Extremes in the Supply Chain:
GE Healthcare Case Study
Paul Pejsa and John Kim

GE produces products (MRI, CT, Xray, monitors ... etc) around the world (Finland, Israel, China, US, Norway, Germany, France, Mexico .. etc). Not all products are produced in all locations, as a matter of fact NO products are produced in all locations; however nearly all products are sold in all countries. GE must coordinate the varying demands (consumption) with manufacturing (production) and DC's in each producing country. In every case, international freight, logistics .. etc must be coordinated. Strangely, the majority of medical equipment is shipped via AIR!  

The Oil and Gas Industry uses materials and services in every corner of the world (North America, South America, Europe, Africa, Middle East, Central Russia, Asia, Australia).  A key challenge was the development of materials, supply chain and logistics strategies (and systems) to manage and control non global suppliers in coordination with global consumption. Traditional “hub and spoke” is where we began, however significant modifications had to be made regionally and globally to ensure the best alignment of processes, systems and capabilities with Business results (Revenue, EBIT, Working Capital and Cash).  

Using both domestic and international case studies, we will discuss the keys to (1) understanding the primary components of materials in inventory strategies, (2) designing and building effective supply chain solutions and (2) improving the performance of existing materials systems.

Upon completion of this session, participants will learn…

• Understanding Global, National and “Plant” level Supply Chains and Materials systems

• Designing and Developing Supply Chain solutions

• Designing and Developing Materials and Inventory Strategies

• Improving Business Performance through applying Lean Principles in Materials, Distribution and Logistics value streams (Revenue, EBIT, Working Capital and Cash)

Presenter Biography

Paul Pejsa has 25 years of experience in engineering, manufacturing and service operations, and process improvement. Within GE’s Aviation and Healthcare businesses, he has held the positions of R&D engineer, project  manager, manufacturing leader, service marketing manager, Six Sigma Master Black Belt and global Lean leader.

His most recent role is Director, Lean Strategy Deployment, for GE Healthcare’s 14,000 team member, 70 site global supply chain operation.  His responsibilities include leadership of global operating mechanisms and implementation of Strategy Deployment at 20 global manufacturing sites.  His team’s current results include $12.7M cost savings, $38.7M inventory reduction, and 161,000 sq. ft. reduction in manufacturing floor space.

Previously, Paul was Global Lean Leader for GE’s global services organization. His team drove transactional lean improvements in depot repair, customer/technical support, and parts/logistics segments. Results included dramatic improvement in repair cycle times, parts backorders, and call answer speeds.  The team also doubled both employee and customer satisfaction over a two year period and delivered $9MM in cost savings. 

John Kim is a recognized global leader in the development and deployment of Enterprise Wise Lean Transformations.  As an established executive at companies such as The Hon Company and Danaher Corporation, John learned the Lean principles first as a General Manager, then as Vice President of Operations.  John has spent the last 12+ years in executive consulting, specifically implementing Lean in sectors including Healthcare, Insurance, Medical Devices, Oil & Gas, Traditional Manufacturing, Administration, and Service/Distribution. 

With over 20 years of experience, John has become an internationally  recognized speaker on Lean and the Lean Enterprise with speaking engagements around the world in Denmark, Mexico, France,  Russia, Switzerland, The Netherlands, Canada, Australia and numerous locations throughout the US.  A brief list of companies in which John has personally consulted includes: GE Healthcare, GE Money, US Army, Schlumberger, Microsoft, Thedacare, Hill-Rom Industries and Genzyme amongst others.