Entering the future of operations to reduce cost
Automotive, Operations management

A tier-1 automotive supplier identified new Industry 4.0 and digital technologies and their applications to take its operations performance and cost efficiency to the next level


Challenge

Blurred view of global technology trends


As a global production company, our client has to follow the global trends in production, as well as the new technologies of industry 4.0, and take these into consideration when planning future value creation.

After considering the multitude of new technologies, the management team decided to define its effects on the operations systematically and create an overall objective for future operations.

Approach

Clear vision and roadmap


Technology and market drivers of future operations were identified, and the impact of every technology was investigated. In the first phase, technology applications were developed describing use cases with expected market maturity until 2022.

Together with leading global manufacturing sites and the centers of excellence for the individual production processes, a vision for 2022 for all relevant aspects of manufacturing and logistics was developed.

The necessary implementation steps were integrated as a “transformation roadmap”, and the required internal and external (through suppliers and partners) competencies were defined.

 

For the external competencies, leading technology companies were benchmarked in detail and appropriate strategic alliances were identified.

The internal competencies were covered with a financial analysis of the potential of the technology applications and a review of 20 technology pilots in a joint exercise with the board of directors of the production divisions.

These pilots assisted in the acquisition of new competencies and reflected transformation success.

Value

Entering the future of operations


Based merely on the technology pilots, potentials with values of 90 m EUR were identified. Arthur D. Little is still supporting the client with the transformation of the production to the “Future of Operations” phase, including implementation of the technology pilots and the discussions with potential strategic partners.

20 technology pilots with 90 m EUR saving potential