Introduction:
Sevoflurane process yield is a major factor in profits and market pricing, allowing the company to stay competitive in a continually-expanding anesthesia market. New and upcoming manufacturers in the anesthesia market resulted in the need to drive cost of manufacturing down.
Challenge:
The challenge was to improve process yield by 1.2% in order to maintain a competitive price in the global market. This was made more difficult by the fact that all low-hanging fruit had been identified and acted upon in previous years, leaving no obvious sources for improvement. Failure to achieve the targeted goal would result in a serious negative business impact, as yield will directly affect bottom-line profits and EBITDA for the division.
Solution:
To begin, all of the process steps' yield data was reviewed in SAP to determine which steps had the most potential for improvement. Then, to promote total employee involvement, a structured ideation session was held with all Manufacturing employees and the focus areas were presented to the group to brainstorm ideas. The results of the ideation session were analyzed via an FMEA approach to prioritize ideas. The top three ideas were initiated as projects, with each project being assigned to a sub-team for implementation. Each sub-team was formed from the Quality Circle team present in the Manufacturing area, with the first two ideas being implemented through a Kaizen approach; the third idea resulted in the conducting of a DOE to determine optimal set points for one of the reaction process steps.
Result:
The targeted yield increase of 1.2% was achieved, resulting in savings of approximately $500,000 USD. Additionally, over 7000 kg/year of waste was eliminated, reducing the environmental impact of the process. Finally, employee safety was greatly improved by reducing employee exposure to process intermediates/vapors with the implementation of bulk storage tanks, but also indirectly with the reduction in potential for spills/leakages with bulk storage as well as the elimination of manual labor involved.