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.