reduce stock holding and improve manufacture quality

New Brunswick Scientific

Sector: B2B within the high quality medical sector

Summary: A partnership approach to manufacture helped NBS to reduce stock holding and improve manufacture quality.

How NPI have helped New Brunswick Scientific

• KanBan Manufacture
• Reduced Stock Holding
• Reduced Delivery Lead Time
• Compliant Quality
• Zero Transit Damage

What was the Business Challenge?

New Brunswick Scientific (NBS) operates in the medical sector and as such, cannot afford to have less than perfect standards. Stock holding was high, which was tying up a significant amount of capital. Lead times were also typically six weeks for the inner door assembly comprising stainless steel, glass and various bespoke hardware. Quality levels from its existing supply base were also erratic and although nothing ever got through to the customer, the attrition often left production short of material unless stock levels were increased to give a buffer against potential failures. NBS approached NPI four years ago with the remit of finding a solution to these problems.

What was the NPI Solution?

It was established early on in the relationship that the quality failures were not due to the existing suppliers being useless; the root cause was the exceedingly high quality standard that was being demanded, for which suppliers were finding it impossible to provide a consistent satisfactory quality level, which in turn led to high stock levels being held by NBS.

The manufacture of high quality industrial equipment where cosmetic appearance is considered as important as functionality was already familiar to NPI. By applying the same standards we were able to introduce consistency into the supply chain, which in turn led to the inner doors being supplied as complete sub-assemblies. Units are transported in specially constructed, reusable timber frames to prevent transit damage.

What was the Customer Outcome?

NBS are now able to schedule New Brunswick Scientific’s manufacturing facility with the knowledge that inner door manufacture will not be a cause for failure. Stock levels have been reduced by circa 80% and lead times are heading towards five days, down from six weeks. The resultant financial payback is significant. Supply is regulated by an agreed KanBan level. Due to this success, NPI have been asked to partner NBS in the development of a completely new design as part of their continuous improvement programme.

We are extremely proud to be valued by our customers in this way. Progressive manufacturing partnerships are the future, which benefits both customer and supplier as opposed to the old model where each party felt they could only win at the expense of the other.