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The context:
An operational impasse. A tier-one supplier specialising in propulsion systems faces an unprecedented challenge: double its production rate to fulfil a government order for a sovereign defence programme. But the operational picture is alarming. Lead times for critical metals, including titanium and specialist alloys, have tripled, while energy costs threaten to push the contract into the red. Internally, teams are exhausted by constant crisis management, leaving little room to anticipate what comes next.
La Boussole's diagnosis:
The iceberg of hidden costs. Our immersion reveals that the company manages performance through component purchase prices, overlooking Total Cost of Ownership (TCO). We identify:
- 85% dependence on a single supplier located in a region of geopolitical tension.
- A 7% defect rate caused by reactive rather than preventive maintenance on production lines.
- A skills gap among middle managers in managing complex flows.
The solution: a Lean and strategic response. La Boussole deploys a three-part action plan:
- Designing for resilience: support Procurement in dual sourcing critical components and introduce price indexation linked to raw material markets to protect margins.
- Operational excellence: deploy Lean Six Sigma on bottleneck production lines. Introduce visual management routines that enable operators to take ownership of waste reduction.
- Action-based training: train managers in value-based performance management, helping them connect every minute of machine downtime with its impact on programme EBITDA.
The outcome:
Tangible results. Within 12 months, the supplier achieved its production ramp-up without any line stoppages. On-time, in-full delivery (OTIF) rose from 72% to 96%. The programme's operating margin was protected, with a 22% reduction in the cost of poor quality.
