German engineering company AuE Kassel asked us to help them find ways to cut costs and boost efficiency. The changes introduced in just five months will save €1m a year. The business helps leading carmakers including VW, Audi and GM to produce new axles for their new model ranges. We saw that AuE Kassel's different functions weren't working closely enough together throughout these projects. Instead, they'd complete their own part of the work and hand over to other teams with minimal communication. We recommended that the various teams responsible for sales, mechanical, electrical and software aspects of manufacturing as well as installation 'synchronise' from the start. That allows them to anticipate issues and find opportunities to be more efficient.
We also saw the company was approaching almost all projects from scratch rather than developing standard practices. With manufacturers choosing their suppliers with increasingly short lead times before projects start, it pays to have standard processes and a 'library' of components ready to use straightaway. Our team also encouraged the company to procure materials and components further ahead to drive down costs but still avoid building up large inventories. We're helping the engineering team keep their standard modules up to date, compare suppliers and negotiate.
These changes help AuE Kassel be more agile on a bigger scale, with a group-wide strategic procurement function. With automotive brands consolidating and centralising production that will put them in a good position to speed-up project delivery and to stay in demand as a supplier into the future. And the company says the gains from the project will cover the cost inside half a year.
"PA has helped us make sure we successfully carry out our own projects, and those we do for clients, with smarter processes and better teamwork in future. We covered the cost of the work by PA within six months through the savings we made in material costs as a result. Their team was very professional, collaborative, flexible and sensitive to our challenges.”
AuE Kassel GmbH
AuE Kassel is in a good position to speed-up project delivery and stay in demand as a supplier into the future thanks to @PA_Consulting