Hologic Slashes Lead Times with Lean Integration
Background: Cutting-Edge Mammography Device Market Leader Supports Women’s Health
As a leading developer and manufacturer of medical imaging systems with corporate headquarters located in Bedford, Massachusetts, Hologic, Inc. has provided innovative solutions for women’s healthcare needs for more than 20 years. One of the company’s primary manufacturing facilities, which is located in Danbury, Connecticut and employs a team of 325 people, develops state-of-the-art digital imaging technology for mammography applications. Hologic currently holds approximately 60% of the market share for worldwide digital mammography and is growing through new technology and products. Danbury is the only Hologic plant that manufactures digital mammography equipment.
The Danbury facility’s company culture is reflected by the employees’ personal and professional commitment to women’s healthcare. Many of the employees are connected with the products they develop, whether through a family member, friend or colleague affected by breast cancer. Since customers, doctors, product technicians, and patients alike frequent the Danbury plant, employees often see and meet their products’ end-users.
Situation: Challenges Stemming from Long Lead Times
In the past, Hologic employees participated in several CONNSTEP training sessions to broaden their understanding of Lean processes and continuous improvement tools. However, sustaining continuous change and expanding on the basic foundations of Lean proved to be challenging to their resources. With a focus on meeting expanding revenue goals and introducing new products over the next few years, Lean became less and less of an emphasis, but more and more of a necessity. Despite meeting the projected revenue growth, Michael Parrilla, Senior Vice President of Corporate Manufacturing Operations, still felt that there was room for improvement. While Hologic worked to develop a new line of mammography products, the Danbury plant prepared to address their battles with long lead times (averaging 60-90 days), inefficient product flow, and unmet inventory requirements.
Solution: Companywide Lean Integration with PRIME Kaizen
The company was determined to fully integrate Lean methodologies into the facility’s processes to create positive, lasting change and to develop solutions to the lead time, inventory, and product flow troubles. They met with CONNSTEP for assistance optimizing their shop floor layout to accommodate a new line of mammography equipment. They sought funding from the state to offset the cost of instituting Lean practices at this location. Upon surveying and diagnosing Hologic’s needs (i.e. basic Lean training, value stream mapping and the ability to implement these practices to improve production capacity), CONNSTEP recommended the Connecticut Light & Power (CL&P) PRIME Program, which perfectly aligned with their needs.
The Lean training took place as a companywide initiative to educate the Hologic workforce about implementing continuous improvement tools with the Lean knowledge they already possessed. The team organized a kaizen event to create a functional Kanban system and organize individual work cells as part of an overarching strategy to eliminate non-value added activities throughout the facility. They utilized Value Stream Mapping, 5S, spaghetti charts, and point-of-use storage, as well as cellular manufacturing as a model for improved workplace design. Like most companies, Hologic encountered employee resistance when it came to altering and sometimes reducing work spaces to streamline the manufacturing process. Greg shared, “Once the team experienced the positive results from their efforts, they realized the benefits and “the desire to participate in kaizen events increased,” adding, “the energy was contagious and employee cross motivation was the critical element which improved the company culture and acceptance of our new Lean processes.”
- 11% increase in unit production
- Reduced lead time by 50%
- $280,000 cost savings
- $80,000,000 increase in sales
- 100% on-time shipment rate
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“CONNSTEP solved a huge problem for us and helped us bring our delivery rate to 100%. As a direct result of that, we have been awarded with an increase in business which, ultimately, will also benefit (our supplier) Har-Conn.”
“I see great value in the new experiences and perspectives CONNSTEP brings to our business, at reasonable prices. They’re not like consultants, they’re like partners in the business – willing to roll up their sleeves and help.”
“CONNSTEP has proved to be a tremendous resource for ESI. CONNSTEP has helped us to adapt to today’s marketplace and remain a quality minded, competitive global player. Our ISO/TS16949 implementation process was efficient and rewarding. I look forward to our future projects with CONNSTEP.”
“CONNSTEP worked with FuelCell Energy to educate and facilitate Lean initiatives and to help meet our needs to establish an overall production improvement plan. This plan has been utilized over a period of time as a ‘guiding light’ to spur numerous improvements that dramatically reduced our product cost.”
“CONNSTEP is a valuable partner to Hologic, providing the expertise and ‘outside eyes’ everyone needs to keep their continuous improvement on track. We are now well-positioned on a dynamic growth path and look forward to a long-term relationship with CONNSTEP.”
“Our experience working with CONNSTEP has brought us benefits we never expected. It’s a great team to work with!”
“The goals of the team were to reduce manufacturing lead-time, reduce floor space utilized, and increase worker productivity. All the goals were met. CONNSTEP helped us to better compete.”
“The Business Growth Program is working well for us. We enhanced our website following the meetings to improve our SEO and become more visible to search engines. The segment on negotiating … promoted changes in our thinking and improved how we interact with customers. The mentoring between sessions was helpful in boosting our progress.”