An Outsider Who Knows Hologic Inside Out
It takes more than technology to change a business.
An independent firm documented that Hologic Inc. saved $3.5 million (after netting out the cost of the project) by implementing the Oracle e-Business Suite.
But Hologic CIO David Rudzinsky believes the medical-device company would not have realized such savings if not for the leadership of Mark McCormack, founder and CEO of Omnion Consulting, LLC, and the hard work and cooperation of the Hologic staff.
“Mark knows how to get things done,” Rudzinsky said. “Even though he doesn’t work here, he has developed relationships with senior management, middle management and staff. At every level, he’s been able to make it click.”
|By making it “click” and getting all parties at three different plants to agree on every aspect of the implementation, Omnion’s McCormack helped Hologic:
||Increase labor productivity, saving millions
||Reduce inventory by 48% at one plant and 35% at another
||Reduce part shortages by 67% at one plant
||Reduce financial management labor costs by 17%
||Achieve a return on investment exceeding 100%
In addition, by helping Hologic operate more efficiently, Rudzinsky believes the project is improving customer satisfaction by providing quicker deliveries with few defects.
McCormack was a project manager for Oracle when he began working with Hologic, but when he left and founded Omnion in 2003, “we immediately retained his services,” Rudzinsky said.
Since then, Omnion has upgraded the Oracle Business Suite twice (versions 11.5.9 and 11.5.10), and added Oracle Quality and iSupplier worldwide throughout the company.
A Supply Chain Focus
The 5.9. and 5.10 upgrades contained a number of supply chain enhancements. Although Omnion provides comprehensive Oracle implementation services, supply chain applications are its area of greatest expertise.
For the 5.9 upgrade, Omnion implemented new modules for Order Management, Planning, Procurement, Inventory, Work in Process and Cost. The 5.10 upgrade included Planning, Procurement, Inventory, Work in Process, Cost and Quality modules.
Omnion’s rapid implementation process resulted in both projects being completed on time and on budget, even while adding new functionality.
Bringing Businesses Together - Oracle Quality Implementation
The challenge of implementing Oracle Quality was that each plant Omnion worked with “had their own little business,” McCormack said. Working with the three plants, and with Hologic’s compliance and IT staff, Omnion developed a common approach to gathering quality data that accommodated everyone’s needs.
Oracle Quality “is very tailorable,” according to McCormack. “It’s a white board. Whatever you need it to do, it can do. It just takes a little bit of coding.”
Because of the software’s flexibility, Omnion was able to produce a highly automated tool that can produce the data needed even for an FDA audit quickly and easily.
“It took time, meeting after meeting, refinement after refinement of what data was going to be collected,” McCormack said. “Then it was an issue of getting set up in Oracle and working through the refinements.”
Key to the project’s success was working closely with Richard Follet, Hologic’s Vice President of Quality Assurance and Regulatory Affairs. As a developer and manufacturer of digital imaging technology that is used to detect breast cancer and osteoporosis, Hologic is regulated by the U.S. Food and Drug Administration and is subject to the regulations contained in Title 21 Code of Federal Regulations (21 CFR Part 11) Electronic Records; Electronic Signatures. As such, Follet “was the last court of appeal,” McCormack said. “Whatever he said was the final decision. No one could trump him.”
Extending Efficiency Outward
With the addition of iSupplier, Hologic is able to operate even more efficiently and is continuing to increase productivity, while monitoring supplier performance with little effort.
iSupplier is equally helpful to suppliers, according to Rudzinsky. Because it is Web-based, suppliers can look into the iSupplier system at any time and track vital business information, such as overall demand and schedule changes. They can also check the status of their invoices online.
“On the supply chain side,” Rudzinsky said, “it comes down to critical information getting exchanged immediately via the Internet, anywhere in the world.”
A Supplier Report Card
Oracle Quality is being used even more extensively.
“We have a tool that captures information and can report on how well our suppliers are doing,” Rudzinsky said. “It’s a supplier report card that tracks on-time delivery and the number of rejects from each supplier.”
Over time, Quality will help Hologic ensure that it is working with the best possible suppliers. Hologic can also use the report card feature as a negotiating tool.
Hologic and Omnion are also in the process of implementing a vendor-managed inventory (VMI) system and consignment inventory (CI).
When the consignment inventory system is live, materials will be shipped to Hologic in advance, but the company will not be billed for them until the moment they are used, at which point billing will be automated.
Using VMI, Hologic will set parameters for specific parts so that when they fall below a certain number, a new order will be filled and shipped automatically.
Rudzinsky said Omnion will continue to upgrade Hologic’s information systems because the firm’s adaptability and knowledge of Oracle technology fits Hologic’s business approach perfectly.
“Our approach is not traditional,” Rudzinsky said. “A lot of people would come in and say‘here’s how we implement.’ Omnion’s been able to adapt to our environment. They’re not stuck on their methodology. They’re trying to help us get the most out of our software – and that’s what they do.