Changed market conditions led to increased price pressure in a complete competitive market niche. Mantec helped the client improve its production processes in order to face the new customer demands
Background
The company, a leading manufacturer of orthopaedic appliances for handicapped people and for professional sports athletes, employs around 300 people.
A new Municipal city reform resulted in a consolidation of buyers of orthopaedic appliances, which led to increased price pressures and an increased demand in quality and service levels in a market already characterised by high competition. In addition, the market is stagnant because of the increasing capabilities of doctors, and a reluctance by authorities to grant funding.
Implementation
An initial analysis by Mantec indicated that there was significant potential for an improvement in productivity. The client therefore entered into a joint implementation project with Mantec to realise the potential through:
- consolidation of production units and optimised use of in-house computer-aided design (CAD) and computer-aided manufacturing (CAM) technologies;
- improved production planning and manning;
- reduced lead time and throughput time, achieved by reorganising workflow and improving coordination between surgery appliance clinics and production units; and
- development and implementation of a management information system, including KPIs, combined with variance reporting.
Cultural barriers between the clinics “kingdoms and production units“ were broken down during the project by organising training workshops and putting in place a new organisational structure. This was helped by instituting the improved management information system throughout the organisation, which created transparency on daily performance.
Results
The main benefits to the client of the implementation project have been:
- the number of production units was consolidated from four to two, and high volume articles were outsourced to Poland
- turnover per surgery appliance maker was increased by 38%
- rework has substantially reduced, because of the standardisation of product quality and implementation of standard operating procedures
- lead time has been reduced by 20%, through improved visualisation of the production flow.
