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IND-AUT-001
IND-AUT-001
Automotive and Engineering
Tier suppliers and engineering firms operating under customer price-down pressure, programme volatility and tight quality norms.
Typical business challenges
- Annual price-downs from OEM customers
- Commodity pass-through with time lag
- Warranty and quality costs
- Tooling investments recovered slowly
Relevant financial indicators
- Material cost and pass-through lag
- Cost of poor quality as % of sales
- Warranty cost per unit
- OEE on bottleneck lines
- Tooling recovery
Common operational bottlenecks
- Changeover time on shared lines
- Supplier quality escapes
- Premium freight for late deliveries
- Overtime to absorb schedule changes
Example improvement opportunities
- COPQ reduction (DMAIC)
- SMED changeover reduction
- Commodity index-linked pricing clauses
- Premium freight elimination
Examples only. Whether they apply to your business depends on your data.
Applicable supporting schedules
In addition to the Balance Sheet, P&L and Cash Flow Statement| Template | Name | What it shows |
|---|---|---|
| SCH-MAT-004 | Bill of materials — standard vs actual | — |
| SCH-OPS-002 | Overall equipment effectiveness (OEE) | — |
| SCH-OPS-004 | Rejection and rework | — |
| SCH-OPS-007 | Cost of poor quality (COPQ) | — |
| SCH-AUT-001 | Warranty costs | — |
| SCH-AUT-002 | Tooling and dies | — |
Request a automotive and engineering assessment
We will confirm which schedules apply before you upload anything.
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