The client & situation

A medical device company headquartered in the United States had a Japanese customer who was dissatisfied with the finished product quality as evidenced by poor ‘on-arrival’ inspection data. The products destined for Japan were assembled on the same line that assembled products for other markets, and the facility was struggling to maintain consistent supply.

Symptom/s

Poor inspection data from Japan and inconsistent fulfillment metrics on all products produced in the facility.

Continuous improvement system status

The facility was at a median stage of a lean roll-out, visual controls were in place in the offices and hallways but not yet completed on the assembly gemba. Daily huddles were in place with a minimum of management controls. Most staff were trained in Lean yet the gemba employees were oblivious to the basic lean concepts. Superficial A3’s were in evidence.

Leanership® competitive improvement approach

• Engaged cross-functional leadership in mapping of entire value stream, with additional focus on management control systems & established close relationship with Business Management team.
• Conducted extensive pre-kaizen work – gathering data, interviewing leaders, attending meetings.
• Planned and executed a series of static kaizen events on the two main assembly lines.
• Ensured manufacturing engineering (design), quality engineering (validation) and change control participation as well as gemba employees.
• Removed gemba inventory storage capacity.
• Installed improved human contamination controls on the entire gemba. (Goggles, gloves over cuff, restricted the wearing of denims were actions defined by the team)
• Upgraded the daily huddle with real time gemba metrics and action plans. All leaders rotated through the role of leading the daily huddle.
• Installed visual factory on the gemba.
• Visited the Japanese customer, producing pictorial evidence of the steps taken to improve their experienced quality issues.
• Engaged the entire senior leadership team in the definition of the program and execution throughout.

Root cause/s

Lack of customer focus, and lack of inventory controls – exacerbated by absorption costing philosophy (hours v. output)

Results

“… is truly a passionate and charismatic leader who knows all the world class manufacturing improvement techniques inside-out. … With William’s guidance, during one Kaizen we were able to reduce our labor on our final assembly by 13% … able to increase our [throughput] by 25%. He makes the lecture so fun and exciting that it grabs your attention from beginning to end. William has taught [me] more than any experience in my 5 years in the manufacturing industry.”  A.K. Senior Supervisor at the site

Customer Fulfillment index touched 100% fourteen months after commencement of program on two key SKUs, while expenditures dipped within budget for the first time in years.