Operational transformation through the Agile model

In the context of an organizational transformation project, a global healthcare solutions company launched an internal initiative aimed at strengthening customer-centricity and improving operational efficiency. Through team reorganization, process standardization, and the adoption of Kaizen and Agile methodologies, this company sought to ensure a single point of contact with the customer, increase team autonomy, and eliminate operational waste.

This case study presents the main challenges faced, the methodological approach adopted, and the results achieved through this transformation.

The company and its commitment to excellence in the healthcare sector

The company in question is one of the world’s leading manufacturers and suppliers of healthcare solutions. Since 1839, it has offered a comprehensive range of more than 5,000 products, 95% of which are manufactured in-house.

With a focus on innovation, it collaborates closely with its customers to develop systemic solutions tailored to the real needs of patients and healthcare professionals, actively contributing to advances in medicine. With a broad range of effective solutions, the company actively contributes to protecting and improving the health of people worldwide.

The customer-centricity challenge

The company was developing an internal project aimed at reorganizing its teams and processes around customer-centricity. This organizational transformation sought to establish a single point of contact with the customer, improving service agility and quality. To achieve this, it was necessary to address the following challenges:

Lack of standardization and operational waste

Teams showed significant variations in processes and individual performance, revealing the absence of shared standards, which generated inconsistencies and inefficiencies. Further issues included:

• Difficulties in tracking customer demand due to schedule inflexibility.
• Waste of managers’ time due to a lack of team autonomy.
• Lack of integration in proposal management, with duplicated databases and scattered information.

Unbalanced teams and overburdened leaders

The Span of Control analysis revealed poorly balanced teams, given the complexity of the work, with leaders performing too many operational tasks. This overload prevented a focus on team management, coaching, and strategic planning, compromising operational efficiency and preventing teams from achieving their full potential.

Lack of decision-making autonomy

There was low autonomy for simple decisions, which caused delays and task overload for leaders and at the operational management level.

Inefficient stock management

Stock management proved inefficient, with frequent stockouts, high stock levels, and lost sales due to a lack of available product. These failures created internal pressure and risk for customer relationships.

Absence of structured continuous improvement practices

The company lacked visual mechanisms for monitoring operations, as well as daily improvement routines with clear objectives. There was no standardization in meeting management or action plans, compromising coordination between different areas and the structured problem-solving.

The approach used to achieve sustainable improvement

With the support of Kaizen Institute, the Daily Kaizen model was adopted, and Agile practices were integrated, reorganizing multidisciplinary teams into Squads by value stream, and promoting autonomy, standardization, and a focus on delivering value to the customer.

Visual management and operations standardization

A visual management system was implemented based on the Daily Kaizen model, with standardized team meetings, visual tracking boards, and action with defined responsible parties and deadlines.

This approach promoted greater transparency, shared accountability, and a focus on operational objectives.

Flow creation and reorganization into Squads

Organizational flow creation was based on Squads, sized according to the workload of the value streams. The leadership of Chapter Leads was essential to ensure process uniformity across Squads, thereby adhering to the Agile model.

Figure 1 – Example of organizational flow creation

Intelligent stock sizing

The Kaizen stock sizing model was adopted, which aims to ensure a replenishment model triggered by consumption rather than forecasts. This model is based on an algorithm that guarantees an appropriate stock level to minimize stockouts without significant management effort.
To achieve this, three types of inventory must be considered:

1. Replenishment process: inventory to cover demand during the replenishment process, assuming leveled demand and process stability.
2. Demand variability: inventory to absorb fluctuations in demand over time. This exists due to short-term deviations between the customer’s Takt Time and the cycle time.
3. Process variability: inventory to absorb internal losses, such as quality or downtime.

Waste reduction and adoption of standardized work

Through waste mapping (variability, inflexibility, management time, etc.), it was possible to calculate the time effectively available for value-adding activities. Standardized work allowed this variability to be reduced and ensured consistency in processes.

Kaizen Workshops

Structured workshops were held in three phases (preparation, design/testing, and implementation), focused on the Gemba and the use of rapid countermeasures. The 9-step A3 methodology was central to ensuring alignment and low-cost results.

Results achieved through reorganization

The implementation of new organizational and operational practices enabled significant improvements in key customer satisfaction indicators:

• Reduction in lead time from order to customer delivery: from 3.9 to 2.0 days, representing a 49% reduction.
• Increase in on-time delivery: from 88% to 95%, representing a relative increase of approximately 8% (+7 p.p.).
• Response to undated price requests: 95% delivered within 48 hours.
• Response to customer queries: 95% resolved within 24 hours.

Figure 2 – Key results achieved

Through the structured application of Kaizen methodology and customer-oriented reorganization, the company was able to eliminate waste, increase efficiency, and empower teams. The consolidation of a single point of customer contact, combined with process standardization and improved stock management, resulted in tangible gains in service quality, productivity, and internal alignment.

We respect our clients’ confidentiality agreements. Although we have changed or omitted names, the results are real.