Reducing Scrap Rate and Labor Efficiency Loss Via Lean Six Sigma

A leading global provider of medical devices found that their breathing mask line was running at a scrap rate of 70,000 parts per million (ppm), with a labor efficiency loss of $4,000 per week.

By reducing scrap, $130,000 per year would be saved. Increasing labor efficiency would add an additional $4,000 per week, totaling labor savings of $200,000 per year.

A more stable output would provide more predictable employee scheduling, saving a further $15,000 in overtime premiums per year.

The medical device manufacturer was able to save a total of $413,656 by increasing their output and lowering their defect levels. This was achieved by standardizing procedures and methods in the breathing mask manufacturing process.

All inspectors received training and a sample board of products to help them determine which masks met the pass/fail criteria. Check sheets were supplied to all supervisors so they could follow up with all operators and ensure processes were being followed.

The type of glue tip that was used became standardized, along with the methods on how to press and form the shape of the breathing mask. The cone pressing station and the cone loading station became separate instead of combined. These changes led to increased safety, reductions in cycle time, easier machine change-overs, and a cleaner work environment.