Start-up & plant construction, Automotive, Mexico

Start-up in an emerging market

When mid-sized companies set up subsidiaries abroad, the complexity is often underestimated. Mexico attracts with low labour costs and proximity to the US market – at significantly lower efficiency and productivity. WOLF led the start-up on schedule to ramp-up.

Client: Automotive supplier
Industry: Automotive
Location: Mexico
Duration: 18 months
Services: Plant construction, Ramp-up management, Interim management

Project brief

Starting point: Start-up problems: infrastructure, raw materials, suppliers
Methods: Strategic & lean management, KAIZEN, 5S, value stream analysis
Stakeholders: Owner, management and entire workforce
Result: SOP on time, scrap ≤ 2.5 %

Measurable. Traceable.

18months
from project start to stable ramp-up: ≤2.5%
scrap rate after ramp-up

SOP on time. Start of production on the planned date – despite initial problems with infrastructure, raw materials and suppliers.

From the starting point to the result.

Challenge

Other countries, other dynamics: infrastructure, raw material supply and suppliers were not reliable at the start. Theoretical assumptions from the planning quickly ended in six-figure additional costs on site.

Patchy infrastructure and supplier base
Lower efficiency and productivity than planned
No neutral country expert in the concept phase

Approach

WOLF took over operational project leadership on site: project plan with critical path, strategic and lean management, KAIZEN and 5S in all areas, value stream analysis to stabilise processes – together with the owner, management and the entire workforce.

GANTT plan with critical path instead of lists in someone's head
Supplier and infrastructure build-up in parallel with production
KAIZEN and 5S as the team's daily routine

Result

Start of production was reached on schedule and the scrap rate reduced to a maximum of 2.5 %. The organisational structure and processes have carried the site independently ever since.

SOP on time
Scrap ≤ 2.5 %
Stable organisation and processes

The path to the result.

18 months

Month 0–3
Analysis & project plan
As-is assessment, critical path, budget reality check.
Month 3–9
Infrastructure & suppliers
Building reliable supply and processes.
Month 9–14
Lean roll-out
KAIZEN, 5S and value stream analysis in all areas.
Month 14–18
Ramp-up & SOP
Ramp-up to start of production on schedule.

Month 0–3
Analysis & project plan
As-is assessment, critical path, budget reality check.
Month 3–9
Infrastructure & suppliers
Building reliable supply and processes.
Month 9–14
Lean roll-out
KAIZEN, 5S and value stream analysis in all areas.
Month 14–18
Ramp-up & SOP
Ramp-up to start of production on schedule.

Guides

Other countries, other customs: why projects abroad are underestimated

Low labour costs and market proximity are tempting. What adds up on paper often ends in six-figure extra costs on site. The cause is almost always planning.

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