Improved Operational Efficiency and Output Resulting in Annual Savings of $3.1M

Client: Major OEM
Fleet Size:500 vehicles

Involved Shop Operations with 90 Team Members Supporting Vehicle Builds

Results:

• On-time delivery improved from 80% to 99%
• As efficiency improved, overtime was reduced to completion of work on straight time; saving $3.1M annually
• As costs were reduced and performance improved, additional work continues to be sent to our shop for completion

Background:

• No line of sight to upcoming work resulting in a lack of production planning
• Lack of urgency to complete vehicle builds
• Communication to team members was inconsistent
• Extra vehicles maintained in the fleet due to delayed turnaround of vehicles

How we did it:

• Implemented daily production board meetings with shop leaders
• Drove accountability to all team members for task completion
• Established monthly key performance indicators (KPIs) to measure improvements and identified barriers to continuous improvement. Removed barriers allowing performance to improve to the next level
• Regular meetings with all clients to gather the line of sight for upcoming work. Drove planning requirements to our clients, improving both their process and ours