OPEXA
Case study · 2024

Cutting PPM defects by 62% to recover OEM Tier-1 status.

OEM SLA breach was 14 days from triggering Tier-2 demotion. We rebuilt quality system from incoming inspection to final dispatch in 11 weeks.

Cutting PPM defects by 62% to recover OEM Tier-1 status.

62%

PPM defect reduction

Tier-1

OEM status retained

94%

On-time delivery achieved

11 wks

Engagement duration

Challenge

The starting condition.

OEM customer threatened Tier-2 demotion within 14 days of engagement start. PPM defect rate had climbed to 1,840 against a 600 SLA. Loss of Tier-1 status would have removed 67% of revenue and forced workforce restructuring.


Approach

What we did,
in order.

  1. 01

    Quality system audit: 4 days, complete root-cause documentation against 8D framework.

  2. 02

    Incoming inspection rebuild with statistical sampling and supplier scorecards.

  3. 03

    In-process quality controls deployed at six critical workstations.

  4. 04

    Operator certification program for visual + dimensional checks.

  5. 05

    Final dispatch inspection redesigned with poka-yoke fixtures.


Results

What was sustained,
at month twelve.

  • PPM cut from 1,840 to 690 in 11 weeks — under SLA threshold
  • Tier-1 OEM status retained, contract extended for additional 24 months
  • 94% on-time delivery achieved (from 78% baseline)
  • Quality function reorganized with 4 internal black belts trained
  • Customer audit score: A from B-minus pre-engagement
In their words

OPEXA's team lived inside our quality function for eleven weeks. They didn't write reports — they fixed problems and trained our people to keep them fixed.

Plant Manager · Tier-1 automotive supplier
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