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Contributing to Business Innovation and Value Enhancement for Diverse Clients

Looxent provides clients with practical and implementable solutions, driving fundamental change that leads to significant improvements in business value. Through this approach, Looxent positions itself as the most trusted partner for clients, consistently proving its reliability and commitment.

Automotive & MobilityEnhancing Cost Competitiveness in Automotive Electronic Components Through Rigorous Scalability Reviews


The automotive industry is characterized by extended product life cycles, with component specifications typically remaining unchanged for over five years following a new model launch or facelift. For suppliers, however, the challenge lies in simultaneously developing components for multiple models from a single automaker, often across multiple OEMs. This dynamic demands the simultaneous development of numerous products with slightly differing specifications, intensifying complexity.

Our client, a manufacturer of electrical and electronic components integrated with plastic parts, supplies these products to automakers. While mechanical components in vehicles are typically composed of fewer parts and benefit from slower technological evolution, enabling easier standardization, electronic components evolve rapidly. The speed of technological advancement, coupled with tight development timelines, often precludes comprehensive standardization reviews during product design.

With backing from a private equity investment, the client aimed to improve profitability, enhance cost competitiveness for securing overseas contracts, and establish the newly formed strategic sourcing team as a central hub for cost-reduction activities. Looxent partnered with the client to execute a project focused on material cost reduction through purchasing and design improvements.

Setting Aggressive yet Realistic Goals to Motivate Cross-Team Collaboration

The first step in design-driven improvements was selecting the target models. Selection criteria included the remaining production timeline, sales volume, and representativeness within the product portfolio to ensure significant and lasting impact. While the design team expressed initial reluctance to include in-development products due to tight schedules, Looxent successfully highlighted the greater ease of applying design improvements during the development stage compared to post-production, leading to the inclusion of development-stage models.

To secure active participation from the design team, goal setting and alignment were critical. Looxent facilitated workshops and discussions, incorporating past lessons learned and analyzing existing improvement opportunities to craft realistic yet challenging goals for each team. These goals were finalized after securing buy-in from executives, fostering a sense of ownership among teams and encouraging healthy competition.

Thorough Scalability Reviews for Cross-Model Application

The complexity of electronic components, with numerous parts and intricate designs, necessitates meticulous design reviews to identify redundant or inefficient design concepts. However, design teams are often stretched thin across multiple projects, making exhaustive reviews challenging. To address this, Looxent collaborated with design teams to review every blueprint of the target models, creating an environment conducive to idea sharing even among those unfamiliar with a given model's development history.

Given the inherent difficulty of standardizing electronic components, the project team prioritized evaluating scalability of improvement ideas. Every suggestion was assessed for applicability across all production and in-development models, maximizing impact and delivering immediate results. Additionally, Looxent established a design checklist to ensure that waste-prevention measures were systematically integrated into future projects.

Delivering Significant Cost Savings and a Sustainable Framework

The combined purchasing and design initiatives resulted in material cost reductions exceeding 10% across most target models, with savings for development-stage models reaching up to 15%. To ensure these improvements transitioned from ideas to implemented solutions, Looxent developed a monitoring tool, enabling the strategic sourcing team to track the application of all recommendations.

The client’s leadership highly commended the project’s outcomes, noting not only the cost-saving achievements but also the strategic sourcing team’s newfound clarity and confidence in its role. The collaborative approach, which emphasized practical solutions and joint problem-solving with the project team, was particularly appreciated, ensuring lasting impact and operational transformation.



LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226      E  service@looxent.com 

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© 2024 LOOXENT. ALL RIGHTS RESERVED.


LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226

E  service@looxent.com 

© 2024 LOOXENT. ALL RIGHTS RESERVED.