Benchmarking by the Lean Enterprise Research Centre at Cardiff University has shown productivity gaps of at least 50% between UK vehicle assemblers and their component suppliers compared to the best in the world. At the materials supply end of the chain, although there is still room for considerable improvements, the UK is on a par with the best in the world and could gain a significant competitive advantage in this area.
Aims
The project aims to make the following improvements to the part of the automotive supply chain covered by the participants -
40% lead time reduction
30% reduction in time to market
15% stock reduction
50% defects reduction
5% pa productivity gains
30% increase in mutual business
Method
The project has drawn on established business process re-engineering and kaizen techniques. This has been achieved in three stages -
1. Application of Hoshin Kanri, Quality Function Deployment and Value Stream Mapping
2. An improvement programme within a modified Kyoryoku Kai approach
3. A feasibility study to test transferability to other upstream supply chains.
The project is now complete.
Benefits
The project has created an exemplar supply chain that can be emulated across other upstream automotive and other supply chains in the UK.
A suite of new mapping tools allows other organisations map and optimise their supply chain.