Philips Respironics, Murrysville, Pa.
Employees: 695, non-union
Total Square Footage: 125,000
Primary Product/market: Medical devices and accessories
Start-up: 1990
Achievements: Reduced total product cycle times from 10 days to three hours on most electromechanical products; reduced assembly errors by nearly 50% in 2008; reduced landfill content by 57%; named Pittsburgh's Advanced Manufacturer of 2008 by Pittsburgh TEQ; received 2007 Zenith Award from American Association for Respiratory Care
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| See the other winners of IW's 2009 Best Plants award and find out how they made the top ten. |
Continuous improvement is an easy phrase to use but the reality behind it is constant self-awareness and acceptance of change. At Philips Respironics' Murrysville, Pa., facility, that effort is fueled by a self-directed workforce that embraces the potentially life-saving nature of its products.
The Murrysville plant produces six product lines, including CPAP and BiPAP devices for people with sleep apnea, a problem affecting some 12 million adults in the United States. These devices deliver air under pressure to prevent airways from constricting. Other products include heated humidifiers, sleep lab systems, infant apnea monitors and positioning aids. With customers ranging from premature infants to the elderly, notes Bill Flynn, a manufacturing manager, "what we do here is so important and so rewarding."
To manage these diverse products, facility managers implemented the QCDSM system, which focuses on measuring and improving five key metrics: quality, cost, delivery, safety and morale. QCDSM employs visual metrics and targets, employee involvement, structured reviews of progress and an emphasis on solving problems quickly at the lowest level possible.
QCDSM utilizes structured team reviews of progress ranging from Level 1 area reviews led by manufacturing associates to Level 4 weekly plant Gemba walks by the leadership team. In the first fully implemented production area, QCDSM resulted in a 33% reduction in assembly errors, a 30% increase in labor efficiency and an 81% decrease in daily average product backorders.
Philips Respironics uses the Quick and Easy Kaizen (QEK) program to encourage employees to come up with ideas that will improve their job activities or environment, or any company process. In 2008, the program generated 1,457 ideas. The plant expected some 1,800 idea implementations in 2009. The participation rate is approximately 50%.
Along with these efforts, the plant formed an Exchange Team in 2006 that works on improving the employee working environment and culture. Project work is done by sub-teams of four associates and one advisor. Each sub-team is expected to complete at least three projects. The projects undertaken have been varied and popular. A wellness committee was formed that developed and installed a well-equipped on-site fitness center, and communicates regularly on healthy food and exercise. One sub-team instituted a recycling program that resulted in revenue from a recycler for plant materials and more than 50% reduction in plant waste going to a landfill.
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| Finished products are functionally tested and placed on a conveyor belt on their way to a final packaging cell. |
While plant officials have no doubt that their continuous-improvement efforts are paying off financially, they focus on driving employee participation, not financial return. "Oftentimes, programs force the participants to spend more time trying to predict cost savings and less time actually solving the problems," says Eric Kulikowski, director of North American operations.
The Murrysville plant has been recognized by Philips for its manufacturing expertise. Operations from four other plants have been transferred to Murrysville. And on top of incorporating this additional work, many of Murrysville's employees have been involved in the design and start-up of a new plant.
