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MEDICAL DEVICE AND LIFE SCIENCES INDUSTRY :
Manufacturing Performance: Facilities Consolidation and Technology Transfer |
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Client: |
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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. |
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Problem: |
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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: |
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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: |
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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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