Reducing Scrap Rate and Labor Efficiency Loss Via Lean Six Sigma
Medical Device Project Overview
A leading global provider of medical devices
This manufacturing company was able to meet their labor efficiency goal after only 3 months of working with Juran. The scrap reduction goal of 10,000 ppm was met after 5 months. $174,096 was saved in scrap, $205,000 in labor costs, and $34,560 in overtime pay
Six Sigma DMAIC
A leading global provider of medical devices found that their breathing mask line was running at a scrap rate of 70,000 parts per million (ppm), with a labor efficiency loss of $4,000 per week.
By reducing scrap, $130,000 per year would be saved. Increasing labor efficiency would add an additional $4,000 per week, totaling labor savings of $200,000 per year.
A more stable output would provide more predictable employee scheduling, saving a further $15,000 in overtime premiums per year.
The company wanted to reduce the scrap rate to 10,000 parts per million (ppm) and completely eliminate the additional labor costs that were being incurred due to inefficiency.
Working with Juran, this medical device manufacturer implemented Six Sigma, a systematic approach and data-driven methodology to reduce product and process defects and variation. This organization’s goal was to save an estimated $345,000 per year.
The medical device manufacturer was able to save a total of $413,656 by increasing their output and lowering their defect levels. This was achieved by standardizing procedures and methods in the breathing mask manufacturing process.
All inspectors received training and a sample board of products to help them determine which masks met the pass/fail criteria. Check sheets were supplied to all supervisors so they could follow up with all operators and ensure processes were being followed.
The type of glue tip that was used became standardized, along with the methods on how to press and form the shape of the breathing mask. The cone pressing station and the cone loading station became separate instead of combined. These changes led to increased safety, reductions in cycle time, easier machine change-overs, and a cleaner work environment.
This manufacturing company was able to meet their labor efficiency goal after only 3 months of working with Juran. The scrap reduction goal of 10,000 ppm was met after 5 months. $174,096 was saved in scrap, $205,000 in labor costs, and $34,560 in overtime pay.
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