Capitalizing on Modernized Lean Concepts
1 like492 views
The document discusses modernized lean concepts and their application in medical device manufacturing, emphasizing the importance of efficiency and the elimination of non-value-added activities. It contrasts traditional lean with modern approaches, highlighting their roles in continuous improvement and enterprise-level excellence. Key tools and training methods for lean and six sigma practices are also outlined, promoting a culture of engagement and commitment within organizations.
Capitalizing on Modernized Lean Concepts
- 1. Capitalizing on Modernized Lean Concepts Marcus Evans Medical Device Manufacturing Summit December 10-11, 2015 Jay Sanghvi “Efficiency is doing things right, Effectiveness is doing right things” Peter Drucker 1
- 2. Website MEDIVATORS designs, develops, manufactures, markets and distributes products for endoscopy such as procedural disposables, automated reprocessing equipment, chemistries and pre- cancerous polyp detection products. 2
- 3. Agenda Highlights • Lean & Six Sigma Basics-Fundamentals • Traditional vs. Modern Lean Concepts • Which one is first Lean or Six Sigma! • Product or Service: Life Cycle Role • Tools & Treasures used in each • Driven vs. Buy in at all levels… • Training and Commitments (ROI) • Continuous Improvement is a Journey 3
- 4. Lean & Six Sigma Basics • Lean means removing Non Value Added activities, Removes waste in process • Lean concept values “Value Add” customer is willing to pay for product or services • Six Sigma means reducing variations in process or bring quality levels within parameters established… • Six sigma is a set of techniques & tools for process improvement, using data driven disciplined approach in eliminating defects 4
- 5. Traditional vs. Modern Lean • Traditional Lean concepts were used mostly in Manufacturing in early days improving Manufacturing processes • Operational Excellence (Op-Ex), CI, DFM, TQM, Quality circles… • Perfection vs. Continuous improvement • One should not be improving efficiency on something that should not be done at all in first place 5
- 6. Traditional vs. Modern Lean • Modernized concept of Lean is used at enterprise levels to bring excellence in all aspects of business…Integrated • Product/Services, Process, People (3 P) • Systems and Tools optimized to improve • Add value to the organization by developing culture, mindset at all levels • Automation: Lean thinking by revealing new ways of designing lighter, smarter machines with less capital expenditure 6
- 7. Traditional vs. Modern Lean • Short term vs. long term approach thinking • Traditional Lean went after cost reduction, people reduction and failed at times • Continuous improvements not just in processes but people, systems, products… • Functional excellence vs. Enterprise level excellence • Modernized Lean goes after value add content and deploys people to optimize enterprise beyond local boundaries… 7
- 8. Traditional vs. Modern Lean • Cost reduction vs. Best Value offering wins more business and Customers… • Modernized Lean Concepts and tools used effectively will bring great competitive advantage in the market • Continuous improvement is a life long journey… • Think beyond Benchmark levels performance at all levels of organization 8
- 9. Which one is first? Lean or Six Sigma • Modernized Lean concept looks at overall picture of use of the tools where product or services are still in need at a level… • Use lean to take out non value added steps of processes so you do not improve them and waste efforts! • Go after Value added steps to improve or optimize first before you launch six sigma level effort…(Strategic) 9
- 10. Which one is first? Lean or Six Sigma • One could use both Lean and Six Sigma in certain type of products…at various stages of total product life cycle… • Medical Industry has class I, II, III levels • Defense and Aerospace Technology • Research & Development can use some of the tools from Six Sigma levels… • Manufacturing & Service Industry uses Lean and or Six Sigma tools 10
- 11. Product Or Service Life Cycle 11
- 12. Product or Service Life Cycle • One must understand where is the product or service offering in it’s life cycle • Market changes as newer Technologies are being introduced, impacts life cycle • Very important aspect of Modern Lean Concept is to review this regularly with Marketing and Customers to stay ahead… • Global level review helps since competition is also innovating (Google it) 12
- 13. Product or Service Life Cycle • Examples of missing out on this…key… • Cell phone technology went from flip (Simple) phones to smart phones and companies who used six sigma even lost out in market! • Motorola…Nokia…Apple…Samsung…LG • Cingular…A T & T…Verizon…T Mobile… • Block buster…Red Box…Netflix • 20/20…Lotus…Symphony…Microsoft Office • Any others you all can think off?...Audience 13
- 14. Tools and Treasures • Lean Six Sigma Tool box contains many tools to choose from…capitalize the use is the key • Simple tools: Buy in is easier, Easy to use, Lower investment…Higher benefit • 5 S, 6 S, 5 Why’s, Fishbone Diagram. Gemba Walk, Structured Kaizens, Standardized work, • Value-Added Flow Chart, Value Stream Map • Pareto Chart (80/20), A 3 Reporting, Visual Management, Andon, Jidoka (Autonomation) • Kanban, Brain Storming, Poka-Yoke (Error proofing), Quick Changeovers: SMED 14
- 15. Tools and Treasures • Six Sigma Tools require very structured approach of measuring performance… • Requires detail analysis to relate current state quality performance levels • Gap analysis and action plan to reach future state of Six Sigma level quality…(3.4 defects per Million) • Histograms, Trend Charts, SPC, Regression Analysis, FMEA, Design of Experiments (DOE) 15
- 16. Tools and Treasures • Common tool used in Modern methods in both are simple, Evaluate before you begin at what stage you are in Market, PLC • Plan, DO, Check, Act, Evaluate routinely at some frequency to continually improve • Create a Lean Roadmap and engage all levels to integrate cross functional mode • Share success Stories and lessons learned from the use of tools and treasures… 16
- 17. Tools and Treasures • Modern Lean at Enterprise levels examples for improvements… • Supply Chain: Review Procure to Pay processes and you will find ample opportunities to improve…end to end SCM • Review Sales Order to Cash conversion cycle…many opportunities will be found • Analyze New Product Launch process and Review Product life cycle management process… 17
- 18. Should lean be driven? • Buy in vs. Driven makes a big difference • Top down or Bottom up? Integrated fully… • Do we want to stay ahead and lead the market or be left behind in global arena? • How do we energize the use of Lean Tools to bring results not the fear of losing out jobs? • Management commitment to sponsor the program with open communication…to win more business…and opportunity for Growth 18
- 19. Training and Commitments • There are various organizations providing training externally…review cost benefits • Create a structure of building Levels of Lean Six Sigma leaders in the company at enterprise level (not just operation only) • Start with Simple Kaizen Leadership training, Greenbelt, Black Belt, Master Black Belt levels to help the organization • Encourage and Reward the participation in training and certification in each areas of organization, helps integration vs. pockets of limited areas going through such training 19
- 20. Training/Learning/Sharing/Using • Management should recognize each and every one going through training and getting certified at various levels • Celebrate each and every success story that comes out of using Lean Tools in simplified mode…Time saved, Distance reduced, Removed non value added activities, reduced cost/improved overall value to customer and…won more business.. 20
- 21. Modernized Lean! • It is not a destination… • It is a Journey of continuous improvements • Success stories shared across the global arena… • 50 to 70% reduction in cycle time • 30 to 50% reduction in inventory ($$$) • 20 to 30% cost reduction • Reduced New Product launch time by 30 to 50% • Reduced defect rates by 20 to 30% levels 21
- 22. Q & A Open for Questions and or input Thanks for your wonderful participation 22
- 23. FOR MORE INFORMATION ABOUT THE MARCUS EVANS SUMMIT SERIES: INFOCY@MARCUSEVANSCY.COM