Automotive Tier1—KPI-Initiative

Introduced A Data-Driven Process To Achieve Production Stability And Meet OEM‘s Targets.
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The Problem

Tier 1 was not meeting the OEM’s quantity and quality targets.
Constant escalations consumed resources on both sides.
Extra effort due to additional reporting and meetings.
Subject matter experts could not focus on part production due to constant reporting and firefighting mode.

The Solution

Implemented a data-driven process to enable fact-based decisions.
Developed a standard KPI reporting structure.
Created a meeting landscape, as a basis for a sustainable problem-solving process.
Introduced a 2-way escalation platform for TIER 1 and OEM.

The Result

Focus shifted from escalation to resolution.
Mindset Change: Tier 1 management team took personal accountability for their plant’s performance.
Freed up Tier 1 subject matter experts to focus on the production process.
Decreased PPM from >1,000 to <200 in 3months.
Stabilization of inventory from <3 days to 7 days on hand.

The introduced processes increased part quality and inventory and lead to de-escalation within 4 months.