A well established first tier Automotive component supplier to a major British car plant, the company is part of a globa organisation supplying components to all the major car manufacturers throughout the world
The Business Problem
This major supplier of assemblies to the Automotive sector was subcontracting components to a local supplier and was suffering from interruptions to its supply subsequently affecting its own assembly and delivery performance to its customer and causing its own plant to incur inefficiencies. These inefficiencies wer transmitted through the business through holding excessive stocks which incurred the need for more space, extra transport costs, and increase in labour costs to ensure deliveries could be maintained. There was also an issue with planning of the factory to meet customer deliveries as component supplies were not regulated
An Aktiv Solutions Consultant together with an expert in Value Stream Mapping were brought in to change the delivery process and to ensure the processes used at both the supplier and the internal deparments were working together.A small team of people from both facilities were engaged on a pilot scheme to improve the delivery performance, A full value Stream Mapping exercise was carried out to identify the wastes within the process and this was then narrowed down to the Vital few which in turn allowed the team to identify the future state map and introduce Non scheduled deliveries based on Kan Ban which was driven by the assembly process therefore restricting and reducing the amount of stock required. Training was undertaken to ensure all involved fully understood the processes being introduced and over a number of months significant improvements were attained in terms of on time delivery and reduced stock levels.
The company enjoyed a significant improvement in it’s delivery performance to its customer along with marked improvements in efficiencies, the component supplier was able to demonstrate that both it ‘s delivery and quality had improved which in turn had shown benefits to both businesses with the need for scheduling reduced, with stock levels reduced and therefore the improvements to quality reducing the need for goods inward inspection which ensured a cost reduction of £51,235 for this pilot project which if repeated across the supply chain will show considerable benefits to all parties
The Aktiv Solutions Mission
Our drive and motivation is the challenge of working with companies to improve their businesses to provide a comprehensive consultancy service that delivers practical and measurable solutions for all types of business issues.