A Fortune 500 manufacturer of diverse medical products needed to improve margins of its products throughout its worldwide facilities.    R. Michael Donovan & Co. developed and implemented a comprehensive plan to utilize Lean Six Sigma capabilities in every one of the companies facilities.  

Utilizing our "Targeted Lean Six Sigma" approach our long term efforts were to develop a Lean culture in the organization.  This allowed our client to gain the benefits of continuous improvement.   However, our implementation projects were designed to provide the greater impact on product cost in the shortest amount of time. 

In a typical year our client now benefits from over 150 major Lean Six Sigma projects (and countless smaller ones) while realizing over $6 million in documented cost savings.   

A multi-billion dollar manufacturer of electromechanical gaming equipment had been highly successful but rapid growth and continuous introduction of new products led to excessive inventories.   

R. Michael Donovan & Co. was given the challenge to make quick reductions in inventory to immediately free up cash -while also providing the tools and training to allow IGT to better manage inventory in the future.  

In a period of only three months we were able to reduce inventories by $10.9 million.   At the same time, any concerns that reduced inventory might reduce customer service levels were quickly dispelled.   In fact, late orders were reduced by 55% through proactively rebalancing inventory.

Does this story sound too good to be true?   Don't take our word for it - read the case study written by our client and presented at a national conference.  Download the white paper.

An aggressive high-precision machining business found it was losing its customer base due to extended production lead times and missed promised ship dates.   The source of its problems was a traditional production system that routed parts through functional departments - with long queues and wait times before each operation.  

R. Michael Donovan & Co. was engaged to teach the organization the principles of Lean manufacturing and apply the principles to regain competitive advantage. 

In a fast track program we were able to create a series of focused workcells that combined diverse machining operations as well as manual operations.  The result was to eliminate the wait and queue time that existed in the old plant layout that grouped equipment by function.   We also designed and implemented Kanban systems, set-up reduction and 5S as integral parts of the new workcells.  Finally, the self-directed nature of the cells results in operators taking ownership of product quality.

As a result of the cellular manufacturing implementation our client has reduced ship cycles from 8-10 weeks to 4 weeks.   Even better, our client now has become a preferred supplier for even quicker cycle prototype jobs.   More often than not, producing a prototype leads to a larger order for production quantities.  

Kanban is a powerful but often underutilized Lean technology.   We often hear of organizations that have an interest in establishing Kanban but rationalize that it can't be done because "We are Unique".  In reality all businesses are unique - but that is not a reason to avoid using such a useful tool.

An international client of ours had started implementing Lean Six Sigma and was interested in using Kanban for both internal material movement and also for replenishment of raw materials from suppliers.  Their first Kanban applications were in Mexican Maquiladora facilities and two of the unique considerations were that suppliers were all in the U.S. and border crossing added several days to the replenishment time.  The products were FDA approved so maintaining the strictest levels of quality and traceability were essential.

R. Michael Donovan & Co. designed a system that allowed the plants to gain the financial benefits of Kanban while managing the constraints of the border crossing process.   One of the unique solutions was to employee a third party warehouse with a "supermarket" methodology.   The third party kept the warehouse stocked with material and our client would pull from the warehouse as needed.

Within two years one of the plants was using Kanban to manage over 65% of its raw material purchases and virtually 100% of its internal inventory moves.   As a result, inventory investment actually fell by 38% while sales increased by 170%, backorders were reduced by 90%, and enough warehouse space was saved to bring in a new product line.

A nationwide supplier of prefabricated building components applied Lean Technology in a novel manner.   Although construction is statistically a dangerous occupation, the company took a very proactive approach to the need to reduce accidents.   With a common definition of Lean being "the relentless elimination of waste" the company realized there was no greater waste than allowing an employee to be injured.

R. Michael Donovan & Co. was engaged to develop and deliver educational seminars at all the clients regional offices.   The training covered typical lean topics but stressed how 5S and standard work improved safety.   Just as importantly, elimination of non-value added activities reduces accident since our experience shows that non-value added work often involves lifting, bending and is usually poorly engineered.

As a result of the training and with some plant layout consultation, production facilities were redesigned in order to reduce the frequency and severity of employee injuries.

While we are proud of our ability to guide clients through Lean Six Sigma implementations, we recognize that our ultimate responsibility to help companies develop in-house expertise.    The ultimate measure of our success is that our clients are able to build and grow their own capabilities through continuous improvement.

One of the most effective ways to meet this objective is through our Lean Masters Training Program.   Lean Masters is a intensive 2 week training class on Lean Technology with an optional additional week on Six Sigma.    The class generally serves 15-25 participants with the material customized to meet the specific needs and priorities of the client.

The training is an in-depth study of more than 20 topics related to Lean Technology for manufacturing, engineering, materials, R&D and HR.   The training covers the principles but stresses practical application.   Each participant is required to complete one or more Lean implementation projects to demonstrate their understanding.   The financial return from the project far exceeds the cost of the training.

In addition, each participant is also required to teach parts of the training to other people in their facility.   As a result, the benefits of Lean are leveraged far beyond just the people attending the class.

"In my 22 years of service to ___, I can truly say that the Lean Masters program has been the most interesting and useful concepts that I have applied in that time frame. I use the word applied because the Lean Masters Course(s) allows you to walk away immediately with the skills, knowledge and confidence to go do projects that make great business sense.   ... You know the subject matter is worthwhile when people are very interactive during the meeting and then asking for more one on one time afterwards.
 
I look forward to applying Lean in the months and years to come."  Production Team Leader, ___ Company, July 2007

A manufacturing plant in a division of a Fortune 500 company needed to solve a serious product cost problem.   In addition, the company needed a quick success story to demonstrate the magnitude of savings possible in its manufacturing facilities.   Using the concept of "Targeted Lean" R. Michael Donovan & Co, Inc. led a project to generate quick savings in the areas deemed most important to executive management.  

This approach differs from a more traditional implementation by focusing on rapid payback opportunities.    While all aspects of Lean and Six Sigma are applied eventually, experience shows that building on early success generates enthusiasm and support for follow-on projects.   Just as importantly, Targeted Lean provides quick cost savings so that Lean and Six Sigma rapidly become cash flow positive. 

Read how R. Michael Donovan & Co. delivered a 186% ROI in the complete Customer Success Story.