Not-For-Profit Healthcare Organization Will Save $1.0M Annually by Reducing Product Lead Time

A Canadian NFP charitable organization that manufactures biological products for the provincial and federal governments

$1M
Annual Savings Identified
45%
Potential to Reduce Product Lead Time

Challenge

Canada’s aging population accounted for an increased demand for products that were delayed due to lengthy release lead times. Funding had been reduced, putting a strain on this company’s ability to produce and deliver a much-needed product. The related stress on employees was also impacting overall performance.

Discovery

Our team used the DMAIC approach to uncover opportunities for performance enhancement. We interviewed key stakeholders and analyzed available data to better understand the root cause of underperforming areas. Once the client’s problems were understood and validated, our team benchmarked against best practices and developed a comprehensive set of solutions to reduce lead time and save costs by:

  • Mitigating downstream release delays by adjusting the client’s strategy and policy formulation process
  • Reducing time to identify business requirements for new products by better defining roles and responsibilities for product and warehouse management as well as standardizing the overall process and templates
  • Reducing inefficiencies by introducing a product management office to oversee all aspects of a manufacturing release, including proactive planning
  • Decreasing time spent on design and development by reducing the frequency of support calls to the engineering teams, aligning project priorities, and improving the continuity of work effort
  • Improving employee training by more effectively leveraging the client’s technology systems
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Value Created

Our client received strategies to realize the following benefits:

  • $1.0M in annual savings based on decreased administrative costs for product releases
  • 45% reduction in lead time for the product to be released addresses healthcare pressures and brings necessary medicines quicker to those in need

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