By Rick Gallisa
As a medical device manufacturer, it is no secret that complex
regulations continue to be increasingly challenging to meet. But beyond regulations,
product quality is paramount for patient safety and brand protection. The other
side of the equation is minimizing costs in R&D, manufacturing, the supply
chain, and compliance.
Further, as technology and product innovation lifecycles continue
to compress, more complexity is added to the equation. Together, these industry
pressures often lead to conflict, which exacerbates management’s task of
providing impactful value to patients while maintaining the financial
community’s expectations.
If you face these challenges, then I would propose an
effective strategy might be to first look at how your production, inventory,
and quality management processes are being managed and continuously improved.
An approach that yields the highest flexibility and visibility for improvement
might just help you to achieve greater process improvement and regulatory
compliance for the lowest possible cost structure.
In other words, why not take a Lean approach to Quality?
For most device makers, manufacturing objectives include
improving efficiency, cutting waste, and reducing costs—and doing so while under
intense regulatory scrutiny. New processes, products, or demand shifts,
however, often require a new approach to doing business. Often times, these
changes can result in production delays for a myriad of reasons, such as new
process validation, quality planning & testing for production control, or
sourcing and vetting of new key component suppliers for new products or
expanded geographic markets.
These potential disruptions can be significantly diminished.
Best-in-class medical device manufacturers are now starting
to synchronize their production, warehouse, and quality processes with suppliers,
effectively establishing collaboration between their internal production processes
and those of their suppliers. During times of economic uncertainty, opportunistic
windows can sometimes be opened, helping to negotiate new terms and conditions
as a way to ensure future profitability. Now might be an excellent time to
consider such a change.
Another consideration: instead of doing an inspection at the
receiving dock after goods have already been received from your suppliers, what
if the delivery didn’t occur until the inspection results had already been
performed, having been agreed upon between manufacturers and their suppliers? Not
just certificates of acceptance, but data that can be built into electronic
Device History Records for more robust genealogy. The results can then be
electronically transmitted and verified in a far more efficient manner so that
medical device manufacturers can better control their suppliers’ flow of
approved subcomponents and raw materials, minimizing inherent organizational
inventory buffers.
This process improvement could redefine how production
processes are executed. Raw materials could be scheduled to arrive as they are
used, in exactly the right quantity and with exactly the right quality,
resulting in less waste and improved operational throughput.
In fact, delivery schedules could be better synchronized,
with increased visibility to your supplier’s operations, helping to improve
efficiency. By receiving materials not only just in time, but also in sequence,
as applicable, production efficiency can be significantly improved. This
efficiency, when combined with sufficient flexibility to adjust operations
should a supplier disruption occur, can lead to significant process
improvement. This practice originated in the automotive industry and its tiered
supplier networks—the origins of Lean—many years ago, and is still being
refined for optimization as markets shift. This is not unlike the landscape
facing medical device manufacturers today.
This intelligence could then form a basis for corrective
actions with suppliers, helping manufacturers to further engage suppliers in
quality improvement processes where real “ownership” can be established,
managed, and maintained.
To keep up with unique industry challenges and move
innovation forward, it is more important than ever to take a Lean approach to
quality. Implementing real-time visibility and control across operations and your
extended manufacturing supply chain network could result in many benefits.
Advantages include reduced time for new product introductions and more
standardized, consistent business processes to help address both global
regulatory requirements and internal corporate manufacturing goals.
Rick Gallisa is a Life Sciences Industry Director at Apriso, a
manufacturing operations management software provider that offers global
solutions for manufacturing excellence.