Case Study|Automotive

Three at-risk Tier-1 suppliers came off the brink at once: line stoppage fell from 4.6% to under 1.4%, OEE climbed as high as 103% across three lines, and productivity rose 17%, earned not on the automaker's best days but on every just-in-time shift.

International Automaker, Tier-1 Supply Base
Results at a Glance
4.6% to 1.4%
Line Stoppage
up to 103%
OEE Gain
17%
Productivity Increase
Executive Brief

An international automaker's just-in-time assembly depended on a Tier-1 base that was failing it, with three suppliers (interior headliners, roofing and trim, and carpet and floor coverings) each one missed shipment away from losing the business. POWERS embedded with all three: rebuilding warehousing, sequencing, and parts replenishment at the headliner supplier; installing a Management Operating System and just-in-time schedule compliance with front-line leaders at the roofing and trim supplier; and fixing OEE, tooling, and line reliability to ramp the carpet supplier for a new-model launch. Line stoppage from waiting on parts dropped from a historical 4.6% to under 1.4%, OEE rose 19%, 77%, and 103% on three separate carpet lines over three months, and total productivity at the roofing and trim supplier climbed 17%, moving it out of penalty status.

Equipment Reliability · Frontline Leadership · MOS · Supply Chain
The Situation

An international automaker had built its assembly line to run on punctual, high-quality Tier-1 deliveries. Three of those suppliers could no longer hold up their end, and each one risked losing the business.

This multi-billion-dollar automaker, with U.S. assembly facilities and a presence on nearly every continent, deliberately sourced its Tier-1 suppliers close to the assembly plants to cut transport cost, guarantee on-time availability, allow rapid response, and keep production flexible. That design only works if every supplier feeds the line on time and on spec. The automaker ranked suppliers by risk and backed its standards with high financial penalties for missed delivery or quality, plus the expedited freight costs that failures triggered. Three suppliers were sliding toward the edge of that ranking.

The problems were structural, not occasional. The interior headliner supplier had no internal forecasting model and made poor use of its sourcing system, so warehousing ran chaotic, lines waited on parts, and expediting cost thousands per week, including the occasional chartered private transport from overseas. Finished-goods sequencing fought itself, with parts that had to be packed and loaded in reverse order for assembly-line first-use while color, capacity, size, and style options dictated a conflicting production sequence. The roofing and trim supplier could not meet quality, production, and delivery specifications and sat in penalty status. The carpet supplier, asked to ramp for a new-model rollout, had OEE too low for the added volume, oversized blanks wearing its equipment, and foamer cycle times too slow to hit target.

Across all three, high turnover in purchasing, planning, and scheduling kept erasing tribal knowledge, so even hard-won fixes did not stick. Leadership at each supplier needed more than a one-time correction. They needed operating systems and disciplines that would hold flow, quality, and delivery steady under the relentless pace of a just-in-time customer.

The Diagnosis

Five structural gaps producing the same outcome from five directions.

No forecast, no sourcing discipline, freight by the thousands

At the headliner supplier, the absence of an internal forecasting model and disciplined sourcing-system use left warehousing chaotic and lines waiting on parts. Expediting ran into thousands per week, including occasional chartered transport from overseas.

Sequencing that ran backwards to the need

Finished goods had to be packed and loaded in reverse order for assembly-line first-use, while color, size, and style options dictated a production sequence that fought it. The two demands worked against each other and slowed the whole flow.

Tribal knowledge that kept walking out the door

High turnover in purchasing, planning, and scheduling kept erasing institutional knowledge. Each departure reset hard-won understanding and left the same problems to be solved again.

Roofing and trim stuck in penalty status

The roofing and interior-trim supplier could not meet the automaker's quality, production, and delivery specifications. That kept it in a penalty status it had no clear path out of.

OEE too low to ramp for the launch

The carpet supplier's OEE was too low to support a new-model rollout, oversized blanks were causing excessive equipment wear, and foamer cycle times were too slow to hit target. The line could not carry the increased volume the launch demanded.

What POWERS Did

Embedded with three at-risk suppliers and rebuilt flow, leadership, and reliability across all of them.

At the headliner supplier, POWERS rebuilt the parts-to-line flow end to end. The team set up EDI interfaces and customer order data management, converted orders into production schedules and component demand to vendors, and managed incoming components. Warehousing was optimized across an off-site satellite warehouse and the main facility, with replenishment from satellite to production, delivery to each workstation without stoppages, and managed WIP, finished-goods flow, sequencing, scrap, and launch changes. A production sideline Kanban replenishment system was installed, the in-house warehouse was physically relaid out for first-in first-out movement with reverse-order loading, minimum reorder-quantity purchasing and daily by-shift cycle counts for critical parts were established, critical parts were resourced away from poor performers, and mold-line scheduling was rebalanced to cut unnecessary changeovers.

At the roofing and trim supplier, POWERS developed a Management Operating System with front-line supervisors and managers, worked with planning and scheduling to enforce compliance to the just-in-time schedule, and developed short-interval quality metrics and systems. Eliminating the breach of sweat time let the supplier move out of Level 2 penalty status. At the carpet supplier, the team built a Management Operating System with front-line leaders, created set-up checklists to kill startup lost time, staged product to cut wait on the next pallet, installed Quality Vision Systems, tracked hourly production by work cell, and brought in tooling and ACL-line OEM support to lift uptime and reduce scrap. New second and third shifts were recruited and trained for a 24-hour continuous run.

Run in parallel across the three suppliers, the work moved each one from reacting to controlling. The headliner supplier’s flow stopped fighting itself, the roofing and trim supplier had a system its leaders could run every shift, and the carpet supplier had the OEE, tooling, and staffing to carry the launch volume.

The Full Result

Six measurable gains across three rescued suppliers, each one earned under a just-in-time customer's penalty clock.

4.6% to 1.4%
Line Stoppage

At the headliner supplier, line stoppage from waiting on parts fell from a historical 4.6% to under 1.4% after a sideline Kanban replenishment system and a reverse-order, first-in-first-out warehouse relayout took hold.

up to 103%
OEE Gain

At the carpet supplier, OEE rose 19%, 77%, and 103% across three separate lines over three months as setup checklists, staging, quality vision systems, and tooling fixes came together to carry the ramp.

17%
Productivity Increase

At the roofing and trim supplier, a Management Operating System and just-in-time schedule compliance installed with front-line leaders lifted total productivity and moved the supplier out of penalty status.

65%
Wait-Time Reduction

At the headliner supplier, production-line wait-time delays dropped once parts replenishment and sequencing were fixed and components arrived at each workstation without stoppages.

39%
First-Pass Approval Gain

At the roofing and trim supplier, new short-interval quality metrics and systems caught defects earlier, lifting first-pass approval.

50s to 30s
Foamer Cycle Time

At the carpet supplier, internal foamer cycle times were cut to reach the targeted OEE the launch volume required.

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