2017 Fresenius Medical Care Team Project

PRODUCTION DOWNTIME REDUCTION THROUGH IMPROVED INVENTORY ACCURACY

The Challenge:
Fresenius Medical Care North America's Concord, CA site primarily manufactures hemodialysis machines, peritoneal dialysis cyclers, crit-line monitors, and dry concentrate mixing systems. The Concord site experienced a significant increase in production line downtime in 2017, averaging 439 hours monthly for all assembly lines. The Tauber team partnered with FMCNA to determine root causes and reduce this costly downtime.

The Solution:
The Tauber team determined that 84% of downtime was caused by component shortages. The Tauber team mapped raw material movement and information flow within the Concord site, and worked cross-functionally to redesign the material consumption and purchasing processes to enable more accurate inventory. The new process simplified material transactions, reducing opportunities for human error, and ensured that only needed materials were moved from the warehouse to the assembly line.

Read the 2017 Fresenius Medical Care Team Project Executive Summary in the 2017 SPOTLIGHT! book.

Student Team:
Vijay M. Krishnan—Master of Supply Chain Management
Cheryl Zhang—EGL (BSE Electrical Engineering & MSE Industrial and Operations Engineering)
Yan Zhou—Master of Supply Chain Management

Project Sponsors:
Jim Loendorf—Senior Director, Procurement and Logistics
Jim McCracken—Senior Manager, Warehouse and Logistics
Chris Robinson—Vice President, North America Operations
Liz Wolking—Senior Manager, Procurement and Planning

Faculty Advisors:
Brian Love—College of Engineering
Lisa Pawlik—Ross School of Business


About Tauber Team Projects:

The 2017 Tauber Team Projects resulted in $575 million in savings according to sponsoring company calculations, an average of $18.5 million per project over 3 years.

Each two to three person Tauber Team consists of graduate engineering, MBA, and/or MSCM students. Along with receiving high-level corporate support from the sponsoring company, each team is advised by a College of Engineering and a Ross School of Business faculty member and overseen by a Tauber Institute Co-Director. The projects begin on-site in May and continue for 14 weeks.  Students present the results of their projects and compete for over $40,000 in scholarships at the U-M Tauber Institute's annual Spotlight! event, held each September in Ann Arbor, Michigan.  Spotlight! provides outstanding opportunities for students and corporate partners to establish relationships while exploring innovations in operations and manufacturing.
 
Access Spotlight! book for project details.
2017 Fresenius Medical Care Team
2017 Fresenius Medical Care Team
2017 Fresenius Medical Care Team
2017 Fresenius Medical Care Team