Operational Excellence

Lean Consulting Success for Nonprofit Pediatric AIDS Foundation

May 18, 2018

Operational Excellence in Non-Profits Improve Back-Office Administrative Processes & Reduce Costs

Over 3.4 million children are born with HIV and nearly half of them will die before their second birthdays without diagnosis and treatment. TBM worked with the Elizabeth Glaser Pediatric AIDS Foundation on three processes: procurement, cash management and sub-contractor compensation.

We applied classic lean process improvement tools to improve administrative process efficiency and reduce operating costs.

  • Reduce lead time for non-hotel purchases from 15 days to seven days
  • Reduce the standard vendor payment cycle time from anywhere between 15 and 50 days to 10 days
  • Reduce overdue un-liquidated advances by 75 percent

This story demonstrates how portable the tools and concepts of operational excellence are and the dramatic results that can be achieved in any type of organization.

 

 

TBM Consulting Group

Frequently Asked Questions

How many children are impacted by HIV at birth, and why is this critical?
Annually, more than 3.4 million children are born with HIV, and without timely diagnosis and treatment nearly half will die before their second birthday. Preventing new infections in newborns is therefore an urgent and critical public health goal.
How did TBM Consulting help the Elizabeth Glaser Pediatric AIDS Foundation reduce mother-to-child HIV transmission?
TBM partnered with the Elizabeth Glaser Pediatric AIDS Foundation in Sub-Saharan Africa to enhance key administrative processes such as procurement, cash management, and subcontractor compensation. By applying lean operational excellence methods, they dramatically improved efficiency, which in turn enabled faster delivery of medicines and services critical to preventing vertical HIV transmission.
What specific improvements resulted from TBM’s operational enhancements?
As a result of TBM’s lean interventions, non-hotel purchase lead times were shortened from 15 days to 7 days, standard vendor payment cycles were reduced from a range of 15–50 days down to 10 days, and overdue advances were reduced by 75%. These improvements allowed the foundation to redirect saved time and resources into frontline prevention efforts, helping mothers who are HIV-positive deliver healthier babies.

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