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Project and Certification Approval Processes Kaizen Event

Project and Certification Approval Processes Kaizen Event. Black Ink Ops: Ramiro Jara, Paul Koelle, Willis Read-Button, Jessica Watkins Report Out for May 12, 2010 MGMT E-5060. About Covidien. Global manufacturer of medical devices and pharmaceuticals

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Project and Certification Approval Processes Kaizen Event

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  1. Project and Certification Approval Processes Kaizen Event Black Ink Ops: Ramiro Jara, Paul Koelle, Willis Read-Button, Jessica Watkins Report Out for May 12, 2010 MGMT E-5060

  2. About Covidien • Global manufacturer of medical devices and pharmaceuticals • 42,000 employees with 58 manufacturing facilities located in 16 countries • 2009 Sales – $10.9 BB Medical Supplies OR, Nursing Care, SharpSafety Medical Devices Endomechanical, Energy, Airway, Soft Tissue Repair, Oximetry Pharmceuticals Specialty Pharma, Contrast, Radiopharma 2 | Covidien / Black Ink Ops | May 12, 2010 | Confidential

  3. OpEx Program Certifications to Date: > $1.2 BB OpEx Program Savings to Date: 3 | Covidien / Black Ink Ops | May 12, 2010 | Confidential

  4. Kaizen Event Daily Structure • Focused 5-day, team-based, action-oriented activity focused on one discrete improvement effort • Part of Value Stream Analysis of strategic processes • 4-6 people in a team, devoted to the effort for the week • Change is implemented as part of the Event • ‘Lean Sensei’ coach helps with methodology and learning 4 | Covidien / Black Ink Ops | May 12, 2010 | Confidential

  5. Process Overview: Project and Certification Approvals Candidate Certification Training Scope Exam Corporate OpEx Project #1 Approval Project #2 Certification Request

  6. Current State Process Paper Based Forms Project Tracking - Instantis Multitude of Steps Long Lead Time 6 | Covidien / Black Ink Ops | May 12, 2010 | Confidential

  7. Current State Value Stream Map (VSM) Int’lUSA Lead Time: 651.31hrs 650.81hrs Cycle Time: 3.31hrs 2.81hrs First Pass Yield: 50%

  8. Pareto Chart Incomplete Forms Batching Projects Lack Std. Work Misuse of Tools Excessive L/T

  9. Root Causes/Solutions

  10. Future State VSM Lead Time: 48.95 hrs Cycle Time: 0.95 hrs First Pass Yield: >90%

  11. VSM Side-by-Side Current Future

  12. Hand-off Diagram Side-by-Side: Project Approval Current Future

  13. Hand-off Diagram Side-by-Side: Certification Approval Current Future 13 | Covidien | September 18, 2014 | Confidential

  14. Metrics Side-by-Side *Corporate OpEx team savings based on current salary numbers.

  15. The Softer Side of Savings • Opportunity to find and catch project defects earlier in process • Improved mentorship from OpEx Directors to OpEx Managers/Leaders in the plant, and eventually to candidates • Accountability and performance tracking with better metrics, data collection, and report out capability • Empowerment of GBU and Plant OpEx personnel • Job satisfaction which results in less turnover • Environmental responsibility (less paper/toner waste)

  16. Implementation Timeline Workstream 1: Value Stream Analysis and Certification Kaizen Kaizen #1 to document and analyze VS IS develops eForms Roll out at one GBU for Testing Phase Train and roll out company-wide to 58 plants Run pilot in Texas plant May 12 May 14 June 15 July 15 August Scheduled In progress Workstream 2: Additional Kaizen Events Complete Future Kaizen Events: Monthly Review, Qtrly. Audit, DFSS May-July 16 | Covidien | September 18, 2014 | Confidential

  17. Q&A 17 | Covidien / Black Ink Ops | May 12, 2010 | Confidential

  18. Appendix 18 | Covidien / Black Ink Ops | May 12, 2010 | Confidential

  19. 19 | Covidien / Black Ink Ops | May 12, 2010 | Confidential

  20. Our team at work… 20 | Covidien / Black Ink Ops | May 12, 2010 | Confidential

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