Reducing G&K Costs in the Short Term Through Optimized Repair Processes - KBC
Industries

Real-World Example

Reduce G&K costs in the short term through optimized repair processes

How we developed the most effective solutions for direct vehicle analysis in the workshop.

Background

In addition to manufacturing products, every OEM—such as an automaker—must also offer services like maintenance and repairs to remain competitive today. Fast, flexible, and cost-effective repairs are considered a prerequisite for strong customer focus and loyalty in the automotive industry. Repairs and analyses of the causes of damage—which are covered by the respective OEM under warranty or as a goodwill gesture—currently take too long compared to the competition. Consequently, the OEMs’ economic returns and profit margins are too low to withstand the increasing pressure to compete and optimize. The lack of methods for quickly reducing warranty and goodwill costs makes it difficult for OEMs to optimize their repair processes, even though these processes have been proven to significantly contribute to lowering warranty and goodwill costs.

Specific Task Description

  • Develop alternative repair and replacement processes for warranty-related scope (for three selected pilot projects)
  • Identify components affected by changes that help reduce repair and replacement times in the event of a warranty claim
  • Develop alternative approaches to reduce repair, replacement, and troubleshooting times

KBC Approach

KBC brings a high level of technical expertise in vehicle development and motorsports. By analyzing and developing solutions directly on the product (“We get under the vehicle”) during a two-week pilot phase, we were able to work closely with our client from the Service Solutions and Special Tooling division to identify initial opportunities for reducing warranty and goodwill costs across the three pilot scopes. By simulating repair procedures (e.g., installing and removing the timing chain) and analyzing data on fault-finding times, we were able to develop and implement targeted short-term optimization measures. In addition, we were able to develop standard production tools to avoid the need to replace parts during repairs.

Portrait photo of Felix Feuerbach, Senior Partner at Kemény Boehme Consultants, looking at the camera with a neutral expression and both hands in his pants pockets
Portrait photo of Felix Feuerbach, Senior Partner at Kemény Boehme Consultants, looking at the camera with a neutral expression and both hands in his pants pockets
Senior Partner

Impact Achieved

Thanks to our in-depth technical expertise, many years of experience in developing repair scenarios, and our business-oriented assessment of optimization potential, we were able to reduce repair times across all three pilot projects.

Furthermore, we were able to reduce parts costs by up to 50% (packaging change). After just two weeks of the pilot phase (including vehicle analysis in the workshop), we were thus able to identify measures with an estimated savings potential of €1.3 million for the current year.