{"id":2571,"date":"2010-06-10T04:29:55","date_gmt":"2010-06-10T11:29:55","guid":{"rendered":"https:\/\/staging.opexlearning.com\/resources\/?p=2571"},"modified":"2014-10-08T15:38:05","modified_gmt":"2014-10-08T20:38:05","slug":"case-study-improving-the-automotive-aftermarket","status":"publish","type":"post","link":"https:\/\/staging.opexlearning.com\/resources\/case-study-improving-the-automotive-aftermarket\/2571\/","title":{"rendered":"Lean Manufacturing in Automotive Industry for Aftermarket Parts"},"content":{"rendered":"<div class=\"a296a24fa2fc69ef5487857f02f111e8\" data-index=\"9\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- Single Post readerboard -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:inline-block;width:728px;height:90px\"\r\n     data-ad-client=\"ca-pub-8207522353004717\"\r\n     data-ad-slot=\"1144967431\"><\/ins>\r\n<script>\r\n(adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>This article shows a case study of how Kohlberg, Kravis, Roberts &amp; Co. (KKR) was able to create value in one of their portfolio companies through the implementation of Lean Thinking in the enterprise.<\/p>\n<p><a title=\"using lean in private equity\" href=\"https:\/\/staging.opexlearning.com\/resources\/role-of-lean-thinking-in-private-equity\/2593\/\">Lean in Private Equity is not new<\/a>. There are several example where <a title=\"use lean to renew the company\" href=\"https:\/\/staging.opexlearning.com\/resources\/corporate-renewal-waste-and-corporate-turnaround\/2487\/\">lean was used to stimulate corporate renewal<\/a>, such as using <a title=\"use lean to improve medical devices\" href=\"https:\/\/staging.opexlearning.com\/resources\/case-study-improving-a-medical-device-manufacturer\/2581\/\">lean to improve a medical device manufacturer<\/a>, or using <a title=\"lean to improve mattress manufacturer sealy\" href=\"https:\/\/staging.opexlearning.com\/resources\/case-study-improving-sealy-matress-and-bedding-products\/2576\/\">lean to improve the buyout of Sealy Mattresses<\/a>, or using <a title=\"improve automotive aftermarket with lean manufacturing\" href=\"https:\/\/staging.opexlearning.com\/resources\/case-study-improving-the-automotive-aftermarket\/2571\/\">lean manufacturing to improve the automotive aftermaket<\/a>.<\/p>\n<p>In 2005, Kohlberg, Kravis, Roberts &amp; Co. (KKR) acquired ATU, an automotive aftermarket company in Germany.\u00a0 ATU was acquired for 27.2 Billion Euros.\u00a0 At the time, ATU had 536 stores. By partnering closely with ATU management, KKR and Capstone (their operational improvement in-house consultancy) achieved the following <sup class='footnote'><a href='#fn-2571-1' id='fnref-2571-1' onclick='return fdfootnote_show(2571)'>1<\/a><\/sup>:<\/p>\n<ol>\n<li>Reduced the number of suppliers from 800, bought more from each, increased margins through volume and quantity discounts<\/li>\n<li>Streamlined product portfolio of 15,000 parts and 45,000 deliverable within 24 hours.\u00a0 Part of this was eliminating unprofitable products taking up valuable space on the shelf and in the warehouses, reducing inventory by 20%.<\/li>\n<li>The end result is a growth of EBITDA margin from 11.2% to 13.8%<\/li>\n<\/ol>\n<p>What is important to remember here is this: the methods and practices that led to the results above are from Lean Thinking and that <a href=\"https:\/\/staging.opexlearning.com\/resources\/role-of-lean-thinking-in-private-equity\/2593\/\">Lean Thinking is a critical part of Private Equity<\/a>.<\/p>\n<p>Was value unlocked and created at ATU through the implementation of Lean?\u00a0 Are customers happier, shareholders happier, and employees happier?\u00a0 It appears so.<\/p>\n<p>As with all things, it starts with learning to see corporate wastes, then systematically and surgically attacking it.\u00a0 Applying the principles of Lean can achieve that aim fast, with an eye for the longer term creation of value.<\/p>\n<div class='footnotes' id='footnotes-2571'>\n<div class='footnotedivider'><\/div>\n<ol>\n<li id='fn-2571-1'> Super Return 2006 Presentation <span class='footnotereverse'><a href='#fnref-2571-1'>&#8617;<\/a><\/span><\/li>\n<\/ol>\n<\/div>\n<!--CusAds0-->\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>This article shows a case study of how Kohlberg, Kravis, Roberts &amp; Co. (KKR) was able to create value in one of their portfolio companies through the implementation of Lean Thinking in the enterprise. Lean in Private Equity is not new. There are several example where lean was used to stimulate corporate renewal, such as [&hellip;]<\/p>\n","protected":false},"author":12327,"featured_media":15349,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[225],"tags":[638],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Lean Manufacturing in Automotive Industry for Aftermarket Parts<\/title>\n<meta name=\"description\" content=\"Lean Manufacturing in Automotive Industry for Aftermarket Parts 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