NJMEP Assists Vital Signs on the Road to Lean Transformation
Vital Signs of Totowa, New Jersey designs, manufactures and markets
single-use medical products for the anesthesia, respiratory, critical
care, sleep therapy and medical emergency markets. Originally founded
in 1972 in New York, the company reincorporated in New Jersey in 1988.
Its corporate offices and main manufacturing facility are located in
Totowa, while additional manufacturing and warehousing facilities are
in Pennsylvania, Minnesota and Colorado, and subsidiaries exist in
Maryland, Sweden and the United Kingdom. Worldwide sales total about
$200 million, and the Totowa location employs approximately 300 people.
The idea for contacting NJMEP arose at a management meeting following
the success of Lean implementation at Vital Signs’ Pennsylvania plant.
David Najjar, Director of Manufacturing Operations, and NJMEP Field
Agent Dorothy Repka scheduled an initial meeting at which they
discussed the company’s goals. These included reducing process time;
improving customer satisfaction; reducing waste; increasing
profitability; and expanding the skill set and involvement of employees.
Vital Signs began their Lean Journey in 2006 however management desired
grant assistance to meet its growing needs. Field Agent Repka and
Director of Manufacturing Operations Najjar worked together to obtain a
NJ Competitive Workforce Development Grant, while also initiating
pre-grant Lean Workshop and Value Stream Mapping projects. Mrs. Repka
also served as one of the workshop presenters and participated in some
of the VSM meetings.
During the pre-grant stage, NJMEP structured a phased approach
comprising a Lean Workshop with Live Simulation for managers and leads,
followed by a Value Stream Map of Vital Signs’ returns process,
including both shop floor and office loops. This pre-grant training
lasted about six weeks.
The initial phase of the project resulted in reduced processing of
returned goods and the elimination of duplications and delays that were
inherent in the former processing procedure. Customers were satisfied
by the resulting increased responsiveness, viewing the ability to
resolve a return and process the necessary accounting within the same
billing period as a distinct advantage.
According to Mr. Najjar, the VSM event for returns cut the information
flow period between customer service and customer from ten days to
two-and-one-half days; reduced rework product processing from receipt
to finished goods to 1.1 days, down from 2.8 days; removed the customer
service department from the process once the RGA was initiated; and
redirected receivers with RGAs from AR directly to Accounting for
credit.
Vital Signs has chosen NJMEP and its third party resources to implement
the second phase of its Lean Transformation, which is expected to last
12 months. During that time, the company will invest more than $160,000
in combined out-of-pocket and grant funds to increase the skill sets of
about 200 employees and implement Lean concepts throughout the NJ
location. Management also is considering improving the work environment
by offering courses in communication, English as a second language and
computer skills.
“The added value from these classes was in supporting the ongoing
commitment to evaluate, identify and challenge our processes,” assessed
Mr. Najjar. “The assemblers and staff learned that there are always
better ways to organize work areas and minimize waste.
“We need to constantly challenge the way we do things to remain competitive,” he continued. “NJMEP is helping us to do that.”
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