A large tier 1 supplier engaged the interim manager in 2019 as head of a task force to resolve critical problems at a supplier (tier 2). Without a quick solution, there was a risk that the client would not be able to meet its obligations to several OEMs and could trigger production stoppages with significant financial consequences.
Recording production capacities and comparing them with stock levels
On arrival at the company, the interim manager was faced with a number of challenges. For example, the supplier had no reliable data on how long the current production capacity and stock levels would allow for the most urgent deliveries. He therefore first determined what quantities were needed by the OEM on an hourly basis and compared these requirements with the stock levels and the logistics schedule. From this, he derived a priority list of the production lines to be optimized and also calculated the available production time per component.
Disastrous conditions in production recorded and solutions developed
In parallel, the interim manager recorded the deficiencies in production and found the systems and processes to be in a deplorable state. Sometimes not even the shift supervisors knew which of the injection molding machines were running or defective, or according to which schedule mold changes were required for various products. The process cards for running machines often did not match the machine settings. It was not uncommon for machines to be manually filled with raw materials because the automatic material supply was not connected. The list of deficiencies was much longer. For example, there were considerable safety risks because even live cables ran through large puddles of water on the floor.
Taskforce established: Production and quality significantly improved in a short space of time
In order to get to grips with the long list of defects in the short space of time required, the interim manager engaged additional external support from production optimization and quality management in consultation with the management. Together, the team took a series of measures, including:
- Repairing the injection molding machines: At the start of the mandate, only half of the machines were ready for use. As an expert in plastics technology, the interim manager helped to identify causes such as defective cavities or cooling channels. In line with demand, the interim manager prioritized the repairs and ensured the accelerated delivery of spare parts.
- Optimization of raw material supply: All injection molding machines were connected to the automatic material supply system. This also ensured that the right raw material arrives at the right machine.
- Maintenance optimized: A maintenance plan for molds and machines now ensures that defects can be detected early and rectified quickly.
- Shopfloor management: production, mold change, maintenance planning and KPI supplemented and clear task allocation with PDCA tracking introduced
- Quality control: on the critical production lines, the interim manager and his team strengthened quality control directly on the line. He also established a GP-12 inspection for all components for approval before delivery to the Tier 1 supplier.
- Speeding up shipping: In order to meet delivery deadlines down to the hour and thus avoid costly line stoppages at the OEMs, the interim manager used couriers to personally deliver components to the Tier 1 suppliers by plane as required.
Delivery reliability ensured after just a few weeks - impending line stoppages averted
After just six weeks, the work of the task force led by the interim manager was bearing fruit. Productivity increased by 40 percent and OEMs are being supplied punctually and reliably.
In addition, the tier 2 supplier now has a functioning store floor management system and can monitor its day-to-day business optimally. The entire production process, from goods receipt to delivery, is monitored by a cockpit. At the same time, the cockpit is used for reporting to management.
