SAM Medical Products (SAM) develops, manufactures and markets orthopedic splints, and wound care devices designed for use by the military, EMS, outdoor enthusiasts, and NASA in space exploration. In September 2006 SAM faced significant domestic and offshore competition so they contacted the OMEP for assistance.
Success Story
Sam Medical Products
Industry
Medical Devices
Location
Newport, Oregon
Date Founded
1984
Number of Employees
35
Background
33%
Reduction in lead time
25%
Sales Increase
2X
Production Capacity Increase
The Situation
An assessment quickly determined the need to streamline production and administrative processes and to provide strategic planning and marketing assistance. OMEP worked with SAM to secure project funding through the Employer Workforce Training Fund program and MilTech, a Department of Defense?sponsored organization charged with ensuring the sustainability of small to mid?sized military contractors.
The Solution
- OMEP provided training in Principles of Lean, Value Stream Mapping, 5S, and Total Productive Maintenance.
- To address strategic marketing issues, OMEP engaged Arezzini Associates who worked with SAM’s management over the course of several weeks to put a new focus on several key markets and a to develop a more consistent marketing message.
- OMEP’s hands?on training model uncovered a number of opportunities to implement process efficiencies, reduce costs and lead times, and improve quality.
- OMEP followed a similar approach with SAM’s sales team tackling inefficient administrative processes to reduce redundancy and improve organization and quality.
The Results
- Sales increased at 25% for the past two years
- Daily production capacity has doubled
- Overtime was no longer needed
- Inventory was stabilized and reduced
- Lead time was reduced by 33%
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There aren't too many things that are game changers, but this was one of them.