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CRISIS MANAGEMENT IN AUTOMOTIVE MANUFACTURING

Enhancing Production Efficiency for Electric Vehicle Components

This case study demonstrates PRODENSA's expertise in crisis management and production efficiency optimization within the automotive industry. By providing a tailored, industry-specific solution, PRODENSA not only resolved the immediate crisis but also established a framework for continuous improvement.

Crisis Management

PROJECT OVERVIEW

The client, a major player in the Electric Vehicle (EV) industry based in the United States, faced significant production delays at one of their key supplier factories in Mexico. With overall production efficiency not reaching 50%, the client sought a solution to address these inefficiencies and ensure timely delivery of critical components. PRODENSA was engaged to design and execute an effective production plan that would reduce delays, eliminate errors and reworks, and increase the rate of production per unit of time.

PROJECT STAGES

Evaluating Client's Needs PRODENSA began by conducting an in-depth evaluation of the client’s needs and the specific challenges faced by the supplier. This stage involved a detailed assessment of the production environment, supply chain complexities, and the quality standards required by the client.
Preparation & Planning A comprehensive plan was developed to address the identified issues. This included defining clear objectives and desired outcomes in collaboration with the client and their supplier, focusing on improving production efficiency and ensuring compliance with stringent industry standards.
Assessment of Current Situation & Crisis Management PRODENSA conducted an on-site assessment to understand the nature and scope of the crisis. This involved a thorough examination of the supplier’s production processes, identifying bottlenecks, inefficiencies, and areas requiring immediate attention.
Team Adjustment & New Team Formation A cross-functional crisis management team comprising 15 members from various areas such as production, quality control, logistics, and management was assembled. The team was tasked with implementing the planned solutions, working in double shifts to ensure rapid progress.
Change Implementation & Reporting on Improvement The team executed the necessary changes, closely monitoring the impact on production efficiency. Regular reports were provided to the client, ensuring transparency and keeping all stakeholders informed about the progress and improvements.

CHALLENGES

  • Stringent Quality Standards: The automotive industry’s high standards made it essential to maintain consistent quality during the crisis, which was challenging under tight timelines.
  • Complex Supply Chain: The intricate nature of the automotive supply chain added complexity to identifying and addressing issues within the network.
  • Regulatory Compliance: Ensuring compliance with industry, safety, and environmental regulations was critical, especially during the crisis.
  • Production Downtime: Any disruptions in the manufacturing process had the potential to cause costly delays.
  • Financial Impact: Balancing the need for immediate corrective actions with cost control was a significant challenge.
Success Case

SOLUTIONS

Tailored Industry-Specific Solution
The plan was customized to meet automotive industry standards, ensuring compliance with regulatory requirements and maintaining the supplier's reputation.
Rapid Response Capability
A rapid response protocol was implemented to minimize production downtime and financial losses, enabling swift resolution of the crisis.
Effective Communication Strategy
Transparent communication with the client and stakeholders ensured clarity and trust, demonstrating the supplier’s commitment to resolving the crisis.
Risk Mitigation & Continuous Improvement
The solution included proactive risk mitigation strategies and a focus on continuous improvement, helping to prevent future crises.

Project Outcome

 

PRODENSA's intervention led to a significant turnaround in production efficiency, with overall efficiency increasing from below 50% to nearly 100%.

As a result of this successfully completed assignment, PRODENSA was introduced to the other business divisions of the CLIENT to support in further projects.

 

 

 

Key achievements included:

  • Stopping the crisis from escalating further.
  • Optimizing and balancing 11 assembly lines.
  • Standardizing critical production processes, resulting in improved output quality.
  • Reducing the need for 24/7 shift operations.
  • Meeting higher customer expectations by increasing the rates of production per hour/day.

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