Toyota North American Service Parts ($2.2B Div)


Business Case
Supplier to automotive OEM's in era of price deflation > eroding margins
Low cost overseas sourcing threat to market share

Actions
Connect processes, reduce changeover time, reduce batch
Shrink lead time to increase operational flexibility

Results
Before
40%
12 weeks
100%
Metric
Labor efficiency average
Manufacturing lead-time
Capital cost
After
74%
4 weeks
82%


Summary
Sales have doubled during this 5-year engagement with:
- Limited headcount growth
- Reduced capital requirements