A focus on employee productivity

About the company

Company A supplies vehicle manufacturers with structural components and safety-critical parts. The firm supplies final products to light passenger vehicle manufacturers either directly or via the respective Tier 1 suppliers.

Result

Increase from 2.0 to 4.7 ratio improvement in value added levels per unit of employee cost

Executive summary

Ensuring enhanced productivity is crucial for the competitiveness development of the local automotive industry.

Challenges

While Company A’s overall competitiveness remains comparatively strong, the process benchmark found evidence that the firm needed to focus on manpower and productivity in order to improve performance.

How the benchmark helped

Benchmarking is closely linked to business excellence. For organisations to reach performance levels judged as “world-class” the various improvements methods are indicated clearly through the analysis of data as well as onsite assessment. The benchmark gave us a framework to focus on underlying challenges. Manpower was highlighted as a crucial aspect for the firm which had the potential of negatively impacting the firm’s growth path.

Results and future plans

The benchmark informed management’s intention and, accompanied with key interventions, Company A achieved improved value added levels per unit of employee cost, from a ratio of 2.0 to 4.7 over a three-year period.

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