Performance Improvement and Brand Delivery

Inspired employees to improve key metrics

Challenge:

A chronic under-performing manufacturing plant needed to make dramatic operating improvements and reduce costs and headcount to successfully launch a new model the company counted on to invigorate its 100-year-old brand.

Actions:

  • Shifted plant emphasis from volume-focused to customer satisfaction-focused metrics.
  • Drove stronger two-way communications at plant level and with corporate.
  • Developed pilot program to transform plant leadership approach and drive decision-making down to front-line employees and supervisors (those closest to delivering to the customer).
  • Introduced ways to correlate management behaviors with operational metrics customers cared about (e.g., quality).
  • Engaged local union leadership and frontline employees to actively improve production processes and introduce ideas that supported the brand promise.

Result

Enabled successful launch through:

  • 70% improvement in on-time delivery
  • $30 million improvement in cost plan
  • 40% decrease in hours per unit
  • 43% increase in units produced per hour

© 2005 Gagen MacDonald LLC