Mitsubishi Motors Corporation faced a crisis situation of high costs, stagnant or falling sales, and severe financial pressure due to high debt loads.
Analyze the global network of Mitsubishi plants and build a new strategy of global network optimization and performance improvement to reduce costs and return the company to financial health.
Recommended closing the Australia plant and two of the four Japanese manufacturing plants, while expanding production in their North American plant (one was closed quickly, while the other closed after a few years)
Improved the performance of the North American facility; moved it from one of the least productive assembly plants in North America to the top quartile
Savings from the other consolidations and improvements allowed the company to remain viable
Implementing the changes at the North American plant in Normal, IL was accomplished in less than one year.
25% of the workforce reduced
Productivity in terms of labor hours per car improved 50%
First Time Through measure of quality improved from <20% to 80%
North American plant became profitable for first time in its 10 year history