Automotive Tier 1
    Escalation Support
    Featured

    Customer Escalation: From Line Stop Threat to Renewed Contract

    January 15, 2025
    7 min read
    By Qualiteh Team

    At a Glance

    Duration3 weeks to full resolution
    Team RoleEscalation Lead & 8D Facilitator
    Premium freight avoided
    €47,000(plus retained €2.1M annual contract)

    The Challenge

    A Tier-1 automotive supplier received an urgent escalation from their OEM customer: dimensional non-conformance on a safety-critical bracket was causing assembly issues at the customer plant. The customer threatened line stoppage and was considering sourcing alternatives.

    The supplier's internal quality team was already stretched thin handling routine operations. They needed external expertise to manage the crisis, contain the problem, and deliver a credible 8D response within the customer's 5-day deadline.

    Specific Problems

    Line stop threat
    Customer gave 48-hour ultimatum for containment plan — €15,000/hour potential line stop cost
    Safety-critical component
    Elevated scrutiny, no room for incomplete response
    Multiple lots affected
    3 production lots in transit and at customer — 4,200 parts requiring disposition
    Internal resource gap
    Quality team already at capacity with other issues
    Contract at risk
    Customer evaluating alternative suppliers — €2.1M annual business at stake

    Business Impact

    The stakes extended beyond the immediate crisis: • Immediate cost exposure – Premium freight and sorting costs mounting hourly • Customer relationship – Years of partnership at risk from single event • Reputation damage – OEM supplier rating system impact • Future business – Upcoming program awards dependent on response quality

    The Approach

    1

    Rapid Containment (Day 1-2)

    Objective: Stop defect escape and protect customer production

    Within 4 hours of engagement, we deployed a containment team to implement immediate protection measures.

    Actions:
    • Dispatched sorting team to customer plant within 6 hours
    • Quarantined in-transit lots at logistics hub
    • Implemented 100% inspection firewall at supplier shipping
    • Established hourly status communication with customer
    Deliverable:
    Containment confirmation with zero escapes from Day 2 onward
    2

    Root Cause Investigation (Day 2-5)

    Objective: Identify verified root cause with data evidence

    Parallel to containment, we led a cross-functional 8D team through structured root cause analysis.

    Actions:
    • Mapped process flow and identified 3 potential failure points
    • Analyzed SPC data showing drift pattern over 2 weeks
    • Conducted fixture verification revealing 0.15mm misalignment
    • Validated root cause with controlled test producing identical defect
    Deliverable:
    8D report through D4 with verified root cause and supporting data
    3

    Permanent Corrective Action (Day 5-15)

    Objective: Implement sustainable fix and prevent recurrence

    With root cause confirmed, we designed and implemented corrective actions addressing both the immediate cause and system gaps.

    Actions:
    • Replaced worn fixture components (immediate)
    • Reduced fixture PM interval from 12 weeks to 6 weeks
    • Added in-process SPC checkpoint at critical dimension
    • Updated control plan and operator work instructions
    Deliverable:
    Completed D5-D7 with effectiveness verification data

    The Results

    Time to containment

    Before
    None
    After
    <24 hours
    Customer timeline met

    Defect escapes post-containment

    Before
    47 reported
    After
    0
    100% containment

    Premium freight costs

    Before
    €47,000 projected
    After
    €0
    Avoided through rapid response

    8D completion

    Before
    5-day deadline
    After
    4 days
    Ahead of schedule

    Business Impact

    • Customer retained as key account (€2.1M annual)
    • Supplier rating maintained at "A" status
    • Process improvement reduced similar defect risk by 85%
    • Relationship strengthened through transparent communication

    Key Insights

    •Patterns Identified

    • •Fixture wear combined with inadequate PM interval created gradual drift
    • •SPC data showed trend 5 days before customer detection
    • •Communication gaps delayed internal escalation by 48 hours

    Critical Success Factors

    • Immediate physical presence at customer site built trust
    • Hourly status updates prevented customer from escalating further
    • Data-driven root cause analysis gave customer confidence in fix
    • System-level corrective actions addressed prevention, not just reaction
    "

    Key Takeaway

    Speed of containment buys time for thorough investigation. The customer cares less about perfection in the first 24 hours than about seeing decisive action and honest communication.

    Deliverables

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