A hospital equipment manufacturer.

Background

A large medical equipment manufacturer focusing primarily on gas and steam sterilization equipment, water distillery and filtration systems, hospital beds and cabinetry, and lighting utilized in operating suits with annual sales revenue of approximately $900 million, they employ approximately 4000 people worldwide with facilities located in six states and Europe.

The Problem

In the mid to late 1990’s several acquisitions compromised management’s ability to mange all divisions within the company. Slow growth and reduced government funding to the healthcare industry resulted in excessive inventories, overstaffing, and high debt causing their stock price to drop significantly.

Scope and Assignment

Synergetics was asked to complete the facilities consolidation. Develop an operating system which would tie in forecasting, materials planning, best practices and productivity improvements.

The Results

Forecast accuracy improved from under 80% to over 95%. The development of a centralized materials cost reduction program resulted in first year savings of over $4 million dollars. The installation of a management operating system based on Lean Manufacturing principles improved productivity more than 25% while reducing overtime more then 67%. Attention to service and quality levels resulted in a reduction of end item returns of more then 15%. The total R.O.I. for this client on these projects was in excess of 5 to 1 in the first year after the completion of the assignments.

Synergetics Installations Worldwide, Inc.

75 Congress Street, Suite 201 • Franklin Block Building • Portsmouth, New Hampshire 03801 • (603) 433-8940