A global central laboratory was experiencing operational challenges with a key ancillary business unit. These challenges were negatively impacting business within its core and significantly larger business unit. The company’s sales were negatively affected by performance of laboratory operations specifically caused by late delivery and quality concerns. Additionally, projects to improve operations were late in delivery and poorly implemented. Kineticos was asked to diagnose the problem and make recommendations for improvement.
Kineticos performed a full internal review of people, systems and processes using in-person interviews, analysis of process management tools and productivity using quality metrics. Multiple global sites were included in the analysis. Our review included all areas of operations including project management and monitoring, data management, kits and logistics, supply chain, quality assurance, finance, proposals, laboratory operations and scientific affairs.
After identifying 25 separate observations, including root cause analysis, Kineticos provided 24 executable recommendations to improve operations, leading to fewer quality issues, greater on-time performance and increased management oversight of the overall processes. We identified areas for significant resource savings primarily related to unclear roles and responsibilities and removal of overlapping, inefficient processes leading to:
- 64% reduction in special project related costs
- 29% reduction in Project Management managerial costs
- 12% reduction in Project Management operational costs
- 21% reduction in scientific support costs
Our process and recommendations resulted in significant resource savings of $7.5 million annually.