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Terumo Unlocks Value, Efficiency with TCS

Global medical device major manufacturing execution system gets a digital transformation

Terumo Americas
Life sciences & healthcare
Automation & AI

The automation challenge

 For nearly 100 years, Terumo has been a global leader in developing and manufacturing best-in-class medical-device technologies. Operating globally, Terumo employs more than 25,000 associates, providing innovative medical solutions in more than 160 regions. 

At the heart of its business is a commitment to quality, instilled in Terumo’s people and incorporated into its manufacturing processes from the top down. Terumo Americas, which manufactures interventional systems, injection and infusion therapy devices, and drug delivery devices, maintains this proud tradition as it grows and innovates into the new century. However, many of Terumo Americas’ legacy systems were built on paper-and-pen record keeping, which had significant limitations. 

Terumo Americas realized a move to a modern, digital system was in order. 

Working in the highly regulated healthcare industry, every product Terumo Americas produces has a unique device history record (DHR). This DHR contains all documentation related to manufacturing and tracking the device and demonstrates that the device was manufactured according to its approved design. This record is critical for its role in quality control as well as affirming that devices are compliant with regulatory standards.  

Until recently, this data was input manually, on paper, during every step of the production process. Not only did manual entries leave a scope for discrepancy and errors, itbut it also meant pouring through inches-thick paper files page by page if a discrepancy was found. In fact, 90% of audits of potential manufacturing issues did not bring to light the issues with products, but rather paperwork errors that were not so simple to identify.

Clearly, it was vital to not only move beyond a system with reams of paper records requiring years of physical storage, but also to help Terumo use leading digital technology to drive innovation. A move to transform its manufacturing processes and incorporate electronic device history records (eDHR) would not only streamline compliance processes but would also unlock the power of its vast institutional knowledge through better access to, and analysis of, data.


Building greater futures

Terumo’s commitment to quality and the greater good of society aligned perfectly with TCS’ purpose of building greater futures through innovation and collective knowledge. This alignment was a driving factor in Terumo selecting TCS as its growth and transformation partner for this project.  

TCS conducted a thorough audit of Terumo’s operations and analysis of its needs. Understanding that Terumo was looking to overhaul its existing enterprise resource process system, including implementing 45 new programs all at once, TCS was able to advise how integrating a new Manufacturing Execution System (MES) holistically could deliver on the firm’s needs.

TCS helped guide Terumo on a path where the MES could deliver a complete eDHR. TCS’ strategy was to implement the MES from the very beginning of value streams, capturing far more information than is typical in other organizations — digitally. 

This not only reduced the physical space needed to keep years’ worth of paper DHRs, but to have reliable and data-rich records retrievable instantly. No longer would resources be dedicated to storing years of paper DHRs or to manually searching and retrieving historical data through rooms full of files.  Rather, the firm’s energies could be spent on looking forward.

But getting there was not going to be easy — the plan was comprehensive, complex and would require a commitment by the entire organization. TCS’ process experts worked with Terumo’s technology leaders to clearly communicate the value proposition, and there was soon full buy-in from Terumo’s people — from global leaders to the production line.

Our end-to-end MES transformation was not just about the technology. Process and personnel played critical roles. TCS helped us successfully orchestrate all three.

Kalyan Balsubramanian, VP & CIO, IT Management

Positioned to innovate

Having complete, readily available data gives Terumo real-time clarity on any manufacturing issues that may arise and reduces the time and cost of delivering data to satisfy compliance needs. The critical decision to move forward with an end-to-end MES system through the production process was the key component to maximizing the value that the overall ERP system upgrade now delivers.

The benefits from an operational perspective were numerous. The MES implementation yielded increased data accuracy, as it was collected at all stages of manufacturing. It reduced human error by moving to a digital system that was clearer and more streamlined.  Together, this allowed for better utilization of labor, material, and resources, with operational management having complete visibility at all levels of the manufacturing process.  

Terumo’s partnership with TCS on the MES was an unqualified success. Organizations have been moving to similar systems with varying results, but TCS helped Terumo implement a holistic structure that delivers far more.

As more data is generated by the new digital MES, and as its ERP system evolves, ever more insights will be generated. Terumo plans to expand the MES to more factories and value streams, looking to continue leveraging the ongoing benefits for clients, staff, doctors, and patients.

"The commitment of the entire organization was critical to generating the value we knew MES could deliver. The opportunities it has created are clear to everyone." 
- Rick Larrieu, VP, Global IT & Infrastructure SAP Leadership & COE

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