The Ask:
A global medical device company enjoying increasing market share was suffering an increase in high-value inventory because of QA test release lead-times. The average time for final test/release was 8.6 days which meant that orders were held in the warehouse awaiting release.
Results and Benefits
- Sample testing lead-time reduced from avg. 8.6 days to 1 hour
- Guaranteed next-day results delivery for ALL lines
- Inventory reduced from 9 days to 1 day
- Inventory reduction provided one-off increase to profit line
- Backlog of samples eliminated by existing staff without utilizing overtime
- Cost of recruitment, employment and training of new staff avoided
- No additional equipment purchased
- No additional laboratory space required
- The project won an international quality innovation award
- The method of conducting the tests was used in this organization’s laboratories around the world
Challenges:
- Testing lead-times were long (days) and getting longer
- The number of samples being sent for testing was increasing
- The backlog of samples awaiting testing was growing bigger
- Current staffing levels could not cope with the volume of tests
- Investigation procedures were complex
- It took a long time to obtain results from the different tests and compile the report
- Highly educated, experienced laboratory technicians were difficult to find
- Recruitment and training lead times were long (months)
- There was limited laboratory workspace for additional staff and test equipment
Implication
- Unless the company changed its ways of working it would have to recruit additional staff to be able to cope with the testing
- If more staff was recruited, more equipment would have to be purchased
- If more equipment was purchased more space would be needed to accommodate it
- To provide more space, a new laboratory would have to be built
Objective
- Plan, implement and project manage a radically different method of laboratory management to:
- Reduce time taken to conduct tests and publish results
- Reduce the backlog of samples awaiting testing
- Reduce the cost of inventory
- Implement next day delivery for key lines
The Approach:
Toolkit
- Workflow simplification
- Lean sampling-handling Process Re-Engineering
- Workload balancing
- Planning and forecasting
- Restructured KPIs and business reporting
- Visual Workplace Management
