Global Medical Device Manufacturer Uses Management System for Visual Management and Accountability​

Global Medical Device Manufacturer Uses Management System for Visual Management and Accountability​

Improved customer centricity and reliability, achievement of cost reductions and advancement towards growth plan.​

A leading global manufacturer of medical devices and surgical solutions was facing rising backorders and operational inefficiencies that constrained sales growth. To keep pace with rapid customer demand, the company recognised the need to strengthen production reliability and streamline operations. Years of expansion through acquisition had created inefficiencies across product lines, leading to excess inventory and inconsistent performance. By aligning improvement efforts around customer needs and implementing lean management practises, the organisation set out to build a more reliable, efficient, and profitable operation.

Challenge

High backorders and inefficiencies across merged product lines limited sales growth and production reliability.

High backorders were constraining sales growth and limiting customer satisfaction. To better serve its customers and grow profitably, the company needed to strengthen reliability on the production floor. Following several acquisitions, multiple inefficient product lines had been consolidated into one facility — creating excess work-in-progress inventory, low productivity, and overreliance on safety stock to meet delivery commitments. Rapid expansion had taken priority over operational improvement, leaving the business with high cost and limited agility.

Solution

A customer‑focused lean transformation strengthened process discipline through visual management and daily accountability systems.

The company began its lean journey from the outside in — starting at the customer level to pinpoint pain points and the best opportunities for improvement. An engaged, cross-functional Continuous Improvement office was built to connect operations, quality, and customer service. Through enhanced visual management and daily accountability, the team implemented a comprehensive management system to embed process discipline throughout the organisation. A state‑of‑the‑art visual management system was introduced to address abnormality response, line‑side review stations, SQDC training, and daily management rigour.

Results

Productivity rose over 20%, floor space was cut by 66%, WIP inventory dropped 85%, and $1.3M in backorders were eliminated.

The transformation delivered meaningful productivity and space savings across the facility. Overall productivity rose by more than 20%. Floor space requirements fell by 66%, including high-cost clean lab areas. Line-side WIP inventory dropped by 85%, and a $1.3 million backorder on a key product — 1,400 cases in total — was eliminated, enabling shipments within 24 hours. The company also insourced injection moulding, improving both production speed and profitability.

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Frequently Asked Questions

How to reduce backorders and improve delivery reliability in the pharma or medical device manufacturing industry?
Manufacturers can reduce backorders by stabilising production processes, improving equipment and line reliability, and aligning capacity with true customer demand. Focusing on the root causes of late orders—such as bottlenecks, excessive changeovers, or unplanned downtime—enables faster, more predictable delivery performance.
What operational changes help increase productivity and reduce floor space in regulated manufacturing environments?
Improving productivity and freeing up space often starts with eliminating waste in material flow, standardising work, and redesigning line layouts around value streams. In regulated environments, enhanced visual management, clear accountability, and disciplined daily management routines help increase throughput while safely reducing WIP and overall facility footprint.
How can organisations sustain lean improvements in pharma and medical device operations over time?
Sustaining improvements requires a structured management system that includes standard work, clear performance metrics, and consistent daily review routines. When leaders regularly review SQDC (Safety, Quality, Delivery, Cost) performance, coach frontline teams, and reinforce visual management and problem-solving behaviours, lean gains are more likely to become embedded in the culture rather than one-time events.

Topics in this Case Study

Strategy Deployment

At a Glance

Client

Leading global manufacturer of medical devices and surgical solutions.

Results

  • Productivity increased by 20%+​
  • Floor space reduced by 66% – especially costly clean lab space at a higher cost per ft2
  • Line-side work in progress inventory reduced by 85%​
  • Reduced $1.3 million backorder on one product
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