B e s t M a n u f a c t u r i n g P r a c t i c e s

REPORT OF SURVEY CONDUCTED AT

STRYKER HOWMEDICA OSTEONICSALLENDALE, NJ

BEST MANUFACTURING PRACTICES CENTER OF EXCELLENCECollege Park, Maryland

www.bmpcoe.org

AUGUST 2000

F o r e w o r d

This report was produced by the Office of Naval Research’s Best ManufacturingPractices (BMP) Program, a unique industry and government cooperativetechnology transfer effort that improves the competitiveness of America’sindustrial base both here and abroad. Our main goal at BMP is to increase thequality, reliability, and maintainability of goods produced by American firms. Theprimary objective toward this goal is simple: to identify best practices, documentthem, and then encourage industry and government to share information aboutthem.

The BMP Program set out in 1985 to help businesses by identifying, researching, and promotingexceptional manufacturing practices, methods, and procedures in design, test, production, facilities,logistics, and management – all areas which are highlighted in the Department of Defense’s 4245.7-M,Transition from Development to Production manual. By fostering the sharing of information acrossindustry lines, BMP has become a resource in helping companies identify their weak areas and examinehow other companies have improved similar situations. This sharing of ideas allows companies to learnfrom others’ attempts and to avoid costly and time-consuming duplication.

BMP identifies and documents best practices by conducting in-depth, voluntary surveys such as thisone at Stryker Howmedica Osteonics, Allendale, New Jersey conducted during the week of August 14,2000. Teams of BMP experts work hand-in-hand on-site with the company to examine existing practices,uncover best practices, and identify areas for even better practices.

The final survey report, which details the findings, is distributed electronically and in hard copy tothousands of representatives from industry, government, and academia throughout the U.S. and Canada– so the knowledge can be shared. BMP also distributes this information through several interactiveservices which include CD-ROMs and a World Wide Web Home Page located on the Internet at http://www.bmpcoe.org. The actual exchange of detailed data is between companies at their discretion.

Stryker Howmedica Osteonics is an innovative leader in orthopaedics, providing creative engineeringsolutions to the most critical clinical problems. Its success has been built on the commitment, dedication,and focus of its talented team of employees. In addition, the company was named as one of America’sBest Plants by IndustryWeek in 1998. Among the best examples were Stryker Howmedica Osteonics’accomplishments in team based cell manufacturing; skill based pay program; demand pull planningsystem; and continuing medical education.

The BMP Program is committed to strengthening the U.S. industrial base. Survey findings in reportssuch as this one on Stryker Howmedica Osteonics expand BMP’s contribution toward its goal of astronger, more competitive, globally-minded, and environmentally-conscious American industrialprogram.

I encourage your participation and use of this unique resource.

Anne Marie T. SuPrise, Ph.D.Acting Director, Best Manufacturing Practices

i

C o n t e n t s

1. Report Summary

Background......................................................................................................... 1

Point of Contact.................................................................................................. 2

2. Best Practices

ProductionInvestment Casting Process ................................................................................ 3Product Recognition Technology Project............................................................. 3Robotic Plasma Spraying and Ceramic Powder Manufacturing ....................... 5Streamlining Manufacturing............................................................................... 6

ManagementContinuing Medical Education ............................................................................ 6Demand Pull Planning System ........................................................................... 7Five Pillars and Visual Controls Program.......................................................... 7Sales Training ...................................................................................................... 8Skill Based Pay Program..................................................................................... 9Strategic Mission and Values Statement ......................................................... 10Team Based Cell Manufacturing ...................................................................... 10

3. Information

DesignMaterials Science Laboratory and Computer Aided Engineering ................... 13Rapid Prototyping .............................................................................................. 13

ManagementGallup Q12 Survey............................................................................................. 14On-line Training ................................................................................................ 15

Stryker Howmedica Osteonics

ii

APPENDIX A - Table of Acronyms ........................................................................ A-1APPENDIX B - BMP Survey Team......................................................................... B-1APPENDIX C - Critical Path Templates and BMP Templates ......................... C-1APPENDIX D - The Program Manager’s WorkStation ...................................... D-1APPENDIX E - Best Manufacturing Practices Satellite Centers .................... E-1APPENDIX F - Navy Manufacturing Technology Centers of Excellence ........F-1APPENDIX G - Completed Surveys ....................................................................... G-1

C o n t e n t sStryker Howmedica Osteonics

(Continued)

iii

F i g u r e sStryker Howmedica Osteonics

2-1 Investment Casting Lead Time Analysis................................................................... 33-1 The Gallup Path...............................................................................................................14

Stryker Howmedica Osteonics began as threeindependent companies, each with a rich heritage ofcontributions to the medical industry:

• In 1928, Dr. Homer Stryker was a practicingorthopaedic surgeon in Kalamazoo, Michigan.Dissatisfied with the medical products availableat the time, Dr. Stryker began designing hisown devices to meet his patients’ needs. Hisinventions (e.g., Walking Heel, Turning Frame,Cast Cutter) laid the groundwork for theOrthopaedic Frame Company, which wasincorporated in 1946 with a $20,000 investmentby Dr. Stryker. In 1964, the company officiallychanged its name to the Stryker Corporation.Over the years, the company manufacturedmany innovative products such as the Cir-O-Lectric bed; the world’s first hydraulic-liftstretcher; the first medical pulsed irrigationsystem; the first soakable solid-state medicalvideo camera; and battery-powered instrumentsfor reconstructive surgery. Today, the companyis a strong global competitor in the worldwidemedical market. With its corporateheadquarters in Kalamazoo, Michigan, Strykeris organized into five domestic divisions (Biotech,Medical, Instruments, Endoscopy, andHowmedica Osteonics) and achieved $2.1 billionin sales in 1999.

• The forerunner of Howmedica began in 1926with the introduction of Vitallium® by Drs.Reiner Erdle and Charles Prange who foundedAustenal Laboratories. Vitallium® wasoriginally designed as a new metal alloy fordental castings, but its reliability andeffectiveness led to its use in manufacturingorthopaedic implant devices. Over the next 50years, Austenal Laboratories underwentnumerous changes: acquired by Howe SoundCompany in 1958; renamed HowmetCorporation in 1965; spunoff from parent firmas Howmedica Inc. in 1968; and acquired byPfizer Inc. in 1972. The constant factor duringthat time period was the company’s leadershipin innovative firsts including the NeerVitallium® alloy shoulder; CAD technologiesfor designing orthopaedic implants; FDA-approved bone cement; non-hinged total knee

systems; and porous-coating for biologicalfixation. Howmedica was acquired by theStryker Corporation in 1998.

• Osteonics Corporation was founded in 1978 bytwo ex-Howmedica engineers and acquired bythe Stryker Corporation in 1979. The companydeveloped a reputation for creatingrevolutionary orthopaedic implant designconcepts, which have become industrystandards. Milestones include the UniversalHead Replacement for the bipolar hip market;Normalizations concept; Osteo Traumaproducts; and material and wear reductiontechnology. In addition, Osteonics was the firstto receive FDA-acceptance to markethydroxylapatite-coated products for cementlessapplications.

Stryker Howmedica Osteonics specializes in or-thopaedic implant products, bringing together themarket-leading products from each former compo-nent. In 1998, the company was named as one ofAmerica’s Best Plants by IndustryWeek. Located inAllendale, New Jersey, Howmedica Osteonics em-ploys 700 personnel. The company’s success hasbeen built on the commitment, dedication, andfocus of its talented team of employees. The chal-lenges they face in the changing healthcare market-place require an organizational commitment to con-tinuous improvement by adapting its skills andresources to meet customer needs. Among the bestpractices documented were Howmedica Osteonics’team based cell manufacturing; skill based payprogram; demand pull planning system; and con-tinuing medical education.

Howmedica Osteonics helped make joint replace-ment surgery one of today’s most beneficial medicalprocedures,beginning in the early 1980s with its hipimplant system. Now, joint replacement surgeryenables more than 400,000 people in the UnitedStates to regain the mobility which they had lost toarthritis or trauma. Among those with a HowmedicaOsteonics replacement hip are legendary Pro GolferJack Nicklaus and Former First Lady Barbara Bush.Howmedica Osteonics is an innovative leader inorthopaedics, providing creative engineering solu-tions to the most critical clinical problems. The BMPsurvey team considers the practices in this report tobe among the best in industry and government.

S e c t i o n 1

Report Summary

Background

1

2

POINT OF CONTACT:

For further information on items in this report,please contact:

Mr. Dave SpiesStryker Howmedica Osteonics59 Route 17 SouthAllendale, New Jersey 07401Phone: (201) 934-4353Fax: (201) 934-4378E-mail: dspies@osteonics.comWeb: http://www.howost.com

Investment Casting Process

The Investment Casting Process operates as atransfer method to manufacture investment castparts. All of the process steps must be strictlycontrolled. An investment casting team studied andstreamlined all of the transfer steps (e.g., developingthe design, using wax injection to create the pattern,pouring the liquid metal into the ceramic mold),enabling Howmedica Osteonics to significantly re-duce its lead times.

In 1992, Howmedica Osteonics developed a cellu-lar environment throughout its facility so that team-focus approaches could be directed at specific pro-cess improvements. Also that year, the companybegan concerted efforts to improve the quality andcost of its Investment Casting Process, a core part ofits business since 1980. An investment castingteam was set up as a support cell to streamline thetransfer method used to manufacture parts. Previ-ously, the company incurred high processing costsand a large inventory due to its 11% rejection rateof parts and excessive lead times.

The Investment Casting Process operates as atransfer method to manufacture investment castparts. Among the steps are developing the design,producing the wax injection mold,using wax injection to create thepattern, assembling the patterninto a tree arrangement, addingthe ceramic slurry to create themold shell, removing the wax fromthe mold, preheating the mold, andpouring the liquid metal into theceramic mold. All of the processsteps must be strictly controlled.The investment casting team stud-ied and improved all of the transfersteps. As a result, HowmedicaOsteonics now produces ceramicshells from a rarely used aluminasilicate ceramic material. The shell-ing technique involves dipping theentire pattern assembly into the

ceramic slurry, draining it, and coating it with fineceramic sand. After drying, this process is continu-ously repeated using progressively coarser gradesof ceramic material until a self-supporting shell isformed. The various transfer steps allow the dimen-sional and metallurgical variations to improvethrough shrinkage control, mold preparation, ce-ramic composition of the mold, and metal castingtemperatures.

Since streamlining the Investment Casting Pro-cess, Howmedica Osteonics has significantly re-duced its lead times (Figure 2-1). The rejection rateof parts has also decreased from 11.4% in 1992 to2.72% in 1999. These rates were reduced by imple-menting a new shell formula, revising cast tech-niques, establishing new setups, and refining pro-cess controls.

Product Recognition Technology Project

Many orthopaedic parts within a family are al-most identical in size and shape. To resolvemisidentification during batch runs, HowmedicaOsteonics developed the Product Recognition Tech-nology Project which consists of three elements: theProduct Verification System; the 2-D Data MatrixMarking System; and the Elimination of ManualData Entry. Each element’s goal is to reduce thenumber of product identity errors.

S e c t i o n 2

Best Practices

Production

3

0

5

10

15

20

25

1992 1993 1994 1995 1996 1997 1998 1999

DA

YS

Figure 2-1. Investment Casting Lead Time Analysis

4

Howmedica Osteonics has adopted a cell-orientedmanufacturing philosophy in which a semi-autono-mous group is responsible for a specific part family.Many of the parts within a family are almost iden-tical in size and shape. Because a typical productmix consists of many small batches and numerousmanual operations, a great potential exists for prod-uct identity errors. To resolve this situation, thecompany developed the Product Recognition Tech-nology Project which consists of three elements: theProduct Verification System; the 2-D Data MatrixMarking System; and the Elimination of ManualData Entry. Each element’s goal is to reduce thenumber of product identity errors.

• The Product Verification System is a compact,computer-controlled package consisting of aweigh scale and a 3-D, multicamera-based visionsystem. The operator begins the process byscanning the work order router sheet thataccompanies each part. The computer thenretrieves product dimensional and fixture/placement information on the part from aMicrosoft Access database. Next, the operatorpositions the part on the weigh scale based onprompts from the computer, and presses theverify button on the touch-screen monitor. The3-D vision system verifies that the part matchesthe information on the router sheet by comparingkey features from the part’s image withcorresponding features of the image stored inthe database. The computer then displays a Go/No Go message and keeps track of the numberof parts which have been measured. Althoughthis method works for part identification, themeasurement accuracy is generally insufficientto replace a separate dimensional inspectionoperation. As technology improves, HowmedicaOsteonics will re-examine this method fordimensional inspection. The ProductVerification System is easy to use, has gainedoperator acceptance, and has demonstrated itsability to catch errors prior to final packaging ofthe product.

• The 2-D Data Matrix Marking System uses arectangular matrix of tiny squares to encodeproduct information on parts more efficientlythan standard barcodes. In addition, standardbarcode information obtained from a part’srouter sheet can also be converted to the 2-Ddata matrix format, via software, to generatethe machine-control code to produce the matrix.Up to 25 characters can be permanently encodedin a 1/8-inch-square matrix on the part’s surface.

Data matrix codes can be applied with a lasermarker (the most robust method), machined onthe part’s surface, or cast directly into the part.The data matrix is applied early in themanufacturing process to minimize thepossibility of part identity errors, and is read byhandheld or fixed Charge-Coupled Devicescanners. The data-encoding scheme relies onlight and dark areas within the matrix.Therefore, a special LytePype™ attachment,tailored to the geometry of each part, must beused with the Charge-Coupled Device scannerto ensure appropriate lighting conditions. Oncethe data matrix is applied to the part, it can beused at any subsequent stage of manufacturingand possibly for field tracking in the future.Although this technology may eliminate thepotential for part misidentification, severalbarriers must be overcome before it can gainplant-wide acceptance. These barriers includeslightly increased lead times, the need for morerobust scanning devices, determining anappropriate marking location for all partfamilies, and identifying the earliest operationat which a code can be applied and still withstandall subsequent operations without damage.

• The Elimination of Manual Data Entry of routerinformation addresses two potential partidentification problems. First, the operator caninadvertently apply the incorrect part numberand/or lot identification to a part during thelaser marking process. This problem is beingminimized by using a barcode scan from theshop floor router as the only input to mark thepart number and lot identification on theproduct. Second, the operator can inadvertentlymachine a part of the wrong size or type byentering incorrect information at the machiningcenter’s Computer Numerical Control console.This problem is being minimized by using abarcode scan from the shop floor router as theonly input to activate the required ComputerNumerical Control program for the manufactureof the product from raw stock. The barcodereader is interfaced with the serialcommunications port (RS-232) of the machinetool controller as well as the PC that containsstored programs for entire part families.Scanned information is passed to the computerand parsed to generate an appropriate four-digit part number, which is used in a look-uptable to retrieve the correct Computer NumericalControl program. Up to 16 different machine

5

tools can be controlled by a single PC. Theprocess can also be used to pass statisticalprocess control and shop floor controlinformation from the controller back to the PC.The software also has the capability for datamatrix encoding.

Howmedica Osteonics has implemented the threeelements of the Product Recognition TechnologyProject in one or more manufacturing product cells,and will gradually be phasing them into other cellsas the technology becomes more mature.

Robotic Plasma Spraying and CeramicPowder Manufacturing

Hydroxylapatite is a hexagonal, calcium-phos-phate mineral used to promote bone growth ontoorthopaedic implants. Looking for a way to reduceinventory, decrease costs, and control the powder’smaterial properties, Howmedica Osteonics decidedto implement an in-house Ceramic Powder Manu-facturing process to manufacture hydroxylapatite.A Robotic Plasma Spraying process is then used tocoat the parts. This process involves loading theplasma gun with hydroxylapatite, and using aplasma flame to spray the partially melted powderonto the part.

Hydroxylapatite is a hexagonal, calcium-phos-phate mineral used to promote bone growth ontoorthopaedic implants. In the past, HowmedicaOsteonics purchased hydroxylapatite from a ven-dor and used a multi-step robot/turntable machineprocess to apply the powder onto the parts. Lookingfor ways to reduce work-in-process inventory, de-crease hydroxylapatite costs, and control thepowder’s material properties, the company decidedto implement an in-house process to manufacturehydroxylapatite.

The Ceramic Powder Manufacturing of hydroxy-lapatite powder begins as a mixture of chemicals.The mixture is then analyzed by sintering a smallamount from the batch. The material constituentsare measured, and small amounts of the deficientingredient(s) are added until the slurry has thecorrect hydroxylapatite chemistry. Ammonia isadded to stabilize the mixture and impede furtherchemical reaction. The mixture is then spray driedto produce round particles of consistent size. Afterit is fed through an aerosol gun, the mixture travelsin a hot cyclonic pattern to evaporate the water.

Large and fine particles are also collected sepa-rately at the bottom of the system. The hydroxyla-patite powder is then placed in saggers into largeovens, and sintered at approximately 2200°F for sixhours to facilitate the growth of crystals. Thepowder densifies, removing small pores. The largeand fine particles are then blended for homogeneityand sieved to ensure that 90% of the particles areless than 100 micrometers in size. Further testingis performed to ensure correct chemistry and pu-rity, accurate density, and sufficient crystallinity.Prior to being coated, the orthopaedic implants aresurface prepared, cleaned, loaded into a carouselapplication system, and preheated. Robotic PlasmaSpraying is used to coat the parts. This processinvolves loading the plasma gun with hydroxylapa-tite powder, and using a plasma flame to spray thepartially melted powder onto the part. The partsundergo a final cleaning and are inspected for me-chanical integrity.

The in-house Ceramic Powder Manufacturing ofhydroxylapatite provides Howmedica Osteonics withmany cost savings and improved quality control.Among these benefits are:

• Controlled size and roundness of the particulateallows for consistent application through theplasma gun.

• Manufacturing costs for hydroxylapatite powderhas been reduced by 306%.

• Carousel application system provides continuousgun operation, since parts are now preheatedprior to spraying instead of being heated withthe plasma flame.

• Coating capacity is increased from 200 parts perday to 300 parts per day by using the carouselsystem.

• Powder usage is reduced by 33% per implant.• Process time is reduced from seven minutes per

part to three minutes per part.• Powder inventory costs are reduced from

$117,000 to $7,200.• Current annual cost savings for powder

manufacturing is $860,000.• Current annual cost savings of the coating

system is $560,000.• Total resultant cost savings equals $1.4 million

per year.• Product lead times and inventories have

significantly been reduced.

6

Streamlining Manufacturing

Howmedica Osteonics continues to streamline itsmanufacturing operations by implementing newtechnology. Operations which have undergone theseimprovements include the manufacture of cobalt-chrome stem caps, custom knee implants, femoralcomponents, titanium hip stems, hip instruments,endo components, bone screws, and tibia inserts toname a few. As a result of process improvements, thecompany has achieved better process control; re-duced manufacturing costs and lead times; increasedquality and capacity; improved its partnershipswith vendors; and significantly increased produc-tivity.

Howmedica Osteonics continues to streamline itsmanufacturing operations by implementing newtechnology. Operations which have undergone theseimprovements include the manufacture of cobalt-chrome stem caps, custom knee implants, femoralcomponents, titanium hip stems, hip instruments,endo components, bone screws, and tibia inserts toname a few. As a result of process improvements,the company has achieved better process control;reduced manufacturing costs and lead times; in-creased quality and capacity; improved its partner-ships with vendors; and significantly increased pro-ductivity (number of parts produced divided bynumber of employees who made them).

• Previously, the manufacture of cobalt-chromestem caps used in hip implants required twoturning operations as well as grinding andpolishing. By purchasing a twin-spindle,horizontal machining center with a unique offsetsecondary spindle, the company was able tochange to a single setup that performed theturning and grinding simultaneously. As aresult, the independent grinding operation waseliminated and the polishing operation becameautomated. The overall cycle time was alsoreduced from 50 minutes per part to 10 minutesper part.

• Previously, the manufacture of custom kneeimplants was a time-consuming process thatrequired many days or weeks, depending on theorder. The company streamlined this processby combining ProEngineer’s solid-modelingcapabilities with Stratasys’ rapid prototypingcapabilities to produce a wax insert. Startingwith a ProEngineer solid model, minormodifications are performed to tailor the model

to the non-standard dimensions of the customcomponent. The Stratasys operation beginswith 20 minutes of preparation time, and thenruns unattended for six to 14 hours to producethe wax insert. The insert is used to produce amold for investment casting of the knee implant.Afterwards, traditional manufacturingprocesses are used.

Similar impressive improvements were also imple-mented in the manufacture of femoral components,titanium hip stems, hip instruments, endo compo-nents, bone screws, and tibia inserts. In all cases,continuous manufacturing process improvementand streamlining have led to a 10% reduction in thecost-of-goods-sold for eight consecutive years atHowmedica Osteonics. All process improvementsbegan with the goal of reducing lead times, whichresulted in the improvement of other productionprocess metrics.

Management

Continuing Medical Education

Continuing education is an FDA-mandated re-quirement for surgeons to maintain their licenses topractice. Although specific requirements vary bystate, 50 credit hours of training must be completedevery year. Howmedica Osteonics developed andmaintains Continuing Medical Education, a top-quality training program on orthopaedic implantproducts. The company’s philosophy is to provide100% technical training in the use of its equipment.

Continuing education is an FDA-mandated re-quirement for surgeons to maintain their licenses topractice. Although specific requirements vary bystate, 50 credit hours of training must be completedevery year. Howmedica Osteonics developed andmaintains Continuing Medical Education, a top-quality training program on orthopaedic implantproducts. The company’s philosophy is to provide100% technical training in the use of its equipment.

Howmedica Osteonics supports medical educa-tion programs through an accredited educationalsponsor (e.g., university, hospital, clinic). Continu-ing Medical Education uses a balanced approachwhich focuses on educational content; expert speak-ers; scientific and clinical aspects; and new tech-nologies. The educational content employs outsideresources (e.g., non-customers) as an interactionkey and provides the sharing of information through

7

speakers, videos, abstracts, and hands-on experi-ence. The scientific aspect centers on pre-clinicaland clinical research as well as scientific studies tosupport product concepts, design basics, and tech-niques. Clinical topics involve peer-reviewed litera-ture comparisons to determine what worked andwhy. New technology training is not product-spe-cific. Initial findings are also analyzed to determinewhat worked and why, as well as provide foresighton upcoming technologies. One of the most value-added methodologies employs surgeons to trainsurgeons.

Through its Continuing Medical Education train-ing program, Howmedica Osteonics provides uniquetraining and education. The program offers high-level academic speakers, technical training, analy-sis of new technology, and hands-on experience.The company’s logistics planning results in flawlesscare of details and attention on the customer. Thesuccess of Continuing Medical Education is evidentby the retention of existing customers, the increasein program participation, positive feedback fromcustomers, and a 100% accomplishment of set objec-tives.

Demand Pull Planning System

In 1992, Howmedica Osteonics developed the De-mand Pull Planning System which is based on thephilosophy of placing just enough material on theproduction floor to satisfy the rate of customer de-mand. The company developed its new philosophyby exploring concepts from other reliable systems(e.g., lean manufacturing, just-in-time, KanBan,finite loading, levelized scheduling, one-piece flow),and blending the best processes from these systemsto best fit its situation.

In the past, Howmedica Osteonics used a tradi-tional push system which employed Material Re-source Planning techniques to control and trackeverything. Push systems tend to place an over-abundance of parts on the factory floor, which leadsto large volumes of work in process, excessive inven-tories, significant overhead for tracking parts, largequeue areas consuming valuable floor space, andhigh cycle times. This approach also typically re-sults in higher costs and low customer service. In1992, Howmedica Osteonics developed the DemandPull Planning System which is based on the philoso-phy of placing just enough material on the produc-tion floor to satisfy the rate of customer demand.

Howmedica Osteonics developed its new philoso-phy by exploring concepts from other reliable sys-tems such as lean manufacturing, just-in-time,KanBan, finite loading, levelized scheduling, andone-piece flow. By blending the best processes fromthese systems to best fit its situation, the companydeveloped and implemented its current system.The Demand Pull Planning System reacts to newwork orders, that are reported by the Sales Teamand tallied each evening, by producing a simple,daily spreadsheet within minutes. The ProductionPlanner then makes decisions on the day’s produc-tion for each manufacturing cell, based on the spread-sheet, and issues the work orders. Each cell calls upthe necessary material and produces only the as-signed orders of the day. The Demand Pull Plan-ning System eliminates non-value-added tasks andreduces work in process, cycle times, and operatingexpenses. In addition, this system keeps partsmoving throughout the manufacturing cell beforenew parts are issued. Problems are no longermasked by large volumes of work in process, androot cause of problems can be immediately identi-fied and corrected to reduce scrap and improvereliability.

Howmedica Osteonics has successfully imple-mented the Demand Pull Planning System in all ofits manufacturing cells that produce orthopaedichip and knee implants. The result is a magnitude ofcost savings and benefits, including:

• Decrease in lead times for Type A hip implantsfrom 62 to 16 days.

• Decrease in lead times for Types B, C, and D hipimplants from 33 to two days.

• Decrease in lead times for Type A knee implantsfrom 83 to 15 days.

• Decrease in lead times for Type B knee implantsfrom 46 to nine days.

• Cost reduction of Past Due Orders from over $5million in 1992 to less than $0.5 million in 2000.

• Cost reduction of Total In-house Inventory from$31 million in 1992 to just under $17 million in1997.

• Availability of premium floor space for productiongrowth.

Five Pillars and Visual Controls Program

The Five Pillars and Visual Controls Program isa discipline used to organize and maintain thecleanliness of the workplace by using visual con-

8

trols. The concept of the program flows down fromthe Team Leaders to the Team Members within eachmanufacturing cell. Team Members are instructedto follow the basic philosophy, but are given flexibil-ity to best fit the concept to their own cells. Colorcoding is the only control that is held standard.

The Five Pillars and Visual Controls Program is adiscipline used to organize and maintain the clean-liness of the workplace by using visual controls.Among the drivers that led to the adoption of thisprogram at Howmedica Osteonics were productquality and process control; employee safety; lim-ited floor space; customer impressions; and em-ployee satisfaction.

The Five Pillars (also known as the five S’s)provide understanding and discipline:

• Sort (organization) distinguishes between whatis and is not needed.

• Straighten (orderliness) identifies a place foreverything and puts everything in its place.

• Sweep (cleanliness) focuses on cleaning andlooks for ways to keep it clean.

• Schedule (adherence) maintains guidelines andmonitors adherence.

• Sustain (self-discipline) advocates practice andrepeatability until it becomes habitual.

The Visual Controls provide a powerful mecha-nism for executing the Five Pillars. Color tape isused to identify the boundaries of manufacturingcells and the locations of equipment, materials, andsupplies. Labels are used to identify the contents ofcabinets, containers, and folders. Tool sets are alsoorganized within drawers and on workbenches byusing shadow boxes, partitions, and compartments.Throughout the workplace, charts and graphicsillustrate each cell’s work content and performance.The color codes used by Howmedica Osteonics in-clude:

• Red for hazardous material and waste.• Yellow for aisles, personal protective equipment

modified areas, and non-production areas.• Blue for supplies, tools, and indirect material.• Green for raw and work-in-process material.• Green/White for shipping and receiving.• Red/White for trash, scrap, reject, and hold

items.The concept of the program flows down from the

Team Leaders to the Team Members within eachmanufacturing cell. Team Members are instructed

to follow the basic philosophy, but are given flexibil-ity to best fit the concept to their own cells. Colorcoding is the only control that is held standard.Each cell employs slight differences in its applica-tion, but still follows the basic concept. In addition,Team Members are continually improving the pro-gram by developing innovative ideas and exchang-ing information with other cells. Sustainment ismaintained by auditing the cells every 40 days andgenerating a scorecard to chart their progress. Al-though somewhat subjective, the scorecard helpshighlight deficiencies and identify areas for im-provement.

Key to the implementation and buy-in of the FivePillars and Visual Controls Program is strong back-ing by top management. As demonstrated atHowmedica Osteonics, the program can be imple-mented in a very short time and reap immediatebenefits.

Sales Training

To maintain a strong sales personnel base,Howmedica Osteonics developed an innovative andeffective Sales Training Program designed to enablesales representatives to learn quickly and retaininformation. Key to the program is the focus onstudent participation. As a result, the Sales Team isnot only affluent in communication and businessskills, but also knowledgeable in orthopaedic prod-ucts, process technology, and medical terminologyassociated with orthopaedic surgery techniques.

As with any business, aggressive marketing andcompetent sales personnel enable a company todevelop new clientele and maintain present ones.In the highly competitive industry of orthopaedicimplants, however, technological advancements inmaterial and medical sciences flood the industrydaily. To maintain a strong sales personnel base,Howmedica Osteonics developed an innovative andeffective Sales Training Program designed to en-able sales representatives to learn quickly and re-tain information. As a result, the Sales Team is notonly affluent in communication and business skills,but also knowledgeable in orthopaedic products,process technology, and medical terminology asso-ciated with orthopaedic surgery techniques.

The Sales Training Program does not employ atraditional classroom environment. Instead, theprogram applies Participant-Centered TrainingTechniques which were largely modeled from two

9

literature sources: Accelerated Learning by DaveMaier and Creative Learning Techniques by BobPike. These resources, plus ideas from the SalesTeam, enabled Howmedica Osteonics to develop thetechniques for its Sales Training Program. Key tothe program is the focus on student participation.The course provides students with knowledge, in-formation, facts, and data designed for immediateimplementation. A supportive environment is alsocreated for exploration, struggle, and discovery sothat insights are gained through the student’s owninvolvement. Each segment of the program pro-vides an equal distribution of time for instructionalcontent, student activity, and review. In addition,each course is orchestrated by the trainer to opti-mize student participation in the learning process.

All courses in the Sales Training Program followthe same design. Howmedica Osteonics providesthis training to its new as well as existing salesrepresentatives. Courses range in length from twodays to two weeks. Classes average around 16 to 20students with a maximum of 25 attendees. Class-room attention is very high and a course-contentretention of 90% has been attained using this SalesTraining Program.

Skill Based Pay Program

On January 1, 1994, Howmedica Osteonics imple-mented a hybrid Skill Based Pay Program. The goalwas to motivate the Team Members within a cellu-lar-focused structure through this compensationprogram. Goals are set across as well as within themanufacturing cells. Among these goals are: fulfill-ing the Skill Based Pay core blocks within 12 monthsof being hired and, each year, completing at leasttwo new skill blocks (as outlined in a skills pathmatrix) to be eligible for the yearly raise.

Previously, Howmedica Osteonics compensatedits employees based on individual efforts and levelsof performance. In 1992, the company realized itssalary administration and bonus plan did not sup-port the goals of the newly established, team-basedcellular environment. A major transformation en-sued and Howmedica Osteonics initiated a hybridSkill Based Pay Program on January 1, 1994. Thegoal was to motivate the Team Members within acellular-focused structure through this compensa-tion program.

A team-oriented work structure evolved throughthe creation of an Operations Steering Team and 13

Operations Cells. All employee titles were reducedto just three: Steering Team Member, Team Leader,and Team Member. Led by a Team Leader, each cellfocused on either a manufacturing process, product,or support function. Skill Based Pay objectives wereestablished to achieve common goals across thecells. These goals are set by the Operations SteeringTeam on an annual basis depending on customerand business needs. Skill Based Pay core blockswere also established as a set of minimal skillswhich employees needed to work in Operations andas prerequisites to learning other skill blocks. Thecore blocks consist of basic mathematics, blueprintreading, measuring instruments, safety, team build-ing, work simplification, and good manufacturingpractices. A condition of employment at HowmedicaOsteonics is the completion of the Skill Based Paycore blocks within 12 months of being hired.

Employees must also complete at least one skillblock of training every six months until they havecompleted all the blocks as outlined in a skills pathmatrix. The skills path matrix is a living documentthat identifies the skills needed to perform work inan Operations Cell, and establishes career roles oneach team. Each Team Member must be block-certified for competency. Completion of the re-quired training is the responsibility of the TeamMember and, as an incentive, impacts next year’smerit increase and this year’s bonus. HowmedicaOsteonics provides training during or after workhours depending on whether it is a core skill or anew training activity. The training has built-inexpectations so employees can devote personal timeto skill acquisition which, if not applied, affects theirown development as well as their cell’s team mem-bers. Training Requirements Forms also are pro-vided to assist Team Members in preparing for skillblock testing, certification, and documentation.Measurements allow for periodic assessment ofvarious team performance-to-operation goals, andeach skill path is evaluated based on its primaryduties. Operations uses two classifications as re-quired by Federal law: exempt and non-exempt.Based on performance pay purposes, the HumanResources Team determines the classification ofeach skill path.

The results of the Skill Based Pay Program areevident in the quality, service levels, and cost-reduction efforts at Howmedica Osteonics. Thesuccessful completion of core/skill blocks by employ-ees has resulted in a 50% reduction in scrap mate-rial. By using the Skill Based Pay Program, the

10

company has also produced cross-functional em-ployees, empowered team members, and holds teamsaccountable for their work. Additionally, HowmedicaOsteonics has noted a higher level of engagement inworkplace activities and sees a more committedworkforce.

Strategic Mission and Values Statement

With the 1998 merger of Stryker Osteonics andHowmedica, the leaders of the company wanted tobring the employees together with a clearly under-stood mission, not just a poster on the wall. Inaddition, the company wanted to gain customerloyalty by exceeding their expectations and estab-lishing a unique bond with them that transcendseveryday business interactions. As a result, thecompany developed its Strategic Mission and Val-ues Statement. An ongoing company-wide cam-paign keeps the mission, objectives, and values mes-sage fresh and highly visible to employees.

With the 1998 merger of Stryker Osteonics andHowmedica, the leaders of the company felt theywere truly poised to lead the marketplace. How-ever, they also realized this goal needed more thanjust sales and profits to succeed. It would requirethe efforts and talents of every employee workingtoward a common mission and values. HowmedicaOsteonics wanted to bring the employees togetherwith a clearly understood mission, not just a posteron the wall. In addition, the company wanted togain customer loyalty by exceeding their expecta-tions and establishing a unique bond with them thattranscends everyday business interactions. Thechallenge was to get the message out and engage allemployees. As a result, the company developed itsStrategic Mission and Values Statement: To be therecognized leader in global orthopaedics by buildingintense customer loyalty to Howmedica Osteonics.

With help from the Human Resources and theMarketing Communication Teams, HowmedicaOsteonics launched its slogan, “Building IntenseCustomer Loyalty,” at a July 1999 meeting. Here,the company’s President introduced the strategicmission and values, and challenged Managers andTeam Leaders to bring the message back to theirrespective teams. Next, seven leaders representingcross-functional teams described what the valuesmeant to them personally as well as what theymeant to the teams and the company. The momen-tum continued throughout the year with various

activities, including using the new slogan as thetheme for the Howmedica Osteonics National SalesMeeting in January 2000. At this event, the Presi-dent and Vice President of Sales introduced thecompany’s strategic mission, vision, and values tothe assembled selling group. Since the initial kick-off, the Team Leaders have communicated thecompany’s strategic mission and values to everyemployee. Team Leaders have discussed the impactthat each employee has on the success of the corpo-rate mission, as well as provided clear directions asto how they can specifically contribute to thecompany’s Corporate Objectives. An ongoing com-pany-wide campaign to maintain the excitementand commitment toward the mission includes em-ployee quarterly meetings held by the Presidentand staff at the Allendale and Rutherford, NewJersey plants. Additionally, an extensive communi-cation package consisting of keepsake gifts, screensavers, signage, videos, and customer testimonialsare made available to employees and sales person-nel. Howmedica Osteonics keeps the mission, objec-tives, and values message fresh and highly visible toits employees through ongoing newsletters, voicemails, and the highlighting of behavior simpaticowith the company’s values and mission.

Translating the success of communicating andachieving Howmedica Osteonics’ Strategic Missionand Values Statement is best left to the bottom lineof sales and growth, and the measure of employeeengagement in the process. The company reports itis achieving its annual profit growth rate of 20% andis on track to achieve its stretch goal of $1 billion by2004. The internal Gallup Q-12 Survey also indi-cates that employee attitude is scoring high in thefollowing categories: mission correlating to theirjob, understanding of expectations, commitment todoing quality work, and having the appropriatematerials/equipment to perform their work. Over-all employee satisfaction is in the 63rd percentile ofall companies in Gallup’s extensive database.

Team Based Cell Manufacturing

In 1992, Howmedica Osteonics radically changedits approach by implementing Team Based CellularManufacturing, a cellular environment that focusedon product rather than process. In cellular manu-facturing, product focus means customer focus. Asa result, the company has developed a flatter, leanerorganization through management streamlining,employee empowerment, accountability, and cus-tomer focus.

11

Howmedica Osteonics previously used traditionalmanufacturing methods which eventually lead topoor service levels, long lead times, high inventoryand back orders, high product costs, and multiplelevels of management. Poor communication alsoexisted between functional departments. In 1992,Howmedica Osteonics radically changed its approachby implementing Team Based Cellular Manufac-turing, a cellular environment that focused on prod-uct rather than process.

In cellular manufacturing, product focus meanscustomer focus. The cellular approach at HowmedicaOsteonics is key to Operations’ strategy, and in-cludes management concepts and techniques com-mon to world-class manufacturing. A cellular lay-out of the plant allows each cell to be managed as asingle business. Two levels of management co-existwithin each cell which promotes communicationamong Team Leaders, Team Members, and ven-dors. Team Members within a cell are equallyempowered to ensure the cell, as a whole, willachieve its operational goals. Accountability ap-plies to everyone and enables Howmedica Osteonicsto achieve higher operational performance. Perfor-mance measurements are reported daily, weekly,and monthly using a standard set of key businessdriver measurements which are linked to Opera-tions’ goals. Key measurements include quality,service level, cost, lead times, inventory dollars, andturnaround time. Total quality is built into each

product via multi-skilled workers, preventive main-tenance (skill blocks), and continuous improvement.High performing work teams progress through sixstages of development: (1) assessment of organiza-tion and business environment, (2) introduction ofcell concept and product-focused work teams, (3)education and training, (4) introduction to worksimplification, (5) performance measurements, and(6) implementation of a Skill Based Pay Program.

Since implementing Team Based Cell Manufac-turing, Howmedica Osteonics achieved product costreductions by more than 50% between 1991 and2000. In-house inventories have also been reducedby 50% and are more in-line with customer de-mands. In 1993, the ratio of average units persquare foot to average units per Operations em-ployee were 5.70:1,109. By 1998, this ratio was11.66:1,757. The cells are achieving 99% of theirgoals with an increase in service levels of 10% to15% in five years. Operational improvements beginalmost immediately after a performance measure-ment is implemented due to a higher cell teamunderstanding of set goals and the challenges toreach those goals. Howmedica Osteonics has devel-oped a flatter, leaner organization through man-agement streamlining, employee empowerment,accountability, and customer focus. This approachgoes beyond setting up a few customer product-focused work teams. Instead, the entire manufac-turing organization consists of product-support cells.

Design

Materials Science Laboratory andComputer Aided Engineering

Howmedica Osteonics’ Technical Services Group,Materials Science Laboratory is responsible for im-plant device evaluations such as risk analysis; veri-fication of safety and functionality; specification,characterization, and testing of materials; estab-lishment of device performance criteria; verificationof performance criteria through fatigue and weartesting; and technical advisory support. The groupalso routinely uses computer aided engineering,computer aided design, finite element analysis, andmechanical systems simulation. For evaluatingdevices, these tools have considerably shortened thedesign-realization cycle for implant devices.

Howmedica Osteonics’ Technical Services Group,Materials Science Laboratory in Rutherford, NewJersey is part of the Advanced Technology organiza-tion. The group is responsible for implant deviceevaluations such as risk analysis; verification ofsafety and functionality; specification, character-ization, and testing of materials; establishment ofdevice performance criteria; verification of perfor-mance criteria through fatigue and wear testing;and technical advisory support. The facility housespossibly the world’s largest collection of instru-ments for tribological testing of medical implantsand related devices. In addition, there are numer-ous specialized mechanical test systems including34 uniaxial, four multi-axial, five electromechani-cal, and nine high-cycle fatigue test systems fortensile, flexure and fatigue tests. Many of thesesystems were designed in-house to meet special testneeds.

The Technical Services Group routinely uses Com-puter Aided Engineering as a basic and appliedresearch tool. Computer Aided Engineering toolsinclude computer aided design, finite element analy-sis, and mechanical systems simulation. For evalu-ating devices, these tools have considerably short-ened the design-realization cycle for implant de-vices. Prior to Computer Aided Engineering tools,

components were defined as continuous surfaces ofcomplex geometry and described by complex differ-ential equations that were not readily solvable onavailable computer equipment. Computer model-ing was impractical and the design cycle consisted ofan iterative process of make-it-and-break-it. Oncea conceptual component was designed, a prototypewas built and tested to failure. The process wasrepeated until an acceptable product was devel-oped. The request for regulatory approval was notmade until sufficient laboratory test data had beenaccumulated on production parts to demonstrateproduct performance. The entire design cycle wastime-consuming and expensive.

Computer Aided Engineering tools have also beenused to reduce product development cycle times andcosts, and improve product quality and performance.Mechanical design and testing now employs a single-pass process rather than an iterative process. Thecomputer quickly generates and tests virtual proto-types repeatedly until a usable design is achieved.The virtual prototype can also be enhanced andoptimized prior to undergoing physical testing. Insome instances, finite element analysis and me-chanical systems simulation results can be submit-ted, instead of laboratory test data, during theregulatory approval process.

Rapid Prototyping

Howmedica Osteonics has implemented a RapidPrototyping System integrated with ProEngineersolid modeling software to enhance the developmentof new products. This investment provides flexibil-ity to produce durable prototype parts within hours,allows design criteria to be quickly determined, andpromotes early client buy-in at the concept stage.

Howmedica Osteonics has implemented a RapidPrototyping System integrated with solid modelingsoftware to enhance the development of new prod-ucts. Previous methods of producing design proto-types included machining parts within one to threedays, producing soft-metal tooling within three tofive days, and outsourcing for stereolithographyparts. Howmedica Osteonics invested in a RapidPrototyping System to obtain flexibility in-house to

S e c t i o n 3

Information

13

14

produce durable prototype parts within hours. Thesystem was implemented so that design criteriacould be quickly determined and client buy-in couldbegin early at the concept stage.

Howmedica Osteonics utilizes ProEngineer tocreate solid models that can be transferred to arapid prototyping machine. Solid-model files aretransferred as STL files into a Stratasys FDM 2000machine. The Stratasys machine produces ABSplastic or investment cast wax prototypes withinhours. Initially, engineers meet with surgeons anddiscuss tool and product needs. Sketches are thentransferred into ProEngineer as solid models. Filesare input to the Stratasys machine and next-dayprototypes are shown to the surgeons to furtherdevelop form-and-fit advancement.

The primary benefits of the Rapid PrototypingSystem are early client involvement and buy-in.The approach enables design criteria to be quicklynarrowed down and expedited. The product devel-opment cycle is also shortened due to a decrease indesign iterations. Prototypes are concurrently uti-lized for marketing purposes. Other applications ofthe solid-model files involve machining, tool design,inspection drawings, finite element analysis, prod-uct drawings, fixtures, gauges, x-ray templates,inspection overlays, and marketing materials. AtHowmedica Osteonics, recent new product develop-ment occurred in nine months and product deliverywas one month ahead of schedule, thereby generat-ing $1 million per month in sales along with clientconfidence.

Management

Gallup Q12 Survey

After the 1998 merger,Howmedica Osteonics estab-lished new company core val-ues to guide its individual andgroup efforts. In May 1999, thecompany implemented theGallup Q12 Survey as a stream-lined method for measuring em-ployee job satisfaction and em-ployee engagement. The surveyconsists of 12 questions andprovides a vehicle for employ-ees to communicate with man-agement.

In the past, Stryker Osteonics and Howmedicaadministered their own employee feedback process(e.g., 50-question Max survey) to evaluate produc-tivity, employee retention, profit, and customersatisfaction. After the 1998 merger, HowmedicaOsteonics established new company core values toguide its individual and group efforts. In May 1999,the company implemented the Gallup Q12 Surveyas a streamlined method for measuring employeejob satisfaction and employee engagement. Thesurvey consists of 12 questions and provides a ve-hicle for employees to communicate with manage-ment.

Howmedica Osteonics will be conducting the Q12Survey on an annual basis. The questions target theemployees’ perspective on company expectations,training, upward mobility, and work environment.Employees answer the questions on a one-to-fivescale from extremely dissatisfied to strongly satis-fied. The results of the survey are tallied throughthe Gallup Organization, Independent SpecialtyResearch Organization. Each question is assessedin four categories (productivity, employee reten-tion, profit, and customer satisfaction) to identifyareas of improvement for overall company growthand profit. The Gallup Path (Figure 3-1) shows therelational route from strengths through stock in-crease as influenced by the Q12 Survey. The surveyresults are tabulated on a Gallup scorecard whichprovides Howmedica Osteonics with a breakdownof the answers according to grand mean, overall

Identify Strengths

The Right Task

Great Managers

Engaged Employees

Loyal Customers

Sustainable Growth

Real Profit Increase

Stock Increase

Q12 Survey

ENTER HERE

1 2 3 4 5 6

7 8 9 10 11 12

Figure 3-1. The Gallup Path

15

satisfaction, individual questions, and engagementhierarchy. The engagement hierarchy uses a pyra-mid arrangement to group the questions into Over-all Growth, Teamwork, Management Support, andBasic Needs. Howmedica Osteonics uses training todiscuss and explain the survey results to its manag-ers who, in turn, educate their respective groups.

The results of the Q12 Survey can be used as aneffective management tool to employ and retainqualified and loyal employees who are passionateabout their work and contribution within the com-pany. Individual job satisfaction has a direct influ-ence on team performance and company goals.Based on the May 1999 results, 82% of the employ-ees participated in the first survey. The resultsindicate an improvement in employee-managementrelationships, and an increase in efficiency anddecrease in production time due to employee em-powerment. Management highly encourages em-ployee engagement in building a stronger work-place through team feedback.

Howmedica Osteonics has established a baselinewith the initial Gallup Q12 Survey. As more data isgathered from future surveys, the company will beable to measure employee levels of satisfaction andcorrelation with goals (e.g., retention, profit). Thecompany’s goals are to create a healthy, productive,results-focused environment and achieve $1 billionin sales by 2004.

On-line Training

Howmedica Osteonics is in the process of develop-ing a web-based training initiative to improve itsOn-line Training efforts. This approach will pro-vide employees with access to multi-media trainingmaterials (e.g., documentation, video and audioclips, graphics, drawings, links) through thecompany’s web site, thereby combining the writteninstructions with the show-and-do techniques.

Howmedica Osteonics is in the process of develop-ing a web-based training initiative to improve itsOn-line Training efforts. Each employee in thecompany must learn two new skill blocks each yearto be eligible for the yearly raise under the SkillBased Pay Program. The current training methodsmake use of written work instructions that detail anoperating procedure and hands-on training, wherethe novice is shown the proper operating techniquesand the instructor observes the trainee performingthe operation.

On-line Training will provide employees withaccess to multi-media training materials (e.g., docu-mentation, video and audio clips, graphics, draw-ings, links) through the company’s web site. Themulti-media training materials combine the writ-ten instructions with the show-and-do techniques.The web site will also showcase the various teamsand manufacturing processes. The employee canhave access to blueprints, work instructions, videoprocedures, and helpful tips from any location thathas Internet access. Multiple employees can use thematerials at the same time. The creation andupdating of the training materials will also be easierand faster. The processes will be documented morecompletely due to the ease of use. Machine down-time for training as well as time required from anexperienced operator will both be reduced. The On-line Training web site will track employee traininghours and career development, and collect feedbackvia on-line tests and question-and-answer sessions.

When the On-line Training system is fully imple-mented, the development, delivery, and tracking oftraining will be easier. Howmedica Osteonics an-ticipates the first machine will be on-line with thesystem around November 2000.

A p p e n d i x A

Table of Acronyms

No acronyms were used in this report.

A-1

A p p e n d i x B

BMP Survey Team

Team Member Activity Function

Larry Robertson Crane Division Team Chairman(812) 854-5336 Naval Surface Warfare Center

Crane, IN

Cheri Spencer BMP Center of Excellence Technical Writer(301) 403-8100 College Park, MD

Technology, Design, & Test Team

Sam McSpadden Oak Ridge National Library Team Leader(301)574-5444 Oak Ridge, TN

Thomas Clark BMP Satellite Center(815)654-5515 Rockford, IL

Logistics & Management Team

Larry Halbig BMP Field office Team Leader(317)891-9901 Indianapolis, IN

Allen Kimball Naval Warfare Assessment Station(909)273-5116 Corona, CA

B-1

A p p e n d i x C

Critical Path Templates and BMP Templates

This survey was structured around and concentrated on the functional areas of design, test, production, facilities, logistics,and management as presented in the Department of Defense 4245.7-M, Transition from Development to Productiondocument. This publication defines the proper tools—or templates—that constitute the critical path for a successful materialacquisition program. It describes techniques for improving the acquisition process by addressing it as an industrial processthat focuses on the product’s design, test, and production phases which are interrelated and interdependent disciplines.

The BMP program has continued to build on this knowledge base by developing 17 new templates that complementthe existing DOD 4245.7-M templates. These BMP templates address new or emerging technologies and processes.

“CRITICAL PATH TEMPLATESFOR

TRANSITION FROM DEVELOPMENT TO PRODUCTION”

PRO DU C T

M AN AG EM EN TLO G IST ICSFA C ILITIE SPRO DU C TIO NTES TD ESIGN

FU N DIN G

D E S IG NR E F E R E N C E

M IS S IO N P R O F IL E

FA IL U R ER E P O R T IN G

S Y S T E M

Q U A L IFYM A N U FA C T U R IN G

P R O C E S S

S U P P O R TA B IL IT YA N A LY S IS

S U P P O R T &T E S T

E Q U IP M E N T

T R A IN IN GM AT E R IA L S &E Q U IP M E N T

T E C H N IC A LR IS K

A S S E S S M E N T

D E T E R M IN IN GD E F IN IN G N E E D

F O R S Y S T E M

D E S IG N /M IL E S TO N E

R E V IE W P LA N N IN G

N E W P M W ST E M PL AT E S

P R E PA R ER E Q U IR E M E N T

D O C U M E N T S

L O G IS T IC SA N A LY S IS

D O C U M E N TAT IO N

U N IF O R MT E S T

R E P O R T

PA R T S &M AT E R IA L SS E L E C T IO N

C O M P U T E R -A ID E D

D E S IG N

S P E C IFI C AT IO ND E V /A LL O C AT IO N /

VA LID AT IO N

T E M PD E V E LO P M E N T /

E X E C U T IO N

C O M P U T E R -A ID E DM A N U FA C T U R IN G

(C A M )

T R A D ES T U D I E S

D E S IG NP R O C E S S

B U ILT -I NT E S T

D E S IG NR E V IE W S

B R A S S B O A R DD E V E LO P M E N T

D E S IG NR E Q U IR E M E N T S

IN T E G R AT E DT E S T

M A N U FA C T U R IN GP LA N

FA C T O R YIM P R O V E M E N T S

M A N P O W E R &P E R S O N N E L

P E R S O N N E LR E Q U IR E M E N T S

D ATAR E Q U IR E M E N T S

P R O D U C T IO NB R E A K S

Q U A L ITYA S S U R A N C E

M A K E O R B U YD E C IS IO N S

T E C H N IC A LM A N U A L S

P R O D U C T IV I T YC E N T E R

F IE LD V IS IT S /S IT E S U RV E Y S

M A N U FA C T U R IN GS T R AT E G Y

S O F T W A R ET E S T

S U B C O N T R A C T O RC O N T R O L

P IE C E PA R TC O N T R O L

D E F E C TC O N T R O L

T O O LP LA N N IN G

M A N U FA C T U R IN GS C R E E N IN G

S P E C IA L T E S TE Q U IP M E N T (S T E )

D E S IG NL IM IT

F IE LDF E E D B A C K

S O F T W A R ES IM U L AT O R

P R O D U C T IO NFA B R IC A T IO N

E N V IR O N M E N TA LIS S U E S

T E S T, A N A LY Z E &F IX (TA A F )

D E S IG NP O LIC Y

D E S IG NA N A LY S IS

D E S IG N F O RT E S T IN G

D E S IG NR E L E A S E

C O N F IG U R AT IO NC O N T R O L

S O F T W A R E

L IF E

M O D E R N IZ AT IO N

S PA R E S

TR A N SIT IO N P LAN

TQ M

M ON E YPHASIN G

C OSTASS ES SM E NT

B R E A D B O A R DD E V E LO P M E N T

C O N C E P TS T U D I E S &A N A LY S IS

D E S IG N F O RA S S E M B LY

P R O T O T Y P ED E V E LO P M E N T &

R E V IE W

C-1

D-1

A p p e n d i x D

The Program Manager’s WorkStation

The Program Manager’s WorkStation (PMWS) is anelectronic suite of tools designed to provide timely acqui-sition and engineering information to the user. The maincomponents of PMWS are KnowHow; the Technical RiskIdentification and Mitigation System (TRIMS); and theBMP Database. These tools complement one another andprovide users with the knowledge, insight, and experienceto make informed decisions through all phases of productdevelopment, production, and beyond.

KnowHow provides knowledge as an electronic libraryof technical reference handbooks,guidelines, and acquisition publica-tions which covers a variety of engi-neering topics including the DOD5000 series. The electronic collec-tion consists of expert systems andsimple digital books. In expert sys-tems, KnowHow prompts the user toanswer a series of questions to deter-mine where the user is within aprogram’s development. Recom-mendations are provided based onthe book being used. In simple digi-tal books, KnowHow leads the userthrough the process via an electronictable of contents to determine which books in the librarywill be the most helpful. The program also features a fuzzylogic text search capability so users can locate specificinformation by typing in keywords. KnowHow can reducedocument search times by up to 95%.

TRIMS provides insight as a knowledge-based tool thatmeasures technical risk management rather than cost andschedule. Cost and schedule overruns are downstreamindicators of technical problems. Programs generally havehad process problems long before the technical problem is

The BMP Database provides experi-ence as a unique, one-of-a-kind resource.This database contains more than 2,500best practices that have been verified anddocumented by an independent team ofexperts during BMP surveys. BMP pub-lishes its findings in survey reports andprovides the user with basic background,process descriptions, metrics and lessonslearned, and a Point of Contact for furtherinformation. The BMP Database featuresa searching capability so users can locatespecific topics by typing in keywords.Users can either view the results on screenor print them as individual abstracts, a

single report, or a series of reports. The database can alsobe downloaded, run on-line, or purchased on CD-ROMfrom the BMP Center of Excellence. The BMP Databasecontinues to grow as new surveys are completed. Addition-ally, the database is reviewed every other year by a BMPcore team of experts to ensure the information remainscurrent.

For additional information on PMWS, please contact theHelp Desk at (301) 403-8179, or visit the BMP web site athttp://www.bmpcoe.org.

approach. Process analysis and monitoring provide theearliest possible indication of potential problems. Earlyidentification provides the time necessary to apply correc-tive actions, thereby preventing problems and mitigatingtheir impact. TRIMS is extremely user-friendly andtailorable. This tool identifies areas of risk; tracks programgoals and responsibilities; and can generate a variety ofreports to meet the user’s needs.

identified. To avoid this progression, TRIMS operates as aprocess-oriented tool based on a solid Systems Engineering

There are currently nine Best Manufacturing Practices (BMP) satellite centers that provide representation for andawareness of the BMP program to regional industry, government and academic institutions. The centers also promote theuse of BMP with regional Manufacturing Technology Centers. Regional manufacturers can take advantage of the BMPsatellite centers to help resolve problems, as the centers host informative, one-day regional workshops that focus on specifictechnical issues.

Center representatives also conduct BMP lectures at regional colleges and universities; maintain lists of experts who arepotential survey team members; provide team member training; and train regional personnel in the use of BMP resources.

The nine BMP satellite centers include:

California

Chris MatzkeBMP Satellite Center ManagerNaval Warfare Assessment DivisionCode QA-21, P.O. Box 5000Corona, CA 91718-5000(909) 273-4992FAX: (909) 273-4123matzkecj@corona.navy.mil

District of Columbia

Chris WellerBMP Satellite Center ManagerU.S. Department of Commerce14th Street & Constitution Avenue, NWRoom 3876 BXAWashington, DC 20230(202) 482-8236/3795FAX: (202) 482-5650cweller@bxa.doc.gov

Illinois

Thomas ClarkBMP Satellite Center ManagerRock Valley College3301 North Mulford RoadRockford, IL 61114(815) 654-5515FAX: (815) 654-4459adme3tc@rvc.cc.il.us

Iowa

Bruce ConeyProgram ManagerIowa Procurement Outreach Center2273 Howe Hall, Suite 2617Ames, IA 50011(515) 294-4461FAX: (515) 294-4483bruce.coney@ciras.iastate.edu

Louisiana

Al KnechtDirectorMaritime Environmental Resources & Information

CenterGulf Coast Region Maritime Technology CenterUniversity of New Orleans810 Engineering BuildingNew Orleans, LA 70148(504) 626-8918 / (504) 280-6271FAX: (504) 727-4121atk@neosoft.com

Michigan

Jack PokrzywaSAE/BMP Satellite Center Manager755 W. Big Beaver Road, Suite 1600Troy, MI 48084(248) 273-2460FAX: (248) 273-2494jackp@sae.org

E-1

A p p e n d i x E

Best Manufacturing Practices Satellite Centers

Michigan

Roy T. TrentSAE/BMP Automotive Manufacturing Initiative

Manager755 W. Big Beaver Road, Suite 1600Troy, MI 48084(248) 273-2455FAX: (248) 273-2494bounder@ees.eesc.com

Ohio

Karen MaloneBMP Satellite Center ManagerEdison Welding Institiute1250 Arthur E. Adams DriveColumbus, Ohio 43221-3585(614) 688-5111FAX: (614) 688-5001karen_malone@ewi.org

Pennsylvania

Sherrie SnyderBMP Satellite Center ManagerMANTEC, Inc.P.O. Box 5046York, PA 17405(717) 843-5054, ext. 225FAX: (717) 854-0087snyderss@mantec.org

Tennessee

Tammy GrahamBMP Satellite Center ManagerLockheed Martin Energy SystemsP.O. Box 2009, Bldg. 9737M/S 8091Oak Ridge, TN 37831-8091(865) 576-5532FAX: (865) 574-2000grahamtb@ornl.gov

E-2

F-1

A p p e n d i x F

Navy Manufacturing Technology Centers of Excellence

Best Manufacturing Practices Center ofExcellence

The Best Manufacturing Practices Center of Excellence(BMPCOE) provides a national resource to identify andpromote exemplary manufacturing and business practicesand to disseminate this information to the U.S. IndustrialBase. The BMPCOE was established by the Navy’s BMPProgram, The Department of Commerce, and the Universityof Maryland at College Park, Maryland. The BMPCOEimproves the use of existing technology, promotes theintroduction of improved technologies, and provides non-competitive means to address common problems, and hasbecome a significant factor in countering foreign competi-tion.

Point of Contact:Anne Marie T. SuPrise, Ph.D.Best Manufacturing Practices Center ofExcellence4321 Hartwick RoadSuite 400College Park, MD 20740(301) 403-8100FAX: (301) 403-8180annemari@bmpcoe.org

Center of Excellence for CompositesManufacturing Technology

The Center of Excellence for Composites ManufacturingTechnology (CECMT) provides a national resource for thedevelopment and dissemination of composites manufactur-ing technology to defense contractors and subcontractors.The CECMT is managed by the Great Lakes CompositesConsortium and represents a collaborative effort amongindustry, academia, and government to develop, evaluate,demonstrate, and test composites manufacturing technolo-gies. The technical work is problem-driven to reflect currentand future Navy needs in the composites industrial commu-nity.

Point of Contact:Mr. James RayCenter of Excellence for Composites ManufacturingTechnologyc/o GLCC, Inc.103 Trade Zone DriveSuite 26CWest Columbia, SC 29170(803) 822-3708FAX: (803) 822-3710jrglcc@glcc.org

Electronics Manufacturing ProductivityFacility

The Electronics Manufacturing Productivity Facility (EMPF)identifies, develops, and transfers innovative electronicsmanufacturing processes to domestic firms in support of themanufacture of affordable military systems. The EMPFoperates as a consortium comprised of industry, university,and government participants, led by the American Competi-tiveness Institute under a Cooperative Agreement with theNavy.

Point of Contact:Mr. Alan CriswellElectronics Manufacturing Productivity FacilityOne International PlazaSuite 600Philadelphia, PA 19113(610) 362-1200FAX: (610) 362-1290criswell@aci-corp.org

National Center for Excellence inMetalworking Technology

The National Center for Excellence in MetalworkingTechnology (NCEMT) provides a national center for thedevelopment, dissemination, and implementation ofadvanced technologies for metalworking products andprocesses. The NCEMT, operated by ConcurrentTechnologies Corporation, helps the Navy and defensecontractors improve manufacturing productivity and partreliability through development, deployment, training, andeducation for advanced metalworking technologies.

The Navy Manufacturing Sciences and Technology Program established the following Centers of Excellence (COEs) toprovide focal points for the development and technology transfer of new manufacturing processes and equipment in acooperative environment with industry, academia, and Navy centers and laboratories. These COEs are consortium-structured for industry, academia, and government involvement in developing and implementing technologies. Each COEhas a designated point of contact listed below with the individual COE information.

F-2

Point of Contact:Mr. Richard HenryNational Center for Excellence in MetalworkingTechnologyc/o Concurrent Technologies Corporation100 CTC DriveJohnstown, PA 15904-3374(814) 269-2532FAX: (814) 269-2501henry@ctc.com

Navy Joining Center

The Navy Joining Center (NJC) is operated by the EdisonWelding Institute and provides a national resource for thedevelopment of materials joining expertise and the deploy-ment of emerging manufacturing technologies to Navycontractors, subcontractors, and other activities. The NJCworks with the Navy to determine and evaluate joiningtechnology requirements and conduct technology develop-ment and deployment projects to address these issues.

Point of Contact:Mr. David P. EdmondsNavy Joining Center1250 Arthur E. Adams DriveColumbus, OH 43221-3585(614) 688-5096FAX: (614) 688-5001dave_edmonds@ewi.org

Energetics Manufacturing TechnologyCenter

The Energetics Manufacturing Technology Center (EMTC)addresses unique manufacturing processes and problems ofthe energetics industrial base to ensure the availability ofaffordable, quality, and safe energetics. The focus of theEMTC is on process technology with a goal of reducingmanufacturing costs while improving product quality andreliability. The EMTC also maintains a goal of developmentand implementation of environmentally benign energeticsmanufacturing processes.

Point of Contact:Mr. John BroughEnergetics Manufacturing Technology CenterIndian Head DivisionNaval Surface Warfare Center101 Strauss AvenueBuilding D326, Room 227Indian Head, MD 20640-5035(301) 744-4417DSN: 354-4417FAX: (301) 744-4187mt@command.ih.navy.mil

Institute for Manufacturing and SustainmentTechnologies

The Institute for Manufacturing and Sustainment Technolo-gies (iMAST), was formerly known as Manufacturing Sci-ence and Advanced Materials Processing Institute. Locatedat the Pennsylvania State University's Applied Research Labortory,the primary objective of iMAST is to address challenges relativeto Navy and Marine Corps weapon system platforms in the areasof mechnical drive transmission techologies, materials sci-ence technologies, high energy processing technologies,and repair technology.

Point of Contact:Mr. Bob CookInstitute for Manufacturing and SustainmentTechnologiesARL Penn StateP.O. Box 30State College, PA 16804-0030(814) 863-3880FAX: (814) 863-1183rbc5@psu.edu

Gulf Coast Region Maritime TechnologyCenter

The Gulf Coast Region Maritime Technology Center(GCRMTC) is located at the University of New Orleans andfocuses primarily on product developments in support ofthe U.S. shipbuilding industry. A sister site at LamarUniversity in Orange, Texas focuses on process improve-ments.

Point of Contact:Dr. John Crisp, P.E.Gulf Coast Region Maritime Technology CenterUniversity of New OrleansCollege of EngineeringRoom EN-212New Orleans, LA 70148(504) 280-5586FAX: (504) 280-3898jncme@uno.edu

As of this publication, 122 surveys have been conducted and published by BMP at the companies listedbelow. Copies of older survey reports may be obtained through DTIC or by accessing the BMP web site.Requests for copies of recent survey reports or inquiries regarding BMP may be directed to:

Best Manufacturing Practices Program4321 Hartwick Rd., Suite 400

College Park, MD 20740Attn: Anne Marie T. SuPrise, Ph.D., Acting Director

Telephone: 1-800-789-4267FAX: (301) 403-8180

annemari@bmpcoe.org

G-1

1986

1985

A p p e n d i x G

Completed Surveys

1987

Litton Guidance & Control Systems Division - Woodland Hills, CA

Honeywell, Incorporated Undersea Systems Division - Hopkins, MN (now Alliant TechSystems, Inc.)Texas Instruments Defense Systems & Electronics Group - Lewisville, TXGeneral Dynamics Pomona Division - Pomona, CAHarris Corporation Government Support Systems Division - Syosset, NYIBM Corporation Federal Systems Division - Owego, NYControl Data Corporation Government Systems Division - Minneapolis, MN

Hughes Aircraft Company Radar Systems Group - Los Angeles, CAITT Avionics Division - Clifton, NJRockwell International Corporation Collins Defense Communications - Cedar Rapids, IAUNISYS Computer Systems Division - St. Paul, MN

Motorola Government Electronics Group - Scottsdale, AZGeneral Dynamics Fort Worth Division - Fort Worth, TXTexas Instruments Defense Systems & Electronics Group - Dallas, TXHughes Aircraft Company Missile Systems Group - Tucson, AZBell Helicopter Textron, Inc. - Fort Worth, TXLitton Data Systems Division - Van Nuys, CAGTE C3 Systems Sector - Needham Heights, MA

McDonnell-Douglas Corporation McDonnell Aircraft Company - St. Louis, MONorthrop Corporation Aircraft Division - Hawthorne, CALitton Applied Technology Division - San Jose, CALitton Amecom Division - College Park, MDStandard Industries - LaMirada, CAEngineered Circuit Research, Incorporated - Milpitas, CATeledyne Industries Incorporated Electronics Division - Newbury Park, CALockheed Aeronautical Systems Company - Marietta, GALockheed Missile Systems Division - Sunnyvale, CA (now Lockheed Martin Missiles and Space)Westinghouse Electronic Systems Group - Baltimore, MD (now Northrop Grumman Corporation)General Electric Naval & Drive Turbine Systems - Fitchburg, MARockwell Autonetics Electronics Systems - Anaheim, CA (now Boeing North American A&MSD)TRICOR Systems, Incorporated - Elgin, IL

Hughes Aircraft Company Ground Systems Group - Fullerton, CATRW Military Electronics and Avionics Division - San Diego, CAMechTronics of Arizona, Inc. - Phoenix, AZBoeing Aerospace & Electronics - Corinth, TXTechnology Matrix Consortium - Traverse City, MITextron Lycoming - Stratford, CT

1988

1989

1990

Resurvey of Litton Guidance & Control Systems Division - Woodland Hills, CANorden Systems, Inc. - Norwalk, CT (now Northrop Grumman Norden Systems)Naval Avionics Center - Indianapolis, INUnited Electric Controls - Watertown, MAKurt Manufacturing Co. - Minneapolis, MNMagneTek Defense Systems - Anaheim, CA (now Power Paragon, Inc.)Raytheon Missile Systems Division - Andover, MAAT&T Federal Systems Advanced Technologies and AT&T Bell Laboratories - Greensboro, NC and Whippany, NJResurvey of Texas Instruments Defense Systems & Electronics Group - Lewisville, TX

Tandem Computers - Cupertino, CACharleston Naval Shipyard - Charleston, SCConax Florida Corporation - St. Petersburg, FLTexas Instruments Semiconductor Group Military Products - Midland, TXHewlett-Packard Palo Alto Fabrication Center - Palo Alto, CAWatervliet U.S. Army Arsenal - Watervliet, NYDigital Equipment Company Enclosures Business - Westfield, MA and Maynard, MAComputing Devices International - Minneapolis, MN (now General Dynamics Information Systems)(Resurvey of Control Data Corporation Government Systems Division)Naval Aviation Depot Naval Air Station - Pensacola, FL

NASA Marshall Space Flight Center - Huntsville, ALNaval Aviation Depot Naval Air Station - Jacksonville, FLDepartment of Energy Oak Ridge Facilities (Operated by Martin Marietta Energy Systems, Inc.) - Oak Ridge, TNMcDonnell Douglas Aerospace - Huntington Beach, CA (now Boeing Space Systems)Crane Division Naval Surface Warfare Center - Crane, IN and Louisville, KYPhiladelphia Naval Shipyard - Philadelphia, PAR. J. Reynolds Tobacco Company - Winston-Salem, NCCrystal Gateway Marriott Hotel - Arlington, VAHamilton Standard Electronic Manufacturing Facility - Farmington, CTAlpha Industries, Inc. - Methuen, MA

Harris Semiconductor - Palm Bay, FL (now Intersil Corporation)United Defense, L.P. Ground Systems Division - San Jose, CANaval Undersea Warfare Center Division Keyport - Keyport, WAMason & Hanger - Silas Mason Co., Inc. - Middletown, IAKaiser Electronics - San Jose, CAU.S. Army Combat Systems Test Activity - Aberdeen, MD (now Aberdeen Test Center)Stafford County Public Schools - Stafford County, VA

Sandia National Laboratories - Albuquerque, NMRockwell Collins Avionics & Communications Division - Cedar Rapids, IA (now Rockwell Collins, Inc.)(Resurvey of Rockwell International Corporation Collins Defense Communications)Lockheed Martin Electronics & Missiles - Orlando, FLMcDonnell Douglas Aerospace (St. Louis) - St. Louis, MO (now Boeing Aircraft and Missiles)(Resurvey of McDonnell-Douglas Corporation McDonnell Aircraft Company)Dayton Parts, Inc. - Harrisburg, PAWainwright Industries - St. Peters, MOLockheed Martin Tactical Aircraft Systems - Fort Worth, TX(Resurvey of General Dynamics Fort Worth Division)Lockheed Martin Government Electronic Systems - Moorestown, NJSacramento Manufacturing and Services Division - Sacramento, CAJLG Industries, Inc. - McConnellsburg, PA

City of Chattanooga - Chattanooga, TNMason & Hanger Corporation - Pantex Plant - Amarillo, TXNascote Industries, Inc. - Nashville, ILWeirton Steel Corporation - Weirton, WVNASA Kennedy Space Center - Cape Canaveral, FLResurvey of Department of Energy, Oak Ridge Operations - Oak Ridge, TN

1994

1992

1991

1993

1995

1996

G-2

1997

G-3

Headquarters, U.S. Army Industrial Operations Command - Rock Island, ILSAE International and Performance Review Institute - Warrendale, PAPolaroid Corporation - Waltham, MACincinnati Milacron, Inc. - Cincinnati, OHLawrence Livermore National Laboratory - Livermore, CASharretts Plating Company, Inc. - Emigsville, PAThermacore, Inc. - Lancaster, PARock Island Arsenal - Rock Island, ILNorthrop Grumman Corporation - El Segundo, CA(Resurvey of Northrop Corporation Aircraft Division)Letterkenny Army Depot - Chambersburg, PAElizabethtown College - Elizabethtown, PATooele Army Depot - Tooele, UT

United Electric Controls - Watertown, MAStrite Industries Limited - Cambridge, Ontario, CanadaNorthrop Grumman Corporation - El Segundo, CACorpus Christi Army Depot - Corpus Christi, TXAnniston Army Depot - Anniston, ALNaval Air Warfare Center, Lakehurst - Lakehurst, NJSierra Army Depot - Herlong, CAITT Industries Aerospace/Communications Division - Fort Wayne, INRaytheon Missile Systems Company - Tucson, AZNaval Aviation Depot North Island - San Diego, CAU.S.S. Carl Vinson (CVN-70) - Commander Naval Air Force, U.S. Pacific FleetTobyhanna Army Depot - Tobyhanna, PA

Wilton Armetale - Mount Joy, PAApplied Research Laboratory, Pennsylvania State University - State College, PAElectric Boat Corporation, Quonset Point Facility - North Kingstown, RIResurvey of NASA Marshall Space Flight Center - Huntsville, ALOrenda Turbines, Division of Magellan Aerospace Corporation - Mississauga, Ontario, Canada

1998

1999

2000 Northrup Grumman, Defensive Systems Division - Rolling Meadows, ILCrane Army Ammunition Activity - Crane, INNaval Sea Logistics Center, Detachment Portsmouth - Portsmouth, NHStryker Howmedica Osteonics - Allendale, NJ