CASE STUDY

Case Study-Run@Rate

Case study on Run at Rate verification during PPAP: Using OEE and daily output analysis to confirm production capacity per AIAG/VDA standards.

KIMEC|Expert Group 2025-11-28

Run at Rate Capacity Verification in Automotive Component Development

Introduction

In automotive manufacturing, Run at Rate (R@R) is a critical validation step during the Production Part Approval Process (PPAP) within the Advanced Product Quality Planning (APQP) framework. It ensures that a supplier’s production system can consistently meet contracted daily capacity (SDC: Supplier Daily Capacity) under normal operating conditions while maintaining quality standards.

Both AIAG and VDA emphasize that Run at Rate is not just a formality—it is a rigorous capacity verification process that includes:

Full-shift production trials
Documentation of actual output vs. planned capacity
Analysis of cycle times, scrap rates, and equipment utilization
Confirmation of tiered supplier readiness

This post explains Run at Rate requirements, step-by-step execution, and best practices, supported by insights from GM’s GM1927-35 procedure.

What is Run at Rate?

Run at Rate is a production trial conducted on the actual manufacturing line using production tooling, processes, and operators. Its purpose:

Validate that the line can produce PPAP-approved parts at the contracted daily capacity (SDC).
Confirm compliance with customer requirements under normal operating conditions.
Identify bottlenecks and risks before mass production.

Key Definitions

LCR (Lean Capacity Rate): Planned daily production rate based on OEM’s operating schedule.
SDC (Supplier Daily Capacity): Contracted daily capacity agreed upon in the sourcing contract.
MCR (Maximum Capacity Rate): LCR + 15%, achievable without additional OEM cost (not a Run at Rate requirement).

Objectives of Run at Rate

Ensure supplier’s process can meet customer demand consistently.
Verify that tiered suppliers also meet capacity and quality requirements.
Provide documented evidence for PPAP approval.

Scope

Run at Rate applies when:

New part development occurs.
Capacity increase is required.
Tooling or equipment relocation to a new plant.

Exceptions require SQ Manager approval and must be reviewed during the launch meeting.

Timing & Duration

Conduct Run at Rate after PPAP approval and at least 8 weeks before SOP.
Minimum duration: full contracted shift (typically 8 hours) or until contracted quantity is met.
If output meets SDC before time ends, the trial may stop early.

Supplier Preparation

Before Run at Rate:

Confirm LCR (Lean Capacity Rate) and SDC (Supplier Daily Capacity) values.
Perform an internal trial to validate readiness.
Collect documented evidence from tiered suppliers proving capacity and quality compliance.
Complete GM1927-35 Run at Rate Workbook sections.

Execution Steps

Schedule Run at Rate in GQTS during SRV1 stage.
Run production under normal conditions using actual operators and tooling.
Record hourly output, scrap, downtime in the Run at Rate form.
Verify cycle times, scrap rates, and machine utilization against planned values.
Audit process control plan during the trial (GM1927-16 PCPA).

Data Collection & Analysis

Section 2: Constraint Identification

Document:
- Gross vs. Net minutes
- Lunch, changeovers, maintenance, downtime
- Cycle time, cavities, scrap rate
Calculate:
- Part Capability Utilization = Required Quantity ÷ Capability
- Machine Utilization = Time Required ÷ Time Available
- 90% utilization = High Risk; ≥100% = Fail

Section 3: Results

Compare observed production time vs. planned.
Confirm all scheduled breaks and maintenance occurred as planned.
Validate that PPAP-approved parts were produced.

Shared Capacity & Tiered Supplier Verification

Complete Shared Capacity Form for operations producing multiple parts.
Ensure downtime and changeover times match Section 2.
Tiered suppliers must provide written confirmation and evidence of capacity compliance.

Pass / Fail Criteria

Pass: All requirements met; SDC achieved; tiered supplier compliance documented.
Fail: Any unmet requirement; corrective action plan required.
Staged Pass: Allowed if contract specifies phased capacity increase; each stage must be verified.

Risk Assessment for Failures

Low Risk: Meets LCR with 5-day work week.
Medium Risk: Requires 6-day work week.
High Risk: Requires 7-day work week or cannot meet LCR → Red Launch Alert.

Burst Build (Pre-Run at Rate)

Short production runs before official Run at Rate.
Purpose: Early detection of capacity issues and development of corrective actions.
Minimum 4-hour data collection for cycle time, uptime, downtime, FTQ.

Common Issues & Lessons Learned

Incorrect LCR (Lean Capacity Rate) / SDC (Supplier Daily Capacity) values vs. GQTS.
Missing Shared Capacity or Block Diagram forms.
Unrealistic downtime and scrap data.
Incomplete tiered supplier documentation.
Failure to run full 8-hour trial.

Best Practices

Always use latest GM1927-35 workbook from GM SupplyPower.
Validate all data with 3-month historical averages.
Align Shared Capacity and Run at Rate forms for consistency.
Include manufacturing block diagram to identify bottlenecks.
Perform Layered Process Audits during Run at Rate.

Conclusion

Run at Rate is more than a compliance exercise—it is a proactive risk mitigation tool ensuring smooth production launch. By following AIAG, VDA, and GM guidelines, and leveraging structured documentation and analysis, suppliers can demonstrate readiness, avoid costly delays, and build trust with OEMs.