Digital Solution Accelerates Automaker’s Process Agility

Digital Solution Accelerates Automaker’s Process Agility

Snapshot Insights

Snapshot Insights

When it comes to manufacturing automobiles, few things are more critical than ensuring the production line has the right parts at the right time. However, managing parts shortages has proven a stubborn problem, even for the largest and most sophisticated automakers.

The automaker had long used a largely manual parts shortage management (PSM) process to aid its shop floor team leaders and plant managers in ensuring their production line operated with minimal or zero stoppages resulting from the shortage of parts. A lack of real-time visibility into parts shortages, coupled with multiple manual process checkpoints and redundant information, made it difficult for staff to order the parts on time

Cognizant developed a strategy to rollout the company’s largest global digital platform to improve part-ordering agility, provide accountability for operations and drive meaningful insights to support decision making. The analytics-backed digital parts platform features a mobile-based app for team leaders and a desktop application for parts-ordering specialists to provide real-time visibility into parts shortages and agility necessary to respond and prevent line disruptions.

The automaker has enjoyed significant improvements from its deployment of the digital PSM solution, including: 

  • Plant-floor parts shortages dropped by 50%. 
  • A 100% reduction in the number of shortage parts ordered. 
  • A 30% drop in parts shortages at the part-ordering center. 
  • With new access to digital information, key decision makers are able to develop operational intelligence to be leveraged in decision-making. 
  • The overall cost savings after the first phase launch was close to $2,000,000. 

The automaker has plans to use this project to springboard future digital factory initiatives, leading to ever greater agility, efficiency and resilience to business disruptions.