Systems Approach to Component Code Optimization for Wound Closure Portfolio

Abstract

Product portfolio management involves strategically analyzing, optimizing, and expanding a company’s offerings to maximize value and align with business goals. While companies often focus on portfolio expansion to meet evolving customer needs and gain market share, product deletion is frequently overlooked, leading to code proliferation and undermining operational efficiency. Effective variety management often requires input from stakeholders across the supply chain, yet few published methods take this approach. This work presents a systematic supply chain management approach to portfolio optimization using a case study from Johnson & Johnson MedTech. The case study is on pledgets, key components in non-absorbable suture systems. Recent pledget product quality issues exposed the need for a systematic approach to reducing component variety and operational efficiency. A current-state analysis addressed multiple dimensions of complexity. The evaluation combined qualitative and quantitative data and led to a five-stage optimization strategy. The proposed future state portfolio reduces component variety by 60%, guided by three constraints: continue to meet customer needs, protect competitiveness, and reduce manufacturing complexity. This method provides a replicable model for rationalizing legacy portfolios in the medical device industry.