Chief Operating Officer (joint venture)
A major automotive manufacturer asks QMT to incorporate an interim manager as Chief Operating Officer of a Joint Venture. This produces important components for one of the most successful models.
Sales of one of the manufacturer’s models are growing faster than expected. As a result, delivery times are breached and parts have a high defect rate. Although a firewall has been created defect parts are delivered to the production line, which creates big problems. Additionally, hourly production is below 60% of theoretical capacity. This situation has repeatedly lead to the shutdown of the production line, as well as significant losses.
To overcome the situation, the plant manager of the component manufacturer proposes to invest EUR 15 million to improve the production capacity. The shareholder refuses the proposal and offers to acquire the entire company. Finally, it is decided to hire an interim manager as Chief Operating Officer to design and implement an action plan.
QMT incorporates an interim manager as Chief Operating Officer for a period of 6 months with the aim of reorganizing the plant.
Results after 6 months
The Chief Operating Officer achieves widespread improvements in all target areas, the most prominent being:
- Reduction of defective parts according to the PPM QualityIndicator (part by million defects).
- Removing the firewall.
- Scrupulous compliance with delivery times.
- Increased productivity over the months, accompanying increased sales and reaching 108% of theoretical capacity.
- The plant starts to have a profit.