Pakistan’s surgical instrument sector, which mainly consists of SMEs, is a major export industry that contributes 0.13% to the national GDP and 0.7% of the global market. Employing approximately 550,000 workers, the industry is essential to the economy. However, it faces productivity challenges, including a low rate of technology adoption, inadequate workforce training, high input costs, and health and safety risks, which are the result of labor-intensive and conventional production methods. Addressing these productivity issues is key to ensuring the industry’s sustainable growth, improving workplace conditions, and enhancing its global competitiveness.

To tackle these challenges, a Development of Demonstration Companies (DMP) Project on Workplace Environment Management through Lean Manufacturing in the Surgical Instruments Industry was implemented by the NPO Pakistan and APO Secretariat from July 2023 to October 2024. The project aimed to establish model companies demonstrating productivity and environmental improvements through lean manufacturing. Five companies, including Chaplet International (Pvt.) Limited, Ekal Surgical Works, Nurikon International (Pvt.) Limited, Rhein Enterprises (Pvt.) Limited, and Surgikare Manufacturing Company, participated in the project and were guided by six resource persons, five from Japan and one from the NPO Pakistan.

By introducing lean manufacturing principles and methods as well as sharing Japanese experiences and practices, the project has had multiple remarkable impacts on participating companies, notably a reduction of rework rates from 40% to 10%, a reduction of material wastage for some processes to as low as 0%, a 73% improvement in time efficiency, and an annual cost reduction of more than USD540,000. Additionally, enhanced practices and measures in micro dust control, digital data management, and optimized factory layouts have contributed to safer, more efficient operation and a safer workplace. A dissemination conference held on 31 October 2024 in Sialkot, Pakistan, attracted 55 participants from SMEs, associations, and other industry stakeholders to share project insights and promote lean manufacturing benefits across the sector.