Transforming a Medical Devices Client into a LEAN Unit

Background:
Client – A medical device manufacturer
Objectives:

• Tefen was asked to transform the customer into a LEAN operational unit.
• Tefen conducted a diagnostics study, a detailed design and implementation phase.

Current state:

• Production:
  Production volume is not aligned with actual demand
  The number of FTEs is substantially higher then needed
  Spaghetti chart showed a substantial waste on walks
  No management control over employee efficiency
• Planning:
  Erratic demand resulted in peaks for production line
  No communication between sales & operations, no planning process.

Spaghetti chart:
 
What have we done:

• Production:
•  transforming  production using Lean principles:
  • Create a Continuous Flow process based on “Cells” – Eliminating all types of wastes
  • Defining  TAKT time for each product – aligning production volume to actual demand
  • Designing a new production floor layout to support the Lean principles
  • Implementing a “Water Spider”  Lean material handling method called
• Planning:
  • Implementing a S&OP process to improve forecast and stabilize the production plan

Adjusting production to TAKT:

Layout – Product “Cells”:

Results:

• Reduction of required FTEs by 42%
• Cycle time reduction of ~40% (20 minute11 minutes per product)
• Space reduction of ~40%
• Planning – Implementation of S&OP process supporting forecast and production leveling

Cycle time reduction: