AUTOMOTIVE 

Case Study: Successful Realignment of an Automotive Supplier’s Injection Molding Department

Background

A global top-ten automotive supplier faced significant challenges in its injection molding department. Over a period of ten years, this organizational unit had become the structural bottleneck of the entire plant. With massive backlogs, insufficient delivery performance, and an unacceptable quality situation, it increasingly became a problem area for all downstream production stages.
Seven leadership teams had attempted to achieve sustainable improvements during this time—without success. As a result, the department was considered an unattractive workplace, with employees transferring to other areas or leaving the company altogether. The resulting effects not only jeopardized profitability but also threatened the future viability of the entire site, which employed around 800 people.

Challenges

An initial analysis of the organization revealed severe structural and operational deficiencies:

• Leadership Deficits: Lack of disciplined management and accountability
• Insufficient Processes: Lack of planning, poor communication, and low problem-solving competence
• Poor Operational Metrics: 1. Machine availability at only 50%, 2. Absenteeism rate of 12%, 3. Critical customer order backlog at a critical level, 4. Quality issues leading to daily complaint, 5. Poor delivery reliability and high expedited freight costs
• Low Employee Motivation: High turnover and lack of identification with the organization

Turnaround Strategy

In close coordination with plant management, a rigorous turnaround strategy was developed and implemented. The measures followed a structured three-phase approach:

1. Immidiate Actions to Stabilize the Situation

• Customer Focus: Transparent communication with internal and external customers regarding planned improvements and short-term measures.
• Throughput increase as a priority: Rapid identification and elimination of the most critical bottlenecks, leading to a 25% increase in machine availability within the first six weeks.
• Escalation of critical issues: Direct intervention in supply bottlenecks to prevent production shutdowns in downstream areas.

2. Structural Realignment of the Organization

• Reorganization of the Leadership Structure: Establishment of a strong management team with clear responsibilities.
• Optimization of Production Management: Implementation of a stable planning structure to improve production control.
• Implementation of Lean Principles: Introduction of 5S and structured problem-solving approaches to drive sustainable efficiency improvements.

3. Nachhaltige Verankerung und Skalierung

• Talent Acquisition: Recruitment of an experienced department head and technical experts to ensure long-term organizational stability.
• Reduction of Absenteeism: Measures to improve working conditions reduced the absenteeism rate from 12% to 7.5% within 14 weeks.
• Improvement of Delivery Reliability: The introduction of disciplined order management mechanisms led to an increase in on-time delivery (OTD) to 80%.
• Backlog Reduction: The critical production backlog was fully eliminated within ten weeks.

Results and Lessons Learned

Within five months, the injection molding department was fundamentally transformed and reestablished as a high-performing organizational unit. Key success factors included:

• Rigorous Leadership: Consistent management and clear communication of expectations.
• Focus on Quick Wins: Prioritizing tangible “quick wins” created immediate acceptance and momentum.
• Structured Problem-Solving: Sustainable changes were achieved through data-driven decisions and methodological improvements