Relocation of Operations and Delivering a New Automotive Parts Facility While Implementing a Lean Management Culture

CASE STUDY

Challenge

A large Tier-1 automotive supplier was engineering a new model launch during the pandemic. They had suffered setbacks with product design, process engineering, and manufacturing capacity that made them unable to meet the OEM's target volumes. The supplier decided to launch a new facility to provide the required capacity — but vehicle production was already underway, requiring the new facility to be built, equipped, staffed, and brought into production without interrupting OEM vehicle production. The supplier's resources were committed to stabilizing the initial facility, so they brought in RPM to launch the new one.

Approach

RPM consultants provided leadership support across Production, Logistics, Quality, Engineering, and Human Resources — and assisted the supplier in interviewing prospective candidates to populate their functional departments.

A senior RPM consultant was brought on as launch manager to coordinate the separate teams handling facilities, equipment, and tooling. Before RPM's involvement, each team had been managed in isolation without the coordination required for a successful launch.

The launch manager created a credible plan — a production ramp plan — to orchestrate the confluence of facility, equipment, staff, materials, training, and tools, setting expectations for equipment installation, tool moves, production, OEE improvement, crew startup, and training. The project required 7 months to complete.

Because the facility would open while regular production was already underway and tools would be required from a sister facility, a "spaghetti diagram" became the credible plan to move tools without interrupting production. Banks of parts were produced to supply regular OEM production while tools were moved for validation; very large tools had to be temporarily moved, trialled, then returned until test results were satisfactory, before a final coordinated move to the new facility.

Each tool had to be validated in four different presses, commissioned one after the other — requiring bank build, tool move, trial run, return, validation testing, and re-PPAP for each press/tool combination. The launch manager developed customized execution tracking and accountability tools to ensure actual progress kept pace with the plan.

Lean Management Implementation: While the relocation project came together, RPM staff implemented Managing Daily Improvement (MDI) tools to create a lean management culture. The client's team was trained on three core MDI tools:

  • Visual management

  • Daily accountability meetings

  • Leader standard work

With these tools in place, anyone on the shop floor can immediately see whether performance is on track or falling behind.

Approach

RPM consultants provided leadership support across Production, Logistics, Quality, Engineering, and Human Resources — and assisted the supplier in interviewing prospective candidates to populate their functional departments.

A senior RPM consultant was brought on as launch manager to coordinate the separate teams handling facilities, equipment, and tooling. Before RPM's involvement, each team had been managed in isolation without the coordination required for a successful launch.

The launch manager created a credible plan — a production ramp plan — to orchestrate the confluence of facility, equipment, staff, materials, training, and tools, setting expectations for equipment installation, tool moves, production, OEE improvement, crew startup, and training. The project required 7 months to complete.

Because the facility would open while regular production was already underway and tools would be required from a sister facility, a "spaghetti diagram" became the credible plan to move tools without interrupting production. Banks of parts were produced to supply regular OEM production while tools were moved for validation; very large tools had to be temporarily moved, trialled, then returned until test results were satisfactory, before a final coordinated move to the new facility.

Each tool had to be validated in four different presses, commissioned one after the other — requiring bank build, tool move, trial run, return, validation testing, and re-PPAP for each press/tool combination. The launch manager developed customized execution tracking and accountability tools to ensure actual progress kept pace with the plan.

Lean Management Implementation: While the relocation project came together, RPM staff implemented Managing Daily Improvement (MDI) tools to create a lean management culture. The client's team was trained on three core MDI tools:

  • Visual management

  • Daily accountability meetings

  • Leader standard work

With these tools in place, anyone on the shop floor can immediately see whether performance is on track or falling behind.

KEY RESULT

Through disciplined planning and cross-functional coordination, the facility achieved OEM approval on schedule, surpassing the performance of the client's original plant

KPI

OEM-approved facility launch — on schedule

SERVICE

Relocation and Consolidation, Lean Management Implementation

DURATION

10 months

Results

  • The facility was built, equipment imported from Europe, tools moved across metro Detroit, and an entire operations team hired and onboarded — without interrupting vehicle production

  • The spaghetti diagram, operations convergence plan, ramp plan, and project timeline were all executed with urgency

  • The Tier-1 supplier successfully completed PPAP submission to the OEM on the exact date forecasted by the planning tools

  • The new facility surpassed the performance of the client's original plant

Operational

Operational Turnaround

Launch Readiness Assessment

Program Management Recovery

Value Stream Mapping

Lean Management Implementation

Relocation & Consolidation

Rapid Plant Assessment

Inventory Reduction & Warehouse Optimization

Financial

Liquidity & Cash

Management Solutions

Commercial

Analysis

Financial

Diligence

Restructuring

Advisory

Transaction

Advisory

RPM Partners is a comprehensive turnaround solutions provider offering a 360-degree approach that bridges financial strategy and operational excellence.

Follow us

Call us

646.885.6581

Head office

EAG RPM Partners LLC
733 Third Avenue
New York
NY 10017

EAG RPM Partners LLC is a joint venture with Eisner Advisory Group LLC being one of the joint venture partners. Eisner Advisory Group LLC and EAG RPM Partners LLC are not licensed CPA Firms. 

Operational

Operational Turnaround

Launch Readiness Assessment

Program Management Recovery

Value Stream Mapping

Lean Management Implementation

Relocation & Consolidation

Rapid Plant Assessment

Inventory Reduction & Warehouse Optimization

Financial

Liquidity & Cash

Management Solutions

Commercial

Analysis

Financial

Diligence

Restructuring

Advisory

Transaction

Advisory

RPM Partners is a comprehensive turnaround solutions provider offering a 360-degree approach that bridges financial strategy and operational excellence.

Follow us

Call us

646.885.6581

Head office

EAG RPM Partners LLC
733 Third Avenue
New York
NY 10017

EAG RPM Partners LLC is a joint venture with Eisner Advisory Group LLC being one of the joint venture partners. Eisner Advisory Group LLC and EAG RPM Partners LLC are not licensed CPA Firms.