Flex Ltd. (Automotive Division) · Manufacturing · Detroit, MI · 18 weeks
Quality data foundation built across 4 plants
A Tier 1 auto parts supplier faced high defect rates, 21 per 1,000 units, leading to $4.6M in annual warranty claims. Quality data was scattered across four plants, preventing clear visibility. We consolidated the data into a single system, enabling targeted quality improvements. This cut defects to 4 per 1,000 units and slashed most warranty claims.
Challenge
The supplier’s four plants tracked quality data in separate systems, each using its own defect classifications. Without a unified view, they couldn’t spot patterns or root causes across plants. With 21 defects per 1,000 units, warranty claims hit $4.6 million annually, putting their preferred supplier status with their biggest OEM customer at risk.
Outcome
We cut defect escapes from 21 to 4 per 1,000 units in six months by refining inspection processes and targeting failure modes. This drove warranty claims down from $4.6 million to $880,000 annually. As a result, our biggest OEM customer renewed their preferred supplier status, directly attributing the decision to the improved product quality.
Results
- $4.6M to $880K Annual warranty claims
- 21 to 4 per 1,000 units Defect escapes per 1,000 units
- 4 Plants on unified quality data
- 18 wks Foundation delivered
We were losing $4.6 million a year on warranty claims, and our biggest customer was close to dropping us as a preferred supplier. Thinklytics helped us find issues we hadn’t caught because they were happening across all four plants. After that, we brought the defect rate down from 21 to 4 per 1,000 units.