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Achieving and sustaining an optimal product portfolio in the healthcare industry through SKU rationalization, complexity costing, and dashboards

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dc.contributor.advisor David Simchi-Levi and Scott Keating. en_US Hilliard, David (David John) en_US
dc.contributor.other Leaders for Global Operations Program. en_US 2012-09-27T15:27:44Z 2012-09-27T15:27:44Z 2012 en_US 2012 en_US
dc.description Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Global Operations Program at MIT, 2012. en_US
dc.description Cataloged from PDF version of thesis. en_US
dc.description Includes bibliographical references (p. 76). en_US
dc.description.abstract After years of new product launches, and entry into emerging markets, Company X, a healthcare company, has seen its product portfolio proliferate and bring costly complexity into its operations. Today, Company X seeks to achieve and sustain an optimal product offering that meets their customers' needs. Through a six-month research effort, we develop a process for stock-keeping-unit (SKU) rationalization to reduce SKU complexity while maintaining sales volumes. We, also, implement operational models to compute complexity costs associated with SKU complexity and employ SKU portfolio dashboards to monitor SKU development and govern SKU creation. This thesis discusses a process for applying these tools to any healthcare company. Through two case studies, we apply the rationalization process on one pilot brand and develop a dashboard to improve product portfolio management. We expect that the SKU rationalization process will release 38% of avoidable costs associated with the pilot brand. These case studies also provide insight into how to correctly diagnose the cost reduction opportunity associated with SKU complexity, as well as methods for a step-change improvement in lead-times and cost-reduction. Lastly, removal of complexity provides flexibility to capture other business opportunities. en_US
dc.description.statementofresponsibility by David Hilliard. en_US
dc.format.extent 76 p. en_US
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. en_US
dc.rights.uri en_US
dc.subject Sloan School of Management. en_US
dc.subject Engineering Systems Division. en_US
dc.subject Leaders for Global Operations Program. en_US
dc.title Achieving and sustaining an optimal product portfolio in the healthcare industry through SKU rationalization, complexity costing, and dashboards en_US
dc.type Thesis en_US S.M. en_US M.B.A. en_US
dc.contributor.department Sloan School of Management. en_US
dc.contributor.department Massachusetts Institute of Technology. Engineering Systems Division. en_US
dc.contributor.department Leaders for Global Operations Program. en_US
dc.identifier.oclc 809799269 en_US

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