Operational Excellence
German Automotive Parts Manufacturer
€45M
Annual savings
34%
Productivity improvement
0.8%
Quality defect rate
12
Plants transformed
The Challenge
A leading German automotive parts manufacturer was struggling with production inefficiencies that pushed unit costs 23% above industry benchmarks. Quality defects were running at 3.2% — more than double best-in-class levels. The company was at risk of losing major OEM contracts as customers demanded year-over-year cost reductions the organisation could not deliver.
Our Approach
We deployed a lean transformation methodology across the client's 12 production facilities in Germany, Poland, and Hungary. Our diagnostic identified three root causes: excessive changeover times, high work-in-process inventory masking flow problems, and a culture that prioritised output over quality. We designed a comprehensive operational excellence programme addressing each.
Implementation
The programme ran for 14 months and included: implementing Single-Minute Exchange of Die (SMED) across 200+ production lines, introducing daily management systems with visual performance boards in every plant, retraining 1,800 operators in standardised work protocols, and establishing a centre of excellence for continuous improvement led by internal champions.
Outcome
The transformation generated €45 million in annual savings, improved productivity by 34%, and reduced quality defect rates from 3.2% to 0.8%. The client secured contract renewals with all major OEMs and has since been recognised by the German industry association as a benchmark facility for operational excellence.
“The Point Advisory team understood that operational excellence isn't about cutting costs — it's about building capability. They helped us see problems we had normalised and gave us the tools to solve them ourselves.”
Chief Operating Officer
German Automotive Parts Manufacturer
Key Lessons
01
Standardised work must be developed by operators, not imposed by engineers — ownership determines adherence
02
Daily management systems are the nervous system of operational excellence — without visual management, problems stay hidden
03
Sustainability requires internal champions; external expertise should build capability, not create dependency
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