Business Strategy - MTC Supply Chain and Change Management - FY21
Business Strategy - MTC Supply Chain and Change Management - FY21
Business Strategy - MTC Supply Chain and Change Management - FY21
Engineering – The
Supply Change
Management Strategy
Planning Team & Executive Board
Members – 5th Oct 2020
Table of Contents
1. Introductions
2. The Case
3. Goals & Objectives
4. Key Challenges Today
5. Project Charter, Objectives & Project Champions
6. How to get there
5. The Solution Footprint
6. The Plan
7. Recommendations
8. Resources
9. Risks & How to Mitigate Risks
10. Areas of Improvement & Support Required
11. Change Management Strategy & Support Required
12. Conclusions
Introduction
• The 50,000 Sq. Mtr facility includes is a state of art manufacturing and assembly unit, a device and parts
warehouse, a storage and inventory warehouse, transport bays and the H.O for Sales and Operations.
• Achieve 2.3% in savings from bottom line revenue to offset ACA Excise Tax
applicable at the Financial Year end
• Bring in best practices in Supply Chain Management
• Streamline Inventory, WH Management and Quality processes
• Drive Customer Value Creation and Create Supplier Management Strategy
• Innovate, Co-Create, Technology and Innovation in Surgical and Post Operative
care product lines
• Engage FDA for product approval, safety and quality processes for sales &
distribution in US.
Key Challenges Today
• Lack of coordination and technology oversight to the process of tracking and traceability of a
product.
• Gaps in the execution of the process, strategy and methodology in Supply Chain Management.
• Device distributors in of control client and relationships, product inventory, forecast and
supply process.
• MTC exposed to markets changes, technology, quality and innovation.
• Client feedback, product enhancements and end-user feedback through Device Distributor.
• Inventory, Replenishment and Demand Time remains a challenge.
• Sterilization Process with 3rd party.
• Make Vs Buy is a ongoing dilemma.
• Sales Process and Incentivization a big operational expense causing mis-communications.
• Operations and Manufacturing process not in alignment
• Transport and WH Management not in alignment
Project Objective & Champions for the Cause
• Project resources the key to the organization, its associates, project
budget (capital) and material goods required for the successful execution
and completion of a project for MTC
• Chris Evert will be the Deployment Leader, the Leader and Champion
of this project for MTC.
• Her team will follow the project charter, its objectives of the company’s
most business critical project under the executive sponsorship of the
Managing Committee under her leadership and direction.
The Solution Footprint
Operations &
Manufacturing Strategy
Strategic Supplier
Relationship Strategy
Product Engineering, Quality
Assurance and Product Innovation
Customer Relationship
Management Strategy
How to get there?
Logistics & WH Sales & Marketing Strategic Supplier Product Engineering, Customer Relationship
Operations & Mganaement Strategy Relationship Strategy Quality Assurance Strategy Strategy
Manufacturing Strategy Strategy
•Product innovation with
• Establish earning vs. • Build Win-Win equation patient/surgeon input • The company has to look
• Use 3PL service providers returns for sales • Draw long term contracts •Client participation in
representatives out for increase in
• Utilize existing GPO/MSO to cover volume, term, product release, capacity and variety
supplier WHs to keep • Rationalize sales
product engineering, marketing through mergers &
minimum required stock incentives (incentives patient services, safety, •Patient Care Extension acquisitions of other
inventory as per contract. limited to new product
development)
quality and price models. •Quality QMS/TQM companies
• RFID tagging system for • Enhanced end-user • Leverage upon additional
• Provide incentives for Initiative
pallet tracking and location relationship to varied •Safety and Handling volumes & variety to
shopfloor
identification. special cases facets of medical provide robust suppliers,
• TQM and QMS to tie into • Remaining all products technology forecast for production
leveraged to move through direct • Collaborate with and entire demand cycle.
and supplier SOPS to be channels to hospitals in R&D
• Sourcing of raw material Hospitals/Clients • Conduct trials and
process
• In-house sterilization develop innovative
Management. product in collaboration
into Inventory with hospital users
production demand to tie
• Demand Forecast and
time order receipt
• Manufacture to just-in-
•Revise sales
•Reduced capital •Reduced inventory in commissions •Build strategic supplier •Sales to lead, sales
blockage the entire chain •Sales manage client client partnership •Safety and FDA
cycle and revenue
•Make-to-order scenario •Enhanced tracking relationships, forecast •Product innovation approvals for Devices
model
•Reduction in demand •Quicker revenue and demand time •Co-creation of value • QA
•Client/End-user to
lead times realization •Establish strategic •Win-win solutions •TQM
provide client
•Inventory in control •Focus on care business sales channels •Build better pricing, •DMAIC
satisfaction survey to
•Storage capacity •Transport and logistics •Customer focus to demand period and •KAIZEN
measure performance
managed efficiency. cover quota and sales supply model.
revenue.
Recommendations
• Six Sigma problem solving methodology helps enhance business and organization
operations.
Quality defect of 3.4 defects per million opportunities
A rate of improvement of 70 percent or better
A data driven problem-solving methodology of Define-Measure-Analyze-Improve-Control
This initiative is taken by MTC to create bottom-line breakthrough change in the organization.
• Don’t deploy without a leader – without a designated, empowered deployment leader it like a
ship without a captain. Crew members may know, but project will have no direction and
overall progress.
• Don’t take too big a bite – Focus on how little improvement on any part of the product.
Concentrating of minimizing the variation in a single product allows you to dig deep enough
to discover the real source of improvement
• Don’t think, “but we’re different” - Six Sigma is a general methodology proven itself in every
area.
• Don’t overtrain – amount of information has ratcheted up as consultants and trainer and have
competed in each other. Fact that you can learn it, doesn’t mean you need to.
Risks
What is Risk?
A Risk is a chance of something negative happening. With Six Sigma, risks are things that can delay,
halt, or harm your project.
Risk is what’s left over when you think you’ve thought of everything.
How to Mitigate Risk
• Brainstorming: Sit down with team members and subject matter experts to throw around ideas for risks in the
major risk categories. (Identify)
• Learned lessons: What did you learn from previous projects? Are any of the negatives from these applicable to
the new project? (Analyze)
• Keystones: What are the important supports on which the project relies? These could be people, regulatory
requirements, a piece of technology, an environmental situation. For example, say you’re designing a new piece of
hardware for the building industry. Your keystones might be a supply of cheap steel from overseas and a
continued boom in the commercial building industry.
• Assumptions: With the project team identify assumptions that the deployment manager/sponsors about the
project.
• Assumptions: With the project team identify assumptions that the deployment manager/sponsors about the
project.
You can use Fault tree analysis to chart a process and its potential failure points.
Areas of Improvement
External - Client (GPO/MSO)
• Engineering and Innovation
• Product Quality and Instructions
• Incremental Product Range
• Patient and Surgeon Involved
• The value of investing in the “people side” of lean/Six Sigma initiatives is widely appreciated, critical for success of
the project.
• Lean and Six Sigma projects include some investment in tools and processes for managing the people side of that
change.
• MTC to invest in people not just the tools or activities identified in the process charter.
• Change management is the discipline of applying proven, structured tools and processes to overcome the natural
resistance to change. By mitigating or even eliminating resistance, projects increase adoption, utilization, and
proficiency of the new processes and tools.
• This support from the executive sponsorship[ will drive faster achievement of the desired business results for MTC.
Conclusions
MTC will implement activities, systems, and structure that reinforce the org behavior change.
There must be specific reinforcement plans that reward desired behavior with recognition, money, or
promotions.
Sponsors and managers should set clear objectives, publish good information, and provide immediate
feedback will sustain the changes.
If the leaders do not reinforce, the employees will not follow the process.
Survey employees to identify adoption and implementation issues
• finalize ongoing training program.
• Effective change management can make or break a lean/Six Sigma project.
• 79% more likely to meet or exceed their objectives
• 55% more likely to be on schedule
• 31% more likely to be on or under budget.
• MTC is at the crossroads of efficient and process driven organizational change and behavior with this
project, to offset the 2.3% ACA tax be applied. It is empirical in nature and theoretically based.
• Apply the proven activities and deliverables to get the employees aboard for the lean/Six Sigma journey,
and MTC will be more likely to meet its business objectives.