Established in Taiwan in 1974, Hon Hai Technology Group (Foxconn) is the world’s largest electronics manufacturer. The company manages large-scale operations across the globe, including a facility in Ciudad Juarez, Mexico. However, the factory was losing around $100,000 USD per day due to its substandard management system, including their HR processes, facility layout, supplier network, among others. MTG recognized the pressing need for a complete turnaround of their factory management system. With MTG’s help, the entire facility aligned on the same goals for productive and profitable operations that led to an increase in sales by 75% – from $2 billion to $3.5 billion – within a span of 18 months.
Project Plan
The biggest hurdle was to get the factory members on the same page. While many staff members were competent, they were still held back by the old structure. It was crucial to have the team acknowledge the problems that existed in the production processes.
From the very beginning, it was clear MTG had to use a two-part approach for Foxconn’s predicaments using lean principles – transforming both the people and the processes.
Within the span of 18 months, the factory experienced fantastic results.
Before the transformation, it took 2 hours to change production to a different laptop model. However, by the end of project tenure, MTG introduced flexibility to change any line to any computer model at any time.
