Addressing the Root Causes of Quality Issues

A tier-one automotive supplier was grappling with significant quality challenges with their highest-revenue customer. With an overall scrap rate of 5.5%, As quality defects mounted, the supplier faced increasing pressure to address the root causes of the problem, as failure to do so risked damaging their reputation, incurring further financial losses, and potentially losing future business opportunities with this high-profile client.

To tackle these challenges, the HPS team conducted a comprehensive, structured, and data-driven analysis of the manufacturing cell. Leveraging detailed production data, HPS pinpointed inefficiencies and identified the top three most frequent scrap codes. These key contributors to waste and defects were prioritized for targeted improvements, ensuring that corrective actions were both impactful and aligned with the overall operational goals.

The HPS team standardized definitions of “good” versus “bad” quality to eliminate ambiguity and ensure alignment across all stakeholders. We revised and enhanced troubleshooting guides, providing operators and technicians with clear, actionable steps to address recurring issues. Cross-functional training sessions were conducted to reinforce the updated standards and processes, fostering a culture of accountability and precision.

30% reduction to scrap
$132,000 of annualized scrap savings