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Combating Technical Obsolescence

The U.S. based client is a four year old joint venture company formed by European and Far East auto parts manufacturers. The company manufactures auto parts for the U.S. Big Three and the Japanese transplants. Sales are in the $50 million range.

Product requirements are changing rapidly in response to downward price pressure and technical innovation. The company did not have a workable plan for dealing with changing market requirements and ran the risk of being designed out of all future automobile platforms.

We formed a team with key company managers. Working sessions were held to identify key issues in the following areas: new products, business development, cost, technology, quality, applications engineering, production, and customer service.

We jointly developed action plans to systematically address and resolve the key issues over a three year period. The resulting plan was used as a management guide. The plan also provided a means for improving communication with the joint venture partners and highlighted the potentially fatal obsolescence problem.

The most important result was a timely development of new product designs to assure the long term viability of the company. Secondary results were improved quality, productivity, and customer service.

Management recognized the need for a long range plan. Beta Consulting provided direction and structure to the process and served as the "devil's advocate" on key risk issues.








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