capitalizing on modernized lean concepts
TRANSCRIPT
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
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.
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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
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
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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
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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
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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…
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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
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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)
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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
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Product Or Service Life Cycle
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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)
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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
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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
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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)
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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…
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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…
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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
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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
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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..
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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
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