MRO Tracking and WIP Audits for Automotive Manufacturer
Comprehensive maintenance, repair, and operations inventory management combined with work-in-progress tracking for a leading automotive manufacturer across multiple production facilities.
The Challenge
A leading automotive manufacturer with eight production facilities across North America faced significant challenges in managing their maintenance, repair, and operations (MRO) inventory alongside tracking work-in-progress (WIP) materials throughout the assembly process.
Inventory Discrepancies
MRO inventory records showed 35% variance from physical counts, leading to production delays and emergency procurement at premium costs.
WIP Visibility Gaps
Limited visibility into work-in-progress materials resulted in production bottlenecks, quality issues, and difficulty tracking component traceability for recalls.
Compliance Requirements
ISO/TS 16949 automotive quality standards and customer-specific requirements demanded accurate tracking and documentation of all materials and components.
Excess Inventory Costs
Over $28 million in excess MRO inventory tied up working capital, while obsolete parts occupied valuable warehouse space across facilities.
Our Solution
A comprehensive dual-track approach combining MRO inventory optimization with real-time WIP tracking across all manufacturing facilities.
MRO Inventory Management
- Complete physical verification of 185,000+ MRO items across 8 facilities
- RFID tagging implementation for high-value tools and equipment ($5,000+)
- Barcode labeling system for consumables and replacement parts
- Min-max inventory level optimization based on usage patterns
- Obsolete and slow-moving inventory identification and disposition
WIP Tracking System
- Real-time tracking of components through 47 production stages
- Automated data collection at key control points using barcode scanners
- Integration with ERP system for seamless inventory valuation
- Lot and serial number traceability for quality and recall management
- Cycle counting program for continuous WIP accuracy verification
Implementation Approach
Measurable Results
Significant improvements in inventory accuracy, production efficiency, and cost reduction across all facilities.
Operational Improvements
- Production Efficiency27% reduction in production delays due to parts availability
- Emergency Procurement68% decrease in rush orders and expedited shipping costs
- Tool UtilizationRFID tracking increased high-value tool utilization by 34%
- Cycle Count EfficiencyAutomated WIP tracking reduced cycle count time by 56%
Quality & Compliance
- Traceability100% component traceability achieved for recall management
- ISO/TS 16949 ComplianceFull compliance achieved across all facilities with zero findings
- Quality Incidents38% reduction in quality issues related to incorrect parts usage
- Audit ReadinessReal-time reporting capabilities for customer and regulatory audits
"CPCON's comprehensive approach to MRO and WIP tracking has transformed our operations. We now have complete visibility into our inventory and production processes, resulting in significant cost savings and improved efficiency across all our facilities."
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