Rapid Response Supply Chains at Cordis
•
0 likes•2,415 views
by Vic Chance of Cordis shown at the 1st Global Healthcare Summit on 25th June 2007
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Viewers also liked
Viewers also liked (10)
Similar to Rapid Response Supply Chains at Cordis
Similar to Rapid Response Supply Chains at Cordis (20)
More from Lean Enterprise Academy
More from Lean Enterprise Academy (20)
Recently uploaded
Recently uploaded (20)
Rapid Response Supply Chains at Cordis
- 1. Lean Thinking At J&J Cordis (& How It Can Apply to You) Vic Chance Vice President, World Wide Operations Cordis, a Johnson & Johnson Company Medical Devices & Diagnostics Group
- 2. 7/5/2007 2 Medical Devices & Diagnostics Group What is Lean Thinking? - An integrated approach to utilizing capital, materials and labor to produce just what is needed only at the time it is needed. - Eliminates inefficiencies and the underutilization of people to create a flow of value adding activities.
- 3. 7/5/2007 3 Medical Devices & Diagnostics Group The New Economics Why is Lean Thinking Important? Because of the New Economics: From: Price = Cost + Profit To: Profit = Price – Cost Prices are fixed or falling. Payers have choices, unprecedented access to information and demand excellence at a low price. In this environment the only way to improve Profit is to Reduce Cost
- 4. 7/5/2007 4 Medical Devices & Diagnostics Group Cordis Lean Journey • Journey started by adopting the principles of the Toyota Production System in conjunction with a pre-existing 6 Sigma implementation. • Vision: Provide the highest quality at the lowest cost in the shortest time through the elimination of Waste. • Focused on Working “Inside Out”, that is Fix Yourself First! A never ending process, but significant results were achieved in 6 months
- 5. 7/5/2007 5 Medical Devices & Diagnostics Group The Wins – Cordis de Mexico 2003 2006 % Increase Volume (units) 6MM 15MM 150% W/O Lean W/ Lean % Imp. Floor Space (Sq, Ft) 185K * 112K 39% Inventory $48MM $19MM 60% Labor 2680 1450 46% Yield 85% 92% 7% Total Productivity (2003-06) - $73.4MM • Recognition – Industry Week, “2006 Plant of the Year” Award – Shingo Prize .
- 6. 7/5/2007 6 Medical Devices & Diagnostics Group Leveraging Lean Skills Once You Have Acquired a Base of Lean Skills, there are ample opportunities to use them throughout your organization, For Example… • New Facilities Design • Transactional (non production) • New Product / New Process Design
- 7. 7/5/2007 7 Medical Devices & Diagnostics Group Cashel Plant Design Objectives •Develop a facility layout based on the flow of Product, People, Material, and Tooling • Link the entire value stream into a synchronized production plan • Design equipment to incorporate Lean principles • Design a flexible factory to accommodate future products • Optimize design with computer simulation models Current Process Cashel % Improvement Distance 5500 ft 500 ft 91% Cycle Time 51 days 52 hours 96% Labor / Device 65 minutes 7 minutes 89%
- 8. 7/5/2007 8 Medical Devices & Diagnostics Group Lean in a Transactional Setting Computer Systems Validation Project Lean Tools Utilized: • Value Stream Mapping • Product – Process Flow Analysis • Group Technology Matrix • Standardized Work 3% value added processing timeResults • Consolidated Process Steps • Streamlined System Classification Process • Streamlined Document Review & Approval • Simplified / Combined Deliverables • Improved Report Generation & Approval Process $4.7M Annual Save - 6 Weeks Cycle Time Reduction
- 9. 7/5/2007 9 Medical Devices & Diagnostics Group A Personal Story
- 10. 7/5/2007 10 Medical Devices & Diagnostics Group Emergency Room X-Ray Dispatch Desk (?) Examination Rooms X Ray X Ray Mach Desk Supplies Nurses DoctorsDoctors Me X4 Intake Initial Exam Move to X RayI X Ray Treat Release I I I I Dispatch Desk Physical Movement Information Flow
- 11. 7/5/2007 11 Medical Devices & Diagnostics Group How Many of the 7 Wastes Are In This Story? • Overproduction – People / activities were processed with no acknowledgement of when needed • Waiting – And How!! • Transportation – Lots of movement into and out of “inventory” • Over / Incorrect Processing – Evidence of unneeded tests / examinations • Excess Inventory – And How!! • Unnecessary Movement – A hallmark of this process • Defects & Rework – Plenty
- 12. 7/5/2007 12 Medical Devices & Diagnostics Group Lean Tools
- 13. 7/5/2007 13 Medical Devices & Diagnostics Group Lean Tools The Lean Toolset is Rich & Long…The Ones I Think are most applicable in any situation: • Continuous Process Flow • Standardized Work • Visual Control • Material Presentation • Rapid Set Up • Mistake Proofing • Rapid Response Teams
- 14. 7/5/2007 14 Medical Devices & Diagnostics Group Continuous Process Flow The Linking of Processes & People together so that there is a Flow of Value Adding Activities that transform the target of production • The objective of creating flow in a process is to eliminate the time any work sits idle • Sustaining continuous process flow will highlight any problem that inhibits the flow and will force correction of the problem(s)
- 15. 7/5/2007 15 Medical Devices & Diagnostics Group Material Area Kitting Area Molding MachineII Molding Assembly Finished Goods Holding Area Assembly 1 Assembly2 Assembly3 II II II IIII II Headcount 27 per line per shift Space 12000 sq ft Pieces per Hour 180 3 SubAssemblies 3 Lines Production Line Base Condition WIP 231 hrs Headcount 279 Output/hr 180 Productivity 4 pcs/hr/op Yields 57%
- 16. 7/5/2007 16 Medical Devices & Diagnostics Group Production Line Lean Condition Molding & Assembly Flowing Staging Area, Finished Goods LinesideWarehouse 3 Assemblies Into 1 Integrated Line Headcount 27 per line per shift Space 9700 sq ft Before After Improvements Thru-put Time 162,000 2,115 99% WIP (Hrs) 231 1 99.5% Headcount 279 161 42% Output/hr 180 211 17% Productivity (pcs/hr/op) 4 8 100% Yield 57% 90% 33% Space Utilization 12,103 Ft^2 9,709 Ft^2 20% Storage 94.47% 43.51% 54% Value Added 2.58% 37.18% 960% < =Reduction < = Increase < = Increase < =Reduction < = Increase < =Reduction < =Reduction < = Increase < =Reduction
- 17. 7/5/2007 17 Medical Devices & Diagnostics Group Standardized Work Job Standardization: the Keystone of Effective Lean Production • Standard Work Defines the One Best Way of Producing the Product with the Least Waste and Highest Source Quality • Standardizing today’s best way sets a foundation for Continuous Improvement (tomorrow’s best way) • If you can’t predict the timing and output of your process (every cycle is different), you have no baseline for improvement • You need repeatable work tasks, reliable equipment and minimal quality issues
- 18. 7/5/2007 18 Medical Devices & Diagnostics Group Standard Work Development Standard Work Job Guidance Sheet Job Standardization: The baseline for continuous improvement
- 19. 7/5/2007 19 Medical Devices & Diagnostics Group Standardized Work Can be Applied to All Activities Agenda Frequency (per month) Allotted time Quality Issues - Documentation errors E DR- - Acceptance Rates - Parts Issues - Troubleshooting 2 5-10 min Delivery to customers LFR/Perf to Schedule - Obstacles 2 5-10 min Productivity Review 1 10 min HR Communications 5 min Mandatory Trainings - Safety/Ergo - SOP's A/R A/R News - Guest - General 2 5 min Lean/PE 2 5-10 min MRR’s - Safety/ Ergonomics Work Cell MeetingsDaily Walkthroughs Week # _________, Week of _________ Supervisor Walk-through Checklist Beginning of Shift Mon Tues Wed Thurs Fri Key Notes, Issues Staffing levels Partstatus -bins,criticalissues WIP levels formodules & machines Enter required ProductionControlBoard data Rapid Response Team notes/walk through Time Sheets Mid-Shift Reviewdailywalk-patterntracking sheets WIP levels formodules & machines Enter required ProductionControlBoard data 11am:15 MinTeamHuddle:productionstatus, MRR,staffing issues/assignments,criticalissues, hotnews. End of Shift 5S reviewand corrective actionas required Collect/reviewdailywalk-patterntracking sheets Enter required ProductionControlBoard data WIP levels formodules & machines Dailystatus report(or @end ofshift) DailyStatus Summary(email)
- 20. 7/5/2007 20 Medical Devices & Diagnostics Group Visual Control Ability to Completely status the process through Visual Examination of the Work Area Visual information on the status of the line, real time available for operators and supervisor
- 21. 7/5/2007 21 Medical Devices & Diagnostics Group Material Presentation Operator Work Station • All Items readily at hand • Ergonomically designed • No searching time Line Side WareHouse • Standard storage bins • Flow racks, 2 bin system • Water Spider Replenishment • 2 Hours on Line, 2 days Stores
- 22. 7/5/2007 22 Medical Devices & Diagnostics Group Rapid Set Up Before After Pre Heated Die’s Seal Tool Base: Sealing Die’s are stored at room temperature, distant from the seal operation; requires pre-heat to use Lean: Die’s are pre-heated and co- located at sealing operation, ready for use Total Reduction in Set Up Time from Last Part of Previous Run to First Part of Next Run: 88%
- 23. 7/5/2007 23 Medical Devices & Diagnostics Group Mistake Proofing • Mistake Proofing Devices Eliminate Opportunities for Human Error – People Will Make Mistakes!! • Objective is to Prevent Defects from Occurring “Muffs” Cover Knob - Operator Cannot Adjust Magnification. Magnification Adjustment Knob Exposed, Defects Result from Operator Using Wrong Magnification Setting. Base Condition Lean Condition
- 24. 7/5/2007 24 Medical Devices & Diagnostics Group Rapid Response Teams • Formally designated cross functional teams designated to address a flow stoppage • Team must be capable of reaching the process within minutes (seconds are better) • Co-Location adjacent to the process is important • Visual Control and employee empowerment are critical to success
- 25. 7/5/2007 25 Medical Devices & Diagnostics Group Revisit: Personal Story With Lean Thinking
- 26. 7/5/2007 26 Medical Devices & Diagnostics Group Emergency Room X-Ray Dispatch Desk (?) Examination Rooms X Ray X Ray Mach Desk Supplies Intake Initial Exam Move to X RayI X Ray Treat Release I I I I Dispatch Desk Doctors Nurses Doctors Me X4
- 27. 7/5/2007 27 Medical Devices & Diagnostics Group Emergency Room X-Ray – Redesigned With Lean Examination Rooms X Ray XRayMach Desk Supplies Me Dr’s / Nurses React to Patient Visual Control - “Pulls” Treatment to Patient “Patient Mover” X Ray Andon Down Idle Running Avg CT / Patient Patient CO Time Down Time Tracking Paperwork Visual Control Patient Status Light Paperwork Kept at Point of Use – “Patient Mover” moves With Patient Waiting Treatment Waiting Move Treating Patient Status Bd
- 28. 7/5/2007 28 Medical Devices & Diagnostics Group Lean Leadership
- 29. 7/5/2007 29 Medical Devices & Diagnostics Group The Basics for Success You Have To: • Gain an understanding of the primary concepts • Develop an effective strategy to implement • Have a method to apply the lean tools • Deploy effective measures Do Not Attempt to implement a tool before you understand how it’s used, when and why Do Not use “point Kaizens” in the absence of an overall game plan
- 30. 7/5/2007 30 Medical Devices & Diagnostics Group Innovation – Execution Model Allows For InnovationExecutionIntegration Strategy Resources Training Empowerment Enables
- 31. 7/5/2007 31 Medical Devices & Diagnostics Group Our Keys to Success • Leadership Ownership, Involvement and Accountability – Top Management to Shop Floor • A Long Term Vision & Stretch Goals that Had to be Met • Employee Involvement • Proven process for Implementation • Quality Outside Help (Used When Needed but Never Allowed to do the Work for us) • Relentless Search for Best Practices – Internal and External • Investment in Developing our own Lean Subject Matter Experts
- 32. Final Thought: I invite you to join me on a Quest… Muda Stamp Out MUDA Wherever You Find It!!