Arcamed, proudly based in Indiana, has established itself over the past decade as a leader in medical manufacturing, specializing in sterilization cases and trays. The idea for Arcamed began in 2011 at an equipment auction outside of Speedway, Indiana. Arcamed’s founders believed that the orthopedic equipment manufacturers were being underserved by their supply chain for sterilization cases and trays. Arcamed launched in 2012 as a start-up and has since grown into a cutting-edge organization at the forefront of innovation, technology, customer service, and operational excellence. During Covid, Arcamed commited to becoming a company that would be driven by technology and continuous improvement.
We took advantage of the Indiana manufacturing readiness grant, which has led to four consecutive years of significant transformation of our facility and operations. This journey includes the implementation of five fully automated manufacturing systems, the adoption of Artificial Intelligence to streamline CNC machining programming, the build-out and redesign of our facility, a state-of-the-art ERP system, and the development of custom AI models tailored specifically to Arcamed’s unique manufacturing standards, knowledge, and policies. We have fully embraced lean manufacturing principles and 5S practices, creating a streamlined, waste-free, and highly organized workplace. By integrating real-time data collection across all our work centers, we empower data-driven decision-making and drive continuous optimization of our processes.
Our dedication to innovation, efficiency, and precision ensures that we remain a trusted partner and industry leader, delivering exceptional quality and value to the medical manufacturing sector.
Situation:
Arcamed faced challenges with increasing operational efficiency and addressing a workforce skills gap as we worked to expand our capabilities and integrate advanced manufacturing practices. Specifically, we identified the need for formal training in lean manufacturing and Six Sigma methodologies to empower our team with the tools and knowledge required to drive process improvement and sustain operational excellence. Knowing that we had a plant expansion happening we wanted to make sure that we got it right from a layout perspective.
Solution:
Purdue MEP provided targeted training and classes focused on lean manufacturing and Six Sigma principles. Through their courses, our team gained a deeper understanding of waste reduction strategies, value stream mapping, process standardization, and data-driven problem-solving. This training helped us build the skills necessary to identify inefficiencies, eliminate waste, and implement sustainable improvements across our operations. By equipping our workforce with these methodologies, Purdue MEP played a critical role in advancing our culture of continuous improvement.
Results:
The training provided by Purdue MEP has delivered measurable improvements in our operations. Our team has successfully applied lean and Six Sigma tools to streamline processes, improve quality, and reduce variation. For example, value stream mapping helped us identify and eliminate non-value-added activities, while Six Sigma training equipped us to reduce defects and better understand process variation data. These improvements will lead to shorter lead times, increased productivity, and enhanced overall efficiency. Most importantly, the skills and knowledge gained from Purdue MEP’s training have empowered our workforce to drive ongoing improvements and support Arcamed’s growth as an industry leader.
Impact metrics:
- Reduced lead times by 50%: Lead times at Arcamed had peaked to 12 weeks and in order to be industry-leading, we had to get them back down under 8 weeks. The work that was done with value stream mapping has allowed us to get that down to six weeks.
- Reduced return rates: The work that was done to evaluate and improve the quality of product getting to our customers has led us to a technology that has taken our return rates from 7% to below 2%.
- Improved wages: We have been able to close the skills gap and raise the wages of our workforce by more than $4 per hour by adding technology and training them on how to use it.
- Improved waste reduction: We have improved our capacity by over 30% using waste reduction strategies, saving Arcamed and our customers money.
- Product price reduction: We have been able to reduce our pricing on some product lines by 25% with lights out manufacturing capabilities.
"The training provided by Purdue MEP has been instrumental in helping Arcamed bridge critical workforce skills gaps and drive operational excellence. Their lean manufacturing and Six Sigma classes empowered our team with the tools and methodologies needed to identify inefficiencies, eliminate waste, and sustain improvements across our processes. The impact of their support is evident in the measurable gains we've achieved in productivity, quality, and efficiency. Purdue MEP has been an invaluable partner in advancing our culture of continuous improvement and innovation."
- Aaron Kane, Continuous Improvement Manager, Arcamed