|
|
 |
MPO Unlocks $35 Million in Bottom-Line Value for Global Auto Components Supplier
Business Challenge:
A global auto components supplier had successfully outsourced several manufacturing operations, but challenged Holland Group to improve production at three sites that had unique requirements.
- The client had built a new facility to roll out a prototype product. They wanted to outsource the operation, but needed to closely oversee the initial production.
- A second product was being manufactured in two adjacent plants. The plants differed greatly in size, production shifts, and vendors supporting the production. The client wanted to increase operational efficiency and reduce their vendor management burden so that they could focus on other core activities.
- The third location, a large plant with over 200 employees, manufactured a product that required specialized production skills and knowledge. Our client was seeking increased plant performance, but needed assurance that these skills would not be lost.
Holland Group Approach:
Holland Group took full responsibility for the facility that manufactures the prototype product, from the planning and ordering of materials to shipment of the finished product. We organized the production process into four major work areas, assigning a project manager to each to oversee the efforts of 300 employees. Within two weeks of assuming production responsibility, all quality and production standards were exceeded — ahead of schedule!
To reduce costs and increase the productivity of the two co-located plants, Holland Group provided a single team to oversee both plants. The team streamlined the processes, increasing consistency while continuing to accommodate differences in desired production volumes.
In the third plant, Holland Group eliminated the client’s concern by developing standardized work instructions. Detailed documentation was developed. Holland conducted training and certified the proficiency of all personnel, established a process for our client to regularly audit training records, and monitored the ongoing performance of all workers.
Benefit:
Holland Group was able to achieve powerful bottom line results for this client. The projects generated cost savings estimated at $35 million over 3 years. Labor costs were reduced by 40%. Process enhancements resulted in raising the schedule attainment rate from 50% to 100%, the number of inventory errors was cut in half, and the client experienced a 53% drop in safety incidents.
|
|
|
|
Holland Group
clients increase
operational
performance while
reducing costs
|
|
|
|
Industry leaders share their thoughts on outsourcing |
|
 |
|
|
|
|
