The Company

This multinational medical technology company, founded in 1987, is a leader in the healthcare sector and specializes in the production of medical devices. With a presence in over 50 countries and approximately 75,000 employees, it supports frontline healthcare professionals by providing innovative technologies, services, and solutions that enhance diagnostic processes and patient care delivery.

The company is committed to developing cutting-edge technologies that benefit clinical therapies for patients and clinical workflows for healthcare providers. With a dedicated team and collaborations with various global organizations, it aims to tackle some of the most complex healthcare challenges, working to improve results, reduce costs, increase efficiency, and expand access to high-quality healthcare.

The Challenge

The company prioritized reducing high levels of scrap across various stages of the production process, as these significantly impacted operational costs. The glass tube production line faced a scrap rate of 15%, resulting in a negative financial impact of approximately $835,872 per year. The goal of this project was ambitious: to reduce scrap to 7.5%, effectively achieving a 50% reduction in scrap levels.

To better understand the origins of the identified critical points, a Kaizen Event was held, which allowed for the identification of the main challenges faced by the production line. During the event, the following findings were made:

• Collected samples revealed high rates of false rejections, significantly increasing scrap.
• Defect detection relied on the alignment of the barrel with the plunger, leading to inconsistencies and failures in the process.
• There was a lack of regular monitoring of critical parts, aggravated by the fact that inspections of these parts were not included in preventive maintenance routines.

Additionally, the production line exhibited several scrap causes, including mechanical failures and incorrect rejections, such as misreading the colors of tube caps. The team was tasked with identifying and addressing the primary defects contributing to scrap, which impacted operational efficiency and compromised the quality of the final product.

The Approach

After identifying critical points during the Kaizen Event, the team implemented a series of initiatives to reduce scrap and enhance efficiency on the glass tube production line. The initiatives undertaken included the following:

Elimination of Non-Value-Added Tests

Non-value-adding tests were eliminated to streamline the process and improve production speed and efficiency. This decision was driven by a high rate of false rejections (74%) caused by cracks in the tubes.

Reinforcement and Redesign of Mechanical Devices (Poka-yoke)

Mechanical devices were redesigned and reinforced using the Poka-yoke concept to prevent errors and ensure operational accuracy. This significantly reduced failures that had previously caused scrap, particularly those resulting from inaccurate measurements during reference point readings, which often fell outside the camera’s detection range.

Embedded Inspection System and Visual Inspection

An embedded inspection system was implemented alongside visual inspection, allowing for early defect detection and reducing the number of incorrect rejections. It was found that color readings for the caps had a 100% false rejection rate due to the similarity between gray and blue caps.

These actions were essential in enhancing the production line’s efficiency, minimizing scrap, and ensuring that improvements were maintained and sustained over the long term.

Results

The results of the project exceeded initial expectations. The goal was to reduce scrap by 50%, but the team achieved a 66% reduction, resulting in approximately $1.1 million in savings.

Tangible Results

Cracks in the tubes had an annual financial impact of $235,990 per year. Preventive maintenance was implemented, and non-value-added tests were eliminated, allowing for greater agility and efficiency in production.

Inaccurate measurements during reference point readings were reduced by approximately 95%, resulting in an annual financial impact of $193,120 per year.

In addition to the previously mentioned results, improvements in visual inspection had an annual financial impact of $177,500 per year for the company, resulting in a 95% reduction in false rejections during the inspection and lowering costs associated with visual management.

Intangible Results

In addition to the quantitative outcomes, there were also important non-quantitative results that had a significant impact on the organization:

• Implementation of a Lean Culture: The organization adopted Lean culture practices through this project, encouraging continuous improvement and sustainable scrap elimination.
• Process Standardization: Many new processes developed during the project were implemented as standards across the organization, enhancing overall operational performance.
• Engagement Across All Team Levels: The plan’s implementation involved all team levels, from frontline workers to leadership, fostering a collaborative environment and strengthening internal communication.

Through these actions, it was possible not only to reduce operational costs but also to promote a cultural transformation at all levels of the company.

This case study exemplifies how it is possible to exceed financial goals while simultaneously achieving significant product quality and operational efficiency improvements. The data-driven approach and implemented improvements have positioned the company as a standout success story in the medical technology sector.

We are committed to respecting our clients’ confidentiality. While we have altered or omitted their names, the results are genuine.