Organisations dealing with research, development, production, export or distribution of pharmaceutical drugs and formulations can have an ongoing challenge or a constraint in one of the following areas:
Pharmaceutical manufacturing plants are characterized by a large number of dedicated product routings/flow lines coupled with a high degree of variability in capacity (downtime and batch time) and RM availability. Planning and scheduling over a longer horizon piles up WIP over certain product routes/flow which creates overloading of work centres in that route. At the same time, due to commonality of raw material, some of the product routes/flow lines may be starving. This, erratic starvation or overloading of work centres that plants very often experience, lead to highly variable lead times and delay in order/batch completion. Expediting to complete orders force frequent changes in planning schedules and thereby capacity/output loss. The consequent issues pharma companies tend to face include the exigency of delayed new product launches, write offs/discounting of FG and expensive air freights. Many companies in this industry are therefore steadily eroding their profitability and sales while simultaneously incurring an increased investment in inventory, capital employed, and operating expenses.
Find out how to get near 100% on time in full deliveries with significant reduction in lead time while increasing plant output with significant reduction in working capital deployed in this business.Know More
- Reduction in overall lead time of manufacturing by around 50%
- Increase in output of plants by around 10-25%
- Reduction in WIP by about 30-40%
- Improvement in working capital cycle of the company
Research & Development
Generic Pharma R&D environments experience a perennial mismatch between capacity and load. This becomes especially evident towards the end of the second quarter and the fourth quarter of the year in most generics R&D environments. During this time there is a significant spike in efforts demanded from critical resources. At the first part of the year Exhibit Batch related tasks and at the end of the year submission requirements followed by a spate of FDA queries creates urgencies- and all these tasks have to be addressed by the same set of resources. In spite of investing in traditional project management tools companies are still struggling to solve their chronic problems and improve output.
Find out how more R&D projects can be completed at significantly lower lead-times with existing resources, by implementing principles of flow management.Know More
- Reduce project lead time by 33- 50%
- Increase output by 30-50% without additional resources
- Clear visibility and control over progress of projects
- Reduced rework and improved quality of output
- Rapid production stabilization
- Reduced stress on people and other resources
International warehouses for generics, whether it is owned by a pharmaceutical company or maintained by a distribution partner in that country, needs to maintain stock in order to cater to varying local demand and to offset the often highly varying lead times of supply. This is a very tricky tight rope walk. If the warehouse has too much inventory of any drug, there is the risk of these expiring (and having to be destroyed); on the other hand, if there is too little inventory, there is the risk of unavailability. Not only will this lead sales loss (there is usually more than one generic for a drug) but certain countries also impose heavy penalties. This forces these warehouses to hold significantly high levels of inventory to protect their sales. But at the same time, the distribution channel is very reluctant to accept stock nearing expiry- they prefer to have a significant time of the total shelf life of the drug to be remaining at the time of sale, since customers will not buy drugs nearing expiry.
The only way out of this conundrum is if these international warehouses can have 100% availability at very low inventory. Find out how.Know More
- Improvement of availability to near 100%
- Reduction in inventory by about 50%
- Eliminate or reduce need for Inventory liquidation sales/ destruction of expired inventory
- Improvement in working capital cycle of the Company
Using the principles of flow, Vector has helped many organisations to significantly increase their R&D output and to build agile operations.
Major multi-national pharmaceutical company
Indicators Remark Annual increase in R&D output > 110% Total lead time Reduced by ~50% Formulation development cycle time (start to EB completion) Reduced by 58% Lab-scale development cycle time Cut by 57% Turnaround time of analytical test Reduced by 54%
This major pharmaceutical firm achieved phenomenal improvements in its research and development.
What stage is your plant in?
To understand how plants that are in the Stage 1 can quickly reduce capacity wastage by introducing new products visit this link FIND OUT
Manufacturing units in the Stage 2 and Stage 3 can align operations to increase plant utilisation & improve productivity. Find out howFIND OUT
We have partnered with some of the major names in the pharmaceutical industry to create and implement radical solutions which have helped redefine industry benchmarks. These include: