MedSource

Presented by GROUP
#4
Archita
Bharat
Milan
Pavas
Rakesh
Smit
Yasha

1A) Why is contract manufacturing used in the medical device

industry?
Outsource the work no expertise in tooling and process to produce the
product
No headache to search/select suppliers

1B) What do contract manufacturers need to do well in this setting?

Do not deviate from the initial scope of work
Avoid switching between the suppliers
Maintain a good chemistry with key Suppliers
Try to cater all the OEM Cardio , Neuro , radio etc
Play on strengths
Good estimation of cost
Expedite the production

Evaluate the approach that Effress and his colleagues have

taken in building MedSource. What are its strengths and
weaknesses?
Life cycle for most devised was between 18-30 month ,OEM concern
to reduce lead time for getting individual market
This poses significant pressure on MD&E suppliers.
Effress noted that many OEMs in the MD&E industry were beginning
to contract out substantial portions of their component manufacturing.
Demand of this industry was relatively acyclical and projects were
currently being outsourced to a fragmented array of suppliers
So the huge opportunity in MD&E outsourcing drives Effress to start
Medsource.

Strength:
Sales and design infrastructure
Provide the medical device original equipment manufacturer (OEM) a singlesource solution to support all stages of a product life cycle
Clients relied on outsourcers to aggregate component demand from multiple
OEMs and Vendors
Offers product development and design services, precision metal and plastic
part manufacturing, and product assembly and supply chain management
services

Weakness :
Cultural change required at the platform company
Tough competition with top companies
Short time for design modification and material upgrades
Large investment in tooling and process required to manufacture specific
components
Frequent change in requested by client after initial contract had been signed

Preference of Medsource over ACT Medical :

Previous successful record while working on Rotoclear.

Early product handover catering to demand of Exacta
Medsource experience of working with large corporations
Its wide network of reputed component suppliers

FACTORS FOR SUCCESS

Timely delivery to client subject to no last minute requirement change
Fruitful collaboration between ACT and Medsource
Provision of extra cash by client to fund working capital expenses
Inclusion of experienced and dedicated design & operations team

Effresss strategy for the upcoming

meeting with Pat Orr

Delivery of Prototype will be delayed by some time

Ensuring timely delivery of Precision cut device
Realising that repetitive design changes delayed the project progress
Looking forward for better service to Exacta Surgical

Implementation of changes for long term success

Clear specification and guideline during final contract to avoid hassle during execution
Use of experienced employee for client projects
Standardised approach for managing projects across multiple locations
All design requirements need to be clearly defined during contracts
Changes in scope and design requirement will lead to extra time-Contract document
Timeline need to be defined properly
Milestones need to be clearly mentioned in contract document
Added costs due to change in scope need to be taken into consideration

Thanks