High recourse claims, little time, increasing pressure:
A cycle-based assembly system for commercial vehicle axle production failed to achieve both the required cycle time and the planned output after start-up. Additional staff were deployed – and costs skyrocketed. The system supplier was expected to pay.
Our approach:
➡️ MTM-UAS® process evaluation
➡️ Review of planning assumptions
➡️ Clear and consistent method descriptions
➡️ Ensuring correct work methods (SOIs)
➡️ Definition of the required corrective measures
➡️ Mediation before the arbitration board
Safeguard performance – minimize recourse risk
Initial Situation
The design of the cycle-based assembly system for commercial vehicle axle production was based on empirical data, standard times, and agreed planning assumptions. After start-up, the cycle time required by the OEM was not achieved, meaning that the planned output volumes could not be met. As a countermeasure, additional staffing capacity was deployed to increase output. The resulting additional costs and penalties from contractual fines were to be charged to the system supplier.
Solution
Process evaluation using MTM-UAS® and review of the planning assumptions. Deviations from the planned process parameters were identified (work methods, tools/fixtures, material supply, etc.). It quickly became clear that operations were not being carried out according to the defined target process. Development of clear method descriptions and work instructions, and ensuring the correct execution of work methods (SOIs).
Results
- Performance capability verified and legally robust documentation prepared.
- Claims for damages (approx. EUR 250,000) successfully avoided.
Interested in how your company can benefit from MTM?
Contact: ralf.jaehnke@mtm.org