Once a technology solution has been tested and vetted by a multi-national, multi-plant operation, it is rolled out enterprise-wide.  There are many reasons why this approach, tiptoeing into solutions with obvious bottom-line improvements, takes time.

The medical technology industry employs over 500,000 workers according to the Medical Device Manufacturers Association (MDMA.)  The industry supports approximately 1.4 million additional jobs, for 1.9 million high-paying positions, and generated $113 billion in payroll, with an average salary over $84,000.  According to Ernst and Young, the average earning for public med-tech companies is 6%.

Lean in its purest form is removal of waste. In today’s world, manufacturing is becoming more competitive than ever with shorter lead times, higher service levels, exploding number of finished goods SKUs, and thinning margins. Over the last twenty years, the focus of lean in manufacturing was concentrated on streamlining the factory floor, aligning of production lines, optimization of space, and standardizing of operating procedures.

-Only when Combined with Driver Based Metrics, Information Sharing and Visibility

A new white paper offered through Supply Chain Management Review suggests that a product begins its life with maximum profit potential during the manufacturing process. But as that product moves through an increasingly complex, global supply chain, excess time and handling costs erode its profit.  The author continues to point out that the average supply chain has become segmented, with different groups managing different phases of the product lifecycle in isolation. While this may add functional efficiency in specific areas, I feel the lack of a coordinated approach creates a less efficient supply chain overall. A more holistic, synchronized approach to managing logistics and related supply chain services throughout a product’s lifecycle is better suited to today’s companies. 

Current supply chain management systems often lack the tools necessary to quickly and cost effectively react to the constant stream of changes in customer demand, production schedules, and supply deficiencies common in global markets. Relying on different systems with multiple tools is often expensive, time-consuming, and inefficient. The best technology solutions must support true collaboration and execution between manufacturers and supply chain partners to enable seamless performance and increase revenue.

Lean quality concepts constantly reference continuous improvement.  After a kaizen event and several months pass, there is often fatigue because the notion of continuously looking for better practices (en route to best-practices) is exhausting.

The Gartner IT Glossary explains that, “Demand forecasting applications incorporate historical and predictive customer demand information into production line and sales quotas.”  Sounds simple enough…not really.  Matters become more complex when extending the definition to an end-to-end pull process…still trickier when sensing customer demand and synchronizing supply.

How do you efficiently and cost effectively transition to a demand driven supply network without jeopardizing your position in industry or your commitments to your customers?

Walk through any manufacturing facility and you’ll notice they all have the same type of charts displayed on the walls, bulletin boards, or electronic displays highlighting results of lean six sigma programs. The shop floor constantly runs Kaizens to improve factory-floor operations.

Surprisingly, most of the emphasis on the shop floor has been on streamlining production, relocating equipment, reducing production down time, and optimizing production capacity. Everything is focused on activities within the four walls of the factory shop floor. A very small percentage of these activities revolve around improving on-time-delivery, or improving supplier collaboration and material availability (i.e. processes that are occurring outside the facility).