The Challenge
The client was a mid-sized manufacturer and supplier of healthcare solutions designed to fight disease states in seven major therapeutic areas including cardiovascular, neuroscience, gastrointestinal, infection, oncology, anaesthesia and respiratory.
The business continued to experience year-on-year growth resulting in increased production volumes and requirements for quality testing and analysis. As production ramped up, the laboratory was unable to cope with the increasing work load and meet production lead times. Administrative requirements for testing also became backlogged, increasing employee frustrations and further reducing efficiencies. Future growth and cash flow was now under threat.
Challenges facing the business included:
- Low employee morale due to imbalanced work load and poor communication;
- Delays in meeting testing lead times;
- Increased errors and lost production time due to missing test samples, glassware and tools.
- Administrative backlogged and paperwork double handling; and
- Lack of manpower and resources.
Our Solution
To ensure the most appropriate and effective strategy was developed, our Lean consultant reviewed the business by conducting thorough process mapping to study the workflow blockages and test process.
The study identified numerous areas of waste including:
- Excess motion;
- Excessive transportation;
- Over stocks or Excessive inventory; and
- Excessive delays or idle time between sample testing.
The wastes were a result of poor storage of lab items, ineffective communication with supervisor on work priority, inefficient work practices and lack of understanding regarding batching of tests. Interviews with lab personnel were also carried out to understand their current work roster arrangement, frustration and ideas of improvement in the lab.
The results of the study and interviews were used to develop a customised Lean program to rectify the workflow bottlenecks and train lab technicians and analysts in process best practice.
Strategy solutions included:
- 5S: to improve housekeeping and workplace organisation;
- Creation of ‘Kanban’ system for test samples to prevent analysts from batching tests;
- Implementation of Visual Management system: Communication board to help the laboratory better manage and prioritise urgent production samples;
- I-MR control chart to track test cycle time
- Point-of-Use system: To reduce time wasted moving around laboratory to find needed tools and test samples; and
- Simplification of test results documentation and paperwork.
REsults Delivered
After working closely with Laboratory management and staff, there were many improvements achieved through the implementation of the recommended Lean strategies. During each step of the change process, employees and management were coached and mentored to assist with embedding new Lean skills and continuous improvement culture.
Results delivered, as rated by staff, included:
- Weekly 5S meeting and audit to ensure continuous improvement and maintenance of systems;
- Number of tests delivered on time: increased by 90%;
- Test cycle times: reduced by 75% (from 4 week to 1 week);
- General employee morale improved, with particular increases amongst Lab personnel.
- Administrative backlog: reduced by 10%;
- Communication among lab personnel greatly improved; and
- Suggestion of improvement ideas raised and discussed during weekly lab meeting.