The company aimed to reduce the working hours devoted to one particular type of bus from an average of 1,250 to 750, as well as achieving a 1% cut in the cost of materials (only related to engineering solutions), which represented 70% of the cost of the product. There was one dedicated assembly line for this type of bus.
The team took an approach based on five work streams: 1) Assembly line balancing; 2) A review of the QA process; 3) Logistics and material planning; 4) Design for Manufacturing; 5) Organizational development. A plan was drawn up to implement the changes over a 26-week period.
The programme successfully delivered against targets:
- 30% reduction in direct labour;
- > 1% reduction in COGS;
- 1.63% increase in EBIT;
- Total project ROI 2.08:1
reduction in direct labour
reduction in COGS
increase in EBIT