Case Studies

Lean Manufacturing: Automotive Components


Customer was producing low-volume, specialty components for the automotive industry, and desired to strengthen operational processes to prepare for a broadening product mix and greater production capacity. This required efforts to streamline production, decrease lead times, reduce costs, and improve quality.


A number of layout and process improvements were implemented based on a 5-day Value Stream Analysis Processsm, which documented the current state, designed the future state, and developed a project plan to manage the improvements. Additionally, on-site full-time plant implementation support, monthly kaizen support and quarterly leadership reviews were provided to the customer.

Results (First 3 months of implementation)

  • Total lead time reduced from 19 days to 8 days (58% improvement)
  • Man-hours per unit decreased from 8.1 hours to 6.7 hours (17% improvement)
  • Total Rejects decreased by 50%
  • Safety Incidents decreased by 90%

Estimated Financial Results

  • Increased capacity $2.6 million in potential additional revenue per year
  • Benefit to cost ratio of greater than 10 to 1


  • Operations have transitioned from craft production to a robust Lean Manufacturing process.
  • Contract awards have tripled future annual revenue..
  • A large automotive OEM credits the successful Lean implementation with the increase in quality and100% on-time delivery that formed the basis for awarding substantial new business.