Achieving a 45% Cost Reduction and 300% Space Efficiency for a Leading Medical Device Manufacturer

Situation

A leading medical device company faced rapid growth, driven by the success of a new product comprising catheter, capital equipment, and software components. Over three years, production volume increased tenfold, creating challenges related to:

  • Insufficient physical production space.
  • High manufacturing costs due to initial R&D-intensive processes.
  • Quality inconsistencies and documentation errors.

Actions

  • Conducted a current state assessment including a detailed analysis of current manufacturing operation, identifying bottlenecks, inefficiencies, and areas for improvement.
  • Assembled a multidisciplinary team from R&D, quality, program management, and continuous improvement to tackle challenges collaboratively.
  • Led a two-week value stream mapping exercise to visualize the entire production process, pinpointing inefficiencies such as inventory buildup, quality gaps, and equipment downtime.
  • Developed a comprehensive project plan, targeting space optimizations, cost reduction, and quality improvement. The plan included:
    • Transitioning from four manual production lines to one automated line.
    • Moving from paper-based documentation to a fully electronic system.
    • Designing and validating an automated manufacturing machine in partnership with external vendors.
  • Implemented lean manufacturing principles, automation, and advanced documentation systems to achieve targeted improvements

Results

  • Reduced manufacturing space usage from 8,000 sq. ft. to 3,000 sq. ft., enabling additional capacity.
  • Achieved a 45% reduction in manufacturing costs by automating processes and consolidating production lines.
  • Improved documentation accuracy from 88% to over 98% by transitioning to an electronic documentation system.

Return on Investment

Delivered a 27% ROI, exceeding the initial 20% target, through streamlined operations and enhanced efficiency.

Optimized medical device production line with lean manufacturing principles

Conclusion

Heerain's leadership and expertise in lean manufacturing, automation, and cross-functional collaboration enabled the company to scale operations effectively while reducing costs and improving quality. This project demonstrated the transformative power of lean principles and automation in the medical device industry.

Project Details

MetaExpert skills needed:

  • Lean Manufacturing
  • Project Management
  • Automation and Machine Design
  • Value Stream Mapping
  • Financial Modeling
  • Negotiation and Stakeholder Management
  • Quality Systems Implementation

Contract Length:

  • Three and a half years, full-time commitment. The project was part of a broader 16-year tenure with the company.

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