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Welch Allyn Monitoring
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Lean Manufacturing at Welch Allyn Monitoring
Welch Allyn Monitoring is located in Beaverton Oregon and was founded in 1915. Type of product manufactured and service: Designs, manufactures, and markets mission critical flexible monitoring solutions that improve patient care and lower healthcare operating costs. Welch Allyn is a key player in the biomedical device industry in Oregon, nationally, and worldwide. There are 460 employees.
Situation
Management at Welch Allyn decided to work with the Oregon Manufacturing Extension Partnership (OMEP), a NIST MEP network affiliate, to help them achieve a major operational goal of continued improvement of manufacturing processes, systems and capacity building. The company views this goal as essential to long-term financial growth and success. As a corporation, Welch Allyn was faced with difficult decisions regarding consolidation of manufacturing operations from four different U.S. sites. The Beaverton operation, while operating at a high level of quality and capability, sought to strengthen the likelihood of not only maintaining but increasing the amount of manufacturing at their facility.
Welch Allyn faces increased and ongoing pressures from domestic and foreign competition. At the same time that the company was confronted with a critical need to increase profitability, quality, and shorter delivery lead times, it also wanted to incorporate additional manufacturing capacity from another of its manufacturing locations.
Welch Allyn needed assistance to transforming its entire operation to a culture of continuous improvement.
Solution
The overall goal was to create a culture of continuous improvement. OMEP was selected to work closely with Welch Allyn to provide training, implementation and support, and guidance to help them transform into a Lean enterprise.
Because of Welch Allyn's size and numerous needs, several processes were created to implement their vision of becoming a Lean enterprise.
- A steering committee was created to evaluate opportunities, select Lean projects, assign resources, and ensure continued focus, and direction. Business needs are clearly established and used to prioritize Lean activities.
- OMEP provided numerous classes to teach the Lean principles and concepts. More advanced Lean and leadership classes have helped support the ongoing transformation.
- Specific Lean projects used Value Stream Mapping to implement "Future States" with less waste, increased visibility, better flow, less WIP, higher quality, and increased productivity. Team leaders stayed on track by reporting progress at a weekly accountability meeting where they also obtained help in overcoming roadblocks.
- OMEP worked closely with Welch Allyn to establish standards, audits, and a significant metrics program to sustain the gains and to create a continuous improvement environment.
Results
- Corporate has moved a significant manufacturing operation to Beaverton resulting in 50 new jobs
- Operations have expanded into a new facility to accommodate the increased growth. There has been over $600,000 invested in the new facilities
- Welch Allyn has saved nearly $1 million in direct expenses as a result of implementing Lean
- Inventory has been reduced by more than $500,000
- Sales of over $120 mil/year have been retained at the Beaverton location
- Over 250 employees have received Lean training in a total of 750 training occurrences (most completed numerous classes)
- More than 20 Lean projects and 10 Kaizen events have successfully been completed
- 10 to 15 Lean "Stars" have emerged and are driving daily continuous improvement activities
- Lean methods have been shared and implementation has expanded and is being used throughout the corporate organization
- Employee morale and daily improvement involvement has significantly increased
- Workforce training and skills investment: Over $300,000
Testimonial
OMEP has been key to our success in making our Lean transformation. They provided core training and implementation experience to get us started and were able then to adjust their approach as we progressed through our Lean journey. Their consultants are both hands on and strategic. I think what distinguishes OMEP from similar groups who claim to provide the same services is OMEP's unique focus on their client's success and less so on selling future services. We have been working with OMEP for over two years now and the results have been fantastic. We have saved over $500,000 in inventory, and close to $1 Million in direct expenses, thereby allowing us to expand the plant significantly over the last year. Had it not been for these results this site would not have been chosen for this expansion. We are continuing to expand our Lean Enterprise and we look forward to continuing to work with OMEP.
— Peter Murray, Vice President Operations West
