Improving the experience of a world in motion
Disciplined approach toward underperforming plants
2018 challenges and improvement by 2019 – Clanton, AL (SS&M)
ADIENT
Q1 FY18
Issue
Launch challenges associated
with large domestic SUV (2nd/
3rd row rear seat structures only)
Low machine utilization, poor
FTT, high premium freight, poor
quality, additional warehouse,
etc.
Added support personnel:
quality professionals, weld
technicians, internal and
external containment, additional
Clanton team members
> Platform Loss per vehicle of
($1,900)
~ $(24) M
Q2 FY18
Actions taken
Improved production stability
>
Focused labor efficiency
improvements
New operations manager hired
Implemented material review
board (scrap reduction initiative)
Results
Labor costs improved by 16%
from Q1
Premium freight reduced by
61% from Q1
>
Q3 FY18
Actions taken
New plant manager hired
Reduction of contract direct,
indirect and salary labor, incl.
premium overtime
Numerous Kaizen events
conducted to improve weld
health (FTT)
Improved daily production,
material buffers optimized
Initiated commercial discussions
Results
Labor costs improved by 21%
from Q2
Premium freight reduced by
93% from Q2
Clanton Adjusted EBITDA
Q4 FY18
Actions taken
Executed successful
commercial actions (fixed
pricing and addressed material
economics/tariffs)
Implemented required changes
for Q4 volume increases
Continued efficiency and
welding FTT improvement
Results
Decrease in premium freight
($1.1M run rate reduction from
Q1)
Reduced customer containment
Assembly line MU improved
from 42% (Q1) to 75%
Fiscal 2019
> Plant (excluding future
program launch costs)
and program now
operating "in the
black"
> Continued
improvement resulting
in improved profit per
vehicle
> Scrap reduced by
81% from Q1 FY18
> A combination of
successful operational
and commercial
actions resulted in
profitability
Profitable
(excl. launch costs)
22
Adient - Improving the experience of a world in motion
-View entire presentation