CIMdata PLM Industry Summary Online Archive

25 August 2004

Implementation Investments

ArthroCare Reduces Costs, Streamlines Development and Manufacturing Processes With Agile PLM

Agile Software Corporation ( http://www.agile.com ) announced that ArthroCare® Corp. has successfully implemented Agile PLM to accelerate and streamline its development and manufacturing processes, and to facilitate reduced costs and improved productivity. ArthroCare, a multi-business medical device company, has realized cost and operational efficiencies by moving to a platform-based development and manufacturing model, along with moving their manufacturing to an offshore location in Costa Rica. With a single product record managed in Agile, real-time communication between this new location and the R&D teams in the U.S., U.K. and Sweden, has enabled the medical device company to cut product change times from nine to two days, nearly 80 percent, resulting in an acceleration of the entire product development cycle. In addition, ArthroCare expects to reduce their cost of warranty and cost of failures with the Agile solution.

"In order for us to be successful, it was essential for us to move from a paper-driven product tracking process to a platform-based product development and manufacturing approach. We were able to do this quickly and painlessly with Agile. Our teams were able to easily understand and utilize the Agile system, which enabled us to save time and money and accelerate time to value," said Richard Christensen, senior vice-president, ArthroCare. "As a fast-growing business, we needed to partner with a PLM solution provider that understood our needs and could grow with us. After an exhaustive partner selection process, we felt Agile was the best choice-and our experience to date has strongly validated this choice."

ArthroCare develops, manufactures and markets minimally invasive surgical products that are based on a patented technology called Coblation®, which uses low-temperature, radio-frequency energy to dissolve tissue. The company's systems are used in multiple medical disciplines, including arthroscopy, spinal and ENT surgery. For the first time ever, product development and manufacturing data related to these devices are now exchanged in real time. Previously, information relevant to a product was printed out and added to file folders that were hand carried across divisions. Today, that same information is managed electronically in Agile Product Collaboration, and is tied directly to the product record, enabling end users in any of the company's four offices around the globe to access, view and edit that information. In addition, Agile is integrated to QAD ERP at ArthroCare, which provides manufacturing with the same view into the single system of record for the product.

For specific quality assurance issues, ArthroCare now has for the first time an online, proactive system for reporting and resolving corrective and preventive actions (CAPA) and non-conforming material reports (NCR), enabled by Agile Product Service and Improvement. The new system provides ArthroCare with greater visibility into quality reporting processes, which enables the company to address strict FDA regulations and deadlines.

"With Agile, ArthroCare can now move from being reactive to proactive. By providing product knowledge and history to designers, we can eliminate the use of sub-standard parts in our new product designs," said Trish Howell, senior director, materials management, ArthroCare. "In addition, the Agile solution has made it possible for ArthroCare to enforce more discipline and accountability in the process. In its first year of implementation, we expect to see benefits from the Agile solution that include reduced cost of warranty and reduced cost of failures."

"Transitioning a company's main manufacturing facility to another country is a huge step, especially when the research and development centers are in separate locations. In these situations, having a central product record that every stakeholder can access is indispensable for optimizing performance and cost efficiencies throughout the product lifecycle," said Jay Fulcher, Agile president and COO. "We've been working with ArthroCare in support of its successful move to offshore manufacturing, and we look forward to helping the company tap the enterprise product record to achieve its goals."

ArthroCare Corp. ( http://www.arthrocare.com/ ), headquartered in Sunnyvale, Calif., is a multi-business medical device company that develops, manufactures and markets minimally invasive surgical products, many of which are based on its patented Coblation technology. ArthroCare targets a multi-billion dollar market opportunity across several medical specialties, significantly improving surgical procedures and enabling new, minimally invasive procedures. ArthroCare's Coblation-based devices have been used in more than two million surgical procedures worldwide. The company has developed and marketed Coblation-based products for arthroscopic, spine/neurologic, ear, nose and throat, cosmetic, urologic, gynecologic and laparoscopic/general surgical procedures, and continues research in other areas.

 

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