1. Optimizing a Nation-Wide Donor Center Network BackgroundBackground The client is a global provider of biological products and enabling technologies, which are essential for the research, development and manufacture of biologically based life science products. Challenged by fluctuating market demand, new market opportunities and competition in their Specialty Plasma Operations division, the president of the company was concerned that the Plasma Organization was vulnerable to losing market share as well as profit margin. SPG and the client identified the need to expand and optimize Plasma Operations to meet the current and future strategic growth plans. SPG’s Consulting Assignment The client asked SPG, Inc. to work with them to create a specialty plasma collection unit that:  Can effectively meet a challenging business plan.  Operates with “best in class” processes and procedures.  Has the flexibility to grow while controlling cost in the centers. SPG - Business Analysis FindingsSPG - Business Analysis Findings The SPG analysis consisted of observations, “work flow” studies and interviews in order to assess the key changes required to achieve the following operational objectives :  Reduce operating cost by rationalizing fixed and variable assets.  Create a robust donor management system that integrates key growth processes of recruitment and retention.  Maximize profits by optimizing scheduling techniques to achieve the best cost and production solution.  Design an organization structure that is most appropriate for growing the business and clearly defines roles and responsibilities.  Design management development programs to enhance and broaden the leadership competencies of a growth-oriented organization.  Reduce the product cycle time to ensure on- time delivery that consistently meets or exceeds customer specifications. Results and Quantitative BenefitsResults and Quantitative Benefits SPG partnered with the client to establish 7 core work teams directly involving over 50 of their employees. These teams were governed by an Executive Steering Committee. The project was known as ACE (Achieving Collective Excellence) and was chartered with the task of undertaking a complete review of the competitiveness, productivity and overall performance of the corporation’s Plasma Operations nationwide. These teams :  Designed and implemented a new organization structure that is functionally aligned with the corporate growth strategy.  Created a production and financial optimization model designed to continuously assess cost, capacity and the parameters for decision- making.  Designed optimal production facilities and demographic models to assess growth opportunities.  Redesigned product management processes, reducing cycle time from product collection to customer delivery.  Designed and implemented a system for managing the center network. Significant financial improvements resulted from the implemented changes in the client’s operating structure and practices. They include:  $1.9 million in savings from closing 4 plasma centers, and integrating their activities into the remaining 13 expanded donor centers.  $1.1 million in savings from reducing product cycle time by 30 days.  $345,000 savings from increased product yield by recovering wasted product through process improvements.  $100,000 in savings from corporate reorganization.  Recovered a 14% production deficit in 4 months resulting in attainment of annual target and 100% on-time customer delivery commitment.  Achieved historical production records, reaching 132% of target.  Schrudder Performance Group, LLC. Proprietary Information -1207