Optimization of Coverall Inventory Management in the Gowning Areas Johnson and Johnson Innovative Medicine

Abstract

This project addresses critical inventory management challenges related to coveralls at Johnson & Johnson Innovative Medicine in Gurabo, Puerto Rico. Operational efficiency and employee satisfaction have been impacted by limited availability of correctly sized coveralls, with only 37.5% of employees consistently finding proper fits and 79.2% using more than one coverall per shift. Additionally, the existing inventory of 16,807 units covers just 1.95 weeks without safety stock, contributing to 12 downtime events in the past year. Using the DMAIC (Define, Measure, Analyze, Improve, Control) methodology, the project identified key inefficiencies. Analysis revealed that stains account for approximately 80% of coverall decommissioning. Sizes L, XL, and 2XL, which make up the majority of the inventory, also have the highest turnover and associated costs, with quarterly losses for these sizes estimated at $9,316.71 USD. To address these issues, the project proposes a 2.3-week inventory cycle with size-specific safety stock and reorder points, tailored to actual usage trends and lead times. Additional strategies include the implementation of an in-house cleaning process using industrial equipment to reduce dependency on external vendors, and the development of a re-cleaning loop for garments rejected during quality inspections. The Control phase introduces a Visual Cue System, regular inventory reviews, and supplier performance tracking to improve reliability and minimize stockouts. These data-driven initiatives aim to enhance inventory resilience, reduce waste, and ensure continuous availability. Ultimately, the optimized system will improve operational continuity, safety compliance, and cost efficiency across Johnson & Johnson’s operations.