Situation Analysis:

A global producer of pharmaceuticals found that the supply chain performance of its North American subsidiary, ClientCo, persistently lagged its internal European peers. Additionally, U.S. distribution channels and end-users sought product and service variations that required rapid expansion of supply chain capabilities: increased packaging options; more diverse lot sizes; reduced order cycle times; lower customer inventory levels; major improvements in service responsiveness, accuracy and reliability.

Aprevious eight-month internally led ClientCo effort identified numerous technology improvements but delivered little progress. Afterwards, the ClientCo team, comprised of line managers and Six Sigma Blacks Belts, contacted The Lab, targeting significant, measurable, non-technology improvement within 6–9 months.

Improvements Identified:

Within eight weeks, The Lab identified over 500 activity-level, non-technology improvements which could be implemented without major investment in technology or plant infrastructure. Roughly 30% of the improvements could be completed within 30 to 60 days [Immediate Action Items]. The remainder were implemented within seven months. Selected examples [Manufacturing]:

1. Manufacturing Release Scheduling - The decision process for releasing orders for production failed to concentrate accountability for surplus quantities, rush orders, uneconomic lot sizes and other costly outcomes. This process was simplified, documented and primary accountability was concentrated and tracked across 2–3 executive positions for each major product category.
2. Quality Assurance [QA] - Numerous opportunities existed to integrate QAtasks more closely with daily production activities. Root causes for inbound quality failures were more rigorously documented and solutions were moved “up the line,” e.g., receiving dock, suppliers’ plants, sourcing certification.
3. Production Standards - Roughly half of the existing standards for bills of material, production labor, machine rates, etc., were overly complex and significantly out of date. Improvements targeted simplification of standards, and improvements in comparative reporting and a continuous updating capability.

Overall Results:

After the Phase I effort, The Lab assisted ClientCo with on-site, self-funding, non-technology improvement implementation activities, completing the Phase II segment over a seven-month period.