Optimization of production flow and inventory at a non-profit tissue bank
- Location
- New Jersey, USA
- Year
- 2015
- Engagement
- Operations Productivity
Client looking to improve throughput and cost effectiveness to ensure long-term competitiveness. Excessive Work-in-Process and Finished Goods inventory with low fill rate for orders and unsustainable processing costs.
Our team conducted process mapping and bottleneck analysis across all five departments and increased capacity through "quick wins". We created prioritization guidelines for raw materials procurement, production planning and quality control to align production to orders. We supported burndown of excess and obsolete inventory.
Baseline cycle time vs. improvement and cumulative labor savings across the 6-month engagement
USD $7.1m annualized labor savings
USD $6.7m one-time inventory reduction
Reduction of end-to-end cycle time from 103 days to 89 days (14% improvement)