CLIENT SUCCESS: GyrusACMI
Stamford
178 employees
Company Profile
GyrusACMI is a leader in the design and manufacture of
precision optical and digital medical devices and accessories. The
Stamford, Connecticut operation employs 178 in the manufacture of
endoscopic and diagnostic solutions to allow urologists and
gynecologists to "see and treat" patients in minimally invasive
surgery.
Situation
In July 2005, ACMI Corporation was acquired by
Gyrus Incorporated and formed a new identity, GyrusACMI
Corporation. When the organizations merged, it was clear that Lean
Manufacturing was a predominating factor in the Gyrus culture; the
Stamford operations knew it needed to change from the traditional
practices of batch and queue processing, however, during the first
nine months, the operations struggled to launch a successful Lean
initiative. Growth continued to stall with low yields, increasing
costs and poor customer response.
The leadership believed the only way for Stamford's manufacturing operations to succeed was to completely overhaul the organization with new leadership passionate about Lean and with the investment in operation-wide education, training and hands-on application. This was not a simple task in a union environment as the new plan called for a culture change in order to break down the traditional hierarchy management style, empowering every employee. The new organizational model emphasized flexible, self-directed business units and training to promote the Lean transformation.
Solution
On paper, the plan seemed clear, however, the
challenge was in the execution with a union that feared job
elimination and a management team with limited knowledge and
experience in cultivating change. GyrusACMI called on CONNSTEP's
Lean Specialists and after meeting with the leadership team,
CONNSTEP constructed a plan to educate all employees with Lean
Awareness training and 5S instruction. Additionally, an in-house
Continuous Improvement Champion Certification (CICC) Program was
developed and launched in July of 2006. A team of 18 employees
became CI champions - managers, team leaders, manufacturing
engineers and production associates - and then, in turn, re-trained
the entire employee population on the basics of Lean Manufacturing.
Each training module incorporated a real-time project, allowing
GyrusACMI to achieve tangible, bottom-line results, while providing
employees with practical Lean Manufacturing experience.
Results
The CONNSTEP-led CICC training was just the start of the
GyrusACMI Lean transformation. Through the development of internal
Continuous Improvement Champions, GyrusACMI has realized gains
across the operation:
Increase in on-time delivery from less than 70% to over 95%
Reduction in lead time from 27 days to less than 29 hours on
average
Steady increase in inventory turns from 2.5 times to over 5
times
$140K in annual savings from a reduction in overtime and excessive
inventory.
58% reduction in space utilization saving GyrusACMI $350k
annually.
In addition, the GyrusACMI Stamford Operations received the prestigious 2007 Connecticut Bronze Shingo Prize after only 15 months of Lean initiatives.
The
GyrusACMI success story (.pdf)