ADT 2004 Annual Report Download - page 39

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Q: WHAT DOES OPERATIONAL EXCELLENCE MEAN FOR YOU AND
YOUR SEGMENT?
Operational excellence is more than a way of doing
business—it’s our way of doing business. We’ve inte-
grated it into everything we do, and we live it every
day. The proof that it works is clear. We enjoyed
$151 million in operational excellence savings. For
us, the bottom line is that operational excellence is
more than just about cost-cutting; it’s about imple-
menting high-quality, thoughtful projects that result
in better healthcare products—and healthier lives.
Q: MUCH OF YOUR OPERATIONAL EXCELLENCE EFFORT HAS
FOCUSED ON LEAN MANUFACTURING. HOW MUCH MORE
OPPORTUNITY EXISTS IN THIS AREA FOR TYCO HEALTHCARE?
Over the last several years, our manufacturing
group has made significant progress in eliminating
waste and non-value-added activities within most
of our operations. This has resulted in freeing up an
incredible amount of space and cash that had been
previously tied up in inventory. The use of lean tools
and methodology is not limited to manufacturing.
We are currently applying many key lean tools to
improve a great number of business processes. We
believe that there are substantial gains to be realized
by applying both lean and Six Sigma tools to all
aspects of our business.
Q: CAN YOU DESCRIBE THE COLLABORATIVE NATURE OF YOUR
PRODUCT DESIGN PROCESS?
Our product design process always begins with the
customer. We have several initiatives to ensure great
quality along with a laser-sharp focus on specific
customer needs. By using Six Sigma tools to better
listen to and hear the “voice of the customer,” we
guarantee that our product designs accurately
represent end-user requirements. Increasingly, we
are
leveraging our product developments and tech-
nology more broadly across our segment. For exam-
ple, our antimicrobial technology, created by
Kendall, is now being evaluated for application
within a variety of other Tyco Healthcare products.
Q: WHAT MAKES HEALTHCARE SUCH AN ATTRACTIVE MARKET
FOR TYCO?
Historically, the healthcare industry has been
largely resistant to economic downturn. Couple
this with the growing healthcare needs of an aging
global population, and you have a strong core
market. Clinicians and patients are demanding
better, less invasive, more technologically advanced
healthcare treatments, and we must provide the new
supporting products. Top it all off with the growing
healthcare requirements in developing countries,
and you can see why we’re so excited about this
market for Tyco.
Q: HOW ARE YOU ACCELERATING GROWTH OUTSIDE THE
UNITED STATES?
As countries develop stronger economies, they allo-
cate increasing dollars to healthcare spending.
Knowing this, we’ve created a more robust interna-
tional marketing function. We’ve significantly
expanded our sales force around the world, especially
in Europe. To capitalize on the healthcare needs of
emerging global markets, we’re skewing new product
development toward “localized” products, meaning
products that reflect specific regional needs. We’re
also balancing rapid growth in markets such as
China with a continued strengthening of our mature
markets, such as Europe. And, to ensure that our
growth and marketing efforts are consistent across
all our operations, we’ve aligned our strategies and
incentive plans.