For a German automotive manufacturer, Leadec developed an optimization of the cylinder block plasma line in 2020. Within half a year, the customer produced a total of 5269 parts that did not meet the specified quality standard. This equals a material value of the blocked stock of about 600 thousand to one million euros. These losses are caused primarily by the phenomenon of the rule of ten. The rule states that the cost of an undetected defect increases by a factor of ten from one production stage to the next. So, the earlier a defect is discovered, the more cost-effective it is for the organization.
Plant manager: “We don’t need data, we need decisions.”
After implementing the system developed by Leadec, the company was able to recover 20% (120–200 thousand euros) of material value of the blocked stock.
This was possible primarily through tighter quality control cycles, which enable potential savings in production and minimize the risk of quality problems in downstream production steps and value-added stages. Based on the data collected by the Leadec system, direct decisions can be derived automatically and/or manually, such as predictive maintenance, NOK handling of components or guided rework.