The automotive industry is increasingly focused on waste management, elimination, and reduction to achieve sustainability and cost reduction. This focus drives the industry towards resource-efficient operations that minimize environmental impact while exceeding customer expectations. Meeting these demands necessitates the adoption of more efficient production methodologies, such as the PDCA cycle. This work presents a case study that illustrates the application of the PDCA methodology to minimize scrap generation due to process variability in a multinational company that manufactures electric motors for the automotive industry. The aim was to demonstrate how the PDCA methodology can improve quality standards by minimizing scrap generated during the manufacture of electrical armatures. Notably, the organization in this case study set a waste target of 0.7%, which was significantly exceeded. Finally, the implementation of this methodology can deliver significant economic benefits, with a total annual cost reduction of approximately USD 135,000.

The dynamic global automotive sector is characterized by an ever-evolving demand for high-quality vehicles and accessible prices. This research tackles the issue of scrap reduction in electric motor manufacturing for the automotive industry, specifically in a Chinese company, by employing the PDCA methodology. The paper delves into the company's background and current landscape, while pinpointing the problem: specific production lines segments experiencing hi-pot issues are the primary source of scrap. The overarching goal is to design and implement a strategy that, leveraging the PDCA approach, reduces scrap generated during the eight-months subassembly (armature) manufacturing process, from its current average of 2.92% to 0.7%, ultimately enabling the company to eliminate hi-pot defects.