The right efforts in the right order
The right efforts in the right order
CLIENT STORY

The right efforts in the right order

KPMG helped a global auto parts manufacturer apply automation and lean enterprise principles to its back offices to reduce costs and deliver innovation.

Client
Global auto parts and systems manufacturer
Sector
Automotive
Project
Intelligent automation / Lean optimization
  • Client challenge
  • Benefits to client
  • Approach
  • KPMG insights

Client challenge

As a global automotive parts and systems manufacturer grew its North American operations by a factor of ten, back-office functions had been left largely untouched in the aggressive race for scale and market share. Now, the company’s leadership KPMG to help it intelligently automate selected IT, finance and payroll processes, in order to reduce costs and deliver innovation.

Using lean enterprise principles, KPMG helped the company apply “sequence” as a critical value lever, by first triaging existing processes, then redesigning those worth retaining, and only then applying robotic process automation. The company knew efforts to change are sometimes not enough. With KPMG’s help, it’s found own its formula for sustained operational excellence – the right efforts, in the right measure, in the right place, in the right order.

Benefits to client

Using robotics, intelligent automation and Lean benchmarks, KPMG has put structures into place that can continuously harvest and replicate the company’s own best practices from around the world. Benefits to the client include:

  • $2.3M in projected savings (against addressable baseline spend) produced through the sequenced triage, redesign and automation of selected IT, finance and payroll processes
  • 30 percent reduction achieved in average processing time for remediated processes.
  • precedents set for use of robotics and other automation technologies
  • commitment to global standardization of backoffice processes established, with minimal regional variations
  • a culture of continuous operational improvement strengthened, through lean training and a new lean center of excellence to steward the company’s process-improvement knowledge.

Approach

KPMG combined lean insight, robotic automation experience and project-execution savvy to retool operations in Germany, Austria, the United States, Mexico, Poland, and the United Kingdom. KPMG:

  • assessed North American IT, finance and payroll to triage current-state business processes
    • 50 intelligent automation opportunities identified
  • established the foundation for globally standardized approaches to back-office operations, with Lean frameworks put in place for process improvement, governance, process and program management
  • developed a robust and sustainable Lean curriculum and training modules
    • more than 200 IT and finance professionals trained
    • Kaizen workshop precedents established
  • established a comprehensive program management office for future lean planning and implementation.

KPMG insights

We build strong business cases to power major technology or process change

Our approach helps clients prioritize technology investments, sequence initiatives, and secure stakeholder buy-in, keeping all parties focused on ROI-driven project scopes and tangible impact.

 

We help clients connect the dots

We know process redesign impacts culture and behavior, and use change-management insight to help clients navigate the ripple effects of major initiatives. We leave client organizations stronger than we found them – empowered with new training, tools and skillsets they need to compete.

 

In sectors undergoing seismic change, leading organizations want to learn from peers

Automotive leaders value the cross-industry perspective KPMG brings to specific disciplines like robotic process automation and lean enterprise, to help them stay competitive.

This client expects $2.3M in savings and 30% reduction in average remediated process time as results from this project.

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