Medical Device Manufacturer

CASE STUDY

About the opportunity

The client is a cutting-edge medical manufacturing company exclusively dealing in contract manufacturing of wound care products. The client specializes in high volume custom production runs, patented products and FDA 510K required products. The client offers one-source design, engineering, contract manufacturing, packaging, and regulatory support.

The Challenge

The client had been awarded several manufacturing contracts; they were poised for growth. However, their operation was a bottleneck and needed to increase their capacity to serve all contracts rapidly. Some of the opportunities we uncovered included: On time delivery averaged 84%, low inventory turns, long changeovers taking production time, high working capital due to inventory, and shipping accuracy challenges.

Solution

We used a three-phase approach to help this client. First, we started by redesigning the operation layout to improve product flow. Second, we standardized processes which reduced quality defects, and engaged the leaders in continuous improvement through Lean Daily Management practices.
Finally, we focused on improving the warehouse, and planning functions. Purchasing and scheduling strategies were improved as well.

Results

This client was able to service its newly awarded contracts backed by the following results:

• Improvement of on-time delivery by 14% (From 84% to 98%)
• Increased inventory turns by 60% (From 5 to 8)
• Reduced excess and obsolete inventory by 30%
• Reduced changeover times by 75% (From 4 to 1 hr.)
In addition, the working capital reduction freed up cash for additional investments in capital equipment to facilitate growth.

About Us

We help manufacturers achieve and sustain operational costs reductions of 20%+, improve on-time delivery to 99%+, and reduce defects to improve product quality to 99%+. These changes help our clients grow company profit margins by up to 25%.
We have developed and used a proven approach to ensure manufacturers achieve and sustain significant performance improvement. Our consultants have over 15 years of experience working with manufacturers and developing their capabilities.
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