LEAN Best Practices for Laboratories

Transcription

1 MANUFACTURING October 2011 LEAN Best Practices for Laboratories Sponsored By: Produced By: MANUFACTURING Presented By: Alan G. Dunn, President (202) (951) (951)

2 A Speech by Alan G. Dunn A Proprietary Web-Enabled Training Program Developed & Presented by Alan G. Dunn Copyright GDI Consulting & Training Company (GDI), All Rights Reserved. This presentation may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the copyright holder. MANUFACTURING This presentation was prepared for presentation purposes only & is not complete without the accompanying oral commentary.

3 Click To Edit Today s Master Topic Title is Important Style Because? 1. Laboratories CAN apply many of the LEAN techniques pioneered by the manufacturing community. 2. LEAN is about improving process flow & eliminating waste irrespective of environment. 3. Waste elimination frees up capital which can be invested in automation & market penetration uses. Our training mission today is to provide you with tangible solutions to these problems. 3

4 Click Introducing To Edit Your Master Webinar Title Style Leader Alan G. Dunn President, GDI Consulting & Training Company Founder, Manufacturing Executive Institute (MEI) Co-Founder, Dunkirk Governance Specialists, LLC Recipient of National Association of Corporate Directors (NACD) 2007 Board Member of the Year Award Executive Workshop Leader at California Institute of Technology (Caltech). Subjects include: Implementing Activity Based Cost Accounting (ABCA) & Activity Based Leadership (ABL) Manufacturing Cost Strategies Business Process Innovation Implementing Statistical Process Control Business Performance Measurements Successful Global Business Operations 4

5 MANUFACTURING Let s Get Started!

6 A Good Place To Start Click What Is To the Edit SINGLE Master Most Title Important Style Goal at Your Laboratory??? 6

7 Click To Edit Thematically Master Title Speaking, Style What Is a LEAN Laboratory? A LEAN laboratory is a laboratory that is focused on testing products and materials to deliver results in the most efficient way in terms of cost and speed. LEAN laboratory is a management design and organization process derived from LEAN Manufacturing and the Toyota Production System (TPS). The goal of a LEAN laboratory is to use less effort, fewer resources and less time to test incoming samples. 7

8 Click To Edit FIVE Master Waste Title Drivers Style In the Typical Lab Environment 1. Lack of Focus 2. Long & Unpredictable Testing Lead Times 3. Ineffective Fast Track Systems 4. High Levels of WIP 5. Volatile Incoming Workload 8

9 Click To Edit Lack Master of Focus Title Style Focus on individual test accuracy Focus on individual & testgroup efficiencies Test-centric dedicated personnel Little control & visibility of samples through a variable process that can be dependent on sample type AND market requirements 9

10 Click To Long Edit & Master Unpredictable Title Style Testing Lead Times Large queues Anticipatory queues Efficiency queues Long testing lead times Unpredictable testing lead times 10

11 Click To Edit Ineffective Master Title Fast Style Track Systems Fast Track internal systems developed to address priorities & self-imposed long lead times Hot, Hotter & Hottest prioritization schemes develop and quickly become unworkable! Prioritization attempts result in added costs, often to most profitable clients. True costs of service become questionable. 11

12 Click To High Edit Master Levels of Title WIP Style High levels of poorly scheduled priorities result in: o High inventories o Extra effort in tracking, controlling & prioritizing samples o Extra planning (and replanning) activities Investment in the savior, a LIM system! Before investing in a LIMS, reengineer the work content, flow & processes! Lacking process effectiveness, LIMS can result in an ability to make quicker mistakes faster! 12

13 Click To Edit Unpredictable Master Title Incoming Style Workload Incoming workload is unstable with frequent highs & lows. Short term productivity focus may not work. Testing capacity is not understood. Few tangible mechanisms for smoothing the work load. 13

14 Click To NINE Edit Master Wastes Title Often Style Seen In Laboratory Environments 1. Waiting 2. Transportation and/or Material Movement 3. Over-Processing 4. Inventories 5. Motion & Movement 6. Defects 7. Over-Production 8. Re-Prioritization 9. Mis-Utilization of Skills 14

15 Click To Type Edit Master of Waste Title Waiting Style Definition Examples Potential Causes Idle time created when material, information, people or equipment is not ready Waiting for: Tech or instrument to become available Samples in a batch to complete testing System to come back up Client or vendor response Is waiting always bad? Excessive WIP due to large batches Equipment problems Defects requiring re-work Push system 15

16 Type of Waste Transportation and/or Click To Edit Material Master Movement Title Style MANUFACTURING Definition Examples Potential Causes Movement of material or information that does not add value Samples traveling throughout the lab to be processed & tested Carrying samples and documents to & from shared equipment Taking files to another person Moving patients for testing Inefficient workplace layout Large batches and/or equipment Islands of like machines instead of work cells 16

17 Click To Type Edit of Master Waste Title Over-Processing Style Definition Examples Potential Causes Efforts that create no value from the client s standpoint Unnecessary testing due to overly sensitive instrument Perform testing not requested Repeated manual data entry Excess paperwork Redundant approvals Over incubation or mixing of samples Work silos No visual controls No standard work 17

18 Click To Type Edit of Master Waste Title Inventories Style Definition Examples Potential Causes More information or material on hand than what is needed Lab supplies Specimens waiting analysis Paperwork in progress Unused records in the database Long lead time for supply replenishment Re-stock & reorder not consumption based Large reagent lot sizes Inventory can be the GIANT sucking sound of capital! 18

19 Click To Type Edit of Master Waste Title Motion Style & Movement Definition Examples Potential Causes Movement of people that does not add value Techs need to reach to get more reagents or samples Tech leaves work area to find supplies Extra keystrokes or clicks on computer Gathering tools Handling paperwork Layout of work area ill-planned Non-ergonomic or unorganized work cell design Poor supply replenishment plan One of the largest, & most overlooked, waste. 19

20 Click To Edit Type Master of Waste Title Style Defects Definition Examples Potential Causes Work that contains errors, rework, mistakes or lacks something necessary Failure to get the proper result on the proper patient to the proper client Re-test, redraw or result revision that could have been avoided Data entry error Missing or inaccurate information Duplicate work Sample integrity compromised Missing or inaccurate information Poor equipment maintenance Frozen sample thawed Work not standardized 20

21 Click To Type Edit of Master Waste Title Over-Production Style Definition Examples Potential Causes Generating more information than what the client needs right now Upstream process step working at a faster pace than downstream testing or analysis process requires Testing ahead of time to suit lab schedule More information than the next process needs Unbalanced processes No visual controls or management Push versus Pull system 21

22 Click To Type Edit of Master Waste Title Re-Prioritization Style Definition Examples Potential Causes Starting one task, being interrupted (phone, , page) & changing to another task before the first task is completed Stat or priority orders Trouble-shooting Unexpected equipment failure Equipment preventive maintenance lax Batching model issues Re-Prioritization is nothing more than management & leadership rework! 22

23 Click To Type Edit of Master Waste Title Mis-Utilization Style of Skills Definition Examples Potential Causes People seen as a source of labor & not work process experts Improvement ideas not solicited No continuous improvement culture Work area is understaffed Top-down management LEAN demands a new level of mutual respect for individuals at all levels of the organization. 23

24 Click To Edit Implementing Master Title LEAN Style Thinking In a Laboratory 1. Identify Lab Value Propositions 2. Identify Lab Activities in Support of the Value Propositions 3. Identify the Magnitude of Lab Activities 4. Segment Lab Activities: Value-Adding Non-Value Adding Non-Value Adding-Required 5. Employ LEAN Methods To Eliminate Waste: Kaizen Events Reengineer Work Content Pull Testing Standardized Work to Level Load 6. New Performance Metrics MANUFACTURING 24

25 Click To Edit Value Master Stream Title Map Style Sample (Courtesy Mayo Clinic) MANUFACTURING 25

26 CSAC16400 Quality Assurance Conversion Suppo MANUFACTURING Summary of Annual Costs At This Activity Center Recast By EXECUTIVE Processes INSTITUTE Per Identify the Lab Activities & Determine Their Activities Performed In This Activity Center Click To Magnitude Edit Master Title Style VA % NVA % NVAR % Performance Me Inspect material 32.0% Develop inspection guidelines & train inspectors 4.0% Perform 5S Operator Training 3.0% Collect experiment data & model 5.0% Support salesman calls 2.0% Implement SPC tools & train operators 4.0% Process reworked material 30.0% Process rejected materials 9.0% Analyze defect rates & report 3.0% Establish early warning spefcification limits & implement 2.0% Train QA people 6.0% Total Value Adding Activities 26.00% >>>>>>>> >> 26

27 Click To Edit Segment Master Activities Title Style Into Value Categories Value Adding Activities Valuation Non-Value Adding Activities Valuation Non-Value Adding Required Activities Valuation 27

28 Click To Activity Edit Master Segmentation Title Style Example MANUFACTURING chedule T Activity Center's Activity & Allocation An CSAC16400 Quality Assurance Conversion Support Activity C Summary of Annual Costs At This Activity Center Recast By Processes Performed Activities Performed In This Activity Center VA % NVA % NVAR % Performance Measure Ann C Inspect material 32.0% $18 Develop inspection guidelines & train inspectors 4.0% $2 Perform 5S Operator Training 3.0% $1 Collect experiment data & model 5.0% $2 Support salesman calls 2.0% $1 Implement SPC tools & train operators 4.0% $2 Process reworked material 30.0% $16 Process rejected materials 9.0% $5 Analyze defect rates & report 3.0% $1 Establish early warning spefcification limits & implement 2.0% $1 Train QA people 6.0% $3 A MEI Total Speech Value Adding Activities 26.00% >>>>>>>> >>>>>>>> $1 28

29 Click To Determine Edit Master Each Title Activities Style Relative Value Summary of Annual Costs At This Activity Center Recast By Processes Performed Activities Performed In This Activity Center VA % NVA % NVAR % Performance Measure Annual Cost Inspect material 32.0% $180,391 Develop inspection guidelines & train inspectors 4.0% $22,549 Perform 5S Operator Training 3.0% $16,912 Collect experiment data & model 5.0% $28,186 Support salesman calls 2.0% $11,274 Implement SPC tools & train operators 4.0% $22,549 Process reworked material 30.0% $169,116 Process rejected materials 9.0% $50,735 Analyze defect rates & report 3.0% $16,912 Establish early warning spefcification limits & implement 2.0% $11,274 Train QA people 6.0% $33,823 Total Value Adding Activities 26.00% >>>>>>>> >>>>>>>> $146,568 Total Non-Value Adding Activities 41.00% >>>>>>>> >>>>>>>> $231,126 Total Non-Value Adding Required Activities 33.00% >>>>>>>> >>>>>>>> $186,028 Total Activities % $563,721 29

30 Identify Lab Activities in Support of the Click To Edit Lab Master Quality Title Style MANUFACTURING Cost of Quality Activity Valuation Activities Performed In This Activity Center Inspect material NW Costs PC Costs AC Costs IFC Costs EFC Costs $180,391 Develop inspection guidelines & train inspectors $22,549 Perform 5S Operator Training $16,912 Collect experiment data & model $28,186 Support salesman calls $11,274 Implement SPC tools & train operators $22,549 Process reworked material $169,116 Process rejected materials $50,735 Process customer returned materials $16,912 Establish early warning spefcification limits & implement $11,274 Train QA people $33,823 Total Cost of Quality $$ $11,274 $287,498 $28,186 $219,851 $16,912 $563,721 Total Cost of Total Cost of Total Cost of AC Total Cost of Total Cost of Total Costs of NW Activities PC Activities Activities IFC Activities EFC Activities All Activities NW Costs PC Costs AC Costs IFC Costs EFC Costs Total Cost of Quality Percentages 2% 51% 5% 39% 3% 100% Cost of Quality Versus Non-Quality Total Quality Related Expenditures At This Activity Center Cost of Quality $552,447 Cost of Non-Quality 56.00% 42% $315,684 $236, % 30

31 Using Kaizen, Value Stream Mapping Click To Edit & Master Other Title Tools Style Get After the Waste! MANUFACTURING NW Costs PC Costs AC Costs IFC Costs EFC Costs Total Cost of Quality Percentages 2% 51% 5% 39% 3% Cost of Quality Cost of Non-Quality Cost of Quality Versus Non-Quality 56.00% 42% $315,684 $236,763 Total Quality Related Expenditures At This Activity Center 98.00% $552,447 LEAN is all about eliminating the NINE forms of waste that exist in most laboratories! 31

32 Click To Edit Pick Master Your LEAN Title Style Improvement Projects High High Perceived Magnitude Of Costs To Achieve Potential Benefits Low High Personal Willingness To Participate In The Change As Described Perceived Magnitude Of Benefits Low Low Perceived Potential For Successful Implementation High Low 32

33 Click To Benefits Edit Master of LEAN Title Style in Laboratories the Mayo Clinic Improved operational performance: Quicker testing turnaround time Reductions in testing costs Improved test quality Reduced variability in operational performance Operations management approach as an end-to-end discipline Improved patient safety Improved employee safety Improved lab employee morale Reductions in development time for new tests MANUFACTURING Reduction in testing defects & errors during new test development & implementation 33

34 Now Its Time For Questions & Answers! Click To Edit Master Title Style MANUFACTURING 34

35 Thank You for Attending! Contact Information Sponsor Contact: 1875 I Street, NW Suite 500 Washington, DC USA (202) (202) fax Producer Contact: MANUFACTURING 140 North Maple Street Suite 106 Corona, California USA (951) (951) fax mwatson@mfgexecutive.com Presenter Contact: Alan G. Dunn, President 140 North Maple Street Suite 105 Corona, California USA (951) (951) fax agdunn@gdiconsult.com