90-Day OTD Turnaround — 58% to 97% with 516-Piece Backlog Eliminated
A Tier 1 heavy truck wheel manufacturer was at 58% OTD with customers threatening to pull business. A 516-piece backlog for a major OEM was growing daily. In 90 days, we drove OTD to 97%, eliminated the backlog, and generated $2.6M+ in savings.
The Challenge
The plant machined diesel wheels for all major heavy truck manufacturers. OTD had collapsed to 58% — and multiple customers were threatening to change suppliers. A 516-piece past-due backlog for a major OEM was growing daily, with chroming supplier failures at the root of the crisis.
The facility operated 7 machine lines and 3 polish lines with $7.3M in inventory. The operation produced diesel wheels for major heavy truck OEMs including their aftermarket parts — a high-margin segment being jeopardized.
OTD had collapsed to 58% — a crisis level. Multiple major customers were threatening to change suppliers if deliveries did not improve immediately.
A 516-piece past-due backlog for a major OEM was the most visible symptom, but the root cause was systemic: chroming supplier failures, scheduling chaos, and materials planning breakdowns for both internal and outsourced operations.
Previous management had leased a secondary warehouse to store overproduction — a classic symptom of manufacturing without regard to actual customer demand. The excess inventory masked the real scheduling problems.
No barcode system existed. Cycle count metrics were unreliable. Reporting accuracy was compromised across the operation.
Our Approach
We established a war room in the first week, then attacked the crisis on multiple fronts simultaneously — supplier development, scheduling realignment, SMED, packaging redesign, and direct customer collaboration.
Phase 1: War Room & Root Cause Identification (Week 1)
Built a war room with whiteboards defining every shortage and the reason behind it. Met with the chroming supplier to understand their process constraints and timing structures. Identified that the core problem was not capacity — it was the interface between our scheduling, our packaging, and the supplier's process capabilities.
Phase 2: Supplier Development & Scheduling Realignment (Weeks 2-4)
Realigned scheduling with the chroming supplier. Sent a CI engineer and quality representative to the supplier to identify bottlenecks and how our processes were contributing to them. Redefined supplier quality standards — worked with quality to determine if criteria were too stringent. Conducted 2 kaizen events at the supplier to improve their material flow and our wheel processing.
Phase 3: Packaging & Freight Redesign (Months 2-3)
Changed packaging for material sent to the chroming supplier to ease handling without jeopardizing quality. Evaluated return packaging to prevent wheel damage. Worked with customers on direct shipment from the chroming supplier to reduce freight damage — customers used their own freight, eliminating our double-shipment cost. Implemented SMED to reduce changeover and 2 robot cells for longer-term throughput gains.
Phase 4: Inventory Rationalization & Stabilization (Months 4-12)
Stopped overproducing — implemented mixed model sequencing based on actual customer demand. Eliminated the leased secondary warehouse by stabilizing production scheduling. Had sales negotiate with customers to take finished goods that had been sitting, and negotiated sales of aftermarket inventory that had accumulated for years. Implemented barcode systems and cycle count metrics cross-functionally.
Results & Impact
OTD surged from 58% to 97% in 90 days. The 516-piece backlog was eliminated. The leased warehouse was closed. Total annual savings exceeded $2.6M across DC closure, freight reduction, inventory optimization, and the elimination of chronic overproduction.
39-point improvement in 90 days through supplier development, scheduling, and process redesign
Major OEM backlog eliminated through overtime, SMED, robot cell implementation, and supplier shift additions
Secondary warehouse eliminated once overproduction was stopped and scheduling stabilized
Carrier sourcing optimization plus direct-ship from supplier to customer
Additional Outcomes
“We were 90 days away from losing our biggest customers. The war room went up on day one, and within 3 months our OTD went from 58% to 97%. The chroming supplier added a shift because he understood our situation — that kind of collaboration does not happen without someone who knows how to build real supplier relationships.”
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