Lean transformation strategic journey: from an ordinary manufacturing site towards a world class manufacturing site

Abstract

The MDP Company is a global medical device leader company in musculoskeletal healthcare market. One of its primaries manufacturing facilities is located in Puerto Rico where orthopedic implants and reconstructive products are manufactured and packaged. The site consists of two manufacturing buildings designed in over twenty manufacturing cells divided by product families and operates three shifts a week with over 500 employees. This project was focused on the identification and implementation of different lean manufacturing tools to reduce in three days the lead time through all manufacturing operations and to improve the manufacturing processes, thus, reduce production costs and convert the Puerto Rico manufacturing facility in one of the most profitable sites for the company. Before project start the average manufacturing lead time was 9 days with a work in process inventory cost of $2.7 million. By the end of this project, the lead time in pilot manufacturing cell was reduced to 6 days. To achieve project goals, the DMAIC (DefineMeasure-Analyze-Improve-Control) Methodology was used and different lean manufacturing tools/concepts were implemented. Key Terms ⎯ DMAIC, Lead Time Reduction, Lean Manufacturing, Process Optimization.