Down to the Wire

Today's medical device manufacturing arena is a demanding industry in which to be involved. New technology developed by scientists to aide patients and increase survival rate and comfort has lead to a frenzy of innovative manufacturing solutions to carry out these procedures. Companies such as Applied Medical, based in Rancho Santa Margarita, CA, must not only adapt to the growing market, but excel along with it.

Cutting-Edge Solutions

Applied Medical is a privately held medical device manufacturing company specializing in instrumentation used in minimally-invasive surgery. Founded in 1987, the company has grown into a 1,200-employee, seven building facility that is recognized for its commitment to research and development and for its advanced products and surgical instruments.

The company produces more than 700 products, most notably laparoscopic abdominal access systems and instrumentation; general surgery wound retractors and instruments; obstetrics C-section retractors; urological surgical devices; and vascular/cardiovascular surgical clamps, clips, vascular catheters and angioscopes. These products are supplied to doctors and hospitals around the world.

"Applied Medical's goal is to create devices and technologies that improve and advance surgical procedures while reducing hospital costs," explains Steve Davis, vice president of metals manufacturing at Applied Medical. "In meeting that goal, Applied utilizes advanced manufacturing processes and vertical integration to control costs and ensure availability."

At the present time, 90% of the company's metal device components are produced in-house. While many other medical device companies look to outsource their manufacturing to the lowest overseas bidder, Applied takes pride in its American-made products.

"At a time when the majority of manufacturing is slowing down, we are not," Davis notes. "We do not build any products overseas; we believe in building in America. We can build a superior product at a cost-effective price right here in Southern California."

As a testament to their success, Applied received the 2007 Pinnacle Award for supplier performance that meets and exceeds the expectations of Premier healthcare alliance and its members. The award was given to only 13 out of 720 eligible suppliers who have achieved scorecard ratings of 95% or higher in 2006.

Keeping up with Growth

According to Davis, one of the biggest challenges in being a medical device manufacturer is meeting the growing demands of the industry.

"We have been growing at an incredible rate, and just trying to meet the demands of that growth has been such a challenge for us," Davis says. "The one thing you can not do [in this industry] is you can't stagnate. You have to grow and you have to maintain."

In an effort to stay ahead of the game, Applied is constantly getting involved with and bringing new technology inhouse to build products that have been developed. Back in 2004, Applied was looking to do just that when they decided to invest in new wire EDM machines. They sent out a test part to multiple wire machine companies and gave them each three months to complete the part. After the tests, Applied had made a decision as to which machine they would use, and planned to go forward with their investment.

"We had made the decision and then one of our engineers just happened to be at the MD&M show in Anaheim and shared with Sodick that we were looking at some technology," Davis recalls. "At that point we did not even know Sodick."

The Sodick Inc. representative asked the Applied engineer if they could set up a meeting with Applied management. During the meeting, Applied personnel informed the Sodick engineer that the decision had already been made to go with a different wire EDM company, but Sodick wanted to have a chance to run the test part anyway.

Applied agreed, although they insisted they would not wait the three months that it had taken the other companies to run the part. Sodick took the test part that evening, and returned with it the very next morning – completed. Based on this, Applied reconsidered their original decision and looked into Sodick a bit further.

"As we researched them, we found out that not only was the response good, but their product was superior in many ways. The linear motors were just a big, big factor for us," Davis says. "So, we sat down and built a partnership with Sodick."

Applied purchased their first EDM machine from Sodick within 30 days of the MD&M show where the companies had met. Since then, the company has acquired 46 Sodick machines, including wire EDMs, die sinkers and high-speed mills. Currently, they are one of the largest Sodick customers in the world, as well as one of the top users of wire machines in the nation.

Davis credits the Sodick machines as well as the Sodick service team with helping Applied to grow. Finding work has never been difficult for Applied. Maintaining an efficiently-run facility in a fast-paced market is the challenge, and they must keep up by utilizing the best possible machines.

In addition to wire EDMs, Applied Medical also utilizes sinker EDMs.

"We have a team of highly skilled specialists in all fields and all disciplines of machining and we certainly allow them to share information on new technology with us," Davis says. "What we did was we chose what we felt was the best machine in the market, and then we built a partnership on that. That partnership has been probably one of the best I've seen in my career."

Applied chose Sodick based on a number of factors. First of all, the speed and accuracy with which Sodick returned the test part impressed them. But following that, the machines and service team at Sodick continue to exceed Applied's expectations.

Applied's processes require long unattended run times, and therefore large jumbo wire spools are fitted to the Sodick wire machines. The ability to run the 44- lb rolls of wire is just one of the features that the Sodick machines boast. Applied also uses the machines in their prototype shop, where they must hold extremely tight tolerances. Davis explains that Sodick technology has allowed Applied to do that fairly easy, partially because Sodick did a first-class job of training the Applied staff on the machines.

"Sodick's service is absolutely impeccable," Davis praises. "Their machines, like all machines, do need attention from time to time. But, when we have called Sodick for assistance their response has just been immediate."

Looking to the future

The business at Applied shows no signs of slowing. Last year's revenue topped off at $149 million, with $134 million from sales and $15 million from licensing. There are currently 680 patents approved and in the pipeline and new product development is at full pace.

Thanks to Applied's highly-skilled team members and Sodick's impressive machines, the challenge of growing at the same rate as the medical device industry is not only manageable, but conquerable.