Regional Lean Supply Chain Development

Client: Leading Global Pharmaceutical Manufacturer

Location: Jiangsu Province, China

THE CHALLENGE

Our client’s plant in China produced a limited range of products in high volumes for the Chinese market. The consolidation of regional capacity meant that the China plant was to be established as a regional manufacturing hub. This greatly increased the complexity of the China operation from a supplier of a few dozen SKUs to the local market to a supplier of several hundred SKUs to around 10 regional markets (as well as China).

THE SOLUTION

TXM was engaged at the China site to develop the processes and operational culture necessary to enable the business to managed the increased complexity and meet the needs of its regional customers. TXM developed a value stream map that extended from packaging suppliers, through the plant all the way to the regional distribution centres. TXM translated this high level map all the way down to practical actions and metrics at the shop floor level at each point of the process. TXM is now coaching the implementation of these processes as the new regional manufacturing operation moves in to full production.

THE RESULTS

While the regional manufacturing hub is still in startup mode, the TXM support enabled significant reductions in inventory at all steps in the supply chain including raw materials, and finished goods both in China and the regional distribution centres. TXM use of Value Stream Mapping for the China operation and supply chain is now regarded as the global benchmark within our client’s business.