Tier 1 Automotive Supplier Company Profile
- Tier 1 supplier of Internal Combustion Engine (ICE) and Electric Vehicle (EV) components
- Nearly 40 manufacturing sites in 10+ countries
- 2021 Sales: ~ $4 billion
Business Situation
This multinational enterprise sought assistance improving their new product development (NPD) process as they transitioned into the EV market. Previously, a long-standing ICE component manufacturer, they identified an opportunity to produce battery trays for electric vehicles.
The automotive industry challenged their standard 18-month lead-time, requiring a 6-month model revision cycle. Their initial attempt to achieve a 6-month first part lead-time resulted in substantial annual losses on a short-term multi-year contract.
The core challenge involved project managers’ ability to align sales, engineering, supply chain, and manufacturing teams to deliver products in a third the typical time, while managing 10 times the number of processes and components compared to traditional products.
As a project-driven organization, this engagement focused on enhancing project management capabilities.
Solution
The project management process was analyzed to identify scaling and scope opportunities. Sales, engineering, manufacturing, and purchasing were evaluated for their roles in meeting customer expectations.
Project managers participated in interviews and observational assessments, with performance histories analyzed to identify gaps between required and actual capabilities.
Through targeted team and individual coaching, the organization achieved reduced rework and more data-driven decision-making. Significantly streamlined the number of handoffs and project approval requirements.
Strengthened project management capabilities by implementing personal development plans. One issue that constantly challenged project managers was each functional area claimed decision-making dominance regarding customer matters. We clarified that their core identity as a manufacturer was precisely why OEMs chose them. We then used this to focus everyone on the company’s value proposition, making the project managers’ jobs easier.
Benefits
The engagement enabled the team to deliver customer-required proof of concept products within 6 months, under budget, with enhanced customer satisfaction. The following year’s sales increased by over 20%.
Elimination of costs associated with change request gave an additional benefit. Previously, when customers requested design changes before prototype production, the supplier absorbed these costs. The reduced development time saved hundreds of thousands of dollars annually.
