Case Study – Product Line Transfer

Problem:

An existing large auto manufacturer customer comes to ISS because they have a troubled supplier. A decision is taken by this supplier to exit the supply relationship with a large Tier 1 automaker. The product portfolio being exited includes 150 critical driver interface switches and sub system actuators/motors/sensors. Exit time frame declared by incumbent supplier is four months and many of the part numbers were in a back-order situation from the incumbent supplier.

Challenges:

  • Undertake a smooth transition that ensures ‘continuity of supply’ and rapidly solve the back-order issue
  • Maintain current global sub supplier base
  • Location and number of sub suppliers
  • No change to the manufacturing process
  • No change in design or sub components
  • Residual stock levels at incumbent Supplier distribution center
  • Sub supplier willingness to support

ISS Solution:

  • ISS comprehensively reviewed of all incumbent Supplier’s supply chain
  • ISS undertook design and process verification of each sub supplier and mentored the supplier where necessary to ensure an appropriately high level of quality
  • ISS engaged with the Customer and incumbent supplier to establish ‘Critical Parts’
  • ISS prepared quotation proposal and secured business package in six weeks
  • ISS lead joint weekly project team meetings established with end Customer and clearly defined objectives/responsibilities set
  • ISS developed custom test fixtures for each part using it’s proprietary SMART Cart flexible manufacturing and testing process.
  • ISS initiated its standard Business Operating Procedure for ‘Line Transitions’

Result:

ISS smoothly and effectively transitioned the product portfolio, solved the backorder issue and is now supplying these components to our Customer on an ongoing basis. ISS received several commendations from this customer due to the success of this transition.