Operational Improvement and Facilities Rationalization Through the Application of Lean Principles

Client:  A North American automotive component manufacturer

A remanufacturer of large automotive components was experiencing significant financial pressure while struggling to react to unfavorable market dynamics. It was burdened with a high fixed cost structure, inflexible processes, and a changing product mix resulting from product life-cycle maturity and the recent addition of new lower volume customer programs.

DAI performed an assessment to develop a future-state manufacturing strategy. Specific improvement projects were identified and prioritized providing a roadmap to move from the current to the desired future state. Focused on floor space and direct labor reduction, lean principles were applied to reduce inventory and consolidate multiple product/customer programs from dedicated lines to flexible quick-change cells. These improvements resulted in a 30% reduction in direct labor and enabled the client to eliminate the expense for two leased facilities.