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NTN-SNR Romania: Breaking Production Barriers

A Case Study in Operational Excellence

Business Summary NTN-SNR, a leading manufacturer in the bearing industry, established its Romanian operations in 2003. The facility played a crucial role in the company's European manufacturing network, producing high-quality bearings for various industrial applications.

Challenge In 2011, as markets recovered from the 2008 financial crisis, NTN-SNR Romania faced a critical challenge:

• Rapidly growing market demand

• Production capacity seemingly at its maximum

• Pressure to increase output without additional resources

• Risk of losing market share to competitors if unable to meet demand

Solution Implementation

A comprehensive 12-week transformation program was implemented, focusing on:

1. Process optimization

2. Resource allocation efficiency

3. Workflow restructuring

4. Operational bottleneck elimination

Impact

The transformation yielded remarkable results:

• 32% increase in production volume

• Achieved with existing resources (no additional machinery or personnel)

• Improved operational efficiency

• Enhanced capacity utilization

Financial Impact The 32% production volume increase significantly impacted the bottom line:

• Reduced unit costs due to better resource utilization

• Increased revenue from additional production capacity

• Improved profit margins through economies of scale

• Enhanced return on existing assets

• Lower overhead costs per unit produced

Key Success Factors

• Systematic approach to process optimization

• Focus on maximizing existing resource potential

• Employee engagement in improvement initiatives

• Data-driven decision making

• Quick implementation timeline (12 weeks)

This case demonstrates how seemingly impossible production barriers can be overcome through strategic operational improvements without requiring additional capital investment. The 32% increase in production volume not only met market demand but also significantly improved the company's financial performance through better resource utilization and economies of scale.