Boosting Profitability in Automotive Operations
Discover how automotive suppliers can improve profitability by achieving operational excellence and applying structured lean production techniques. Our latest strategy paper reveals how to unlock value, cut waste and strengthen performance across the entire value chain.
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Why Operational Excellence is Critical for Automotive Suppliers
In a landscape shaped by rising costs, supply chain disruptions and shrinking margins, operational excellence is not a competitive edge — it's a survival factor. The ability to run efficient and resilient operations directly impacts profitability and long-term success.
Five Operational Levers to Improve Profitability
H&Z’s strategy paper offers a practical roadmap for automotive suppliers to improve profitability through five proven levers:
1. Boosting Productivity through Lean Production
Identify inefficiencies and apply lean production methods and structured labour analysis to improve throughput and shopfloor performance.
2. Reducing Quality Costs
Cut down on rework and defects with our four-level quality control loop, which enhances trust and strengthens delivery reliability by managing quality costs effectively.
3. Managing Inventory & Lead Time
Drive inventory management efficiency and reduce lead time through advanced analytics and planning tools that optimise working capital and responsiveness.
4. Optimising Layout & Floor Space
Free up space and enhance flow efficiency with smart, data-driven layout redesigns — unlocking capacity and reducing friction in operations.
5. Maximising Equipment Efficiency and OEE
Increase equipment efficiency and improve Overall Equipment Effectiveness (OEE), driving down unit costs without requiring additional capital investment.
Diagnostics with OPE & Process Mining
At the heart of our methodology is the Operations Performance Evaluation (OPE), supported by process mining. This approach allows for fast, structured diagnostics and the development of a cost-out roadmap that delivers both immediate and sustainable results.
This is not about cutting costs for the sake of it. It’s about building a high-performance operations system that’s ready for the challenges ahead. By activating these five levers, suppliers can improve profitability, build resilience, and thrive in a complex automotive landscape.
Download Now
Download the full strategy paper now to explore how your operations can deliver measurable performance and profitability gains.
Contact our Experts
Looking to improve your profitability through operations? Contact our experts for a tailored diagnostic and implementation roadmap.
Albert Neumann
Sandra Stoll
Michael Tines
Explore the Bigger Picture
For a broader perspective on profitability levers beyond operations, check out our comprehensive Supplier Profitability Study — covering pricing, strategy, and digital transformation.
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