case study on practical applications of lean principles - phillip cain, alcon laboratories, inc
DESCRIPTION
Phillip Cain, Alcon Laboratories, Inc. - Speaker at the Spring 2012 Medical Manufacturing Summit held in Las Vegas, NV, delivered his presentation entitled Case Study on Practical Applications of Lean PrinciplesTRANSCRIPT
Case Study onyPractical Applications of Lean Principles
Phillip Cain, Principal EngineerPhillip Cain, Principal Engineer
Alcon Laboratories, Inc.World-Wide Manufacturing
FacilitiesNorth America (6):• California• Texas (2)• West Virginia• Pennsylvania• Mexico
Europe (6):F• France
• Belgium• Ireland• Switzerland• Spain• Germany
Asia (1):
South America (1):• Brazil
Germany
Asia (1):• Singapore
• 14 Manufacturing Plants World-Wide• Products distributed in 180+ countries
72 t i ith h i i t i i t• 72 countries with physician training centers
Purchased by Novartis in 2011
Irvine Technology Center
Facility Size: 205K sq.ftTotal Employees: 951647 Operations/Service304 R&D
Irvine Technology CenterProducts
ConsumablesInstruments
Products
Accessories
Guiding Principles: Quality Policy
• Customer Satisfaction
• Compliance
• Trust and Integrity
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• New Technologies
• Continual ImprovementContinual Improvement
Quality Culture
Lean TermsKanbanPoke YokeChaku-ChakuGembaGembaHeijunkaHoshin KanriJidokaKanbanKanbanKaizenMudaMuriMurau aGoNaze Nando: Why?
Tatemae: Appearance of Truth: façadeHonne: Real Truth
Production Process Management18 Yrs of Improving Processes to achieve Operational Excellence18 Yrs of Improving Processes to achieve Operational Excellence
Benchmarking
ToyotaSteelcase Taylor Guitars
Celestica Thales-IES
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NestleParker HannifinBoeing C-17
B i C 17Boeing C-17
Team Alignment Process
Build status and month tracking
Finished GoodsKanban
Start/StockPlan
U it St t C tUnit Status Count
Direct Links
5S• Sort required tools • Set layout for ease of accessibility.• Shine – daily workstation cleanliness• Standardize each workstation
Sustaining 5S• Sustain
– Weekly 5S audits are performed of the
Date & Time of Audit: _______________ Name of Auditor: _____________Yes NO: # of
Occurrences
Location: ______________________
5S Audit Form
performed of the workstation and general work area.
– Manufacturing personnel l t d f
1Have safety hazards (water, oil, chemical, machines, other obstacles) been removed from work area or placed in it's designated locations?
2 Are unused or obsolete documents removed from area?
3Are all workstations clear of unnecessary documents, materials, personal items (excluding purses, wallets, and radios)?
4 Are storage areas, shelves & cabinets clear of unnecessary documents, materials, tools & equipment?
SORT (Distinguish between what is needed & not needed)
are evaluated for improving scores.
5 There are no extra tools on the work surface, station and in the drawers?
6 Are all travel paths clear of materials and equipment?
7 Do all permanent fixtures, equipment and tools have a label, parking spot (tape), & signage?
8 Do all storage bins have labels?
STABILIZE ( A place for everything & everything in its place)
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9 Is material handling/storage & other equipment in their parking spot (includes black totes and carts)?
10 Is all WIP material in appropriate parking spots (includes over building-too many systems not in taped areas)?
11 Are materials & supplies identified (ie. part number)?
12
13
14 Are floors, equipment, storage areas and work surfaces free of debris, dirt, dust, stains, fluids & trash?
15 Are cleaning supplies and equipment easily accessible (stored properly, clearly labeled and readily available)?
16 Flooring, lines, labels, signs, etc. are clean and unbroken?
SHINE (Cleaning, and looking for ways to keep it clean & organized
17 Are hardaware bin clean and dusted?
18 Are all material, equipment, fixture, and tool labels standardized?
19 Are parking spots and desinating locations clean and in use?
STANDARDIZE (Maintain and monitor the first three categories)
Sustaining 5SSustain production & manufacturingSustain production & manufacturing• Tool replenishment & monitoring
– Self Governed.
Drawer 1Tool Description McMaster # Present Needed Crib Shelf
1 Stainless Steel Shears, Length 8" 3608a24 F
2 Hard-Soft Hammer 3755a45 G
3 Phillips Round Blade Screwdriver, Length 2-3/4" 5682a36 E
TOOLING CHECKLISTSTATION 1 LINE 1
p g4 Slotted Narrow Blade Screwdriver, Length 8" 5682a32 E
5 Phillips Long Round Blade Screwdriver, Length 6" 5682a44 E
6 Slotted Narrow Blade Screwdriver, Length 3" 5682a37 E
7 Miniature Long-Nose Pliers, Length 4"" 5783a1 F
8 Diagonal-Cutting Pliers, Length 5" 3620a12 F
9 Long-Nose Pliers, Length 5-1/2" 53895a23 F
10 Wire Stripper 7294k58 F
Customized Checklist for each workstation
Tool Crib
11 Driver C/E (P/N: 409-950) I,J
• Re-order point established byKan-Ban systemOn line Tool Ordering• On-line Tool Ordering• Email verification to
production lead
Poka YokeMotor Gear Box Latch Disk
Mistake Proofingg
Current State Future State
Value Stream MappingCurrent State Future State
Future State
3 3 D
Metrics
C l Ti
Current State
7 7 D
% Change
57 %3.3 Days
0.58
$19,513
Cycle Time
Defects per Unit
Standard Cost
7.7 Days
1.68
$23,930
57 %
65 %
18 %
$11783/sqft
10.56 Turns
Floor Space Utilization
Inventory Turns/Year
$4110/sqft
5.61Turns
287 %
88 %
Supplier Smart Carts (SSCs)– Direct to floor Delivery from
Value Chain Supplier– Reduced POs– Increased Turns
Shi d– Elimination of trash– Optimal daily deliveries to
support production
Shipped to customer before Invoice Due
– Decreased Inventorysupport production. yFind and resolve issuesquicker
Assembly Stations
DESIGN PROCESS
1. IDEA2 CONCEPT ITERATIONS2. CONCEPT ITERATIONS3. IMPLEMENTATION
Applying SkillsCASE STUDY: IMPROVING CUSTOMER SATISFACTION USING LEAN TOOLS
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IMPROVING CUSTOMER SATISFACTION USING LEAN TOOLS
The PurePoint® and Eyelite® lasers provide a unique combination ofp q
features designed to enhance surgeon control during vitrectomy surgery.
Customer Focus
CATEGORY INITIAL STATE
EYELITE 100 BACKORDERSEYELITE 100 BACKORDERS
PUREPOINT 43 BACKORDERS
PUREPOINT SALES 8% MARKET SHAREPUREPOINT SALES 8% MARKET SHARE
CONTINUAL IMPROVEMENT SAVINGS
$0
CUSTOMER SATISFACTION DISAPPOINTMENT
ProcessValue Stream
Initial State
19
Value StreamLaser Production Line
Initial State
ALL PRODUCTION WITHIN CLEANROOM ENVIRONMENT
Value StreamLaser Production Line
SEPARATED PUREPOINT LASER PRODUCTION FROM CLEANROOM ENVIRONMENTFinal State
ProcessValue Stream
Final State
Value StreamAdvantages
• Eliminated unnecessary gowning– Saved 35 min/day per technician– 17 technicians ~ SAVE 9 hrs/day!
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17 technicians SAVE 9 hrs/day!• New layout for process changes
– Improved efficiency• Reduced clean room space requirement 2/3• Improved visual management• Reduced production cycle time
5SHousekeepingp gInitial State
DisorganizedDisorganized
5SHousekeepingp gFinal State
• Saves Space • Protects Equipment • Standardize
MaterialManagementMaterial Flow
Initial State
MaterialManagementMaterial Flow
Final State
Team CommunicationVisual Managementg
Initial State
Team CommunicationVisual Managementg
Final State
Supervisor
Work Stations
Customer Focus ResultsCATEGORY FINAL STATEINITIAL STATE
EYELITE 100 BACKORDERS IMMEDIATE AVAILABILITYNo Customer Backorders
PUREPOINT 43 BACKORDERS IMMEDIATE AVAILABILITYPUREPOINT 43 BACKORDERS IMMEDIATE AVAILABILITYNo Customer Backorders
PUREPOINT SALES 8% MARKET SHARE 24% MARKET SHARE
CONTINUAL IMPROVEMENTSAVINGS
$0 $1.1M
CUSTOMER SATISFACTION DISAPPOINTMENT DELIGHTED
CORPORATE OFFICE ECSTATICCORPORATE OFFICE ECSTATIC
Customer Focus Results
41 38
5060
PurePoint Finished Goods Inventory ‐ 2009
Lean Value Stream
‐2
22 25
38
20
40
B k d
Initiative
‐20
0DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
Backorders
Availability
57
‐47 ‐50
‐35
‐60
‐40Eliminated Backorders
‐5760
Customer Focused Results
C l i t (% f i t ll d b )C l i t (% f i t ll d b )Complaints (% of installed base)Complaints (% of installed base)
2008 2009 2010
Complaints Reduced significantly from 2008 to 2009
Business Metrics:
12%16%
Average Defect Per Unit (DPU)
100%
Product Cost
7%
4%
8%
12%
94%
96%
98%
2008
2009
0%2008 2009 92%
2008 2009
2009
Resources
$400
$500
usan
ds
Total Overtime Labor Cost
2008
2008
2009
$0
$100
$200
$300 Thou
20 22 24 26 28$0
2008 2009 2010
Lean AdvantageFloor Space UtilizationFloor Space Utilization
Cataract Floor Space EfficiencyCOGM per SqFt
$15,637.0916000
18000
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$9 222 6110000
12000
14000
$9,222.61
6000
8000
10000
29814127
3345$4,110.37
2000
4000
01999 2007 2010
Total Sq.Ft COGM/Sq.Ft.
Alcon Laboratories
Questions & [email protected]