Engineering strategy and performance in Automotive
Support to the 5-year Engineering strategic plan of an automotive Tier-1 supplier
Context & Objectives

Very strong pressure of the OEMs onTier-1s’ labor unit costs for subcontracted development activities

Strong asymmetry among the dynamics of the various regions (Western Europe / Eastern Europe, USA, China and India)

5-year strategic plan design window requiring to develop a specific strategic plan for the Engineering function

Outcome

Aligned commercial ambition with rightly sized pool of resources

Enabled team commitment on a project staffing strategy reducing unit hourly cost by 13% across the strategic plan timeline

Our approach
Step 1: Secure alignment on the programs pipeline

-  Iterate with teams to reach a consensus on the commercial ambition (at program level, at a 5-year horizon)

Step 2: Define nd model a global footprint model

- Review a standard staffing model ; define an efficiency improvement trajectory

- Define offshoring patterns (assigned at program level)

Step 3: Define tailored ‘best shoring’ practices

- Define several offshoring scenarios/ footprint scenarios

-  Foster alignment on the reference scenario and underlying ‘best shoring’ practices

Step4: Conclude on the labor unit cost trajectory
Our experts
Pascal Simon
Managing Partner
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