Our approach involved:
- Training staff to analyse and improve their own processes, including waste walks, visual management and 5S.
- Leading a Value Stream Mapping event with a cross-functional team to improve understanding of current state and plan future changes.
- Identifying root cause issues and developing solutions, then implementing changes during the Kaizen improvement week.
- Simplifying workflows associated with requisitioning and purchasing.
- Working with the board to gather meaningful performance data and identify key performance metrics and targets.
- Introducing monthly financial tracking reports.
Using the 5S approach the team removed £188K of excess/obsolete stock, improving the layout and physical environment of consumables storage and management. GE introduced maximum stock levels and conducted a full inventory count, establishing £500K minimum holding, useful for financial planning. Common stock was consolidated to eliminate multiple orders of same item. Visual management was also employed to clearly communicate costs associated with stock products.
Monthly financial trackers were introduced to monitor progress and help increase cost awareness and budget ownership. We enabled the transfer of 94 additional line items to NDC supply, increasing to 18% and decreasing overall cost of future purchases.
10 months after implementation, one directorate was £25K under budget compared to the previous year at £255k over budget, and the other specialty directorate was running £55k under budget compared to £85k over budget in the previous year.