Automotive Manufacturer Reduces Cost of Poor Quality by 40%, Saving $650K Annually and Retaining Critical Production

Situation

A contract manufacturer in the automotive industry was facing an escalating Cost of Poor Quality (COPQ). Scrap, rework, and inefficient processes were so severe that leadership considered moving production to another facility. The site, once an award-winning plant, had deteriorated into what looked like three independent factories under one roof. To ship one good assembly, the team often had to build two.

Actions

MetaExpert Kurt was engaged part-time over a 4-month project to stabilize operations and reduce quality costs. He:

  • Met with leadership to align goals and timelines for COPQ reduction.

  • Worked with line managers, engineers, and operators to understand manufacturing and testing processes.

  • Mapped core manufacturing workflows to analyze material, tool, and information flows.

  • Conducted data-driven COPQ analysis to pinpoint where defects originated and how they were being addressed.

  • Prioritized projects using root cause analysis, Lean, and Six Sigma problem-solving techniques.

  • Created cross-functional teams to implement corrective actions in real time.

  • Introduced a continuous improvement cadence, where actions were tracked, reprioritized, and sustained.

Results

The engagement produced measurable operational and financial outcomes:

  • COPQ reduced by 40%, translating to $650,000 in annual savings.

  • Personnel were reorganized into functional, cross-supporting teams across the three shops.

  • New automation and technology upgrades were justified, approved, and procured to improve throughput and quality.

  • The facility retained its production lines instead of losing them to another plant, and actually attracted additional work from within the company.

Return on Investment

  • $650,000 in annualized savings through reduced scrap and rework.

  • Production stabilization ensured future revenue retention and growth by keeping work in-house.

  • Workforce development and problem-solving skills enhanced ongoing performance, ensuring sustainability beyond the engagement.

Reduced COPQ by 40%, saving $650,000 annually and securing new production work.

Conclusion

By combining data analytics, Lean Six Sigma methods, and coaching, MetaExpert Kurt helped the factory reverse declining quality, rebuild its reputation, and strengthen its future pipeline. The project proved that structured problem-solving, coupled with leadership engagement, can transform operations and deliver substantial cost savings.

Project Details

  • Industry: Automotive / Contract Manufacturing

  • Duration: 4 months, part-time

  • Key Skills: Process mapping, data analysis, Lean & Six Sigma, root cause analysis, team facilitation, coaching