Production line failures force global automotive manufacturer to rebuild capital planning

A series of unexpected equipment failures shut down production lines at a global automotive manufacturer, creating significant delivery delays and straining relationships with dealer networks worldwide.

The company had deferred capital investments across its global network for several years. Critical assets were running beyond warranty periods, with some equipment classified as obsolete by manufacturers.

The production disruptions forced leadership to completely reassess their approach to capital planning.

The manufacturer's facilities lacked comprehensive asset visibility. Initial audits revealed over 100 pieces of critical equipment missing from corporate asset registers.

Plant managers were making maintenance decisions based on incomplete data, while corporate leadership had limited insight into asset conditions across the portfolio.

Without standardized condition assessments, the company couldn't prioritize capital investments effectively.

Emergency repairs were consuming budget that should have been allocated to strategic renewals and a reactive approach meant higher costs and more frequent disruptions.

JLL worked with the manufacturer's engineering teams to establish standardized asset management processes.

The engagement covered several key areas:
 

• Data validation: Teams reviewed asset records across all facilities, identifying gaps and working with plant staff to restore missing information.

• Facility Condition assessment: Engineers conducted lifecycle analysis and renewal prioritization across facilities, from paint shop equipment to corporate office systems.

• Prioritization framework: The team developed risk-based prioritization models that ranked projects by business criticality; paint shop and body-in-white operations received higher priority than administrative facilities.

• Multi-year planning: Rather than annual budget cycles, the company established a 10-year capital investment roadmap with clear renewal schedules and budget forecasts.

• Process documentation: Standard workflows, responsibility matrices, and decision protocols were created to maintain consistency across regions.

The new asset management approach delivered quantifiable improvements.

Productivity increased 150% over 12 months as equipment reliability improved and unplanned downtime decreased.

The company now has comprehensive asset visibility and can make capital allocation decisions based on actual condition data rather than assumptions.

The systematic approach helps prevent the equipment failures that caused the original production disruptions.

Budget allocation shifted from emergency repairs to planned renewals, reducing total ownership costs. The 10-year investment plan provides visibility for both operational planning and financial forecasting.

Prior to the intervention, capital planning had been reactive and budget driven. Plant managers competed for limited capital funds without standardized criteria for prioritization. Asset condition data was incomplete and inconsistent across facilities.

The new approach treats capital planning as an operational discipline. Investment decisions follow documented criteria based on asset condition, business impact, and lifecycle economics.

Regular condition assessments provide early warning of potential failures, allowing for planned replacements rather than emergency repairs.

The manufacturer now integrates capital planning with production scheduling and business planning. This coordination helps optimize both operational performance and capital efficiency.

Next Steps: Interested in systematic capital planning for manufacturing operations?
Connect with JLL's Capital Planning team to discuss asset management strategies for your facilities.