Lean Assessment | Turtle & Hughes

LEAN ASSESSMENT

FACILITY LEAN MANAGEMENT


For one GMP medical device supplier, enhancements and restructuring of machinery not only led to improvements in production but also resulted in a high level of obsolete parts that were stored at the plant. As a result, valuable resource dollars were being lost and adding to the cost of production because they were tied to non-moving parts. With significant success at identifying and reducing obsolete parts, Turtle & Hughes Integrated Supply (THIS) started a supplier “Lean Assessment” of the facility, which resulted in a 29 percent reduction in obsolete parts.

LEAN ASSESSMENT

The THIS team relied upon a detailed process map of our Standard Operating Procedure (SOP) for obsolete item identification and disposition. The process was used to identify and reduce materials that were stored at the plant and had become obsolete as machines were taken out of production. To maximize savings, THIS evaluated higher priced items first. THIS then broke the candidate items into four segments based on purchase price, (fixed and average), cost ratio, case size and first in/first out (FIFO) parts. THIS focused on close to 6,000 SKUs to identify those parts that had not been used in three years. Unused parts were sold, liquidated or transferred to another location. Today, total inventory at the site is $14.9 million, which is down from $20.7 million just four years earlier. At the same time, the total number of SKUs was reduced by almost 3,700 items. During this facility lean management process, THIS maintained 100 percent availability of all spare parts keeping the lines running on or above target.

BACK TO SUCCESS STORIES

SERVICES

  • CAP/REDUCE METHODOLOGY
  • RISK MANAGEMENT
  • HIGH SERVICE LEVEL (OTD, FILL RATE)
  • IMPROVED CASH FLOW
  • DISPOSITION
  • OBSOLESCENCE MANAGEMENT