Nemak – Plant Performance Turnaround in High-Stakes Manufacturing

Organization: Nemak- Gateway
Industry: Automotive Component Manufacturing (High Pressure Die Casting – HPDC)
Primary Focus: Supplier of complex aluminum components for powertrain, e-mobility, and structural applications for leading automotive OEMs such as Ford.
Location: Confidential U.S. plant

Client Overview

Nemak operates globally with a focus on high-precision, high-output production. The client plant had experienced sustained performance declines, risking critical customer relationships and incurring financial penalties.

Initial Challenges & Situation

The plant was under significant operational distress. The newly appointed Plant Manager, tasked by corporate with turning the operation around, reached out to Semoto Group due to:

  • Severe delivery issues: Key customers, including Ford, were penalizing Nemak for quality issues and late shipments.

  • Lagging performance indicators: Safety incidents, poor quality rates, and under-target productivity.

  • Leadership and system breakdowns: Gaps in shift-to-shift communication, inconsistent plant leadership and team engagement, and ineffective collaboration across support functions (e.g., maintenance).

  • Data and accountability voids: Lack of consistent performance metrics and poor visibility into actual operational issues. Weak follow-up on root cause to determine effective countermeasures or correction.

Engagement Goals

Semoto Group was brought in to help stabilize and reverse the decline rapidly. The primary objectives of Critical Response Team were:

  • Assess and diagnose the current state of operational and management systems

  • Implement a tiered visual management system to track shift-level performance

  • Establish team-based problem-solving practices using A3 thinking

  • Increase throughput, quality, and delivery performance

  • Align leadership behaviors and systems to support a sustainable turnaround

Success would be measured by improvements in plant output, reduction in late shipments, quality performance, and enhanced team effectiveness.

The Approach

Semoto Group deployed a rapid assessment and hands-on transformation model, built around Lean and daily management system principles.

Key elements of the engagement included:

Onsite Diagnostic Phase (Weeks 1–2): Observation of management routines, leadership alignment, daily meeting structures, support function engagement, and data flow.

01

Implementation of Tiered Visual Boards: Shift-level performance tracking organized by value stream to align with plant structure.

02

Daily Engagement and Coaching: 90 consecutive days of direct support with all tiers of leadership to build daily discipline, root cause analysis skills, and shared accountability.

03

Structured Problem-Solving (A3 Thinking): Teaching teams to surface real issues and develop cross-functional solutions.

04

What made Semoto’s approach unique was its blend of high-touch coaching, practical Lean systems, and the ability to quickly rally struggling teams without judgment. The focus was on empowering plant leaders and operators to own the transformation.

Transformation & Implementation

The journey unfolded in structured phases:

  1. Current State Assessment: Revealed deep gaps in cross-functional collaboration and system visibility.

  2. Visual Communication System Launch: Value stream-specific boards were used to collect real-time data and build transparency.

  3. Daily Cadence Discipline: Leaders at all levels participated in structured daily tier meetings to improve focus, coordination, and execution.

  4. Problem-Solving Culture Development: The shift from reactive firefighting to proactive root cause elimination began to take hold.

Key behavioral shifts included shared ownership of outcomes, greater cross-team engagement, and increased responsiveness to frontline challenges.

Results & Impact

Within four months (August to December):

  • Plant Output Improved by 20%

  • Shortages and late shipments were reduced by 15%

  • Quality metrics improved by 10%

  • Machine reliability began trending upward despite historical chronic issues

  • Stronger coordination emerged between operations, maintenance, tooling, technicians and other support groups

Semoto’s facilitation helped transform a fragmented, reactionary environment into a disciplined, team-driven operation with clear direction and momentum.

Client Experience

The Plant Manager and leadership team responded with high praise for Semoto’s hands-on, respectful, and results-driven approach. While no formal quote was provided, the team appreciated the structured yet human-centered way the engagement unfolded.

They credited Semoto with helping the team rediscover its potential and the confidence to deliver under pressure.

Looking Forward

While the initial engagement was designed to stabilize the plant, it laid the foundation for longer-term capability building. The plant continues to build on the systems introduced, using the visual management boards and A3 thinking approach as core components of its operating system.