Our innovative Dynamic Pull-based Production Model helped Ajanta Pharma move away from the industry-standard ‘monthly-once inventory and demand refresh’ system to an industry-first ‘daily refresh’ system. Thus, increasing output while greatly reducing lead time. This helped them transform their operations and unleash their inherent potential.

Redefining Pharma Operations

The Production Quantity (Factory Output) Increased by:

Improvement in Customer experiencing OTIF performance at US warehouse

As seen in the case study, reinventing the way in which companies work and embracing change is imperative today- the dynamics of the Indian pharmaceutical industry are rapidly changing!

The benefits accrued include:

BA Case Studies and Podcast

Ajanta&nbsp;Pharma&nbsp;Limited is a multinational company based in India engaged in development, manufacturing, and marketing of&nbsp;pharmaceutical formulations.&nbsp;The pharmaceutical industry is a complex highly regulated environment which experiences high variability in demand, and&nbsp;highly rigid manufacturing processes. In this challenging environment, most companies experience several operational and financial issues like lack of timely availability of all materials(RM/PM) for dispensing, simultaneously overloaded and underloaded of production routes, poor capacity utilization, lower than expected output, creation of immediately unwanted inventory, airfreight and other expediting costs and poor on time performance.Ajanta Pharma realized that with increasing competition and volatility of markets, the incumbent practice of manufacturing based on forecast is not good enough for them to respond with agility to market and business environment changes. Therefore, the company decided to abandon forecast based planning and opt for a more dynamic approach to manufacturing which responds daily to emergent machine loads. They also decoupled the procurement and quality teams so that they, protected from the vagaries in manufacturing, can ensure continuous availability of full kits as per the priority in manufacturing. With this new approach and by enabling auto replenishment of RM/PM, the company experienced better&nbsp;synchronization of full kit for dispensing both from procurement and QC, timely visibility of any shortages,&nbsp;better synchronization in FG QA stage for BMR (Batch Manufacturing Record), BPR (Batch Packing Record) &amp; QMS activities, and elimination of stress across all functions in the plant. Crashing of lead times by one third and the ability to track orders on a day to day basis also makes managing demand easier for marketing and other stakeholders.Some of the salient results of implementing the new dynamic approach to pharma operations is shown below: Some of the salient results of implementing the new dynamic approach to pharma operations is shown below:<figure class="image"><img style="aspect-ratio:894/790;" src="https://backend.vectorconsulting.in/storage/editor_uploads//image_1720243714.png" width="894" height="790"></figure>

Bahasa Read More

Ajanta Pharma deployed a new dynamic pull-based scheduling approach in operations and supply chain and managed to release 15%-20% capacity and improve OTIF performance for their US warehouses to 99%.

Bahasa Ajanta Pharma Ltd.

Ajanta&nbsp;Pharma&nbsp;Limited is a multinational company based in India engaged in development, manufacturing, and marketing of&nbsp;pharmaceutical formulations.&nbsp;The pharmaceutical industry is a complex highly regulated environment which experiences high variability in demand, and&nbsp;highly rigid manufacturing processes. In this challenging environment, most companies experience several operational and financial issues like lack of timely availability of all materials(RM/PM) for dispensing, simultaneously overloaded and underloaded of production routes, poor capacity utilization, lower than expected output, creation of immediately unwanted inventory, airfreight and other expediting costs and poor on time performance.Ajanta Pharma realized that with increasing competition and volatility of markets, the incumbent practice of manufacturing based on forecast is not good enough for them to respond with agility to market and business environment changes. Therefore, the company decided to abandon forecast based planning and opt for a more dynamic approach to manufacturing which responds daily to emergent machine loads. They also decoupled the procurement and quality teams so that they, protected from the vagaries in manufacturing, can ensure continuous availability of full kits as per the priority in manufacturing. With this new approach and by enabling auto replenishment of RM/PM, the company experienced better&nbsp;synchronization of full kit for dispensing both from procurement and QC, timely visibility of any shortages,&nbsp;better synchronization in FG QA stage for BMR (Batch Manufacturing Record), BPR (Batch Packing Record) &amp; QMS activities, and elimination of stress across all functions in the plant. Crashing of lead times by one third and the ability to track orders on a day to day basis also makes managing demand easier for marketing and other stakeholders.Some of the salient results of implementing the new dynamic approach to pharma operations is shown below: Some of the salient results of implementing the new dynamic approach to pharma operations is shown below:<figure class="image"><img style="aspect-ratio:894/790;" src="https://backend.vectorconsulting.in/storage/editor_uploads//image_1720243711.png" width="894" height="790"></figure>&nbsp;

Ajanta Pharma - Dynamic Manufacturing Transformation | Vector Consulting Group

Ajanta Pharma Ltd.

Listen Now

Explore pharma operations' unique challenges in the latest Counterpoint Podcast. Uncover complexities of high lead times, variability, and the need for dynamic scheduling in pharma manufacturing. Dive into solutions for balancing customer demand and operational efficiency.

Explore pharma operations' unique challenges in the latest Counterpoint Podcast. Uncover complexities of high lead times, variability, and the need for dynamic scheduling in pharma manufacturing. Dive into solutions for balancing customer demand and operational efficiency.

Pharma Operations

In this episode of the Counterpoint Podcast, we bring into focus the challenges that the pandemic has caused on the already disrupted supply chains of pharma companies in India and across the world.

Pharma Operations - vectorconsulting

Case Studies and Podcast

Meanwhile overheads are increasing because

US pharma market changes impact Indian industry

Recent changes in the US pharmaceutical market (which is the largest importer of Indian pharmaceuticals) have resulted in a huge impact on the Indian pharmaceutical industry

The only way out is to simultaneously achieve both operational excellence and high resource productivity across the following major value drivers of the pharma supply chain:

Pharma supply chain productivity

Operations

*Assuming availability of API shipment time of 1 month and manufacturing time of 2 months

Cost of emergency air shipment

1%-2% of sales

It may seem impossible that both the imperatives can be met without compromise. Not so. For this, companies have to move away from the monthly planning and archaic finite scheduling methods and adopt a new “pull” based approach, which can help the plant dynamically adjust to uncertainties and variabilities, leading to 25% more output while reducing delivery lead time and breaking the month end skew.

And to reduce inventory levels in international warehouses without having back orders or having to resort to air-shipments

Quality control

Analyst capacity wastage can be as high as 40% in a typical pharma lab

For this, companies have to move away from the counterproductive techniques of trying to fix accountability for CAPA failures and instead adopt a revolutionary new approach wherein the cognitive load on analysts goes down without loss of overall productivity. This can bring down OOS by 65%-75% and reduce lab incidents by 35%-45%.

The key to solving this is to release capacity by identifying and eliminating significant wastages in the activities of the lab.

Research and development

There can be a satisfactory resolution to the conflicting needs of this environment only if currently wasted capacity can be gainfully used. For this, however, the traditional project management tools which have been unable to solve this problem have to be abandoned, and instead, companies should use principles of flow management. This can help pharma companies increase the output of R&D projects by nearly 50% at 30%-50% lower lead times (without increasing investment in resources).

Need to increase output and launch drugs quickly

Without need for continuous expansion of capacity

Distribution

Finished goods burn-outs due to stock expiry in the domestic pipeline 1%-4%

While this may seem like an insurmountable issue, companies can escape this ‘too much or too little’ conundrum by moving away from a forecast-based approach to inventory creation and movement to a consumption-based distribution method. Thereby, companies can reduce lead time and inventory by around 25% while ensuring that their channel has near 100% availability at points of sale.

Need to protect against high inventory and associated write-offs due to expiry

Need to maintain availability to meet needs of demand fluctuations

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