Shop Floor

  1. Performance metrics (KPI‘s) for Information Board are defined
  2. Layout for the Information Board and the contents are coordinated across all eight manufacturing locations.  Allows transparency to all stakeholders of the daily plant performance

Added Value

Upon the completion of implementing the three work packages at all sites, the resulting added value improvements within the organizations eight sites were:

Sustainability

In today’s industry marketplace organizations need to be not only agile in the changing value stream landscape but able to drive improvements from their internal and external experts. At KORN CONSULT GROUP, our consultants are the external experts that have lived the daily life inside of significant OEMs and Tier-n suppliers. Our consultants not only understand the challenges facing organizations as they strive for excellence, but they are equipped to implement solutions for their clients. KORN CONSULT GROUP creates effective and sustainable business processes.