merged

Operations
Cost & Waste Reductions

2015

Operations Cost & Waste Reductions - 2015

Cost & Waste Reductions

Our OPERATIONAL EXCELLENCE and LEAN strategies in 2015 yielded a record number
of cost and waste reductions:

► 52 ideas implemented
► Each initiative is captured in attached before & after summary sheets
► Summary sheets are being used as a training tool for staff
► The $3,168,718 savings/benefits have not yet been audited by Finance

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

ADP SOLUTIONS

Member Name(s) Work Cell/Department Category Implementation Date

William May Human Resources Quality Inventory June-15
Human Resources Delivery Productivity
Rupali Ray Financial Impact

Problem $50,000 annually

Online Benefits Enrollment / Carrier Connection / Employee Self Improvement Idea Result/Benefits
Service lengthy and manual process, taking 12 weeks to
complete. Cost $80,833/yr. Automation The following was achieved with this project:
Reports generation is a Cumbersome process, time consuming, HRIS – ADP SOLUTIONS
data had to be massaged, limited analytical capability -Benefits: 2 weeks automated process, reduced man-
PTO process time was 3.5hrs per pay period on avg, Non value hours, accurate data reporting. Cost $18,310/yr.
added step in the process too long >24hrs, PTO data was not - Reports: Data available on demand, less data
real time manipulation, more analytical capability
Processing e-PAF documents was an intensive, lengthy & - PTO process: <24hrs process time, data process flow is
redundant process, lack of consistency, manual error, created, PTO data is real time. Calculated savings
misplacement of paperwork. Cost $ 42,000/yr. $35,200
- e-PAF: Greater visibility, tractability, huge time saving,
creates history & an audit trail, high convenience. Cost
$3,536/yr.

Before Improvement Sketch After Improvement Sketch

No HR Solution Software

Before picture, chart or graphic depicting current state

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

ATS TALEO Newhire Talent Management Software

Member Name(s) Work Cell/Department Category Implementation Date

William May HR Quality Inventory June-15
HR Delivery Productivity
Alma Dalnay Financial Impact

Problem $72,010

Candidate pipeline application process and record keeping was Improvement Idea Result/Benefits
manual
International sub-offices commented that candidates experience Automation Hiring Manager Self-Service Applicant Database
with the full application was cumbersome and time consuming, ATS- TALEO Automated process, managers and recruiters have a centralized data to capture
which affected applicant flow. applicant information real - time.

No centralized platform to communicate with candidates and Streamlined Application Process
track activity because it was manual.. 2-Tier Application. 1-Tier is a shorter application to pre-qualify candidates. 2-Tier
Available Metrics provides further information about the candidates once pre-qualified.
Manual and limited data reporting Requisition Status and Time
To Fill Improved Communication and Tracking Activity
After : Candidate tracking, communications, and activity is more transparent and
in a centralized automated database

Available Metrics
After : Automated data reporting and generate a variety of reports from Time To
Fill, Candidate Status Report, Hiring Summary Report, Requisition Status for
domestic and international

Before Improvement Sketch After Improvement Sketch

No Applicant Tracking System (ATS)

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Automatic Folding for CQA Documents

Member Name(s) Work Cell/Department Category Implementation Date

George Hanson Quality Control December-15

Problem Quality Inventory Financial Impact
Delivery Productivity
$9,500
Improvement Idea
Result/Benefits

Processing HPLC columns in PMQC requires the testing Identify an automated paper folding machine to fold CQA After purchasing a $500 automatic paper folder, we were
technician to fold each certificate of quality assurance documents for testing technicians. able to realized the following savings:
(CQA) document so it can be placed in a bag. On
average, the PMQC area will processes approximately 1: Reduced time needed to fold CQA documents
700 HPLC columns. 2: Able to test an additional 20 columns each day

Folding these documents takes each technician This allows PMQC to process an additional $9,500 worth
approximately 30 minutes per shift, or approximately 2 of product each day!
hours waited each day that could be spent testing
additional columns.

Before Improvement Sketch After Improvement Sketch

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Automated Human Resource Reports

Member Name(s) Work Cell/Department Category Implementation Date

William May Human Resources Quality Inventory July-15
Rupali Ray Human Resources
Financial Impact
Problem Delivery Productivity
$28,000 annually
Improvement Idea
Result/Benefits

* No central location for all data requested which make * All data for mployeers are located in ADP
reporting a very difficult task * Data availble on demand, less manipulation
* More analytical capability
* Extracting HR reports was very consuming process, ADP system offer a new reporting capacity which improve the * More than 20 customeside reports are buitl in ADP and
each report wil take at least one week to be prepared communication and save a lot of time! ready to be used for internal analysis!

* Data had to be edited and massaged

* Limited analytical capability

Before Improvement Sketch After Improvement Sketch

So difficult process.!!! Yes!!! All data are centralized in“ADP”
Preparing one HR report will We have now more than 20 customized
take at least a week!! HR reports!
It saves us one week per Report! I love ADP!

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

AXIA Hardware Organization

Member Name(s) Work Cell/Department Category Implementation Date

Orlando Lim, Jr. Manufacturing October-15

Quality Inventory Financial Impact

Delivery Productivity $200

Problem Improvement Idea Result/Benefits

Axia hardware are assembled by Product Assembly

into kits for the packing technicians to use as part of

Axia production. Reorganize Axia hardware and group by size, making it more In addition to organizing components by size, and color

The hardware for Axia were arranged in the storeroom efficient to assemble parts into kits. By grouping parts it also made coding, the bins are numbered corresponding to the lines
in numeric order: easy to locate, but not efficient for it easier to avoid errors. Color coding bins re-enforces the grouping, on the BOM for the hardware kit. Assembly of hardware
assembly into hardware kits for production. In addition, making it easier to identify components needed. kits is more efficient and accurate as a result.

PA technicians are interrupted frequently, and it was

easy to lose their place in the picking process.

Before Improvement Sketch After Improvement Sketch

This look organized but
all HARDWARES are all
over in this shelf, which
is harder for everyone
to create an AXIA KIT.

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Clinical & Toxicology Support Process

Member Name(s) Department/Work Cell Category Implementation Date

Lane Parrott, Rola Elabaji Quality Assurance Quality Inventory July-15
Alex Gharagozlow, Tariq Salim Operation Delivery Productivity
Financial Impact

$145,000

Problem Improvement Idea Result/Benefits

Our Customer’s expectations are changing consistently require WORK TOGETHER with Operation to provide Extensive and This extensive support:
HIGHER level of customer service with HIGHER level of details Effective Support to Quest and Clinical Tox Lane
and follow-up. Decrease Management ivolvement by by >50% (Resources Cost ~
1-Provide dedicated Project manager in Quality Assurance that $145,000).
A high amount of customer complaint which increase Weekly support all account projects/associated accounts requirements
Management involvement (resources Cost ~ $290,000) The QST process was extended to to support all other Clinical
We had to keep key stakeholders updated regularly which 2- Create, document and proceed with training on all Clinical Tox Toxicology accounts / Blue Lane (which represent 35% of North
required a lot of time from many people, offer resulting in process aka Blue Lane and associated WKI and forms) America Sales) and has been showing promising results and great
duplicated efforts. feedback from Sales
3- Conduct a Biweekly meeting that manages QST/ Blue Lane
projects / Issues and Continuous improvement initiatives

Before Improvement Sketch After Improvement Sketch

Management stress level (Recourses Cost ~ $290,000) Blue Process Training program
We had to Keep the key stakeholders update regularly
No Management involvement (Recourses Cost >60% )

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Core Shell Column Incubation

Member Name(s) Work Cell/Department Category Implementation Date

Manal Saleem Core Shell-PMQC Quality Inventory June-15
Core Shell Team Core Shell-PMQC
Financial Impact
Delivery Productivity
$442,000
Problem Improvement Idea
Result/Benefits

Core Shell columns that fail testing acceptance criterial After testing the columns, set the boarder line efficiency (7% - 10%) Implementing column incubation for columns that fail for
for being just under specification limits for efficiency, below the lower limits in a specific location and date them. Let the just being under the required limit allowed us pass 884
which make of 67% of the failed columns. It has been column stay in the pending location for 5 to 10 days. Repeat the out of 1995 columns. These columns were columns that
theorized that allowing columns to "rest" or "incubate" testing to confirm failure. would have been scraped.
allows the silica bed inside the columns to become
more homogeneous.

Before Improvement Sketch After Improvement Sketch

$442,000

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Credit Card Consolidation

Member Name(s) Work Cell/Department Category Implementation Date

Mario Orozco Purchasing Quality Inventory December-15
Grace Williams AP
Delivery Productivity Financial Impact
Michael Garriques/Peter Kim/Samir Gaibov MKT/IT Dept
$35,525
Problem Improvement Idea
Result/Benefits

The following ideas were identified to help solve this problem: Less proliferation of ONE credit card associated with all
expenses leads to decreased chance of fraud and less
Frequent credit card fraud resulted in cancelled cards * Organize all licenses/subscriptions and associated credit cards down time in important licenses/subscriptions and/or
and automatic subscription renewals (e.g. corporate travel reservations.
www.phenomenex.com) being jeopardized resulting in *Request designated credit card for all travel expenses linked to
important programs being down temporarily. $733K/Yr. sales generated from Google Adwords x 1.5
corporate travel site that could possibly have a rewards program week in 2015 = $35K + Labor time 15 X $28 = $420

* Request another designated credit card for important

licenses/subscriptions with an auto-renewal *

Maintain a 3rd separate card for all other daily expenses

Before Improvement Sketch After Improvement Sketch

all suppliers all suppliers licenses/subscriptions
all suppliers all suppliers travel
all other

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Cycle Count and Inventory Accuracy

Member Name(s) Work Cell/Department Category Implementation Date

Robert Baird Planning July-15

Quality Inventory Financial Impact

Delivery Productivity $71,000 annually

Problem Improvement Idea Result/Benefits

You’ve just had a group of people with inadequate

training and experience — most of them forced into Benefits:
* Save time on annual inventory count (More than 140
being there on their day off — count your inventory, and Create a Cycle Count Process team members involved, 3 days of action and more
have then made adjustments to your on-hand balances than 2 weeks of preparation .. saving > $71,000)

based on those counts without having the time to Counting inventories on a regular basis throughout the year (cycle * Save time on expediting Raw material and FG due
adequately investigate the variances. counting) combined with a process for continuous improvement in to inaccuracy
* Save time on Productivity and Sales loss due to
The final result likely being that half of the adjustments inventory accuracy will prove a far better method for achieving Inventory yearly count
corrected previous inventory problems while the other accurate inventories

half created new inventory problems on items that were

correct prior to the inventory.

Before Improvement Sketch After Improvement Sketch

Before picture, chart or graphic depicting current state

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Distribution Center Support Process

Member Name(s) Work Cell/Department Category Implementation Date

Rita Murillo Distribution Quality Inventory June-15
Leticia Arias Distribution
Sean Hashemi Distribution Delivery Productivity Financial Impact

$28,800

Problem Improvement Idea Result/Benefits

* SOS less inquiries for items they do not have visibility
for.

Distributed items would go thru SOS and then routed to Create a separate group to exclusively look into these items and * Less inquiries going directly to purchasing when the
Purchasing for them to advise. only go to purchasing when there is no info in the system/need info items is available in stock or has ETA available in the
directly from the vendor. system.

* Resulted in better respond time and more lean process
by adding more team members to specialize on
specialized items.

This increased productivity and response times from a
couple of hours to less than 2 hours.

Before Improvement Sketch After Improvement Sketch

Inquiries per day Inquiries per day

45 45

40 40

35 35

30 30

25 Before picture, chart or graphic depicting current state 25

SOS SOS
20 20 DC

15 15

10 10

55

0 0
Before DC
Before DC After DC

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Distribution Open Order Report

Member Name(s) Work Cell/Department Category Implementation Date

Sanaz Imani Purchasing Quality Inventory August-15
Douglas Lee Purchasing
Roula Argyros/Steven Yau Purchasing Delivery Productivity Financial Impact

Problem Improvement Idea $28,368 annually

Result/Benefits

No clear process for the DIST open order report Organize report format, determine responsible parties, identify The following was achieved with the implementation of
processing. The (many) orders would be reviewed responsibilities and formalize procedure. this idea:
haphazardley, the report format was not user friendly, - Standardized process
no standard reason for open orders and no dvision of - Identified responsible parties
responsibility based on status of order available thus - Clear instructions for processing and standardized
progress was not trackable or visible. progress tracking.
- Report processing time reduced by 3hrs x 52wks x $28
= $4.3K and number of open SO lines shipped weekly
increased by ~15% (vs avg weekly of $160K open DIST
SO's) = ~$24K

Before Improvement Sketch After Improvement Sketch

Tue: open order Wed: Buyer No review by other Thu: present report
report run reviews report responsible parties

no division of orders based on status, no summary, no action items, no traceable data

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Distribution and Raw Material Report

Member Name(s) Work Cell/Department Category Implementation Date

Douglas Lee Purchasing Quality Inventory November-15
Chris Patterson Purchasing
Financial Impact
Delivery Productivity
$112,000

Problem Improvement Idea Result/Benefits

*Service level improvement by changing high usage

items to MTS *Decreasing

inventory by adjusting min/max on slow movers or

changing them to MTO *Real

No standard AX report that displays usage, inventory, time monitoring of inventory by units & $$$

open PO;s and demand in order to give Buyers visibility Create custom report with all necessary data and action list. *Expedite no/low inventory items
of orders to prioritize and identify items that are (due to
*$210K non-movers, 10% return, 1% dispose (avoid

become) problematic carrying cost) & 1% avoid over purchase by removing

min/max *$436K

slow movers (6+mo coverage), 10% return, 10% reduce

incoming inventory by lowering min/max

*4% overall reduction of slow or dead inventory

Before Improvement Sketch After Improvement Sketch

2 x annual inventory & min/max review continuous review of demand vs supply
reactive & slow action proactive & rapid action

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Distribution Warehouse Consolidation

Member Name(s) Work Cell/Department Category Implementation Date

Hamid Vazin Purchasing August-15

Problem Quality Inventory Financial Impact

Delivery Productivity $10,989

Improvement Idea Result/Benefits

This change has resulted in the following:

- Verified physical inventory in warehouse and removed

Distributed items spread over multiple warehouses, Consolidate inventory in multiple warehouse into one inventory where it physically did not exist in warehouse
making it difficult to see a complete picture of supply warehouse/location and update system with new min/max for the
and fill demand accurately and timely. consolidated warehouse and inventory on hand. reducing inventory footprint avg foot print 54sq' x $1.10 x

(405-220) -

Better visibility of demand

- Accurate MRP run

- Orders filled timely based on complete inventory on

hand

Before Improvement Sketch After Improvement Sketch

405 separate warehouse locations 220 warehouse locations

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Electronic Personnel Action Form Improvement

Member Name(s) Work Cell/Department Category Implementation Date

William May HR Quality Inventory July-15
Suzi Nelson HR
Financial Impact
Delivery Productivity
$30,000 annually

Problem Improvement Idea Result/Benefits

* Electronic Personnel Action Form (EPAF) process is *EPAF process is electronic
form driven
*EPAF form has to be approved by several managers
* EPAF form has to be approved by several managers ADP system offer a new EPAF electronic form which improve the before it got transferred to HR
before it got transferred to HR communication and the process!
* HR have visibility on form initiated in ADP and tracks
* Turn around time of form before submission to HR is daily all activities requested.
more than 1 week .
* Lead time of process decrease to 50%
* Process is not effective and long!
* Process is effective and accurate!

Before Improvement Sketch After Improvement Sketch

PAF is form driven

PAF is electronic

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Ensur Improvements

Member Name(s) Department/Work Cell Category Implementation Date

Lane Parrott, Dongmei Huang, Elizabeth Hires, Kristi Quality Assurance Quality Inventory April-15
Keith Delivery Productivity
Financial Impact
Problem Improvement Idea
$13,000 annually

Result/Benefits

●Too many user groups in Ensur. ●Removed editor and viewer user groups for each department. Editors and ●There are now 68 active user groups in Ensur.
It is difficult to find people in Ensur because there are 100 user ●It is easy to assign training because the user groups only contain
groups. viewers are put in their departments user group. If they are also an editor then
●People were in multiple user groups because all folders were the people who belong to that department.
locked. This created confusion when assigning training. they get added to the Editors user group. ●There is no longer a need to save a document in multiple folders.
●User groups are organized by department. People who did not belong to the ●The creation of PHEN-AID-00011 Ensur Document Types helps

department were removed from the user group. users by letting them know what types of documents are available
●Folders not containing sensitive information were unlocked.
● PHEN-AID-00011 Ensur Document Types was created to them and what each document is used for. This eliminates

confusion when creating a document.

Before Improvement Sketch After Improvement Sketch

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

E-Ticketing System for Human Resources

Member Name(s) Work Cell/Department Category Implementation Date

William May Human Resources Quality Inventory July-15
Suzi Nelson Human Resources
Financial Impact
Delivery Productivity
$41,041
Problem Improvement Idea
Result/Benefits

Emails are sent to the all HR Employees causes E-Ticketing System Able to assign ticket directly to the SME
confusion….who is responsible? Open tickets are reminder of time sensitivity
Able to track how many tickets we received
Emails are forgotten and left unanswered Accountability for open tickets

No time-tracking

Before Improvement Sketch After Improvement Sketch

No Helpdesk Ticketing System

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Express Packing HPLC

Member Name(s) Work Cell/Department Category Implementation Date

Jason Conrad MET Quality Inventory August-15
Jignesh Tijoriwala MET
Jason Anspach R&D Delivery Productivity Financial Impact

Problem Improvement Idea $200,000 annually

Result/Benefits

Packing columns with longer timing and more solvent To reduce the packing time and solvent usage Savings on the solvent usage and reduce the packing
usage time increases the productivity by 30%.

Before Improvement Sketch After Improvement Sketch

Before - Production Packed ~ 364/day After - Production Packed ~ 490/day

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

FAIR Process Improvement

Member Name(s) Work Cell/Department Category Implementation Date

Kristi Keith, Lane Parrott QA Quality Inventory April-15
Faye Salim, Edwin Abrahamian Purchasing
Tivadar Farkas, Adrien Huwe RND / Marketing Delivery Productivity Financial Impact

$5,000 Annually

Problem Improvement Idea Result/Benefits

1. SET IN ORDER responsibilities of personnel and the flow chart to 1. Quality Assurance receives the spec from the vendor
identify the guide for the FAIR process. and they are establishing internal specs prior to receiving
raw material.

There was no documented process for First Articles to 2. STANDARDIZE the process. In Ensur, PHEN-SOP-ALT-0001, 2. Streamline the process by saving 2 hours per FAIR
be initiated or completed, which resulted in no First Article Inspection Process, was created to provide guidelines to and $5,000 annually.
documentation for new parts, new suppliers, or the all stakeholders.
inspection / testing required to approve or reject the
new parts / suppliers. 3. SUSTAIN the process. Training was performed for all 3. Increased velocity for Production and internal
stakeholders, as well as those involved in the background of the processes.
process.

Before Improvement Sketch After Improvement Sketch

No documentation for FAIR process FAIR new form

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Gas Cylinder Storage

Member Name(s) Work Cell/Department Category Implementation Date

Orlando Lim Jr Manufacturing Quality Inventory December-15
Sean Mellati Facilities and Engineering
Financial Impact
Delivery Productivity
$20,000 (avoidance)
Problem Improvement Idea
Result/Benefits

Gas cylinders in the Axia lab are strapped to the wall Orlando researched storage systems for compressed gas cylinders, Facilities and Engineering constructed a storage rack
with a single piece of webbing. The cylinders could be finding a model online that fit the space and would hold cylinders modeled after the one that Orlando found and installed in
moved with one hand, and might fall during an more securely. He recommended purchase or construction of such in Axia lab. Further racks are planned to contain all the
earthquake. In falling, a cylinder can be damaged and a rack to the appropriate managers for action. gas cylinders. Now the cylinders are held securely and
launch, becoming a dangerous projectile. can't fall over.

Before Improvement Sketch After Improvement Sketch

EASILY
MOVED
BY ONE

BEFORE AFTER

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

High Capacity Testing Station in PMQC

Member Name(s) Work Cell/Department Category Implementation Date
Charles John
EIS Quality Inventory December-15
Ricky Lee / Chris Masucci Quality Control
Elizabeth Rowshan / Lauren Mitre Quality Assurance Delivery Productivity Financial Impact

Problem Improvement Idea $363,000

Result/Benefits

Ensuring prompt product testing and processing is key Upgrade current software used in the lab and leverage intellegnet This project allowed us to:
to meeting the needs of our customers. Delivery is
everything and as long as product remains as WIP, run controls available with newer chromatography data systems to - Test 726 columns without the direct supervision of lab
cusomters. Over the years PMQC has steadily maximize usage of testing equipment. Testing equipment sits idle technicians.
improved their testing times, however, there is still from 11:00 pm to 6:00 am, when staff have gone home for the day. - Gain an additional $363,000 worth of product
opportunity for to decrease cusotomer service and This represents untapped resources to allow for testing during a throughput that would not have been realized without
product delivery. Testing instrumenation is capabale "virtual 3rd shift", to process columns without the presence of testing testing during "off hours"
for semi-automated testing, however it sits idel during technicians. - Maximize usage of testing equipment
"off hours" because we are using antiquated analysis
and control software.

Before Improvement Sketch After Improvement Sketch

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

HPLC Column Cradle for Testing Stand

Member Name(s) Work Cell/Department Category Implementation Date

Bob Shintaku Manufacturing Engineering & Technology Quality Inventory August-15
Kareem Jackson (MET)
Financial Impact
Maching Shop
$5,000
Delivery Productivity
Result/Benefits
Problem Improvement Idea

While develpoing a stand to assist with column testing Utilize the talent in-house by leveraging our people and equipment to A template or "jig" was designed in-house, allowing the
in the PMQC area, a vendor quoted a price of $60 per make these at Phenomenex. HPLC column craddle to be made for a fraction of the
unit to construct a column craddle. This craddle was cost and half of delviery time quoted by outside vendors.
needed to hold the test columns in place while they
were connected to the HPLC instrument. With 10
stands planned for order, the total cost would have
been $6,000 to complete the column craddles.

Before Improvement Sketch After Improvement Sketch

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Improved Endfitting Design Monte-Carlo 4.6mm ID

Member Name(s) Work Cell/Department Category Implementation Date

Fred Astani Manufacturing Engineering & Technology Quality Inventory October-15
Jignesh Tijoriwala (MET)
Delivery Productivity Financial Impact
Jason Anspach Manufacturing Engineering & Technology
(MET) $400,000 annually

R&D Result/Benefits

Problem Improvement Idea

Current hardware does not support proper sealing To design a frit retainer with the peek seal which will eliminate the The Monte-Carlo 4.6mmID design, proves to eliminate
between column and frit retainer hardware. Therefore, chances of liquid leaking. Furthermore, standardizing 1 frit type and solvent leaking and with 1 standardize frit retainer /
there are higher chances of liquid leak happening. On 1 end fitting which will also eliminate the different mixes hardware endfitting it reduces the mix of eca's by 63%.
the other hand, there is many different types of we currently have
hardware mixes in product assembly, which causes
variability and concerns in keeping and tracking of raw
material inventories.

Before Improvement Sketch After Improvement Sketch

End fitting Frit Retainer End fitting + Frit Retainer

+

Two Piece Assembly One Piece Assembly

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Improved Packaging for Collection Plates

Member Name(s) Department/Work Cell Category Implementation Date

Rola Elabaji Quality Assurance Quality Inventory July-15
Eric Huyhn Sales Delivery Productivity
Matthew Brusius Financial Impact
Product Management
$2,000
Problem Improvement Idea
Result/Benefits

Confirmatory used to order >150 collection plates CE0-7565 ( 2 New Introduced Lean concept:
well / Box) per month.
1-Reduce shipping & Production packaging time by 50%
This creates a lot of waste and extra processing time. Create a new part# CE0-9343 ( 25 well plates /box) 2- Reduce storage space in customer warehouse and laboratories
3- Reduce the waste of paperwork 150 Care Guides/ Month
-Production packaging time is too long 4- Improve customer satisfaction and confidence level, Sterling R was
-Waste of paperwork ~ 150 ( Care Guides & Box labels) thrilled and very happy by this Lean concept idea . This will definitely
-A lot of storage space in customer warehouse and laboratory improve Phenomenex and customer relationship to continue grow
- A lot of Storage Space in our warehouse business.

Before Improvement Sketch After Improvement Sketch

CE0-7565. Qty 12 Boxes, 24 well plate CE0-9343. Qty 1 Box, 25 well plate

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Improved Packaging for SPE Tubes

Member Name(s) Department/Work Cell Category Implementation Date

Rola Elabaji Quality Assurance Quality Inventory July 2015
Haroon Rehmani Sales Delivery Productivity
Matthew Brusius Financial Impact
Product management
$3,000
Problem Improvement Idea
Result/Benefits

Sterling Reference used to order 300 units of 8B-S029-TBJ (50 New Introduced Lean concept:
TUBE/box)
1-Reduce shipping & Production packaging time by 50%
This creates a lot of waste and extra processing time. Create a new part# 00B-S029-TBT (1000 TUB/BAG)- No boxes 2- Reduce storage space in customer warehouse and laboratories
-Sales units of these units per year exceeded 300 units per 3- Reduce the waste of paperwork 300 Care Guides/ Month
month 4- Improve customer satisfaction and confidence level, Sterling R
-Production packaging time is too long was thrilled and very happy by this Lean concept idea . This will
-Waste of paperwork ~ 300 ( Care Guides & Box labels) definitely improve Phenomenex and customer relationship to
-A lot of storage space in customer warehouse and laboratory continue grow business.
- A lot of Storage Space in our warehouse

Before Improvement Sketch After Improvement Sketch

8B-S029-TBJ. Qty 20 Boxes, 50 tubes each 8B-S029-TBT. Qty 1 big bag , 1,000 tubes each!!

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Improved Passing Rate for Kinetex 5u EVO

Member Name(s) Department/Work Cell Category Implementation Date

Hubert Yoo Production Quality Inventory June-15
Delivery Productivity
Financial Impact
Problem Improvement Idea
$21,325 (cost)

Result/Benefits

Production had low passing rate for 00G-4633-E0 Kinetex 1 - Change Manufacturing packing method Passing rate changed drastically and improved by > 50%
5u EVO 250X4.6MM and didn’t have success using the
2- Hubert asked Jerald and Cris to develop on the UHP packing stations. Passing rate now is 85%
traditional manufacturing for EVO 5u. Submitted for stability testing to get the approval for the new packing for

Avg Pass rate was 35%

k5 EVO

Before Improvement Sketch After Improvement Sketch

Passing rate for
Evo is very LOW!

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Improved SPE Inspection Process

Member Name(s) Work Cell/Department Category Implementation Date

Lane Parrott Quality Assurance Quality Inventory February-15
Dongmei Huang Quality Assurance
Financial Impact
Delivery Productivity
$50,000
Problem Improvement Idea
Result/Benefits

1. Since there were exceptions to Sampling Plan, Implementing and enforcing AQL inspection allowed us to
Operators determined 100% Inspection was better and 1-STANDARDIZE the process. In Ensur, PHEN-WKI-00079, achieve the following:

ignored the approved AQL sampling plan Sampling Plan for SPE Tube and Well Plate Inspection, was 1: More efficient flow now and eliminate the non-value
updated to implement SPE Sampling Plan with No Part Number added steps
2. Over inpection of SPE tubes Exceptions 2: Faster Turn-Around-Times and significant decrease in
SPE Rejection Rate for 2014 = 0.14%
= 4.5 Sigma (6 Sigma is World Class) 2-SUSTAIN the process. Thorough training was provided to QA SPE valuable inventory sitting on the shelves.
technicians. QA management check and reenforce the process. 3: Reduced headcount requirments from 2.8 to 1.3 to do
3. 2.8 Inspectors was needed to do the inspections. the inspections. Frees up inspectors for Increased

Production!

Before Improvement Sketch After Improvement Sketch

100% Inspection for every part number After picture, chart or graphic depitcting the results from
implementing the improvment idea.

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Improved Storage for Transport Outbound Racks

Member Name(s) Work Cell/Department Category Implementation Date

Jorge Castillo / Nick Lavarini Receiving Quality Inventory April-15
Roman Andrade Transportation Delivery Productivity
Quality Assurance Financial Impact
Chami Sanlors / Kristi Keith
$1,500

Problem Improvement Idea Result/Benefits

After Incoming Inspection completes a part number, they place it 1: Eliminate the PA rack altogether By making the listed changes the following was achieved:
on the PA rack for transport. Because Incoming Inspection does 1: Eliminates extra work for the team and eliminates the
not always know exactly what goes to PA or other locations, the possibility of putting wrong parts on the PA rack.
correct parts are not always placed in the correct location for
transport. The PA rack was also a single, very small shelf and 2: Incoming Inspection places all completed parts on one rack in 2: Increased for. Incoming Inspection can bring an empty
created the need for overflow racks. As a result, it takes time to the overflow area rack into the office and place all inspected parts on it, as they
sort through the PA rack and overflow racks to determine exactly are completed. Once the rack is full, it is easily wheeled to
what needs to be transported and to which location on campus. 3: Transporter sorts and delivers the single rack of inspected parts the overflow area
as a single flow
Summary of problems: 3: Transporter can easily sort the overflow rack into different
- Incoming Inspection does not always know who/where the end sections and pallets for quick delivery in a single flow.
user is
- Wasted time sorting through the inspected racks
- Loss of transport/delivery turn-around-time due to the extra time
from sorting through the parts

Before Improvement Sketch After Improvement Sketch

.

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Improved Strata Si-1 Recovery Test

Member Name(s) Work Cell/Department Category Implementation Date

Bo Young Yoon MMQC April-15

Quality Inventory Financial Impact

Delivery Productivity $500

Problem Improvement Idea Result/Benefits

1. We didn't have any fit for purpose tests for Si-1. A recovery test for Strata Si-1 was developed and implemented to Improved Recovery Testing
2. Normal phase medias tend to adsorb moisture. regular Si-1 QC. - Better evaluation of product reproducibility and
There were no methods implemented to evaluate
moisture impact on any normal phase medias. quality
- Replacing of a sorbent test which was not

very informative of the media performance
- Better evaluation and monitoring of moisture impact on
silica

Cost savings for this project were approximately $500
due to the elimination of packing a column for testing,
which was needed for the older test. The impact on the
ability to better measure our product quality is
PRICELESS.

Before Improvement Sketch After Improvement Sketch

After picture, chart or graphic depicting the results from
implementing the improvement idea.

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Improved Verex Box Handling

Member Name(s) Work Cell/Department Category Implementation Date

Ronald Mudgett Purchasing Quality Inventory April-15
Edwin Abrahamian Purchasing
Purchasing Delivery Productivity Financial Impact
Hamid Vazin
$25,000 annually

Problem Improvement Idea Result/Benefits

The implement improvement has resulted in:

- Savings on both freight to ship empty boxes to vendors

We currently purchase Verex boxes from Kent on the east coast = $12,526.
Landsberg locally. We store these boxes in Torrance
and ship them via freight carrier to 4 vendors on the - Reduced cost of those boxes (as compared to 2013
east coast of the US.
Kent Landsberg has many production facilities throughout the US purchases) $12,625.
Costs are increased for shipping, higher box costs
produced in CA, carrying cost of storage at including the east cost of the US. Idea: Have boxes produced and
Phenomenex facilities
stored at Landsberg New Jersey and shipped on Landsberg truck at Landsberg has agreed to store produced inventory at

no cost for two facilities and shipped via freight to the remaining their warehouse for 4 months free of charge and release

to vendors when needed. Phenomenex is not invoiced for

the boxes until they are released to the vendor. Savings

calculation does not include storage savings, or savings

on cash to cash cycle time reduction.

Before Improvement Sketch After Improvement Sketch

KHL MFG Ship to Torrance Receive at Torrance

KHL MFG in NJ KHL dropships to vendor (NJ)

Purchasing dropship PO

Purchasing Transfer PO Prep shipment to Vendor Ship to vendor (NJ)

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

In-house Lean Training Program

Member Name(s) Work Cell/Department Category Implementation Date

Elvira Gaibova Quality Assurance Quality Inventory July-15
Alex Gharagozlow Operation
Financial Impact
Delivery Productivity
$5,400
Problem Improvement Idea
Result/Benefits

This work area has become increasingly cluttered with Remove all items not needed for current operations. Decrease the amount of time spent searching for
parts, resulting in sever disorganization. Arrange needed items so that they are easy to locate and obtain. materials.
Lack of sorting and straightening. Set things in a condition so as to be ready for use when needed. Better monitor the inventory of the improved area more
Adopt standards detailing what materials and tools this work area closely.
requires. As a result, space, time, and money are now being used
Must develop a habit of properly maintaining current conditions. more effectively and efficiently.
Improvements such as the ones made here can benefit a
number of different areas around the workplace.

Before Improvement Sketch After Improvement Sketch

5S 7 Deadly Wastes

SORT Transport
STRAIGHTEN Inventory
Motion
SHINE Waiting
STANDARDIZE Over Production
Over Processing
SUSTAIN Defects

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Multipacking of 7.8mm Hardware

Member Name(s) Work Cell/Department Category Implementation Date

Jignesh Tijoriwala Manufacturing Engineering & Technology Quality Inventory July-15
Fred Astani (MET)
Bob Shintaku Delivery Productivity Financial Impact
Manufacturing Engineering & Technology
Problem (MET) $40,000 annually

Manufacturing Engineering & Technology Result/Benefits
(MET)

Improvement Idea

Currently single columns per pump, this limits the To adapt the manufacturing method of packing columns with Using multipacker to pack 7.8mm ID columns yielded
higher productivity, consistency and minimized the
productivity, and create constraints to fulfill back-orders Multipacker. constraint to fulfill open orders.

Before Improvement Sketch After Improvement Sketch

20 columns 40 columns
per shift per shift

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

OMT Frit Cutting

Member Name(s) Work Cell/Department Category Implementation Date

Bob Shintaku MET Quality Inventory June-15
Fred Astani MET
Juan Nevarez Production Delivery Productivity Financial Impact

Problem Improvement Idea $ 10,000 annually

Result/Benefits

Older die process would take a long time to process the This change allowed us to see the following results:

required frits to support production. Frits were cut one Made a die that would make 8 per press. The same number of press

at a time. Operators where limited to 1,000 a day due would give 8,000 frits using a pneumatic press. - Higher productivity

to repetitive ergonomic issues. - Reduced ergonomic injury

Before Improvement Sketch After Improvement Sketch

Single Press- Automated Press-
Cutting 1 frit per press Cutting 8 frit per press
Ergonomic Concerns Ergonomic Issues Resolved
Less Productivity 8 times more Productivity per press

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Optimization of HPLC Security Guards

Member Name(s) Work Cell/Department Category Implementation Date

Jignesh Tijoriwala Manufacturing Engineering & Technology (MET) Quality Inventory November-15
Fred Astani Manufacturing Engineering & Technology (MET)
Manufacturing Engineering & Technology (MET) Delivery Productivity Financial Impact
Jason Conrad
$20,000
Problem Improvement Idea
Result/Benefits

Current we manufacture our guards at 9000psi which To manufacture guards at lower pressure with restrictor to maintain The manufacturing method packing with lower pressure
results in crushing of media and causes the packing dynamics. crushed less media and proved to be better or equal
performance wise when compared to high pressure
chromatography distortion when used with columns packing method.

Before Improvement Sketch After Improvement Sketch

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Organization of Axia Columns for Retest

Member Name(s) Work Cell/Department Category Implementation Date

Orlando Lim Jr Manufacturing November-15

Quality Inventory Financial Impact

Delivery Productivity $10,000

Problem Improvement Idea Result/Benefits

Axia columns sometimes require multiple rounds of This innovative allowed us to achieve:

conditioning and retesting prior to arriving at a final test Orlando created bins, separating orders from stock columns. Within - Reduced backlog for testing by 70%.
result. Pending columns would pile up, and technicians the stock columns, he put them in order by pack date. The - First week of November only 6 columns were in queue.
would not be sure of priorities. Sometimes urgently technicians in the area could then prioritize orders first, followed by - Improved customer service
needed columns were overlooked. At the beginning of the oldest stock columns. - More accurate inventories result.
September 45 columns were pending conditioning and

retesting.

Before Improvement Sketch After Improvement Sketch

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Organization of Scrapped Columns for Product Assembly

Member Name(s) Work Cell/Department Category Implementation Date

Orlando Lim Jr Manufacturing November-15

Quality Inventory Financial Impact
Delivery Productivity
$500
Problem Improvement Idea
Result/Benefits

The organization idea improved the work flow in PA and

All failed columns form QC will be collect by PA for QC already sorted all the failed column by names in BASE make things more easy.

proper scrapping and documentation. PA next step is MATERIAL (B Material). It is also visually easy for them to know the amount of

to SORT them all one at a time. I copied all the names in the QC bins and create a folder with divider cards per base material name.

Sorting production cards is another time consuming for per name’s. whatever PA collected in the QC BINS per name will be I also suggested that NO need to collect if below 5

PA. They spend hours just sorting all the production organized also directly to a folder with the same names as columns inside the bin’s and wait to accumulate more

cards that they collected. categories. failed columns before they collect this to unpack and

enter to AX as scrap columns.

Before Improvement Sketch After Improvement Sketch

organized by name (B Material)

NOTE: this will be replace by
cardboard and better labeling in the
future, this is still a on process test if
this will be effective in PA.

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Outbound Shipping Lane and Couier Negotiations

Member Name(s) Work Cell/Department Category Implementation Date

Faye Salim Purchasing June-15

Quality Inventory Financial Impact

Delivery Productivity $156,000

Problem Improvement Idea Result/Benefits

Currently Phenomenex is receiving general discount Leverage good standing with shipping companies as well as large The following was achieved by negotiating with key
rate for three major outbound shipping lanes (Mexico, volume of business to negotiate special rate for the identified lanes shipping couriers:
Canada & Germany). with courier(s). * 35% discount obtained for Mexico & Canada lane
* 9.2% discount obtained for Germany lane
* Identified DHL as a 2nd source
* 10% discount obtained for DHL second source

Before Improvement Sketch After Improvement Sketch

$$$ $$ $$

$$$$$ $$$$$ $$$$$ -9.2% -35% -35%

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

PMR Process Improvement

Member Name(s) Work Cell/Department Category Implementation Date

Kristi Keith Quality Assurance Quality Inventory April-15
Faye Salim Purchasing
Financial Impact
Problem Delivery Productivity
$15,400
Improvement Idea
Result/Benefits

1. SORT the Quarantine Room to know exactly what we have and separate 1- Quarantined items are more easily located and
inventory from RA and NCR inventory.

identified

There was no documented process for QA to initiate, 2. SET IN ORDER the racks to be labeled, which creates a very accessible way 2- More efficient flow now that the process is
follow up, and resolve Purchased Material Rejections
(PMR). An overabundance of high-cost rejected and of organization and creates a quick and easy way to locate inventory. documented and the steps are presented in an orderly
neglected parts accumulated in the Quarantine Room.
3. STANDARDIZE the process. In Ensur, PHEN-FORM-00338, PMR Checklist checklist
3- Faster Turn-Around-Times and significant decrease in
was created to provide guidelines to Incoming Inspectors.

valuable inventory sitting on the shelves due to regular

4. SUSTAIN the process. Weekly, regularly scheduled meetings are held PMR status meetings between QA and Purchasing.

between the QA and Purchasing Managers to ensure that PMRs are resolved

quickly and efficiently.

Before Improvement Sketch After Improvement Sketch

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Purchase Requisition Training

Member Name(s) Work Cell/Department Category Implementation Date

Vee Vee Prokopidis Purchasing Quality Inventory June-15
Sanaz Imani Purchasing
Financial Impact
Delivery Productivity
$3,635
Problem Improvement Idea
Result/Benefits

Lack of familiarity with new Purchase requisition Develop Articulate training videos for initial training as well as Requestors & approvers received initial training and were
system. subsequent ones for new requesters. able to continue business after AX implementation and
have the videos available for reference if needed.
Training of 71 requisitions, 23 L1 Approvers, 7 L2
Approver & 1 L3 Approver in 3 x 1hr sessions vs
individual sessions.

Before Improvement Sketch After Improvement Sketch

NO PURCHASE REQUISITION, NO TRAINING

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Purchase Requisition Workflow

Member Name(s) Work Cell/Department Category Implementation Date

Faye Salim Purchasing Quality Inventory June-15
Vee Vee Prokopidis Purchasing
Purchasing Delivery Productivity Financial Impact
Sanaz Imani
$145,000
Problem Improvement Idea
Result/Benefits

Lack of management financial approval for Purchase Create workflow and business process to approve requisitions * Both financial and specialty item approval implemented
requisitions. based on 1) financial approval including 3 level according to line and documented in AX for all requisitions.
item amount & 2) specialty approval for specific types of products *Average of 5% annual cost avoidance = ~$64K due to
manager approval for line items <$1000 = total spend of
~$1.28M.
*Labor = $28/hr, 363 reqs (1089 lines/3 lines avg per
req), 8hrs savings per req =$28 x 363req x 8hr = $81K

Before Improvement Sketch After Improvement Sketch

Requisition Purchasing High value req? E-mail Manager Receive e-mail Process PO
entered response
review
for approval

Incosistent approval based on what Buyer considered high value, no tracking of approval, no automatic/controlled approval for specialty items.

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Reduced Cost for roQ Manufacturing

Member Name(s) Work Cell/Department Category Implementation Date

Sumitpal Singh MMQC Quality Inventory November-15
Bo Young Yoon MMQC
Michael McGinley / Lane Parrott Delivery Productivity Financial Impact
Marketing / Quality Assurance
$72,000
Problem Improvement Idea
Result/Benefits

Manufacturing of roQ material is problematic due to the 1. Saving resources for QC
following reasons: 2. Saving resources for production
3. Faster delivery of all final products of roQ
- Time consuming and inefficient processes in terms of Outsourcing the manufacturing of roQ blends to a company that 4. More consistent and homogeneous blend product
production and QC specializes in handling and mixing powders and salts. 5. More organized test process involving a smaller
- Slow delivery of the final product number of samples for a bigger quantity of the blends
- Low media QC passing rate

Before Improvement Sketch After Improvement Sketch

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Reduced Hand Motion for Labeling Team

Member Name(s) Work Cell/Department Category Implementation Date

George Hanson Quality Control November-15

Quality Inventory Financial Impact
Delivery Productivity
$5,600

Problem Improvement Idea Result/Benefits

Each passing HPLC column requires additional

processing from the Labeling department. The final step Revisiting this process allowed us to rely on the process

in this process is to have the labeler add their initials to After applying the "5 why" processes to this area, the proposal and to remove initialing each production card. This
the production card, indicating who performed the was to eliminate the need for adding initials and trust the change allowed us to:
labeling step. process. This initial only serves as an accountability "double
check". In the rare event there is an error, it was used to identify - Eliminate the need to initial approximately 200,000
This initial is added only after a series of actions are who made the mistake to allow for consultation for the labeler, production cards
performed on the column, e.g. completing the route in AX where instead the processes should be reviewed to ensure error - Reduced hand strain on the labeling team
dynamics, checking that all paperwork is present, does not get repeated. - Saved approximately 5 seconds of processing time for
applying the label. This initial is redundant, as no column each column, resulting in a total of 280 hours of labor

would proceed to the next station if all steps were time.

completed.

Before Improvement Sketch After Improvement Sketch

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Reduced Material Usage for Rezex Column Production

Member Name(s) Work Cell/Department Category Implementation Date

Jignesh Tijoriwala Manufacturing Engineering & Technology Quality Inventory May-15
Orla Curry (MET)
Delivery Productivity Financial Impact
Jason Anspach Manufacturing Engineering & Technology
(MET) $30,000

R&D Result/Benefits

Problem Improvement Idea

Rezex column packing was using media of which a Validate the packing of this column using less material. Columns manufactured (Rezex H+) with 25g show no
significant amount was going to waste/rewash. This compromise in quality when compared to standard(35g)
was leading to a media production constraint, build-up columns. As a result:
of back orders and long lead times
- Increase the initial throughput by 29% = 46 additional
columns
- Saves 2 recycle wash processes
- Shorten lead time to fulfill open orders
- Little investment needed to create these benefits

Before Improvement Sketch After Improvement Sketch

RW 3 190 Total Columns RW 2
120g – Waste Disposal
pending - Business decision if 198 Total Columns
to perform Second Rewash 96 g – Waste Disposal
with 160g

20 columns 4 kg 4 kg
300g - Rewash

RW 2 32 columns
160 g - Rewash

48 columns 114 columns 160 columns
720g - Rewash 800 g - Rewash
RW 1
RW 1

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Reduced QA Processing Time for CQA Document

Member Name(s) Work Cell/Department Category Implementation Date

Elvira Gaibova QA Quality Inventory December-15
Lauren M. Mitre QA
Elizabeth Rowshan QA Delivery Productivity Financial Impact

Problem Improvement Idea $1,400

Result/Benefits

Checking calculations took 20 to 25 minutes per batch. Reduce processing time for QA batch review by using Chromeleon The calculation and the methods are programed in to
software instead of Chemstation. Chromeleon. Therefore QA does not have to perform the
Checking test methods in Ensur took 20 to 25 minutes calculations or check the methods in Ensur. This saves
per batch. 30 to 35 minutes per batch review.

Additional savings will be realized in 2016 as more
batches are processed with this software.

Before Improvement Sketch After Improvement Sketch

Before picture, chart or graphic depicting current state After picture, chart or graphic depicting the results from
implementing the improvement idea.

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Reducing Lead Time for GC Processing

Member Name(s) Department/Work Cell Category Implementation Date

Miguel L,Thomas B & Jorge C Distribution Quality Inventory January-15
Alex G & Tariq S Operation Delivery Productivity
Ron M Purchasing Financial Impact

Problem Improvement Idea $20,160

Result/Benefits

• Once GC columns arrive in Torrance from InventX, the long

lead times of Receiving to Put- away is resulting in missing By utilizing Value Stream Mapping, 6M (Root Cause Method) and analyzing
the process, we will be able to :
shipped date particular non stock items • It currently
1- Reduce process time of GC columns
takes up more than 10 days (waiting time) from delivery by 2- Standerdize the process
3- Organize Put away area and assign dedicated resources and time for the
UPS/FedEx until the product is put into the Inventory database Put away process.
4- Get Supplier on Board to support the process improvement to decrease
and available to ship to customers lead time
• Process time for GC from receiving to “Put Away” inventory

takes more than 8 hours
• Handling GC in Receiving is not standard across Receiving

Team

Before Improvement Sketch After Improvement Sketch

That's not all .. The lead Time now is 2 Days !

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Return Order Processing and Accurate Relieve of Inventory

Member Name(s) Work Cell/Department Category Implementation Date

Sanaz Imani/Steven Yau Purchasing Quality Inventory August-15
Miguel Lombera Distribution
Gary Angeles Accounts Payable Delivery Productivity Financial Impact

Problem Improvement Idea $65,698

Result/Benefits

No clear process for physical return of product after a Determine how item can be picked from the RVW location, shipped Process determined with team. Return order status is
Return order was created by the Buyer. out and credit applied to Return order. now clear in AX as well as disposition of product, also AP
is aware of the amount of credit they have due from any
given vendor,

PHEN-WKI-00600. Delayed cash flow for $107K x 0.6%
avg interest earned of credit, estimated 60 hrs of trouble
shooting time over 6 months.

Before Improvement Sketch After Improvement Sketch

Buyer processes RA Return order Item remains
created in warehouse
no process in AX Buyer processes RA Return order Item picked Item ships AP receives
created from warehouse vendor credit
pick item

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Rezex Media Processing in MMQC

Member Name(s) Work Cell/Department Category Implementation Date

Si Li, Mahmoud Kamkar MMQC Quality Inventory April-15
Karthik Mudaliar Media Manufacturing
Financial Impact
Problem Delivery Productivity
$50,000
Improvement Idea
Result/Benefits

1. Inventory Waste: 10 g of each Rezex batch was 1-Eliminate moisture test: Production no longer need moisture 1. More media is available for Production (20g/batch, 77
archived for internal purpose but never used. Amount too results for recipe development. This test is of no value for batch batches were released in 2014, estimated saving 1.5kg
low to serve any useful purpose. release. media). Each column takes approximately 30 grams of
media allowing for an additional 50 columns to be
2. Waiting Waste: Media Manufacturing ran moisture test 2-Stop archiving Rezex media for internal use. Since 10g is not made/sold, resulting in approximate $50,000 of additional
for column packing recipe development. 10 g of media enough to pack a column, we have never used the archived media. product for sale.
was consumed for this test. Now Production no longer Therefore, storage for so many archive media bottles needs space
need this data for recipe development but this test is still and shelves. There is no value add for us to keep doing it. 2. No need to wait for Moisture test results When QA
a requirement for batch release. release the batch. Faster TAT is critical for Rezex media
due to its popularity

Before Improvement Sketch After Improvement Sketch

10g Archive
(MMQC)

Sampling Column Packing HPLC testing Media Making Sampling Column Packing HPLC testing Media Release
(MMQC) (Production) (MMQC) (Media Manufacturing) (MMQC) (Production) (MMQC) (QA)

Media Making Media Release
(Media Manufacturing) (QA)

Moisture test
(Media Manufacturing)

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Safety Boot Request Voucher Process

Member Name(s) Work Cell/Department Category Implementation Date

Heather Hulse Purchasing Quality Inventory September-15
Suzi Nelson Human Resources
Financial Impact
Delivery Productivity
$308,000

Problem Improvement Idea Result/Benefits

Process for safety boot requests was not clear to Create/update request voucher with detailed instructions for * Requesters demand for safety boots filled timely
requesters and errors would often occur, resulting in requesters to pick up safety boots and confirm receipt to necessary * Reduction of time that employees spend without
delays for staff to receive proper footwear. parties and establish procedure for entire process as well as joint necessary safety boot
tracking database between Purchasing & HR * Reduced time spent by Buyer following up on receipt of
boots to close PO and approve AP to pay vendor
* $29-$32K worker's comp claims per injury (not back
related injury) x estimated 2 injuries that could occur due
to delay in obtaining safety boot
* $5000 / day / OSHA violation for each day that
employee is not wearing safety boot x ~5 employees x
~10 days

Before Improvement Sketch After Improvement Sketch

PHEN-FORM-00368 rev: 1 Process Improvement Capture Form

Sales MRF Process Improvement

Member Name(s) Department/Work Cell Category Implementation Date

Dongmei Huang and Rola Elabaji Quality Assurance Quality Inventory January-15
Sue Ritchey Technical Delivery Productivity
Sales Financial Impact
Ashi Chera,Jenny Touch and Alicia Sullivan
$70,617
Problem Improvement Idea
Result/Benefits

●Managing the key stocks and Sales eMRFs was inefficient. ●Document Guideline for Key Stock Approval,PHEN-AID-00017 ●Define and streamline Sales eMRF Process
● Lead time of the approval/review process for the MRF is too
●Provide the Distributed Good lead time to District Managers ●$70,617 worth of key stock was cancelled and went back to
long.
● Lack of confidence in system ● Simplify the Approval process and define owner of MRFs and responsibilities stock.

of that role(set up the review board) ● Reduce the need of Key Stock and associated inventory

●Set up Sales Dashboard for Standing Order ●Improve the turnaround time of the approval process

Before Improvement Sketch After Improvement Sketch

No pacing report