CASE STUDY
Lean Transformation: Doubling Distribution Capacity for a Medical Technology Leader While Reducing Costs
CHALLENGE
A rapidly growing market leader in the non-alcoholic beverage sector sought to enhance its operating margin while maintaining its
CHALLENGE
A global medical technology company in Gainesville, Florida sought to improve receiving capacity by 20% amid a costly product recall, emphasizing both cost reduction and quality assurance for its orthopedic surgical products. Crosby Row facilitated a Lean Conversion and Kaizen Workshop, focusing on optimizing operations while maintaining the variable workforce. Within six months, the company achieved a 100% capacity improvement, ensuring better efficiency and meeting growing demands.
OUR ROLE
- More capacity regarding their distribution operation
- A more Lean-focused distribution operation Â
- Higher productivity (lower cost) per FTEÂ
- Elimination of waste within their business processesÂ
SOLUTIONS
- Conducted 3-4 weeks of data analysis to identify the operational bottlenecks and area for opportunity. The primary bottleneck was a costly and ill placed conveyor, inhibiting distribution flowÂ
- Identified 17 unique opportunities with cost savings over $150K+ even with consulting costs includedÂ
- Engaged line operators, supervisors and site leaders to ensure consensus and change management was appropriately conveyedÂ
- Executed a 6-month sustainment plan to ensure new business processes took root and personnel were able to sustain increased capacity numbers
- Completed all physical layout and process changes within 2 weeks with no significant customer delays and keep consulting costs low for the Private Equity client
- Implemented the CROS Operating Playbook that included optimized process flows, new standard work, visual management and daily management to drive productivity increases and connect management and front-line operators
OUTCOME
- 100% increase in domestic inbound capacity (units per hour)
- 48% improvement in order fill rate leading to reduced lead times to critical customers (patients)
- 16.4% improvement in identification in sterilized product defectsÂ
- $153,535 in cost avoidance primarily related to temporary labor, scrapped product and packaging material