Enhanced Production Efficiency and Reduced Scrap for a Leading Automotive Supplier

About the Customer

Our client is a leading manufacturer in the automotive industry, specializing in suspension links and NVH (noise, vibration, and harshness) isolation components. The facility supplies both internal and external OEM customers across North America, maintaining a critical role in the supply chain with a focus on quality and efficiency.

Challenge

At the project's outset, defect rates on some products shipped to a key customer’s facility reached over 40%, creating significant challenges in meeting production demands. These high defect rates led to increased production pressures and resource strain. Key operational issues included:

• A shortage of skilled quality personnel, to manage defect investigations, root cause analysis, and solution implementation.
• An absence of daily defect rate tracking and performance communication among production, engineering, and maintenance teams.
• A reliance on temporary solutions, with limited follow-up on long-term, robust process improvements.
• Inefficient tracking and communication of frequent, minor equipment interruptions that cumulatively caused substantial production losses.
• Insufficient coordination between engineering, maintenance, and production teams to establish sustainable processes.

Solution

MS Companies implemented a structured approach to address these challenges, focusing on reducing defect rates, enhancing communication, and driving sustainable solutions. Key initiatives included:

• Defect Rate Tracking and Communication: Daily defect rate monitoring was established to provide visibility across the organization and guide targeted interventions.
• Root Cause Analysis: Comprehensive investigations were conducted to identify and address the underlying causes of defects, moving beyond surface-level assumptions.
• Preventative Solutions: Collaborated with engineering and maintenance teams to implement solutions that prevented defects at the source, rather than relying on detection methods.
• Equipment Performance Monitoring: Identified and addressed frequent, minor equipment interruptions to improve production consistency and efficiency.
• Operational Enhancements: Introduced quality boards, sample boards, and quality alert folders to enhance defect awareness and process standardization in production areas.

Daily meetings became a cornerstone for reviewing quality and production performance, enabling real-time tracking and adjustments. These sessions fostered collaboration between teams and ensured the continuous monitoring of implemented solutions.

Results

The implementation of MS Companies' solutions yielded substantial improvements in production efficiency and cost savings. The defect rate on critical products was reduced by 100%, eliminating the need for costly expedited freight and overtime expenses. Additionally, scrap losses were minimized, resulting in an estimated $1 million in monthly savings.

Discover how MS Companies can help streamline your operations and reduce costs with our innovative solutions. Learn more about how we can support your manufacturing goals here:

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