Capitalizing on Modernized Lean Concepts - Speaker Presentation by Jay Sanghvi, Director, Supply Chain Management Medivators, Inc.at the Medical Device R&D Summit and Medical Device Manufacturing Summit.

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
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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.
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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
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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
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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
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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
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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…
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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
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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)
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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
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11. Product Or Service Life Cycle
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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)
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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
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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
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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)
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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…
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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…
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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
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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
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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..
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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
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22. Q & A
Open for Questions and or input
Thanks for your wonderful participation
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23. FOR MORE INFORMATION ABOUT THE
MARCUS EVANS
SUMMIT SERIES:
INFOCY@MARCUSEVANSCY.COM