SPOTLIGHT! 2023
19
BECTON, DICKINSON AND COMPANY Capital equipment forecast accuracy improvement project
PROJECT SPONSORS: Nilesh Bodade – Director, Data Science and Process Digitalization - Business Process Kate Wetzel – Vice President, Business Process Excellence FACULTY ADVISORS: Christian Lastoskie – College of Engineering Joline Uichanco – Ross School of Business
BECTON DICKINSON, renowned as BD, stands as a preeminent American multinational in the realm of medical technology. The company’s indelible mark extends to pioneering the very technologies that drive forward medical research and elevate clinical laboratories. Within the realm of Becton Dickinson, the compass of forecasting outlines the course for financial budgets, production blueprints, sourcing endeavors, procurement strategies, and other pivotal business trajectories. The Tauber project, a transformative initiative engineered to elevate BD’s capital equipment forecast accuracy, colloquially termed “instruments”. Embarking on a voyage of inquiry, we performed extensive interviews, amassing insights from over 50 respondents from three regions. The first facet of this approach hinged on meticulous analysis, looking for specific areas of enhancement. By benchmarking best practices from a plethora of industries, this endeavor sought to provide the organization with refined strategies. The second facet, a data-driven approach of modeling and refining the existing inventory policy. These approaches aimed to elevate precision and efficacy became the cornerstone of the project. In this pursuit of excellence, these improvement opportunities and inventory policy modeling stand as beacons guiding BD toward a horizon marked by elevated efficiencies, harmonized cross-functional collaboration, and a resolute commitment to unwavering progress. With a potential of $4-12M in revenue increase, up to 40% Inventory Savings, 50% Backorder Reduction with 10% increased Service Levels, based on a HBR Study and our analysis.
TAUBER INSTITUTE FOR GLOBAL OPERATIONS // TAUBER.UMICH.EDU
BECTON, DICKINSON, AND COMPANY
STUDENT TEAM: Maria Fernanda Guerrero Pineiro - Master of Business Administration (MBA) Farzad Siraj - EGL (BSE/MSE Computer Science)
