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A transformation program to drive organizational and behavioral change

Intech Medical is a global leader in the design and manufacture of Medical Devices – including surgical instruments and implants, cases and trays, and silicone handles. The organization has seven specialized manufacturing facilities worldwide, in France, Malaysia and the USA.

Business Challenge

Intech Medical operates in a growing but fiercely competitive market. Its highly skilled teams work at the cutting edge of complex design and manufacturing, and Intech is recognized as a global leader in its field.

The business does face challenges, however, notably due to increasing levels of expectation from clients for faster times to market and delivery. There are also more demands being placed on Intech around cost, responsiveness, and compliance in a highly regulated pharmaceutical industry.

To address these pressures head on, the Intech management team turned to EFESO.

Approach

An initial transformation project was deployed in two: the first focused on two Intech facilities in France, while the second stage addressed processes in two US facilities. For both stages of the project, the scope spanned a range of production processes – including Planning & Scheduling.

Following an in-depth assessment conducted over a period of weeks, a phased implementation took place in quarterly waves.

Key targets were outlined for each of the facilities. These included:

  • Dramatically increasing schedule adherence (based on the first date of delivery agreed)
  • Increasing efficiency at various stages of the manufacturing process (with a particular focus on machining and quality control)
  • Developing an end-to-end performance management system, from shopfloor level (daily, and by shift) to management level (daily, weekly and monthly)

This level of transformation required careful change management around culture and behaviors. EFESO was able to guide Intech through this change – starting with the leadership team throughout the organization – to maximize buy-in and opportunities for success at all levels of the business Numerous processes were overhauled and tailored to the specific requirements of each manufacturing facility. This included: Procurement, using a Total Cost of Ownership (TCO) approach; Performance Management criteria, developed at a subcontractor’s level on a weekly basis, and Refund Control rules, which monitored transformation costs on a monthly basis (with a monthly variance analysis between the targeted and actual cost).

The success and sprit of collaboration between Intech and EFESO has seen the partnership go from strength to strength. Subsequent projects have included managing the design and build of a major new production site for Intech Group in France and multiple Boost and Build initiatives across existing sites.

Results

As a result of our proven “Boost and Build” approach, we have successfully delivered:

  • Quantitative Results
    • Cost Savings > several M€
    • EBITDA 3.5% in 12 months on the two French sites obtained through streamlining manpower - reducing the reliance on interim staff and increased adherence to schedules
  • Qualitative Results
    • Enhanced settings and control standards – around deburring, documentation control, skills management and training plans for operators
    • Improved management dashboards for the Supply Chain Department – including information around adherence to schedule, subcontractors, clients’ satisfaction, etc.)
    • KPI trees for individual facilities and an overhaul of processes impacting everyone from the shopfloor to senior management. This included defining performance behaviors and developing feedback policies and processes.
EFESO has been our consulting partner for more than three years. We began our collaboration in Europe, but have extended it to the US following excellent results. We trust EFESO to support us in our transformation projects. Not only do they deliver from an operational excellence perspective, but they also help Intech teams to develop their capabilities more broadly, while continuously striving to create value for our Company.

Laurent Pruvost, CEO, Intech Medical