Lean Manufacturing Implementation



Lean Manufacturing Implementation

for the Gallios / Navios Final Integration Area

at Beckman Coulter

A project proposal submitted to

Beckman Coulter, Inc.

11800 SW 147th Ave., Miami, FL 33196

Attention: Mr. Pedro J. Viloria

By

Team 10

Jou Penuela (Project Manager)

Cristian Mora

Marco Ardila

In partial fulfillment of the requirements for the course ESI 4452 Engineering Project Management and Senior Design (Part I)

Industrial & Systems Engineering Department

Florida International University

December 07, 2009

Executive Summary

The Beckman Coulter of today is a leading manufacturer of biomedical testing instrument systems, tests, and supplies that automate laboratory processes and trim wait times for results that are critical for the diagnosis of patients. Engraved in all areas of biomedical testing from systems biology and clinical research to laboratory diagnostics and point-of-care testing (at or near the site of patient care), the company has manufactured and installed 200,000 systems in health care units worldwide. Recurring revenues from supplies, test kits, services, and lease payments comprise more than 75% of Beckman’s Coulter $2.53 billion annual revenues. Since 2006, Beckman Coulter has begun implementing “Lean Six Sigma,” encouraged by the excellent results from the pilot project, Chaska, in Minnesota.

Beckman Coulter’s lean implementation and an optimized supply chain begin with well-designed processes driven by customers’ buying and usage habits. Each process starts with the customer and works back through the entire channel to provide the lowest usage cost to the customer and the highest profits to channel members. Lean doesn’t happen by itself; it happens by work design and the work design phase begins by optimizing the manufacturing operations from the customer’s perspective, then optimizing the rest of the channel from the same perspective. This report examines lessons learned from undergraduate training as they underwent the transformation to lean and applies those lessons to Beckman Coulter’s Gallios / Navios final integration area. It discusses the steps that the Gallios / Navios final manufacturing area must take to design and manage a lean culture.

During and after the conduction of the project, it will be difficult to separate specific implementation steps. Many changes will be happening at the same time. This ambiguity will be addressed in the plan depiction with simultaneous implementations in the same stage. We also found that the steps within a particular phase will not be characterized with normal start and stop types of categorizations. Instead many of the implementations had multiple steps in different phases being implemented concurrently. Many steps will continue to be addressed long after another phase of the hypothesized lean implementation model was being addressed.

The FIU team is working to produce a timeline and basic set of procedures to guide the Gallios / Navios lean implementation work. Key questions include: How much time will the lean implementation need to complete its suggestion? With whom should the lean implementation be required to consult? How should it take input and recommendations? Accordingly, input, suggestions, and commentary on these issues is actively invited, particularly from individuals with experience serving on nominating committees in other contexts. However, it cannot be ruled out that we were biased by the hypothesized lean implementation model. Even with the use of a lean framework and its definitions, there is significant ambiguity in interpreting the transition steps from observations and there is researcher bias in the categorizing of these results.

The Gallios /Navios Lean Implementation team has six main members that will execute the following roles during the project; which consist of Project Manager, Cell Design Supervisor, Lean Manufacturing Coordinator (Process Improvement Supervisor), Material Planner Specialist, Technical Writer, and Technical operator. Each role is required to complete specific task for a Lean / 5S implementation. The team is tentatively scheduling the project to begin January 4, 2010 and conclude the last week of April, 2010; which is approximately 17 weeks. The days scheduled for implementation are Mondays to Fridays, pending finalization of FIU spring semester and approval from Beckman Coulter Inc.

The FIU team will develop an estimated costs budget for the project of approximately $11,200.00 accounts for the team’s direct labor cost. Beckman Coulter Inc. will be responsible for $320 for materials needed, such as floor tape and signboard material. The balance of the cost will be provided by Florida International University and the team.

Table of Contents

1.0 Introduction 1

1.1 Corporate History 1

1.2 Mission Statement 1

1.3 Vision Statement 3

2.0 Problem Background 3

3.0 Problem Statement 3

3.1 Goals 3

3.2 Objectives 3

3.3 Deliverables 4

4.0 Scope, Constraints and Assumptions 5

4.1 Scope 5

4.2 Constraints 5

4.3 Assumptions 6

4.4 Merit 6

5.0 General Approach 7

5.1 General Solution Approach 7

5.2 Work Breakdown Structure 7

6.0 Contractual Aspects 12

6.1 Risk 12

6.2 Changes 12

7.0 Schedule 12

8.0 Resources 14

9.0 Personnel 16

9.1 Organizational Chart 16

9.2 Linear Responsibility Chart 17

10.0 Budget 19

10.1 Allowable Costs 19

10.1.1 Costs Basis 19

10.1.2 Personnel 19

10.1.3 Other Specific Costs 19

10.1.4 Other Contractual Aspects 19

10.1.5 Special Clauses 19

11.0 Evaluation Methods 22

12.0 Potential Problems 23

13.0 Appendix 24

13.1 Acknowledgments 24

13.2 Lean terms and Definitions 24

13.3 The Gallios / Navios Flow Cytometer 26

13.3 Kick-off Meeting 27

1. Introduction

1.1 Corporate History

Wallace Coulter (the name under which the company operated until early 1998) and his brother Joseph R. Coulter Jr. were key persons in the early history of Coulter Corporation. The company was established in 1958 with the name of Coulter Electronics, Inc. and three years later the brothers decided to move their business to Hialeah, FL. Wallace invented, in the late 1940’s, what is now known as the Coulter Principle, a way of counting small particles in fluid. The Coulter brothers made and patented the first Coulter Counter Model A in 1953, with help from a federal grant. It automatically counted red blood cells in about 10 minutes. They continued to make Coulter Counters one-by-one and gradually hospitals requested more of these time-saving and accurate devices.

After several years of operating in 37 separate buildings in Hialeah and Miami Lakes, Coulter Corporation by the early 1990s was ready for new facilities. So in 1992 it purchased from the Resolution Trust Corporation the 102 acres formerly owned by AmeriFirst, including five two-story buildings and plenty of space for expansion. It was located in the Miami suburb of Kendall. By the early 1990s the Coulter Corporation had significant overseas exports, including about $3.5 million worth of products to Mexico. The firm thus benefited from the November 1993 passage of the North American Free Trade Agreement (NAFTA), which lowered trade restrictions with Mexico. In the fall of 1997 Beckman Instruments, Inc., a firm with stock sold on the New York Exchange under the symbol BEC, announced that it was acquiring Coulter Corporation. Effective April 1998, the new firm was renamed Beckman Coulter, Inc. Based in Fullerton, California, Beckman paid $875 million cash for Coulter's outstanding shares and also about $275 million to retire Coulter's debts. To finance this transaction, Beckman negotiated a credit agreement with Citibank, Merrill Lynch, Bank of America, First Chicago, Industrial Bank of Japan, and several other banks in the U.S., Japan, Europe, and Latin America.

Beckman Coulter, Inc. is the world leader in the design and production of devices to automatically count and analyze blood cells, a key function of the modern clinical laboratory. Many hospitals and clinics rely on Coulter Counters. In fact, company literature declares that "about 95% of all blood cell counters in use are either manufactured by Coulter or are clones. ..." Beckman Coulter also produces various reagents needed to run and maintain its machines. To assist its customers, Beckman Coulter provides a 24-hour hotline for technical assistance. These two sources give the firm significant portions of its annual revenues. With over 2,400 patents, the firm and its two founders, brothers Wallace and Joseph Coulter, Jr., are well-known for innovative technology. For example, this family firm provides monoclonal antibodies to help fight cancer cells and also an HIV test as part of its recent diversification. With subsidiaries in Canada, Asia, Europe, Africa, the Middle East, Latin America, Australia, and New Zealand, Beckman Coulter is a major international firm in the biomedical industry.

1.2 Mission Statement

Beckman Coulter is ... Science Serving Humanity. We exist to advance medical science. We apply the infinite promise of biotechnology to serve the world's healthcare needs. Our mission is to be recognized as the world leader in blood cell analysis systems. Our strategy for achieving this is: We will lead in the application of emerging technologies to meet the present and future needs of worldwide customers for blood cell analysis. We will provide the best worldwide sales and customer support services. We will foster a work environment characterized by open communications, quality practices, teamwork, pride, self-development, and respect for each individual. We will remain private and independent.[i]

1.3 Vision Statement

The Gallios/Navios area is venturing in a new approach to improve production and service operation. The shift away from traditional manufacturing methods to more contemporary techniques has created a substantial lean opportunity. The historical cost and process burden of manufacturing in the biomedical analysis industry has prevented many critical lean improvements. New lean advancements are creating increased business revenue, profit, and new competitive advantage for Beckman Coulter. [ii]

2.0 Problem Background

The Florida International University students will challenge unique circumstances that will enable lean transitions to be successful at the Beckman Coulter’s Gallios/Navios flow cytometry operations setting. The three students would spend three months collaborating with the Beckman Coulter’s, Miami facility, lean coordinator to combine our collective experiences and knowledge into a lean implementation project for the Gallios/Navios final integration area. The lean implementation project was conceived as a tool to test observations of lean transitions that were observed and documented in case studies for future lean implementations.

The lean implementation project is a three phase implementation process which postulates the optimized order of implementation. In order, these three phases are the building of a lean infrastructure to support lean behavior, the redesigning of the flow of products at the Gallios/Navios final integration area, and the fostering of process improvement (5 s).

This report aims to further raise the profile of productivity at the Gallios/Navios final integration operation setting. There is a seemingly endless drive for improved efficiency at the workstations, and a tendency for the performance of Gallios/Navios and that area’s workers to be measured on efficiency grounds alone. Evidence indicates that not only lean implementations can impact productivity at the Gallios/Navios area but the ergonomics, anthropometrics, and psychosocial attributes of the workplace, such as air quality and lighting can have an impact on the productivity of occupiers. For instance, it has been known for some time that what might be termed the psychosocial aspects of the working environment can also be significant contributors (or inhibitors) towards greater productivity. These aspects may relate to the ability to interact with colleagues, the degree of social equity and community in the workplace and the provision of a stimulating visual environment.

The effective design of the workplace is a fundamental, nonnegotiable aspect of good business practice for Beckman Coulter; therefore, attention to workplace design alone means a critical ingredient in the recipe for productivity enhancement. Looking purely at the physical attributes of the working environment, the students searched towards some quite staggering productivity improvements in store. An attempt is made in this report to quantify the potential productivity benefits that can arise and set those against Gallios/Navios-related costs. It is shown that a modest improvement in productivity can deliver economic benefits that overshadow the savings that can be achieved through economies in areas such forecasting costs or utilities.

The complexity of the Gallios/Navios final integration working environment and the stage of evolution of productivity measurement mean that, at this moment in time, it is difficult to state categorically that productivity savings are ‘bankable’. An outcome of the project includes a series of conclusions and recommendations targeted at the organization planning a change in its workplace. The conclusions and recommendations are reflected at 'testing' an organization’s state of readiness to embrace using the workplace to enhance productivity. These conclusions will hopefully assist in aligning the two greatest assets of most organizations, its people and its facilities.[iii]

3.0 Problem Statement

In order to reduce cost and remain competitive, Beckman Coulter’s Gallios / Navios is in need of an improved work flow as well as a cleaner, safer, and more organized work environment. The Gallios / Navios area lacks an efficient system to track product status, which currently consists of a master document posted on a production board, where workers periodically mark what tasks have been completed by them. In addition, manufacturing areas such Fluidics or Optics areas are cluttered and disorganized, causing workers to spend unnecessary time locating tools and identifying work in process. The current work in process management system is confusing and has become a safety hazard and needs redesign

The actual cell layout arrangement increases material handling cost and decreases labor productivity. Although the Gallios / Navios final integration department has the ability to produce the required capacity, they have the following limitations:

o Lower quality

o Less labor productivity

o More floor space

o More scrap

o Large WIP

o Long set up time, and

o Longer material movement.

3.1 Goals

The Gallios / Navios current production system has several limitations including ergonomic, longer material handling, lower quality, less labor productivity, more floor space, more scrap, large work-in-process and long setup and change over time. The over all objective is to re-arrange the current production system into manufacturing cells to overcome these limitations.

3.2 Objectives

The main objective of this project aims at designing and implementing a lean manufacturing system at the Gallios / Navios final integration department at Beckman coulter. The project effort will lead to the following deliverables.

3.3 Deliverables

The following items for each task at the beginning of the implementation and at the work break down structure will be delivered in order to achieve the above objectives:

Deliverable 1: Design Lean Workstations

To design lean assembly cells where, families of parts will be processed through a common sequence of process steps by a team of multifunction operators moving between workstations at a required pace. Thus, operators will be assigned to the cell to perform different tasks and the cell will be required to produce parts at a rate fast enough to meet demand. This deliverable will be fulfilled by completing the following activities:

o Value Stream Map

o Spaghetti Diagrams

o Takt Time Determination

o Current Floor Layout

o Right Sizing at the Point of Use

o Plan for Every Part Development

o Work Content Determination

o Point of Use Part Determination

Deliverable 2: Lean Manufacturing Implementation

To implement newly designed lean manufacturing cells that will create a production system producing exactly what the customer needs, exactly when it is needed, in the exact quantity needed. This deliverable will be fulfilled by completing the following activities:

o Create Continuous Flow

o Future State Design

o Validation

These activities will be measure with the following success criteria:

o Reduce the Gallios / Navios floor space by 30% within 5+/-.

o Improve efficiency and quality by 20% within 5+/-. In the current cell arrangement, parts are traveling back and forward between different shelves and the workstations. In some cases quality of final Gallios / Navios products will not be achieved. One way to eliminate this quality issue is to group machines into manufacturing cells and produce parts in the same cell.

o Reduce cycle time by 25% within 5+/-, the Gallios / Navios will be aligned with strategic company objectives.

o Reduce WIP by 30% within 5+/-.

o Goals and visual Metrics in place on the shop floor, updated by the shop floor. A new cell arrangement with goals and metrics will reduce the number of setups by dedicated certain parts in each workstation and reducing lead time through eliminating non-value added activities.

o Lean principles audit process to insure ongoing compliance with the principles. In the current manufacturing system, parts can be produced using different process plans in different workstations that make both traceability and accountability are not easy. The traceability and accountability can be improved by re-organize the current system manufacturing cells and use new designed transportation carts instead of oversize shelves to move parts to improve material flow.

4.0 Scope, Constraints and Assumptions

4.1 Scope

The project will implement a Lean manufacturing, 5S, and sustainability plan focusing on the Gallios/Navios area. Beckman Coulter offers the most versatile and accurate flow cytometers and counting analyzers available today. Previous Lean implementations have been successful in the past, but its leadership must be sustained; therefore, the Gallios/Navios team strategy will affect the following areas:

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Figure 1 Gallios / Navios Project Scope

4.2 Constraints

The following constraints were identified for the project:

o The Gallios/Navios area is limited to a foot print space established by Beckman Coulter facilities planners.

o The Gallios/Navios area is required to implement double bin system to large parts, such as frames.

o Lean culture, switching from traditional manufacturing to lean.

o The Gallios/Navios area will require data collection with testing machines.

o The Gallios/Navios area project will be implemented while workers perform their duties.

o No added labor can be used.

o The Gallios/Navios area solution should be inexpensive, requiring minimal investment

o The Gallios/Navios implementation of the solution will not interfere with production time

o The Gallios/Navios area power/utility sources will be considered when/if equipment relocation is required

4.3 Assumptions

o Supermarket will deliver raw parts on time.

• A successful lean implementation at the Gallios/Navios final integration area will only work with the total collaboration from different areas specially the supermarket, which will provide raw parts on time.

o Testing equipment will not breakdown.

• At the Gallios/Navios final integration area fluidics and MCL testing equipment should have a low breakdown rate.

o Full participation from all parties involved in the project (team leader, material planner, engineers, operators).

o Resources for the project should be available.

• Flow cytometry manager and lean coordinators should make available funds to implement lean at the Gallios/Navios final integration area. Funding would be available for the next 8 months of the project.

o Required hardware resources will be available when and as they are needed.

o Required customers resources will be available when and as they are needed.

o No industrial action will be taken that will affect the project.

• Fluidics and MCL testing equipment won’t be relocated without previous validation by the technical operation department.

o Issues will be resolved in a timely manner.

• The lean team will follow and accomplish deadlines established in the Gant Chart.

o The scope of the project is limited to that described in the project charter.

4.4 Merit

Florida Industrial and Systems Engineering students receive a solid foundation of general engineering courses that include extensive science and math. The major itself prepared individuals to engage themselves in manufacturing and industry. FIU Industrial Engineers specialize in designing, analyzing and managing production systems and manufacturing processes, including field components related to technology, finance and budgeting, and human resources. Furthermore, with more than six implemented projects in either internships or school projects, the Florida International students have helped their previous teams in projects that have saved those companies thousands of dollars. Their expertise and a lean Manufacturing implementation along with the 5S methodology will help de-clutter the work areas, increase productivity, standardize procedures, and improve the quality of the products at the Gallios / Navios. Once the goals are met, the company will be able to measure the reduced floor space, improved efficiency, reduced cycle time and the reduced work in process results by the criteria success.

5. 0 General Approach

A lean manufacturing initiative focuses on cost reduction and increases in turnover by systematically and continuously eliminating non-value-added activities. In today's competitive market, lean is turning out to be "the solution" to manufacturing industries across the spectrum for survival and success

5.1 General Solution Approach

This section presents a methodology to design, evaluate and manage lean manufacturing systems (Figure 2). The procedure starts with identifying objectives. Objectives are then documented and studied in details. The next step is to develop a value stream mapping to identify material and information of the current and future states. The number of people needed to run each cell is then determined. The next step is to use ergonomic tools to evaluate the proposed cells to ensure safe work environment. Simulation modeling is then used to evaluate the performance of the proposed manufacturing cells. The simulation results will be used to identify down time factors and constraints that reduce productivity. Possible solutions to reduce down time are then discussed and implemented. This process is continued until desired results are achieved. The expected result would be a continuous flow manufacturing process, which is paced on the customer demand, a decrease in floor space, a decrease process cycle time, WIP reduction and improved efficiency.[iv]

5.2 Work Breakdown Structure

The team has organized the project using a Work Breakdown Structure as seen in figure 3. The three main columns follow the standard Beckman Coulter lean methodology. According to Andrew Grove:

A corporation is a living organism; it has to continue to shed its skin.  Methods have to change.  Focus has to change.  Values have to change.  The sum total of those changes is transformation[v]

The first major activity is Current Process Capturing. It will consist of observing the overall production at each workstation. Each one will be documented using a detailed product flow chart. Each process’s metrics will be measured and recorded in each flow chart. Cluttered areas will be documented in detail. Process capturing will conclude with a validation of the process flow charts by management. Also, a thorough job of capturing customer needs as they can reveal important critical inputs

The second mayor activity is the design of efficient manufacturing cells. Work cells and Cellular Manufacturing are at the heart of Lean Manufacturing. Their benefits are many and varied. They increase productivity and quality. Cells simplify material flow, management and even accounting systems. Also, the introduction of PFEP (plan for every part) at the POU (point of use) will be vital for the control and right sized of raw and processed material. Finally, the first stages of 5S methodology will be introduced at this stage.

[pic]

Figure 2 Design and evaluation of lean manufacturing cell procedure

The 5S purpose is to create and maintain an organized, clean, safe, and high performance workplace. 5S enables anyone to distinguish between normal and abnormal conditions at a glance. 5s is a foundation for continuous improvement, zero defects, cost reduction, and a safe work area. 5S is a systematic way to improve the workplace, processes, and products through production line employee involvement.[vi]

The last task is the cell’s future state and measure results. During this task an analysis will be conducted to compare the initial state of each workstation to the final state of each workstation. This task and project will conclude with the presentation of results, which will include a formal report.

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Figure 3 General Work Breakdown Structure

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Figure 4 Work Breakdown Structure, 1st Deliverable

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Figure 5 Work Breakdown Structure – 2nd Deliverable

6.0 Contractual Aspects

6.1 Risk

Beckman Coulter will notify the team of any information or events that may interfere with completion of implementation as soon as possible. The team will notify Beckman Coulter in writing of any events or issues that interfere with the implementation of proposed solution.

6.2 Changes

Changes to the proposal prior to the approval will be made immediately upon written or verbal notice. After the proposal is approved, changes must be requested in writing and agreed to by both parties. Once an agreement is arrived to, an amendment will be added to the proposal signed by both parties.

7.0 Schedule

During implementation the team will agree to be at Beckman Coulter facilities during normal business hours up to 20 hours per week. The exact days and times will be finalized at a later date pending Florida International University’s spring 2010 class schedule. Tentatively the days will be set for Mondays and Fridays and will continue until the solution is completely implemented according to the agreed to proposal. Table 1 depicts the project schedule.

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Table 1 Gantt chart based on Work Breakdown Structure

8.0 Resources

Beckman Coulter will provide the following, which is depicted at the physical resources table (table 2) during implementation:

• A suitable work space for the team to work during the implementation period. This space will have ample space for the team to work and meet during the implementation and will consist of a cubicle with a desk or table, three chairs, a computer with internet access and a printer.

• The computer will have the necessary programs to be used during the implementation. These programs are:

o Microsoft Office Suite 2007

o Microsoft Visio Professional 2007

o Data3 Connection

o Internet Explorer 8

o Microsoft Project

• Access to current production reporting and schedules through Data3 server.

• Raw material and the necessary tools for the construction of new workstations.

• Manpower/employees to assist with implementation of the solution that is willing to be directed by the team.

• Heavy duty, colored floor tape to label the floor to segregate the various areas.

• Colored bins in order to implement the double bin system strategy.

• Materials to create signs used to identify the area.

The Team will:

• Provide stopwatches and the necessary equipment to measure the time studies.

• A digital camera to record changes in each of the project stages.

[pic]

Table 2 Physical Resources Table

9.0 Personnel

The project manager in the matrix works with the senior staff operations engineer to establish the resource requirements and their timetable utilization on the Gallios / Navios lean implementation project, and to work out the revisions required as the project effort proceeds. The project manager is responsible for assuring that resources are utilized in the manner best serving the interests of the organization. The advantages of the matrix organization are:

o It attempts to retain the benefits of both structures (functional organization and project team structure).

o Coordinates resources in a way that applies them effectively to the project.

The FIU team will require five specialists to complete the project. The details of each position are explained in the personnel matrix (table 3.)

9.1 Organizational Chart

The team working at the Gallios / Navios final integration area will consist of several members, each one performing six different roles as seen in figure 6. Each role will be directed and guided by the Senior Staff Operations Engineer. The Project Manager will focus on the evaluation of the various tasks and improving the current flow of the process.

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Figure 6 Team Organization Chart

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Table 3 Personnel Description Matrix

9.2 Linear Responsibility Chart

The FIU team will share the responsibilities evenly with other Beckman Coulter resources. Each phase will require validation and approval by Beckman Coulter’s Flow Cytometry management.

[pic]

Table 4 Linear Responsibility Chart

|1. Actual responsibility |4. May be consulted |

|2. General supervision |5. Must be notified |

|3. Must be consulted |6. Final approval |

10.0 Budget

The team has developed a budget for this project as shown in the table below. This budget consists of three areas: Labor, Transportation, and Materials. The labor will be provided by the FIU team. It is composed of 346 labor hours for a total cost of $6,050.47. The next budgeted cost is transportation. The team estimates that $300 will be spent on fuel to commute to and from the company’s location. The fuel cost will be provided by the team. The last area is materials which are composed of office supplies, computers, and other materials.

10.1 Allowable Costs

10.1.1 Cost Basis

o Beckman Coulter covers full direct costs with fixed overhead

10.1.2 Personnel

o Scientific and technical personnel only

▪ Project manager and FIU team can not claim direct personnel costs

10.1.3 Other Specific Costs

o Require approval of Beckman Coulter

10.1.4 Other Contractual Aspects

o Start date of project - first day of month after signature or fixed date (costs can be incurred only during life of project)

o Contract is valid upon signature by all contracting parties.

10.1.5 Special Clauses

o Delegation of signature to Project Manager

o Scientific coordination and administrative and financial coordination are separated

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Table 5 Proposal Budget – Human Resources

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Table 6 Human Resources View

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Table 7 Resume Budget

11.0 Evaluation Methods

The evaluating method to be used for each deliverable and Beckman Coulter to document the quality of each deliverable or task is display in the table below. Each item has a corresponding weight and rating of the level of completion for the deliverable or task and it will be revised by Mr. Mario Sanchez (Senior Project Advisor) and Dr. Lee (Industrial and System Engineering Dean).

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Table 8 Evaluation Method Matrix

The evaluation method matrix is rated according to the following criteria:

Level 5 (E): Exceptional : Performance far exceeded expectations due to exceptionally high quality of work performed in all essential areas of responsibility, resulting in an overall quality of work that was superior; and either 1) included the completion of a major goal or project, or 2) made an exceptional or unique contribution in support of unit, department, or University objectives. This rating is achievable by any employee though given infrequently.

Level 4 (EE): Exceeds expectations: Performance consistently exceeded expectations in all essential areas of responsibility, and the quality of work overall was excellent. Annual goals were met.

Level 3 (ME): Meets expectations: Performance consistently met expectations in all essential areas of responsibility, at times possibly exceeding expectations, and the quality of work overall was very good. The most critical annual goals were met.

Level 2 (I): Improvement needed: Performance did not consistently meet expectations – performance failed to meet expectations in one or more essential areas of responsibility, and/or one or more of the most critical goals were not met. 

Level 1 (U): Unsatisfactory: Performance was consistently below expectations in most essential areas of responsibility, and/or reasonable progress toward critical goals was not made. Significant improvement is needed in one or more important areas.

12.0 Potential Problems

The team has identified five potential area of concern, each having the potential impact to delay the project’s completion:

1. Lean manufacturing is a concept developed by Toyota and it seems difficult to implement it because of different organizational and social culture of Beckman Coulter.

2. Concepts related to lean manufacturing have frequently being misunderstood in Beckman Coulter because of poor employee training and educational program.

3. Participation from all parties involved in the project is crucial to achieve the best results; therefore, if one or more parties are not continually participating with the project, the project could be delayed.

4. The team has identified a mild problem in the working area. Due to economical difficulties, possible temporary shut downs may occur at Beckman Coulter that will have a potential impact to delay the project completion. If this issue presents itself, the team will reduce the level of corresponding deliverables accordingly.

5. Future research at Beckman Coulter will concentrate on the development of a lean manufacturing implementation methodology.

13.0 Appendix

13.1 Acknowledgments

This report would not be possible if supervision did not exist. For that, the authors would like to thank Ricardo Gutierrez, Senior Industrial Engineer and Beckman Coulter for the vision to support such an ambitious project. Finally, we would like to thank the members of the Gallios / Navios final integration operations for reviewing the draft of this report and providing valuable editorial inputs.

13.2 Lean Terms and Definitions

Batch and queue: The mass production process of making large lots of a part and then sending the batch to wait in the queue until the next operation in the production process begins. Contrast with one piece- flow.

Bottleneck: Any part of a production line that adversely affects throughput. See also constraint.

Cell: An arrangement of machinery, tools, and personnel designed to most logically and efficiently complete a production sequence. Cells help enable one-piece flow.

Cellular Manufacturing: An approach in where manufacturing work centers (cells) have the total capabilities needed to produce an item or group of similar items; contrasts to setting up work centers on the basis of similar equipment or capabilities, in which case items must move among multiple work centers before they are completed.

Chaku-Chaku: A method of conducting one-piece flow, where the operator proceeds from machine to machine, taking the part from one machine and loading it into the next.

Changeover Time: The time that elapses between the completion of one production run and the beginning of another production run.

Constraint: Anything that limits a system from achieving higher performance, or throughput.

Cycle Time: The amount of time to accomplish the standard work sequence for one product, excluding queue (wait) time. If the cycle time for every operation in a complete process can be reduced to equal takt time, products can be made in one-piece flow.

Inventory: The money the system has invested in purchasing things it intends to sell.

Just-in-Time: A production scheduling concept that calls for any item needed at a production operation – whether raw material, finished item, or anything in between, to be produced and available precisely when needed.

Kaikaku: Japanese for “radical improvement of an activity,” designed to eliminate waste.

Kaizen: The incremental and continual improvement of production activities aimed at reducing waste, and designed around planned, structured worker-oriented events. Japanese for “to take apart and make good.”

Kanban: A card or sheet used to authorize production or movement of an item.

Kanban System: A system that controls production inventory and movement through the visual control of operations.

Large Lot Production: The manufacture of the same product in large quantities during a single, designated period of time.

Lead Time: The total amount of time it takes to complete an order for a customer.

Lean Supplier Network: A buyer-supplier relationship where designated lean production protocols, supporting sustained interactions between members, helps produce a network-based competitive advantage.

Mistake Proofing: Technology and procedures designed to prevent defects and equipment malfunction during manufacturing processes. Also known in Japanese as Poka-Yoke.

Monument: A production machine or tool that is difficult and/or costly to move (e.g., into one-piece flow) due to its size or other physical constraint. Often, materials must instead be brought to the monument in batches.

Muda: The Japanese term for any human activity which absorbs resources, but creates no real value, i.e., “waste”; activities and results to be eliminated. Within manufacturing, categories of waste include: excess and early production; delays, movement and transport; poor process design; inventory; inefficient performance of a process; and defective items.

Non-Value-Added Activities: Actions taken that add no real value to the product or service, making such activities or actions a form of waste.

One-Piece Flow: A situation in which products proceed, one complete product at a time, through various operations in design, order-taking, and production, without interruptions, backflows, or scrap. Also known as single-piece flow.

Point-of-Use: A system in which all necessary supplies, chemicals, etc. are within arm’s reach of the worker, and positioned in a logical sequence of use.

Poka-Yoke See Mistake Proofing

Pre-Production Planning (3P): A lean method for product and/or process design. 3P designs and implements production processes, tools, and equipment that support one-piece flow, are designed for manufacturability, and achieve appropriate cost, quality, and lead time. Also known as Production Preparation Process.

Pull Production System: A production system in which nothing is produced by the upstream supplier until a need is signaled by the downstream customer..

Right-sized: The matching of production tooling and equipment in a scale that enables its use in the direct flow of products such that no unnecessary transport or waiting is required.

Queue Time: The time a material spends waiting in line for use in the production process.

Supply Chain: A group of all suppliers involved in the manufacture of a product, beginning with the simplest part and ending with the production of the final product.

Takt Time: The available production time divided by the rate of customer demand. Takt time sets the pace of production to match the rate of customer demand and becomes the heartbeat of any lean system.

Value Stream: The set of specific actions required to bring a specific product through three critical management tasks of any business: problem solving, information management, and physical transformation.

Value Stream Mapping: A process mapping method used to document the current and future states of the information and material flows in a value stream from customer to supplier.

Visual Controls: Displaying the status of an activity so every employee can see it and take appropriate action.

Work In Progress (WIP): Production material in the process of being converted into a saleable product.

13.3 The Gallios / Navios Flow Cytometer

The Gallios Flow Cytometer is a research system that delivers analytical excellence by coupling extraordinary sensitivity, resolution and dynamic range with high-speed data collection. Along with the unprecedented detection capabilities of the instrument, the Gallios includes easy-to-use software and automation to facilitate superior performance of multi-color flow cytometry assays.

Figure 7 Beckman Coulter’s Gallios Flow Cytometer

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Figure 8 Optics in Action

13.4 Kick-Off Meeting

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Figure 9 Kick-off Meeting Form

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[i] Scott Garrett. Chairman, President and Chief Executive Officer Beckman Coulter Inc.

[ii] Scott Garrett. Chairman, President and Chief Executive Officer Beckman Coulter Inc.

[iii] Scott Garrett. Chairman, President and Chief Executive Officer Beckman Coulter Inc.

[iv] Scott Garrett. Chairman, President and Chief Executive Officer Beckman Coulter Inc.

[v] Andrew Grove, Hungarian American Business man.

[vi] Michael George, David Rowlands, Mark Price, and John Maxey, The Lean Six Sigma Pocket Toolbook, (New York: McGraw Hill, 2005) 206.

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The Gallios Flow Cytometer Features

Available in 3 configurations

6 color 2 Laser (5+1)

8 color 2 Laser (5+3)

10 color 3 Laser (5+3+2)

Innovative laser cartridges

Picomotor driven beam steering optics

Laser control to conserve laser life

Design for laser flexibility

Customer temperature regulation

Efficient delivery of light

More power at the flow cell for greater resolution in your applications

Efficient and reliable solid state blue, red, and violet lasers

Free space delivery of laser light

Optimized beam steering optics

Increased power at flow cell

Scatter Parameters

Efficient delivery of light

3 unique setting for relative size measurements

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