Implementation of Kanban in a BioTech Firm

Implementation of Kanban in a BioTech Firm

Background and Challenges

An organization was experiencing some difficulties:

  • End users were spending valuable time managing materials
  • Space was scarce and was not being used effectively
  • Inventory levels were not necessarily at their optimal level

The company asked Tefen's help to solve these issues.

Tools and Methodologies
Tefen has identified the need to implement the Kanban materials management system across several areas within the organization:
• AD, CCD, QC, PBC, CST labs and MFG Suites
• Total of 15+ storage locations

Results
As a result of Tefen's help throughout this project, the Kanban system was successfully implemented of in all locations. Moreover, the following goals were achieved:
• Freed-up end-user time to focus on value-added work
• Opened up space in various work areas
• Optimized inventory levels

kanban system implementation

Estimated Impact (PBC Labs Red Tag Event)

The estimated impact of the project on the organization resulted in the following data:

200 square foot (sq ft) of surface area cleared. Supplies: 30 types - 50 units total *

  • Over $10,000 worth of supplies tagged
  • Recycled/Donated/Disposed

Equipment: 39 types - 105 units total *

  • Decommissioned

* Not overstock inventory – will not be used.

Estimated Impact (AD Red Tag Day)

AD Team (ex. BioAssay):

  • 250 sq ft of surface area cleared
  • 214 columns in good working order tagged as overstock*
    • Avg. $750/column
    • 214 col x $750/col = $160,500

AD BioAssay:

Approximately 80 sq ft of surface area cleared

  • “5 individual benches & shelves above”

Over $10,000 in supplies cleared

  • 100+ unique items
  • Recycled/Donated/Disposed
  • Not overstock inventory

*Will not be returned- To be used eventually, depleted.

Estimated Impact (QC Impact)

Over $20,336 in supplies cleared:

  • Recycled/Donated/Disposed
  • Very conservative estimate

As a result of the project, the work space became cleaner and organized. This helped the scientists to move around and locate items easily.

Summary of Benefits

implementation results

Lessons Learned

Proper allocation of time & resources required

  • Extrapolation of pilot project of 2 locations to 15+ locations
  • Grossly underestimated time/resource requirements
    • Deliverable highly dependent on material handler’s availability
      • 1 x resource - Fisher Scientifics' Managed Services
      • Added 1 more resource mid project
  • Thorough identification of risks – constraints & dependencies
  • Build buffer/slack time in project plan
    • For rework & changes
  • Management of scope
    • Should not be by dept, but by lab, room, location, sq footage, items
    • SOW stated 5 areas: “AD, PPD, PBC, QC, BIO 2 MFG”
    • MFG alone has 18+ rooms/areas

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