A key production site was plagued by delays and stock shortages. Outside performance metrics were not looking good, yet the team on the ground was working harder than ever before. Our mission was to make the production site’s output more reliable. We gained insight into the current processes, defined which areas or issues could be improved, and then created a roadmap describing how we could achieve the suggested improvements. Next, we’ve put theory in practice going shoulder-to-shoulder with the customer team into implementation to make it happen. Managing carefully the change process to ensure final embedding into the operational organization.
Our client is a large multinational healthcare company listed in the Fortune 500. Active in three sectors, it manufactures and distributes medical devices, pharmaceutical products, and consumer packaged goods.
In a quest towards end-to-end visibility and becoming more responsive to changes in global demand, plant reliability is one of their key supply chain objectives.
The production site had been struggling with reliability issues for some years. As a result, it was operating in firefighting mode. All departments were doing their best to solve short-term problems and hiccups in order to keep goods moving. In reality, however, they ignored the disruption this caused in the overall delivery plan or for each other. Moreover, each department was measured individually on different metrics, which created an “us vs. them” mentality and aroused misalignment between the departments. All in all, there was a level of mistrust in planning and each other.
Bluecrux experts organized workshops to first understand the current processes. In line with our MountK change management methodology, we created a common sense of urgency in the areas that required attention, ensuring that all departments were involved. At the same time, we worked together to choose the improvement areas to be tackled and established a shared goal across the departments, thereby generating the buy-in needed to bring about the desired changes.
The solution itself was based on three key points:
- a new planning concept (introduce segmented planning approach)
- integration of the different departments (planning, operations, QA/QC, warehousing)
- performance management (a new KPI framework to include site effectiveness)
- Significant step up in site output reliability – proven by long term data measurements of OTIF (On Time In Full) and OTR (On Time Release)
- Reduced “noise” within departments
- Smoother interaction across departments
- Common goals towards an agreed plan