Asset Performance to Unlock Capacity
Overview
A MedTech manufacturing company faced a critical bottleneck: a significant capital expansion was underway, but new asset installation exceeded 12 months. Meanwhile, the existing installed asset base was underdelivering with Overall Equipment Effectiveness at 55%, far below industry benchmarks of 75%. This constrained output, led to backorders, and prevented the company from meeting customer commitments and revenue goals.
The Challenge
- OEE of installed assets at 55% vs industry benchmark of 75%
- New asset installation lead time: over 12 months
- Backorders piling up, revenue constrained by capacity
- Maintenance costs high relative to asset value
- Poor spare parts planning and frequent emergency repairs
- Lack of maturity in asset performance management and governance
Our Approach
Diagnostic Assessment
Collected historical performance, downtime, and maintenance data. Performed maturity assessment across 10 key categories. Benchmarked metrics against industry peers.
Duration: 4 weeks
Gap Analysis & Prioritization
Identified biggest loss categories by availability, performance, and quality. Mapped interventions by time horizon and developed a prioritized roadmap.
Duration: 2 weeks
Optimization & Implementation
Introduced heat-maps and visual dashboards. Redesigned maintenance workflows with preventive and condition-based approaches. Improved spare parts strategy and integrated changes into existing digital systems.
Duration: 12 weeks
Capability Building & Governance
Coached cross-functional teams in root-cause problem solving and reliability engineering. Established asset performance governance structure with KPI accountability and launched continuous improvement forums.
Duration: 8 weeks
Results & Impact
10% OEE Improvement
Overall Equipment Effectiveness increased from 55% toward benchmark
20% Maintenance Cost Reduction
Maintenance costs dropped from approximately 5% to 2.5% of Asset Replacement Value
100% Repair Traceability
All fixed repairs logged into CMMS system, improving accountability
Significant Stockout Reduction
Major reduction in emergency repairs and parts stockouts
10% Capacity Increase
Improved MTTR and MTTB enabling 10% capacity increase
"The asset performance program unlocked existing capacity we didn't know we had. It wasn't just about new machines, it was about making what we had perform better."
Head of Operations
MedTech Manufacturer
Key Learnings
- Optimizing existing assets delivers value faster than buying new ones
- Process and governance first, digital enablers second
- Data quality matters - disciplined logging and root cause analysis is foundational
- Spare parts strategy is a hidden lever for reducing downtime
- Continuous improvement is a culture that requires sustained iteration
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