Robert Bosch, an automotive parts manufacturer, approached HTI in need of a motivated workforce and a desire to improve their operations. With over 1,400 employees and more than $600 million in annual revenue, it would be no small feat to meet their needs.
They asked HTI to manage their material flow from the docks in each facility to the manufacturing lines and back. In addition, they asked for a better warehousing solution than their existing one, based 20 miles out.
Since our project launch in early 2005, HTI has taken complete responsibility for Bosch’s in-plant and external warehouse functions. We provide labor and supervision that supports all of their various product groups, each of which has different needs and requirements including frequent support on strategic improvements.
We employ and manage over 100 employees dedicated to the Bosch operation. We track shipping accuracy, inventory accuracy, damage, pro- ductivity, employee turnover and continuous improvement among many other success factors.
- Decreased shipping errors by 80%
- Improved inventory accuracy above 98.5%
- Improved productivity while implementing a 5-S audit
- Saved $400,000 a year by relocating the warehouse
When I look back it is amazing what HTI has accomplished by applying the principles of lean to staffing/recruiting process.
-- Debbie Croft
Director of HR
ZF Axles is a well-regarded manu- facturer who assembles the front and rear axle for the BMW X3. However, when their Tier 1 supplier status and automotive sector competition drove up cost constraints, ZF was in trouble. They wanted to keep gaining business in a tough economic time, which would mean ramping up their work quickly.
They asked HTI to help them recruit, select and train a large hourly work- force, the kind of human-driven solu- tion that could prepare them for the kind of employee growth they would need to compete. Ultimately, they would need to outsource some of their roles in order to succeed.
HTI began the project by taking on the entire manufacturing and logis- tics operation at ZF Axles. We began recruiting, selecting and managing all of the floor personnel, and analyzed the need for new employees. Right away, we added six supervisors, a project manager, an HR manager, and 165 hourly employees.
We even minimized overtime by incorporating a unique “over-staff” plan that could cover absenteeism and other unplanned shortages. Our Full Flex workforce combined full- time regular HTI employees with contract temporaries to keep the overall labor rate low.
- The best launch ZF has ever had
- Successfully hit all expected project milestones
- Gained a particular expertise in axle manufacturing
- Saved ZF more than $1.5 million per year
I am convinced that we could not have done the job as well as HTI when I look at the total picture of hiring and execution. You guys did great.
-- Bernd Birnbaum
A 3PL was failing. A manufacturing company consolidated operations from two facilities into one. To make it all fit, they had outsourced their logistics and shipping operations with a local 3PL provider. In a short period of time, the 3PL couldn’t find material and was missing shipments to customers. They marketed speed and accuracy of shipping as a benefit, and they were not delivering.
They asked HTI to help establish a new warehouse and logistics operation close to their manufacturing facility that they would operate themselves.
HTI created a four month project timeline that included finding a new warehouse, designing/purchasing/ installing new storage and movement equipment, and training a new work force to do the job.
Slotting the material by product group and picking frequency helped minimize picking and put away times.
In less than a week, HTI helped move all the material from one warehouse to another, including coordinating the movement of the larger racking.
- First shipment went on time as promised to customers
- Customer had a showcase warehouse facility
- Past due shipments plummeted
- Delivery performance improved to levels never achieved by the 3PL
HTI’s experience gave us hope that the new warehouse project would succeed.
Bosch Thermotechnik GmbH is a leading international manufacturer of products for indoor climate control equipment. The facility in Londonderry, NH was approximately 6 weeks behind in shipping to their customers during their busiest heating and cooling season.
Other issues included SAP effectiveness, a lack of leadership, communication problems, and inventory inaccuracy.
HTI traveled to Londonderry and spent the first few days in the warehouse assessing the problems at hand and speaking with customer service representatives and the HR department.
There are two sides to Bosch’s shipping process: commercial and residential.
HTI implemented a plan to ship commercial 2 days a week and residential 2 days a week, which eliminated the backlog on a large commercial project. In addition, a wall to wall inventory of the warehouse was taken. A daily board meeting was implemented with department heads to facilitate better communication. In this meeting, problems were identified and corrective actions were put into place.
Daily shift meetings with warehouse employees were held. These meetings explained any new corrective actions, detailed shipping priority, and gave progress reports on shipping backlogs.
- Within two weeks, a 4 month backlog was shipping 2 days ahead of schedule
- Reduced call center customer complaints by almost 50%
- Tracked late shipments and took corrective actions
- Controlled loss of business with improved shipping
HTI transformed our shipping and receiving from a deficiency, into a strength.