Automotive Manufacturer Saved $780K Per Year And Reduced Parts Damage By 92% With GLSS
Michigan
Automotive
Operations
92%
- The problem: At a bustling automotive manufacturing plant in Troy, Michigan, a recurring issue was causing major disruptions: parts were getting damaged during handling and transport. Every day, about 12 parts were scrapped due to in-system damage. This not only drove up costs but also created unnecessary waste and frustration among employees.
- Determined to tackle the problem, the organization turned to GLSS’s Lean Six Sigma Green Belt Training & Certification for the knowledge and tools to implement a lasting solution. With the right approach and data-driven insights, the team was able to transform its process, dramatically reducing scrapped parts to 1 per day and saving the company $780K annually.
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Manufacturing high-quality automotive parts requires precision, efficiency, and minimal waste. When parts get damaged before they even reach assembly, it creates a ripple effect of problems:
- Skyrocketing Costs: At $3,000 in losses per day, the plant was bleeding money, totaling $780,000 annually in scrapped parts.
- Production Delays: Constant part rejections threw off production schedules, leading to inefficiencies and potential delivery delays.
- Team Frustration: Employees had to spend time dealing with damaged parts rather than focusing on producing quality products.
For any automotive manufacturer, reducing waste and improving processes isn’t just a nice-to-have—it’s essential for staying competitive. The leadership team knew they needed a structured, proven approach to solving this costly issue. That’s why they invested in GLSS Green Belt Training & Certification, equipping their team with the expertise to diagnose and fix the problem effectively.
Through GLSS’s structured problem-solving approach, the team dug deep into the issue and uncovered the root cause: Outdated Part Racks.
The plant was still using racks designed for an older vehicle model. These outdated racks didn’t properly secure the current parts, leading to movement and damage during transport.
This simple but critical mismatch was causing unnecessary damage and waste every single day. Once identified, the solution became clear.
With their GLSS Green Belt training, the team knew exactly how to approach the issue methodically. Their solution was straightforward but highly effective: Redesign and Modify Part Racks. The team adjusted the racks to properly fit the current part design, ensuring they held components securely without causing damage.
This change wasn’t expensive or complex, but it made all the difference in preventing parts from shifting, bumping, and getting damaged in transit.
The impact of this improvement was immediate and dramatic:
- 92% Reduction in Scrapped Parts: The number of damaged parts dropped from 12 per day to just 1, drastically reducing waste.
- $780,000 in Annual Savings: The plant went from losing $3,000 daily to keeping that money in the business, improving profitability.
- Smoother Production Flow: With fewer damaged parts, production ran more efficiently, keeping schedules on track.
- Boost in Employee Morale: Workers no longer had to deal with the frustration of preventable damage, making their jobs easier and more rewarding.
with GLSS
This success story is proof that small changes can lead to massive results when backed by structured problem-solving and expert training. The GLSS Green Belt Training & Certification program gave the team the skills, tools, and mindset to pinpoint the problem, implement a lasting solution, and drive significant improvements.
By taking a proactive approach to process improvement, the plant not only reduced waste and saved money but also positioned itself for long-term success. This project highlights how GLSS’s innovative instructional design and training content help teams get results faster—empowering them to tackle challenges head-on and continuously improve operations.
With the right knowledge and tools, this is just the beginning of what’s possible for the company’s future.
*We value our clients’ confidentiality. While we’ve changed their names, the results are real.
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