To stabilise a European wheel supplier, KBC was able to fully utilise its know-how in increasing the productivity of suppliers in serial production.
The wheel supplier supplies major European OEMs with alloy wheels. Two of the supplier’s sites are located in Eastern Europe, while the historically developed site in Germany is responsible for more complex, higher priced variants. The supplier’s R&D is located at the German site. The number of variants at the German site is extremely high.
The specific task
- The site is unable to deliver an adequate output quantity.
- The site also has an extremely large volume of stock.
- Quality problems during all stages of production. Very high scrap rate, rework times, paint-stripping costs and reclamation rate. And an alarmingly low first pass yield.
- Major disagreements between plant management and production staff. 4-Shift model (continuous shift) active for more than one year.
- Measures taken to date are ineffectual. The EBITDA forecast for the current year shows a gap between the forecast and the specified target value of more than 50%.
KBC Solution approach
Increasing the motivation and qualification of employees and management. Improving safety, order and cleanliness in production. Introducing a consistent target system and leadership model across all hierarchical levels. Increasing process stability and the durability of critical production processes. Developing reactive error location in production (Q-Gates, labelling, retraceability). Consistent data collection in production and aggregation via MDE and BDE systems. Increasing the availability of individual processes in the production sequence through preventive maintenance and flexible employee assignment as examples. Introducing a continuous Pull principle in the pacemaker processes’ production (casting). Systematising/Automating processes and interdepartmental information transfer to indirect departments (HR, Procurement, Controlling). Improving preventive quality work for preventive troubleshooting.
Realisation of potential
Implemented a set of parameters with 17 target figures in the target agreement. Established a reporting system (transparent measures and target achievement). (Additional improvement measures: + 95 (+ 153%) and increase of implemented/sustainable measures:+ 33 (+194 %)). Created transparency regarding deviations in goods and data flow and implemented the reorganisation of warehouse responsibility. Established a preventive service plan for the maintenance department. Completed qualification and implementation of matrix and training plan in HR. In the Quality department, error codes were made available at wheel level and Q-Gates were reduced, while the release process to SoP was implemented. Conceptualisation of an interim solution for planning the complete production process and the implementation of Planning & Simulation leads to a ~ 25% reduction in changeovers. The reorganisation of the maintenance department (decentralisation) and the redistribution of responsibility, as well as the definition of additional activities and processes lead to a ~ 15% increase in maintenance capacity. Increased short-term casting output by 8%, mechanical processing by 8.5% and paintwork by 5% in serial operation.