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Medical
Device and Life Sciences Industry:
Manufacturing Performance: Facilities
Consolidation and Technology Transfer
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| | Client: |
| A
multi-billion dollar sector of one of the world’s largest firms, supplying medical
devices, capital equipment, and pharmaceuticals internationally. Holds dominant
#1 or #2 market share.
| | | Problem: | | Within
the Surgical Division, acquisition and rapid sales growth coupled with lack of
an overall operations strategy led to redundant medical device facilities with
cost, quality and delivery inefficiencies. The firm experienced repetitive activities,
duplicated infrastructures, standalone legacy systems that would not integrate,
differential compliance approaches, and lack of shared “best practices” performance
across several U.S.-based manufacturing sites. Cost inefficiencies, quality inconsistencies,
variable delivery, and compliance exposure risk predominated.
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| | Approach: | | Create
and execute a comprehensive approach to consolidate two western U.S. facilities
into one existing Mid-Atlantic facility, resulting in one manufacturing “center
of excellence.” The plan was to fully and consistently document all existing BOMs,
processes, personnel training, equipment capabilities and parameters, packaging
and sterility requirements, and facility infrastructure needs. It included “best
practices” determination and application, leadership and organizational realignment,
duplicated processes/finished goods during the initial move, cross-country integrated
moves of key personnel, and transitional outplacement benefits for displaced labor.
The plan addressed integrated manufacturing and warehousing I/T systems, consolidation
into a comprehensive, fully compliant QA/QC system, inventory rationalization
and cut-over, redundant asset disposition, and idle facility sales or lease disengagements.
The recipient facility was expanded and existing operations optimized to receive
in-bound technology transfers. Personnel were cross trained.
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| | Results:
| | Two
high-cost, lesser performing West Coast facilities were eliminated. Supply chain
was shortened and cycle times reduced across the manufactured goods spectrum,
and some less critical operations were outsourced while improving quality. Headcount
was reduced by approximately 145 net personnel, WIP and Finished Goods were reduced
by over $4 million, and compliance problems were corrected. Mfg. and Warehousing
I/T systems were integrated.
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