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Case Study

Operational Transformation for Sustainable Success

240362-01

How a High-Tech Company Significantly Increased Production Output and Competitiveness

A medium-sized high-tech company overcame key challenges by implementing operational transformation, cost reduction, and management structure change. Long-term success was achieved by increasing OTIF to 95%, increasing production output by 33%, and improving competitiveness.

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Company Details

  • Medium-sized high-tech company, part of a global group, specialising in high-precision motion and control systems for semiconductor production
  • Sector: Semiconductor and high tech
  • Main site in Germany
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Situation and Challenge

  • Challenged by inefficient processes and high proportion of temporary workers (>20%)
  • Low delivery reliability (On-Time In-Full, OTIF) of less than 65% and delivery bottlenecks jeopardise key customer relationships
  • Internal inefficiencies, high labour costs and a disrupted supply chain threaten long-term competitiveness
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Objective and Tasks

  • Increase production and significantly improve OTIF
  • Reduce labor costs by 10% and establish a stable management structure to ensure operational stability
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Measures and Procedures

  • Introduction of a new top-down management structure and reduction of micromanagement
  • Targeted reduction of labor costs by reducing the proportion of temporary workers and optimizing performance
  • Process standardization and technical improvements to increase efficiency
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Results and Successes

  • Improved OTIF rate to over 95% and increased production by 33% in 6 months
  • Successful implementation of an EBITDA recovery program in operations
  • Efficiency improvements through workforce adjustments and process standardization sustainably strengthened competitive position