Purchasing a new 154,000 sq ft facility provided the opportunity for a consolidation of operations at Medrad, Inc, a manufacturer of medical devices and services that enable and enhance diagnostic imaging procedures of the human body. Its printed circuit board assembly, Magnetic Resonance accessory, and vascular injection systems manufacturing groups were at three separate locations.
During the consolidation project, internally called MedFlow, the company planned to improve manufacturing layout and product flow, which was based upon traditional straight manufacturing lines with employees utilizing complicated engineering production blueprints.
Teams Apply Lean Concepts
"We formed a team of employees to apply what we believed were key aspects of Lean Manufacturing technology," said Medrad''s Doug Wilson, manufacturing manager of Electro-Mechanical Manufacturing. The Medrad team was cross-functional, consisting of representatives from engineering and production. Their objectives were to improve cycle time, inventory control, on-time delivery, and consistent daily output by incorporating Lean concepts.
According to Wilson, the team applied the elements of value-stream mapping and process identification to work toward a manufacturing operation that can produce high quality, low-cost products on a fast-response basis; i.e., produce any model on any day depending upon customer demand.
Medrad focused on transitioning schedulized manufacturing to flow manufacturing. The goal was to adjust daily product volume and mix based upon actual demand. A predictable, consistent product flow is a key driver to Medrad''s Electro-Mechanical production process. Its injectors and MR products are modular and assembled independently, tested, and then combined to form a final system. Final assemblies are then put through final QA tests again to ensure they meet the highest quality standards. The transition from traditional batch assembly to a "mixed model" production approach was a key part of the team''s value-stream mapping efforts.
Standardizing Production Processes
Medrad''s products include vascular injection systems, Magnetic Resonance surface coils and accessory products, syringe disposables, and equipment services that are used by hospitals and OEMs around the world. The company traditionally used blueprints with process instructions to manufacture its products. Engineering blueprints with lists of instructions made it difficult for employees to follow the process and made training cumbersome.
The team developed a color coded, Visual Work Instruction (VW) process for its production operators that represented each step in the assembly process in a sequential fashion. This completely eliminated the way Medrad had been providing operator instructions.
"The objective in VWI was to standardize production processes across all product lines," Wilson said. "A visual representation of each step in the process had very little in the way of written instructions. This simplicity in assembly facilitated a smooth, consistent workflow, increased cross-training opportunities and generally improved the production process through simplicity and standardization." Since the implementation of VWI, Medrad has realized a 35% reduction in product defects and training time.
During the MedFlow project, Medrad effectively enhanced material presentation and handling practices. The company incorporated Kanban in its just-in-time inventory system to create an orderly and efficient flow of materials through the entire manufacturing process, eliminating potential shortages and disruptions to the production flow. Color-coded production cards, parts bins, and manufacturing cells improved production speeds, greatly facilitated movement of materials through the factory and raw material cage, and reduced the possibility of parts mixup.
Moving to Cellular Manufacturing
Medrad also made the decision to move from straight-line manufacturing to a cellular concept. A second team of Medrad employees was organized to integrate cellular manufacturing methodology to improve the production process and maximize operator involvement by establishing work cells. Using an organized, cross-functional approach, the team established a pilot cell to test concepts and to get operator feedback.
Cellular manufacturing enhances operator involvement in that they can readily see what their coworkers are doing and can assist one another to complete a job. A unique aspect of the process is that a cell can actually output product with no one assigned to it. Production standardization and employees cross-trained in various functions offer this flexibility.
The cellular approach also improves process discipline. All raw materials are stored on the outside of the cell, while work-in-progress materials are stored inside. Production operations flow back to front, assisting team members in determining the state of the day''s work. This system decreases parts mixing and more efficiently organizes material flow.
Cellular manufacturing is a logical and efficient way of organizing equipment, materials, and personnel to produce quality products that meet customer demands. Part of this concept is continuously seeking ways to improve the process.
The Payoff
The MedFlow project took approximately a year from inception to implementation, with no interruption to customer service. It took approximately six weeks to move 250 people and hundreds of pieces of equipment into the new facility. During this transition Medrad never missed one customer order.
Medrad reduced product cycle time by 60% and increased overall productivity by 30%. It reduced finished goods inventory by 50% and eliminated 25,000 unnecessary inventory transactions annually. Floor space was reduced by 50% after the consolidation of operations. Employee output was increased by 20%, and employee satisfaction was increased through clearer processes, increased autonomy, and greater opportunities for cross training
"Developing a Lean operation internally may take longer than using outside consultants, but it builds a solid competency and fosters lasting change," said Mike Kochis, executive director of Electro-Mechanical Manufacturing Operations. "Driving this change at Medrad required understanding, commitment, and support at every level within the organization. Making the project a success took involvement and ownership, from assemblers to the CEO."
Medrad was one of seven organizations to receive the Malcolm Baldrige National Quality Award (MBNQA) in 2003, and the only recipient in the manufacturing category. As part of the Baldrige process, Medrad improved many aspects of its operations as it examined every possible function in the organization, from manufacturing to back-office administration. The Baldrige process of continuous improvement has subsequently become part of the company''s culture. Medrad is adopting Lean principles across other enterprises within the company.