| Delphi Automotive
Systems contacted The Productivity Team (TPT)
to perform a cost reduction study at one of
their supplier plants in an effort to reduce
overall cost.
The scope of the project was to study supplier
plants and identify manpower reductions.
A team of experienced industrial engineers
was sent to each plant to perform direct
labor time studies and provide recommendations
for improvements. The time studies were
broken down by value added, non-value added
essential and non-value added work to identify
waste in the system.
The indirect (both skilled and unskilled)
studies consisted of work samplings which
identified the opportunities for labor reductions.
These studies led to a cost savings in excess
of $380,000.00 which represented a 500%
return on investment the first year. The
cost reductions are documented and validated.
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