Implementation of an Operating System at a Component Manufacturer

Initial situation

A world-leading component manufacturer with approximately 4,000 employees at more than ten locations manufactured the majority of its products in customer-specific variants. Order lead times exceeded three months, leading to high indirect costs and rising inventory levels. At the same time, market demand was noticeably declining while cost pressure increased. In parallel, customer requirements were changing: there was a demand for significantly shorter delivery times and higher operational flexibility.

What we implemented

Establishing an Integrated Operating System

An integrated operating system was developed and introduced together with management and operational teams. This is based on clearly defined maturity levels – ranging from stable standard processes and lean structures to digital advancement. The operating system anchored regular reviews, clear KPIs, and structured improvement cycles within the organization. This enabled executives and teams to manage performance, progress, and priorities transparently.

Definition and Implementation of Future-State Roadmaps

Based on a comprehensive analysis of value streams, concrete future state roadmaps were developed for each location. These defined clear targets for processes, productivity and throughput times. Implementation took place step by step via prioritised initiatives on site, supported by rapid pilot projects, visible progress and clear responsibilities.

Further Development of the Production Footprint

In parallel, the production footprint was reviewed and adapted to future market requirements. Product lines were strategically relocated between sites to better utilize capacities and align the production structure more efficiently. This resulted in a production network that is significantly better prepared for future demand developments.

Result

Through the introduction of the operating system and the targeted development of the production network, lead times were significantly reduced and productivity was markedly increased. At the same time, a common operational language was established, helping executives manage and continuously develop performance across locations. This also applied henceforth to investment requests, which were systematically categorized and prioritized, leading in turn to more targeted and overall reduced expenditures.