Case Study
Division of Leading Worldwide Provider of Advanced Life Sciences Products Builds Predictable Manufacturing Capability, Increasing Throughput 18% and Achieving Safety Stock Targets During a Critical Product Transition
100%
Safety Stock Inventory Target Achieved
Strategic Imperative
To grow the business unit substantially by establishing a high-performing and predictable manufacturing organization capable of meeting safety stock requirements during significant product transitions
Client Background
- Leading provider of advanced pipette solutions and services for life science researchers within a global life science products organization
- Division employed approximately 700 people and offered a broad selection of pipettes and pipette services
- Product transitions required coordinated inventory building, production scheduling, plant capacity, and safety stock availability
- Expiring patents created urgency to introduce replacement products and strategically protect the business
- High transition risk required precise execution, predictable manufacturing performance, and reliable customer supply
- Safety stock levels were insufficient to protect product availability during the planned transition
Key Issues & Barriers
- Critical operating knowledge was concentrated in the Head of Operations, creating continuity risk and limiting leadership flexibility
- Limited internal competency constrained the extraction, assembly, and deployment of technical knowledge required for the transition
- Departments operated reactively and in silos, with significant infighting weakening cross-functional execution
- No comprehensive SIOP framework linked safety stock requirements, product-transition demand, plant capacity, and production execution
- Scheduling and performance measures did not accurately reflect true plant capacity, throughput constraints, or waste opportunities
- Operating model responsibilities, accountabilities, and resources were not consistently aligned with manufacturing requirements
Key Implementation Components
- Clarified inventory-build and production goals, secured leadership consensus, and communicated priorities throughout the organization
- Developed a comprehensive SIOP process linking safety stock requirements, product-transition demand, plant capacity, and production execution
- Refined production scheduling to maximize throughput and improve manufacturing predictability during product transition
- Implemented measures reflecting true plant capacity and waste opportunities across the manufacturing organization
- Established the baseline operating model and designed an enhanced future-state model with metrics, management tools, and reports
- Used gap analysis to develop position profiles, clarify accountabilities, and align resources with operating requirements
Benefits & Results
100%
Safety Stock Inventory Target Achieved
18%
Throughput Increase
$5M
Annualized EBITDA Improvement