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TOC Reference Bank - Magnum Medical AS
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ORGANIZATIONAL INFORMATION  < back
Company Magnum Medical AS Division logistics
Location Tallinn - Estonia.
Company Contact   Mr. Margus Linnamae, chairman of managerial boardwww.magnum.ee
Comments ADDITIONAL SOURCES OF INFORMATION ABOUT IMPLEMENTATION � TOCICO 2004 Annual Conference provided in Miami (FL), USA. Presentation � New TOC Logistics- Solution in Unpredictable Environment�, presented by Ivar Keskpaik � Magazine �Director�, article �Teravmeelne tootmine� (�Wise Production�), January 2002. Author Taivo Paju. Author interviews Ivar Keskpaik about implementation of TOC principles in Magnum Medical�s Logistics Centre. � Magazine ��rielu� (�Business Life�), article �Piirangute teooria p�him�tete rakendamine logistikakeskuses� (�Implementation of TOC principles in Logistics Centres�), December 2001. Author Ivar Keskpaik. Author wrotes about implementation of TOC principles in Magnum Medical�s Logistics Centre.
IMPLEMENTATION INFORMATION
Name Magnum Medical AS
Location Tallinn Estonia
Industry Segment Pharmaceutical
Revenue 95.9 M per year
Number of employees 72 , warehouse workers
Area wholesale and distribution
Markets and Company Share Market share in Estonia 48%
Products Pharmaceuticals, consumer products and hospital equipment
Type of operation Wholesale and Distribution
Systems in use ERP E
WHAT WAS DONE?  
TOC Applications DBR, DBR, TOC logistics for Logistics Centres
WHO DID THE WORK?  
TOC company Centrum Consulting OU,Estonia-Ivar Keskpaik,Senior Consultant
RESULTS OF IMPLEMENTATION
IMPLEMENTATION RESULTS  
Expenses Decrease not less than 30%
PROJECT PAYBACK  
Months to first visible results
2 weeks
TOC project payback period in months less than four month
OTHER BENEFITS  
Lead times
From 3 hours
To 2.25
Percent improvement 25%
Cost efficiency not less than 30%
Brief summary �Implementation of TOC principles for Customer Order processing� Sub- Project. Achieved results: � Increase of Sub- Process throughput at least 50% � Reduction of Customer Order processing time ca 25% (based on undirect calculations) �Implementation of TOC principles for Receiving, Storage, preparation of goods . Achieved results: � WMS based flow balancing system was developed � Increase of productivity of average Logistics Centre worker more than 30% (decrease of labour costs more than 30%)