Automotive
Select one of the case studies below:
Chief Operations Officer
Cost Reduction & Efficiency Programme – Automotive Supply
Ireland
Irish manufacturing subsidiary of German parent producing electric motors (starters, rotors, plastic parts) amounting to 2m accessories per year; the sale of the end product is seasonal. The break-even point for the factory lies at 90% capacity. Three separate unions operated within the company (maintenance, mechanics, and staff) & are each following different goals and hindering the change process.
An Interim COO was hired to review and implement changes in working practices in the factory in order to reduce breakeven point by min. 50%, deal with the intractable HR issues and reduce inventory given the fluctuating demand in market demand.
Procurement and production processes were exhaustively analysed and documented (semi-skilled workers made up 70 percent of the workforce). Machinery utilisation was optimized requiring a comprehensive agreement with the maintenance union to ensure 24/7 availability. Then after intensive negotiations, the three unions were reduced to one operating on site.
Machinery operating time was thereby increased by 55% as workers were able to make small repairs and reduce down-time. A bonus system was introduced for the workforce based on improvements in returned defective goods.
Overheads in the factory were reduced by 30 percent.
Break-even reduced to 46 percent capacity
Profitability increased by 50 percent
Seasonal fluctuations were absorbed through flexible shifts
Reduced inventory levels were maintained
The original assignment budget for the interim manager was exceeded by one month.
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