Customer Satisfaction Restored at Medical Device Outsourcer

Situation.

The client's facility was working 24/7, experiencing a tremendous backlog, delayed shipments for a key customer. The Patrick Herb team was engaged to improve operational efficiency, recover from the backlog of delayed shipments, improve capacity and reduce overtime.

Actions.

Leadership & Process

• Restructured production organizational chart by introducing team leads and supervisors.
• Led in-cell associate skill development programs.
• Standardized shift handover procedures.
• Conducted leadership coaching and established regular leadership routines.
• Initiated a war room to foster a culture of timely, targeted actions.

Driving a Data-based Culture

• Deployed ProductionNet, a cloud-based solution for tracking production line performance.

Equipment Enhancement

Designed, developed, deployed and validated both tooling and equipment to:

• Decrease quality loss
• Improve productivity and cycle times
• Reduce equipment downtime
• Relieve bottlenecks to increase capacity

Results.

• Created value through quick reduction of scrap and labor costs, which increased capacity and revenue growth
• Realized annual labor savings of $780,000 ($15k weekly) through:
  • Reducing workdays from 7 to 4, thereby cutting overtime and enhancing performance.
  • Standardizing shift handovers, saving 1-2 hours per shift.
• Fostered a rapid-response culture and accountability through ProductionNet data and the War Room approach.
• Achieved over $780,000 ($15k weekly) in annual scrap savings due to quality enhancements.
• Identified and implemented a solution to a gap in oven capacity via capacity analysis, reducing cycle times and eliminating 80 minutes of non-value-added time per shift.
• Increased production capacity enabling the manufacturing of an additional 200 parts per week, unlocking an additional $4,914,000 ($94,500 weekly) in annual revenue.
• Project ROI is expected within 6 months.