Customer Success Story: Life Sciences Technology Company
Business Issue: Warehouse Inefficiency, Waste in Kitting Processes
This case study outlines LEGACY’s work with a global leader in life sciences, diagnostics and applied chemicals, supplying bio-analytical instrumentation and installation services to medical and forensics institutions all over the world. They employ over 10,000 people and bring in nearly $4 billion in revenue each year.
The industries they serve include chemical and energy, pharma and biotech, academia and government, food industry, diagnostic and clinical, and environment and forensics. Growth drivers for the company are issues of increasing global relevance, such as food and water quality, rising energy demands, healthy and aging population, and emerging economies.
Due to supply chain and warehouse inefficiencies, the client was not meeting the rising demand for field installation kits. This was delaying revenue recognition, and resulting in lost sales.
Their setup required 300 feet of walking per kit ordered—a total of six miles per day. Value Stream Mapping (VSM) showed a 13-hour cycle time for the most frequently built kit, rendering them unable to keep up with demand.
LEGACY conducted a 3-day Lean Action Workout, involving corporate, regional, operational, associate and partner representation. This three-day session included group meetings, breakout brainstorming sessions, analysis and recommendations.
As a result of this Lean Action Workout, efficiency was drastically improved, with:
The client was able to achieve $72,000 in annual savings as a result of these new efficiencies. As an additional long-term benefit, LEGACY was able to build a culture of continuous improvement by engaging associates, and developing Lean Change Agents to lead projects into the future.
“Through Lean workout projects and process re-engineering, we have driven out excess waste resulting in serious cost savings.”
-LEGACY Lean and Quality Team
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