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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Q & A

Open for Questions and or input

Thanks for your wonderful participation

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FOR MORE INFORMATION ABOUT THE

MARCUS EVANS

SUMMIT SERIES:

INFOCY@MARCUSEVANSCY.COM