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Practical example

Sustainable defect correction

To meet the quality targets in the production operations of a leading automotive OEM, we launched a plant-wide zero-defect program.

Background

In today’s economic climate, reliability management in the automotive industry faces a wide range of challenges. Rising demands on the safety and reliability of end products stem from increasing customer expectations. Complex processes, a wide variety of products, and shorter production times are thus also key factors influencing product quality in production. The automotive industry faces the task of reducing high quality costs while still meeting quality targets.

Specific task

  • Reducing high quality costs in production
  • Implement the strategic directions that have already been decided upon and harmonize them across all plants
  • Develop specific optimization projects in terms of both content and business management
  • Develop a governance model for implementing cross-plant standards

KBC's Approach

When establishing a zero-defect initiative in the production sector, we were able to support our client with our many years of experience in launching large-scale optimization initiatives. We served as the right-hand team for our client’s program management and, as part of the project team, jointly guided the technical and business focus of the sub-projects across all plants. Using a value chain-based approach to calculate the potential savings from warranty and guarantee claims, we were able to quickly assess the initial financial benefits resulting from the implemented optimization measures. This ensured active support from the individual plants and production management in launching the sub-projects right from the start.

Male, short gray hair, brown eyes, smiling, with a beard, wearing a white shirt and a dark blue suit, standing with both hands in his pockets
Male, short gray hair, brown eyes, smiling, with a beard, wearing a white shirt and a dark blue suit, standing with both hands in his pockets
Georg Huber
Senior Partner

Impact achieved

We implemented optimization initiatives through which we identified specific weaknesses and analyzed potential solutions—including financial assessments—based on detailed data and information. The client thus received a comprehensively planned quality initiative for production—coordinated with top management—comprising five subprograms and 17 individual projects (outcome over the project period: €40 million in costs vs. €180 million in benefits).

By clearly identifying those responsible and setting specific performance targets, we were able to ensure a rapid ramp-up for the implementation of the 17 individual projects within the subprograms.