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Industry Knowledge for Business Advantage © 2011 Cambashi Limited Beyond Tradeoffs: Information Flow to Improve Medical Device Outcomes Julie Fraser, Lead Researcher Beyond Tradeoffs In Medical Device Manufacturing 1

AdvaMed Panel J Fraser Beyond Tradeoffs

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Julie Fraser presented at the AdvaMed 2012

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Page 1: AdvaMed Panel J Fraser Beyond Tradeoffs

Industry Knowledge for Business Advantage © 2011 Cambashi Limited

Beyond Tradeoffs: Information Flow to Improve

Medical Device Outcomes

Julie Fraser,

Lead Researcher

Beyond Tradeoffs

In Medical Device Manufacturing

1

Page 2: AdvaMed Panel J Fraser Beyond Tradeoffs

Industry Knowledge for Business Advantage © 2011 Cambashi Limited

Beyond Tradeoffs in Medical

Device Manufacturing: New Study

2

Published this summer

Two reports:

Summary

Comprehensive

Methodology:

Research conducted 1H 2012

Industry council & sponsors guided topics

On-line survey

Telephone interviews

Page 3: AdvaMed Panel J Fraser Beyond Tradeoffs

Industry Knowledge for Business Advantage © 2011 Cambashi Limited

Product design and quality matter

3

Source: Beyond Tradeoffs in Medical Device Manufacturing: Balancing Innovation, Quality and Compliance While Improving Profit © 2012 Cambashi Inc. and UBM Canon

0% 10% 20% 30% 40% 50% 60% 70%

International distribution

Supplier reliability

Time to market

Manufacturing consistency

Cost reductions

Product quality

Product innovation or design

Most Important Issues for Success (select top 3)

Page 4: AdvaMed Panel J Fraser Beyond Tradeoffs

Industry Knowledge for Business Advantage © 2011 Cambashi Limited

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Improving product quality

Lowering cost of quality

Additions to existing product lines

Product development efficiency

Faster new product introduction

New products and new product lines

Largest opportunities to improve in next three years

Innovation as avenue for

improvement

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Source: Beyond Tradeoffs in Medical Device Manufacturing: Balancing Innovation, Quality and Compliance While Improving Profit © 2012 Cambashi Inc. and UBM Canon

Page 5: AdvaMed Panel J Fraser Beyond Tradeoffs

Industry Knowledge for Business Advantage © 2011 Cambashi Limited

Change makes quality difficult:

especially regulatory and product

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0% 10% 20% 30% 40% 50% 60% 70% 80%

Technology transfer issues

Geographic sales challenges

Innovation rate challenges

Staff skills issues

Supply chain challenges

Product changes

Regulatory changes

Challenges to maintaining quality

Significant Moderate

Source: Beyond Tradeoffs in Medical Device Manufacturing: Balancing Innovation, Quality and Compliance While Improving Profit © 2012 Cambashi Inc. and UBM Canon

Page 6: AdvaMed Panel J Fraser Beyond Tradeoffs

Industry Knowledge for Business Advantage © 2011 Cambashi Limited

Traditional New Product

Introduction (NPI) process

6

Traditional New Product Time to Market

Quality

Focus

Starts

Require-

ments

NPI

Project

Launch

Systems

Eng.

Product

Design Sourcing

Design

Transfer

to Mfg.

Regula-

tory

Filings

Service

Transfer

Field

data Analysis

Project

Mgmt.

Math.

Models CAD

Simula-

tion SCM

MES/

QMS

Doc.

Mgmt

Field

Service

Paper

doc files

Paper

doc files

Paper

doc files

Paper

doc files

Paper

doc files

Quality Assurance & Management

Page 7: AdvaMed Panel J Fraser Beyond Tradeoffs

Industry Knowledge for Business Advantage © 2011 Cambashi Limited

Total Product Lifecycle (TPLC):

Concurrent & collaborative

7

TPLC New Product Time to Market

PLM System

Require-

ments

NPI

Project

Launch

Systems

Eng. Product

Design

Sourcing

Design

Transfer

to Mfg.

Regula-

tory

Filings

Service

Transfer

Quality

Quality

focus

starts

Page 8: AdvaMed Panel J Fraser Beyond Tradeoffs

Industry Knowledge for Business Advantage © 2011 Cambashi Limited

Advancers are growing AND

improving financial performance

8

Advancers defined as:

Grew by 10% or more organic

AND

Improved on at least 4 of 6

business metrics:

Net operating profit

Market share

EBITDA

ROA/RONA

Cost of quality

Cost of regulatory compliance

Advancers, 25%

Others, 75%

Advancers vs. Others

Source: Beyond Tradeoffs in Medical Device Manufacturing: Balancing Innovation, Quality and Compliance While Improving Profit © 2012 Cambashi Inc. and UBM Canon

Page 9: AdvaMed Panel J Fraser Beyond Tradeoffs

Industry Knowledge for Business Advantage © 2011 Cambashi Limited

Advancers use PLM software

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Source: Beyond Tradeoffs in Medical Device Manufacturing: Balancing Innovation, Quality and Compliance While Improving Profit © 2012 Cambashi Inc. and UBM Canon

0%

10%

20%

30%

40%

50%

60%

70%

Advancers Others

Use PLM - Product Lifecycle Management

Page 10: AdvaMed Panel J Fraser Beyond Tradeoffs

Industry Knowledge for Business Advantage © 2011 Cambashi Limited

Improving quality at the source

10

0% 10% 20% 30% 40% 50%

Product Quality

Recurrence of CAPAs

First Pass Yield

Process Capability

Major improvement on line level metrics

Advancers

Others

Source: Beyond Tradeoffs in Medical Device Manufacturing: Balancing Innovation, Quality and Compliance While Improving Profit © 2012 Cambashi Inc. and UBM Canon

Page 11: AdvaMed Panel J Fraser Beyond Tradeoffs

Industry Knowledge for Business Advantage © 2011 Cambashi Limited

Improvements that matter

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Source: Beyond Tradeoffs in Medical Device Manufacturing: Balancing Innovation, Quality and Compliance While Improving Profit © 2012 Cambashi Inc. and UBM Canon

0% 20% 40% 60% 80%

Time to market

Time to complete a recall

Reportable adverse events

Portion who made improvements against these metrics

Advancers

Others

Page 12: AdvaMed Panel J Fraser Beyond Tradeoffs

Industry Knowledge for Business Advantage © 2011 Cambashi Limited

Become an Advancer

Innovate for value

Drive for TPLC

Simulate for QbD

Automate information flows

Get beyond trade-offs:

improve business performance while growing…

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Page 13: AdvaMed Panel J Fraser Beyond Tradeoffs

Industry Knowledge for Business Advantage © 2011 Cambashi Limited

Study and Contact

Comprehensive study report

available for download

Lead researcher:

Julie Fraser

+1 (508) 362-3480

[email protected]

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