We started with a walkthrough of the processes, gathering data to establish cycle times and customer demands. We simultaneously rooted out and eliminated engineering constraints. From there, we were able to identify major engineering challenges with the fabrication and testing of the ophthalmic lasers. With this information, we designed simple simulations to experiment with new layouts and processing designs. The optimal layout was then implemented to create standard line flow.
Lumenis is an industry-leading manufacturer of lasers and pulse light technology used for minimally-invasive procedures in the medical, dental, and veterinary industries. They are world-renowned for their technological innovation with over 220 registered patents and an active installed base of over 80,000 systems.
We led the model for reform in their 20,000 square foot facility, which had 100+ employees and yearly sales of 30 million USD. Corporate management needed to reduce cost by 10% while reducing lead-time to deliver to their customers sooner. They brought Collin in to help with this challenge.
Challenge
Burden of re-work
Difficulty moving specialized equipment
Batching due to setup times and division of labor
Unnecessary work-in-process
Solution
Results
After implementing the new line flow, assembly lead-time was reduced from 17 days to just 15 hours. Productivity increased from 17 to 20 units per week, and this was based on real demand. The space needed for assembly was reduced from 2585 square feet to only 700 square feet. More impressively, we increased the productivity of engineering, assembly, and shipping staff by 367% and reassigned staff to other research projects. When we began, they had $156,000 worth of work-in-process inventory on the line. After implementing our new line flow, they reduced this to $52,000 for a savings of $104,000.
Throughput increase along with component defect reduction and a lower failure-rate of functional tests increased their profitability 225%.