Case Study

Automotive Engine Manufacturer

Capacity Improvement and Inventory Reduction

  • Summary
    • The company had recently been acquired from a large company.
    • Market share was slipping in most markets.
    • One bright new product just introduced but costs were high and shipments slow.
  • Challenges
    • Product line and manufacturing processes were aging.
    • Capacity was invested in older products with demand outstripping supply for the new product.
    • Inventories were inflated and out of balance.
  • Results
    • Utilizing stratification definitions and lot size adjustments, inventories were reduced by 20% in 9 months.
    • Implementing Lean strategies in production allowed a 3X capacity improvement for new products.
    • Prioritization of engineering resources allowed cost reduction implementations of over 25%.
    • Market share improved by 5X in 24 months.