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Practical 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 repair in today’s competitive market. Fast, flexible, and cost-effective repairs are considered a prerequisite for high customer focus and loyalty in the automotive industry. Repairs and root cause analyses—covered by the respective OEM in warranty or goodwill cases—take too long today compared to the competition. Consequently, the economic returns or profit margins of OEMs are too low to withstand the increasing pressure to compete and optimize. The lack of methods for reducing warranty and goodwill costs in the short term makes it difficult for OEMs to optimize repair processes, even though these have been proven to significantly contribute to lowering warranty and goodwill costs.

Specific task

  • Develop alternative repair and replacement processes for warranty-related issues (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's 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 processes (e.g., installation and removal of the timing chain) and analyzing data on troubleshooting times, we were able to develop and implement targeted short-term optimization measures. In addition, it was possible to develop standard production tools to avoid the need for part replacement during repairs.

Male, gray hair, blue eyes, neutral expression, wearing a white shirt and dark blue pants, standing with both hands in his pockets
Male, gray hair, blue eyes, neutral expression, wearing a white shirt and dark blue pants, standing with both hands in his pockets
Felix Feuerbach
Senior Partner

Impact achieved

Thanks to our in-depth technical expertise, extensive experience in developing repair scenarios, and our ability to assess the business case for optimization opportunities, we were able to reduce repair times across all three pilot projects.

In addition, we were able to reduce parts costs by up to 50% (through packaging changes). After just a two-week pilot phase (including vehicle analysis in the workshop), we were able to identify measures with an estimated savings potential of €1.3 million for the current year.