A chronic underperforming manufacturing plant needed to make dramatic operating improvements and reduce costs and headcount to successfully launch a new model the company counted on to invigorate its 100-year-old brand.
- Shifted plant emphasis from volume-focused to customer satisfaction-focused metric.
- Drove stronger two-way communications at plant and corporate levels.
- Developed pilot program to transform plant leadership approach and drive decision-making down to front line employees and supervisors (those closest to delivering to the customer).
- Introduced ways to correlate management behaviors with operational metrics customers cared about (e.g., quality).
- Engaged local union leadership and front line employees to actively improve production processes and introduce ideas that supported the brand promise.
Enabled successful launch through:
- 70 percent improvement in on-time delivery.
- 20 percent decrease in defect rates in six months.
- $30 million improvement in cost plan.
- 40 percent decrease in hours per unit.
- 43 percent increase in units produced per hour.
- Changes in plant work rules and sourcing strategies via a local modern operating agreement. impacting 3,000 employees.