Developing a Culture of Continuous Improvement

The Challenge:

Gamma-Dynacare executives recognized a need to provide area management and staff with tools and methodology to operate more effectively, focus on the key drivers of the business and a means to continually improve area processes. It was decided that the first areas of impact would be transportation, warehouse, purchasing and accounts payable.

This would be the first step toward subsequent projects in the clinical processing areas in Brampton, Ontario and expansion to other laboratory locations in Canada.

The Results:

• The profitability improvement goal of the project was exceeded, generating an ROI of 220%.
• Transportation stops per hour productivity improved by 16%.
• Transportation calls dispatched to outside carriers reduced by 71%.
• Warehouse receiving productivity improved by 53%.
• Warehouse picking productivity improved by 13%.
• Cycle time of orders through the Warehouse improved by 58%.
• Purchasing productivity improved by 49%.
• Cycle time of requisitions through Purchasing improved by 84%.
• Negotiated price reductions of purchased material exceeded plan by 15%.
• Accounts Payable productivity improved by 8%.
• Success of this initial project led to a start up of a second project in the Brampton Clinical areas.

Specific actions taken to achieve the results included:

• Driver run re-design to improve service, productivity and reduce reliance on outside carriers.
• Warehouse layout change to enable more efficient put away and picking processes.
• Realignment of warehouse activities to provide cross functional flexibility.
• Installed Economic Order points for order re-supply process.
• Installed contract renewal database and process control to reduce purchasing price discrepancies.
• Eliminated unnecessary process steps, reducing cycle time to complete purchase requisitions.
• Installed control mechanisms to manage vendor delivery performance.
• Improved price renegotiation process and improved system tools to drive material cost savings.
• Improved process control, vendor formatting and accuracy to reduce errors in Accounts Payable.

The Client Experience:

“Managers were given the tools, training and coaching to enable them to become more actively involved in problem solving and the accountability for achieving required levels of performance. Additionally, the project provided important sustainability elements to ensure the initiatives continue to generate benefits to the organization long after the completion of the on-site phase.”

Chief Executive Officer, Gamma-Dynacare