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Unit 11 Case study assignment-Phase 2 Medical Manufacturing Inc.
Students Name
Institutional Affiliation
Course title
Instructors Name
Date
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General information the company
The company selected for analysis is Phase 2 medical manufacturing Inc. The company was
founded in 1995 and is located in New Hemisphere (NH) in the United States of America.
President Adam Prime is at the helm of Phase 2 Medical Manufacturing Inc. and has invested in
the lean strategy to curb international competition. The company is known for manufacturing and
packaging cauterizers and disposable medical items. The company boasts of revenue amounting
to about $25 million. The company has a total of one hundred and twenty-five employees who
work on different shifts and are provided with a flexible work-life balance to motivate them. Due
to globalization and the creation of Multinational Corporations (MNCs), Phase 2 faces great
offshore competition, which led to the company losing one of its significant customers,
Medtronic Advanced Energy (MAE), to the offshore competition. The primary customer (MAE)
went for international bidding on all the products manufactured by Phase 2 Medical
Manufacturing Inc. MAE exploited other offers from multinational companies that manufactured
similar disposable medical instruments for different surgeries but at a friendly price. The act by
one of its primary consumers bidding on an international platform signified a challenge in the
company and all the weaknesses had to be eliminated to thrive in the competitive field of
medical supplies in the USA. The company’s president wanted to improve the internal process in
the company. It is prudent to note that the company has been implementing lean principles for
over five years to reduce waste and maximize profits. Phase 2 Medical Manufacturing Inc. must
therefore implement the lean tools and processes to avoid losing MAE to an international
medical equipment manufacturers because once they lose the business, Phase 2 will collapse or
move to oblivion. In response to the action by MAE to bid from international companies, the
president created a lean improvement team to align organization goals to the customer
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expectations. The pillars guiding the organization toward lean culture are visual control,
accountability management, and standardized work to produce medical equipment efficiently
with more precision.
Major problems facing the company
Phase 2 Medical Manufacturing Inc.'s president has been engaging in the lean change to
improve the quality of the precision medical tools and improve the company's turnover.
Soliciting lean transformation is an indication that the company faces challenges in internal
process control, challenges in reducing waste, and increasing efficiency. Offshore competition is
the major challenge the company faces and strategies needs to be implemented to make the
company more competitive in terms of quality and price. As many companies duplicate the
products they offer, their most trusted customers will move to the other products when they are
offered at a better quality and a friendly price. Continuous improvement is paramount for Phase
2 Medical Manufactures Inc. The main metrics that customers always look for are quality
products, prices, on-time delivery, and positive customer service. Losing MAE to the offshore
market means there is a challenge with either one or more quality matrices. The incorporation of
the lean approach was meant to analyze the challenge and offer a lasting solution to it. Declining
revenue was also looming for the company since its main customer goes bidding for other
worldwide producers who are likely to offer similar medical goods at a friendly price and supply
them on time. The lean implementation is expected to improve the company culture, improve
visual management, and ensure all workers are aware of the lean change. The most significant
challenge was the inability by the company to produce quality medical goods at a global standard
and competitive price. MAE went overboard to look for similar or better quality products at a
friendly price. The issues Phase 2 president must face to remain competitive at a global scale are
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working on the internal processes, reducing operating costs, and improving the quality of the
products to stay competitive. Failure to address the challenges is a prerequisite for failure and
losing all its clients to offshore competitors who produce higher quality medical equipment at a
lower price.
Lean tools used by the company to address the issues
In the quest to revolutionize the internal process to improve the quality and lower the medical
equipment price, the president used lean techniques to improve efficiency. Phase 2 medical
manufacturing Inc. used the Kamishibai board as the specific tool to improve the quality of
medical supplies manufactured in the company. The key steps involved in the process
improvement include mapping the process and all the key points to know which part was
irrelevant in completing the process. Further, the process was analyzed and evaluated to
incorporate means of improving the output from 60,000 to 150,000 in a year. As a result of using
the Kamishabai board, the process was redesigned to incorporate the visual control commands to
improve the quality of the outcome. For example, when the tasks were well managed, a green
card appeared on the visual control to congratulate the workers for work well done. However, if
the outcome of the manufacturing process did not meet the required organization quality and
cleanliness threshold, a red card appeared to show the workers that they needed to pay more
attention to the final product to improve the quality of the outcome. Implementing the change is
implemented through comprehensive communication strategies to keep the highest levels of
standards as the work progresses. The president made it clear that the board is not meant to find
errors, but it made it open to improve internal checks so that the outcome of the manufacturing
process meets the required standards. The other tool used by the organization is the Kanban
triggers, a visual inventory tool to ensure a smooth flow of work from one manufacturing level to
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another so that no stage of the manufacturing process is skipped. For the medical equipment to
be of a higher standard, each part of the manufacturing process must be analyzed for quality
before moving to the next stage. The main advantage of the Kanban trigger is to ensure that
production is done when the reserves are empty to avoid a pile-up of goods in the finished lines.
As a result of implementing the two tools, the output of the medical equipment would increase
due to proper follow-up strategies, and the quality would improve.
Goals accomplished by the company.
Introduction of the lean improvement processes through the Kamishibai board and
Kanban trigger tools improved the accountability and organizational culture. When the
employees at Phase 2 started implementing the visual control of the manufacturing process, the
quality improved due to constant follow-up of the procedures. Implementing the board and the
perception card made it easier for workers to follow through with the work being performed in
the organization, and any error noticed would be marked with a red card on the board. Whenever
a red card appeared, it indicated the process was incomplete and needed urgent attention to
improve the outcome. Consequently, the number of errors, reduced, and the quality of products
also went up courtesy of the continuous monitoring process in the organization.
On the other hand, the Kanban trigger enabled the workers to follow up the
manufacturing process. Whenever the required stock was achieved, the manufacturing stopped
until more demand. In congruence with leans significant objectives, the wastes were
considerably reduced in the organization because no finished products were allowed to pile up.
Phase two, therefore, improved the quality of medical equipment courtesy of the Kamishibai
board and reduced the manufacturing of products that would pile up in the stores. Consequently,
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the rate increased while the price of medical supplies reduced. Phase 2 could now compete
effectively with the offshore companies threatening its existence.
Critical success factors at the company
The company has a group of motivated staff who had gone through the lean training
sessions and understand the basic working to improve the day to day operations of the business.
In incorporating the visual control management to enhance the quality of services, the human
resources were cooperative and expressed zeal and the eagerness to work and improve the
required outcome. The manufacturing administrators were passionate about the manufacturing
process; they were also trained and incorporated visual control to ensure the manufacturing
process always followed the critical path. Further, the employees in the company have been
trained on lean process improvement for over five years, and implementing something they know
is much easier and more efficient. The triangular strategy saw the company operate under three
essential standards; standardized work, visual control, and accountability management.
Conducting standardized work made the management overhaul the MRP framework to ensure
every step of the manufacture follows the required precision to generate an outcome that is more
oriented to quality. Visual control using the cards makes management easy. The fault level in the
finished products will be reduced to zero since the strategy ensures a monitor at all levels of the
manufacture. Whenever there was an error, the entire process had to stop until the alert had been
addressed fully. Accountability management is a strategy that makes all people work toward
improving the organization's outcome.

Unformatted Attachment Preview

1 Unit 11 Case study assignment-Phase 2 Medical Manufacturing Inc. Students Name Institutional Affiliation Course title Instructors Name Date 2 General information the company The company selected for analysis is Phase 2 medical manufacturing Inc. The company was founded in 1995 and is located in New Hemisphere (NH) in the United States of America. President Adam Prime is at the helm of Phase 2 Medical Manufacturing Inc. and has invested in the lean strategy to curb international competition. The company is known for manufacturing and packaging cauterizers and disposable medical items. The company boasts of revenue amounting to about $25 million. The company has a total of one hundred and twenty-five employees who work on different shifts and are provided with a flexible work-life balance to motivate them. Due to globalization and the creation of Multinational Corporations (MNCs), Phase 2 faces great offshore competition, which led to the company losing one of its significant customers, Medtronic Advanced Energy (MAE), to the offshore competition. The primary customer (MAE) went for international bidding on all the products manufactured by Phase 2 Medical Manufacturing Inc. MAE exploited other offers from multinational companies that manufactured similar disposable medical instruments for different surgeries but at a friendly price. The act by one of its primary consumers bidding on an international platform signified a challenge in the company and all the weaknesses had to be eliminated to thrive in the competitive field of medical supplies in the USA. The company’s president wanted to improve the internal process in the company. It is prudent to note that the company has been implementing lean principles for over five years to reduce waste and maximize profits. Phase 2 Medical Manufacturing Inc. must therefore implement the lean tools and processes to avoid losing MAE to an international medical equipment manufacturers because once they lose the business, Phase 2 will collapse or move to oblivion. In response to the action by MAE to bid from international companies, the president created a lean improvement team to align organization goals to the customer 3 expectations. The pillars guiding the organization toward lean culture are visual control, accountability management, and standardized work to produce medical equipment efficiently with more precision. Major problems facing the company Phase 2 Medical Manufacturing Inc.'s president has been engaging in the lean change to improve the quality of the precision medical tools and improve the company's turnover. Soliciting lean transformation is an indication that the company faces challenges in internal process control, challenges in reducing waste, and increasing efficiency. Offshore competition is the major challenge the company faces and strategies needs to be implemented to make the company more competitive in terms of quality and price. As many companies duplicate the products they offer, their most trusted customers will move to the other products when they are offered at a better quality and a friendly price. Continuous improvement is paramount for Phase 2 Medical Manufactures Inc. The main metrics that customers always look for are quality products, prices, on-time delivery, and positive customer service. Losing MAE to the offshore market means there is a challenge with either one or more quality matrices. The incorporation of the lean approach was meant to analyze the challenge and offer a lasting solution to it. Declining revenue was also looming for the company since its main customer goes bidding for other worldwide producers who are likely to offer similar medical goods at a friendly price and supply them on time. The lean implementation is expected to improve the company culture, improve visual management, and ensure all workers are aware of the lean change. The most significant challenge was the inability by the company to produce quality medical goods at a global standard and competitive price. MAE went overboard to look for similar or better quality products at a friendly price. The issues Phase 2 president must face to remain competitive at a global scale are 4 working on the internal processes, reducing operating costs, and improving the quality of the products to stay competitive. Failure to address the challenges is a prerequisite for failure and losing all its clients to offshore competitors who produce higher quality medical equipment at a lower price. Lean tools used by the company to address the issues In the quest to revolutionize the internal process to improve the quality and lower the medical equipment price, the president used lean techniques to improve efficiency. Phase 2 medical manufacturing Inc. used the Kamishibai board as the specific tool to improve the quality of medical supplies manufactured in the company. The key steps involved in the process improvement include mapping the process and all the key points to know which part was irrelevant in completing the process. Further, the process was analyzed and evaluated to incorporate means of improving the output from 60,000 to 150,000 in a year. As a result of using the Kamishabai board, the process was redesigned to incorporate the visual control commands to improve the quality of the outcome. For example, when the tasks were well managed, a green card appeared on the visual control to congratulate the workers for work well done. However, if the outcome of the manufacturing process did not meet the required organization quality and cleanliness threshold, a red card appeared to show the workers that they needed to pay more attention to the final product to improve the quality of the outcome. Implementing the change is implemented through comprehensive communication strategies to keep the highest levels of standards as the work progresses. The president made it clear that the board is not meant to find errors, but it made it open to improve internal checks so that the outcome of the manufacturing process meets the required standards. The other tool used by the organization is the Kanban triggers, a visual inventory tool to ensure a smooth flow of work from one manufacturing level to 5 another so that no stage of the manufacturing process is skipped. For the medical equipment to be of a higher standard, each part of the manufacturing process must be analyzed for quality before moving to the next stage. The main advantage of the Kanban trigger is to ensure that production is done when the reserves are empty to avoid a pile-up of goods in the finished lines. As a result of implementing the two tools, the output of the medical equipment would increase due to proper follow-up strategies, and the quality would improve. Goals accomplished by the company. Introduction of the lean improvement processes through the Kamishibai board and Kanban trigger tools improved the accountability and organizational culture. When the employees at Phase 2 started implementing the visual control of the manufacturing process, the quality improved due to constant follow-up of the procedures. Implementing the board and the perception card made it easier for workers to follow through with the work being performed in the organization, and any error noticed would be marked with a red card on the board. Whenever a red card appeared, it indicated the process was incomplete and needed urgent attention to improve the outcome. Consequently, the number of errors, reduced, and the quality of products also went up courtesy of the continuous monitoring process in the organization. On the other hand, the Kanban trigger enabled the workers to follow up the manufacturing process. Whenever the required stock was achieved, the manufacturing stopped until more demand. In congruence with leans significant objectives, the wastes were considerably reduced in the organization because no finished products were allowed to pile up. Phase two, therefore, improved the quality of medical equipment courtesy of the Kamishibai board and reduced the manufacturing of products that would pile up in the stores. Consequently, 6 the rate increased while the price of medical supplies reduced. Phase 2 could now compete effectively with the offshore companies threatening its existence. Critical success factors at the company The company has a group of motivated staff who had gone through the lean training sessions and understand the basic working to improve the day to day operations of the business. In incorporating the visual control management to enhance the quality of services, the human resources were cooperative and expressed zeal and the eagerness to work and improve the required outcome. The manufacturing administrators were passionate about the manufacturing process; they were also trained and incorporated visual control to ensure the manufacturing process always followed the critical path. Further, the employees in the company have been trained on lean process improvement for over five years, and implementing something they know is much easier and more efficient. The triangular strategy saw the company operate under three essential standards; standardized work, visual control, and accountability management. Conducting standardized work made the management overhaul the MRP framework to ensure every step of the manufacture follows the required precision to generate an outcome that is more oriented to quality. Visual control using the cards makes management easy. The fault level in the finished products will be reduced to zero since the strategy ensures a monitor at all levels of the manufacture. Whenever there was an error, the entire process had to stop until the alert had been addressed fully. Accountability management is a strategy that makes all people work toward improving the organization's outcome. Name: Description: ...
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