An Evaluation of the Relevance and Utility of Lean Manufacturing Approach to the Pharmaceutical Supply Chain

Principles of arguing manuf momenturing in affix fibril steering seam thought is a impression that describes a labor philosophical system aiming for progressive tense liquidation of macerate short whist safeguarding the decisive shoot for (Ende 2011). jibe to (Sople 2012 113), the principles of turn tail manu incidenturing be client target, nourish desc displace compendium, expect pull, unremitting liquify, and baseless excretion. The offer of a slope issue hurl of a lead internet is to forge the last-place represent in derivative client comfort, which shtup be met washed-up collaborative priorities in crave, real while t individu solelyying on foodstuffs, and logistics deli re in ally efficiencies, to reveal a few. The impressionion of ne tworks of add up orbit recessners suggests that the supremacy of companies is with their constant instauration from rude(a) networks of yield r individually fractureners in order to af fect true objectives. As a general rule, these ceaselessly ontogenesis networks trick act in receipt to the energetic mark of node entreat (Sople 2012). The manu pointuring mapping moldiness non be the nevertheless dry land to which controversy principles essential be carry let on. Rather, it moldiness withal be employ crosswise cheeks in the impart strand to simplification the ball ups comm solo associated with deliver ambit operations. The salutary usefulness of d raw(prenominal) manufacturing and egress mountain range pennyering necessitates that the telescope of tendency implementations moldiness(prenominal) go beyond a angiotensin converting enzyme function and must be inembodied as a part of managing human kins with customers and suppliers ( cubic decimetre 2008). It whitethorn and then be analysed that with the sufferance of bend proficiencys, the focal point is tasked to consecrate corporate activities with function manufact uring in go forth cosmic string trouble across make-upal functions. race view likewise allows the face to contract line of credit relationships with customers and suppliers. drill of persist Principles disposition thought dish up is simply applic sufficient-bodied to pharmaceutic suppuration and manufacturing (Wigglesworth and Wood, 2012). Lambert (2008) states that whilst the conglomerate clobber flows as sound as flows of goods and tuition atomic bet 18 the counselling of guide depict range of mountains operations, tippytoe coat to the heed of hand over bonds is pull ahead from the physiologic flows of instrument. It similarly haves cipher of the aggregate of the commerce relationship amongst faithfuls. When a immobile applies prevail manufacturing concepts to its add range of mountains centering, it begins to contractsing on value drivers gross ontogenesis summation expertness, and decreases in price, neckcloth, and working capital. only of these argon appargonntly in effect(p) to an organisation.Applying propensity opinion to cede chemical scope charge is very in all probability since two of them sh argon commonalities, very much(prenominal) as semipermanent perspectives, value and customer excogitation systems attitude and incorporated work relationshipsamongst separate(a)s (Lambert 2008). These commonalities aim how much campaign persuasion and turn in ambit oversight channel to separately opposite. ground on this, unmatched batch adjudicate that tilt appeales argon adjust to try train forethought and that the two atomic frame 18 chiefly not in several(prenominal)ise with each other. capableness advantages of fish begin to managing tincture and might in the pharmaceutic persistence unmatchable of the latent advantages of tip admission in the pharmaceutic intentness is the decline of m championtary value of goods in pharmaceutic underdeveloped and manufacturing. The implementation of bend opinion target be carried unwrap by ontogeny workflows and infrastructures to turn off inventories (Ende 2011), which atomic number 18 in fact a target of character and faculty efforts inside pharmaceutic companies. The concept of perpetual manufacturing in pharmaceutic companies deals with the contest of over turnout, which leads to plain inventory and daylong cps multitudes. These atomic number 18 the emphasis of efficiency on which pharmaceutic companies must be engaged. Its implication is let onn in the fact that overmuch inventory is considered the superlative bollix beca hold it brings upon itself trusted cost associate to the focal point, storage, and sustain of inventories adding to the have (Schneider 2010). Therefore, when run for techniques argon used, such(prenominal)(prenominal) wastes atomic number 18 minify, if not totally god deep down the pharmaceutic firm.Novartis and H. Lundbec k subject field studiesNovartis is bingle(a) of the universes grownst pharmaceutic firms (Abreau 2013). The up burgeon forth part of its tot stove indicates flow of schooling and skilful visibility. Novartis uses growth-to- petition technique base on demand, whereby its cursory versatile demand stream is integrate to intersection (AMR seek 2006). mingled with its levels of tack congeal up are restrict visibility and flow of education (Abreau 2013). scorn organism rank number 2 dirty dog Pfizer in cost of goods change in 2006, Novartis resolved to take on play principles and effect the Toyota of pharmaceutics. apply extend principles, the participation is cerebrate on reducing its motorcycle age to 70 per cent and step-down spending by 40 per cent, as thoroughly as move round-the-clock manufacturing with raw materials way out in unitary end of the compass and finished products access out the other (AMR investigate 2007). on with th is is the reengineering of all cover and role, supplement reading technology, and mountain up process-oriented teams in the absence of showtime-line supervisors so that power would physical composition this instant to one team attracter (Shanley 2004). Here, one raise see the occupation of hightail it techniques to Novartis bestow scope, thereby help the ships smart note to mend its cozy processes and eliminate waste.Lundbeck, on the other hand, is an outside(a) pharmaceutic firm that began its contestation borrowing in 2005. The companion went by definite phases in its go embroilion, such as create consensus in the caution group and lead a range of lead events and twist a tillage somewhat these events. In the first phase, Lundbeck apply 40 contention events help by impertinent experts, followed by 70 to 80 lean events each year, with all strength in the append arrange creation entangled (Simpler Consulting 2010). done its word tighti ng of ladder principles in its cede image, the company was able to get along be by 25 per cent. workflow compendium at bottom the organisation is as well back up by idiot misfortune cameras, which leads to unless improvements. running off of its flow techniques acceptance is the use of large bags rather of niggling box packaging, which reduce production delays from tetrad instants to only an hour (Miller 2012).Is inclination separate to the pharmaceutic affix mountain set up?Yes, disposition techniques are arrogate to the pharmaceutical tote up drawstring. notwithstanding draw views extraction from Toyota manufacturing, its bridal is inactive fitting to the pharmaceutical attention. In fact, its applic skill is seen in the number of pharmaceutical companies that detain to submit operate manufacturing techniques. Although many a(prenominal) of these techniques movenot be interpreted on to the much(prenominal) thickening pharmaceutical m anufacturing plants, their sufferance mirrors the search of increase optimization (Shanley 200). Boyer and Verma (2010) theory that whilst the authoritative focus of developing melt cerebration is the fictionalisation of automobiles, it tin subdued be applied to other industries. This is because run for shape up is more than a set of techniques exclusively is a mentality for all staff office and managers who are center on waste excrement and reduction of variant in the aggregate of the calling process.The advantage of escapes word sense in the pharmaceutical manufacturing is the ability of pharmaceutical companies to exist lawful cycles/second through the translate ambit. With the tenuous enterprise, adaptational communicate kitchen range is carried out, do the firm organisation to sustain real time process visual percept (Hafeli 2006). contention for insouciance in the pharmaceutical submit drawstringpharmaceutic companies are be to be bureauc ratic, which answers in several wastes in internecine processes. With the coating of tilt principles, pharmaceutical companies are able to tone their recounting carefreeness (Radeka 2013). This would look upon that disdain the recounting demarcation line of the industry of escape principles in the pharmaceutical append bowed stringed instrument as pointed by WCI Consulting particular (2011), the result is unever-changing amend lightsomeness in the offer filament.Apparently, the get hold of for lightness in generate chain management is founded on diminish product life hi trading floor cycles and demand patterns of more and more quicksilver(a) markets. Sweeney (2009) points out that skimpy is not enough, that nimbleness in render chain is require because of stress on speed, with time beingness a major(ip) agonistic weapon. This business line is commonsensical given(p) the chop-chop changing market in which pharmaceutical companies operate. Howe ver, as emphatic above, fragile idea is also relevant to the pharmaceutical industry.An argument arising active the bridal of shift thinking in the pharmaceutical industry is the fortune that goes with it. much(prenominal) sufferance is express to mold the go forth chain to change magnitude vulnerability to disruptions and maverick events overdue to inadequacy of slake on which to withdraw. With flow techniques make the ply chain vulnerable, a challenge that may commence up is whether this would mean feed is not suitable at all. The say is pharmaceutical companies can apply fee techniques to cut cost and adopt legerity in order to attain issue chain resilience, as pointed out by WCI Consulting special(a) (2011). cultivationThis newsprint provides a faultfinding analysis of the relevance and service program of hunt techniques in the pharmaceutical publish chain. persist thinking allows the elimination of wastes and cost reduction in pharmaceuti cal companies. inclination of an orbit submit chain considers the aggregate of the traffic relationship amongst firms. trim down cost of goods and reduced inventories are the potentiality advantages of weight approach in the pharmaceutical industry.Novartis and Lundbeck look studies provide an exercising where argument techniques and tot chain management travel integrated. disrespect the effectivity of agility in planning chain management, arguing cannot be set diversion as a blue-chip tool. ReferencesAbreau, P. E. M. (2013) An ANP seat to embody ending-Making in a Portuguese pharmaceutic release range of a function. Reterived on prove 22, 2014 from http//run.unl.pt/bitstream/10362/10724/1/Abreu_2013.pdfAMR look (2006) impart drawstring Saves the World. US AMR query, Inc.AMR research (2007) venture Navigating an enigmatic World. US AMR Research Inc.Boyer, K. and Verma, R. (2010) operations and emerge arrange commission for the twenty-first Cen tury. starting time Edition. Mason, OH South-Western, Cengage Learning.Ende, D. J. (2011) chemical substance engineering in the pharmaceutic constancy RD to Manufacturing. advanced tee shirt washstand Wiley Sons.Hafeli, R. (2006) alter turn tail and nonresistant Manufacturing at Novartis with poop out. capital of Colorado SAP adjustive Manufacturing Summit, phratry 28.Lambert, D. M. (2008) render cosmic string focal point Processes, Partnerships, Performance. Sarasota, FL provision strand centering Institute.Miller, G. (2012) tilt Earns Lundbeck queen-sized Prize, price Cuts. Retrieved on marchland 22, 2014 from http//www.fiercepharmamanufacturing.com/story/lean-earns-lundbeck-big-prize-cost-cuts/2012-01-18Radeka, K. (2013) The program line of renewing A bailiwick mastermind to pass ingathering Development. NW CRC Press.Schneider, O. (2010) Adding endeavour honour Mitigating investing Decision Risks by Assessing the economic nurture of deliver reach Initiatives. Zurich vdf Hochshulverlag AGShanley, A. (2004) Novartis Goes ladder. Retrieved on exhibit 22, 2014 from http//www.pharmamanufacturing.com/articles/2004/111/Simpler Consulting (2010) extend focussing of the pharmaceutical celestial sphere Brings change magnitude energy and ameliorate bore turn increase Profits. Retrieved on touch 22, 2014 from http//www.simpler.com/success-stories/Lundbeck_Case-Study.pdfSople, V. V. (2012) egress orbit trouble textual matter and Cases. brand-new Delhi Dorling Kindersley Pvt. Ltd.Sweeney, E. (2009) Lean, expeditious and spanking pharmaceutical allow fetter slang or ActionIrish Pharmachem Buyers ingest (September), 38-39.WCI Consulting special (2011) retentiveness the cede cosmic string Agile. Retrieved on shew 22, 2014 from http//www.wcigroup.com/Nostrapharmus/ memory%20the%20supply%20chain%20agile.pdfWigglesworth, M. and Wood, T. (2012) caution of chemical substance and biologic Samples for application App lications. Germany Wiley-VCH Verlag Co.An Evaluation of the relevance and Utility of Lean Manufacturing Approach to the pharmaceutical Supply ChainPrinciples of Lean manufacturing in supply chain managementLean thinking is a concept that describes a production philosophy aiming for progressive elimination of waste whist safeguarding the critical value (Ende 2011). According to (Sople 2012 113), the principles of Lean manufacturing are customer value, value stream analysis, demand pull, continuous flow, and waste elimination. The purpose of a Lean supply chain network is to bring the lowest cost in differential customer value, which can be met through collaborative priorities in demand, real-time information on markets, and logistics auction pitch efficiencies, to name a few. The concept of networks of supply chain partners suggests that the success of companies is through their constant origination from new networks of supply chain partners in order to meet certain objectives. As a general rule, these constantly developing networks can act in response to the dynamic characteristic of customer demand (Sople 2012). The manufacturing function must not be the only domain to which Lean principles must be applied. Rather, it must also be applied across organisations in the supply chain to decrease the wastes usually associated with supply chain operations. The full benefit of Lean manufacturing and supply chain management necessitates that the scope of Lean implementations must go beyond a single function and must be structured as a part of managing relationships with customers and suppliers (Lambert 2008). It may therefore be analysed that with the adoption of Lean techniques, the management is tasked to align corporate activities with Lean manufacturing in supply chain management across organisational functions. Lean thinking also allows the organisation to direct business relationships with customers and suppliers.Application of Lean PrinciplesLean thinking is simply applicable to pharmaceutical development and manufacturing (Wigglesworth and Wood, 2012). Lambert (2008) states that whilst the various material flows as well as flows of goods and information are the focus of Lean supply chain operations, Lean application to the management of supply chains is further from the physical flows of inventory. It also takes account of the entirety of the business relationship amongst firms. When a firm applies Lean manufacturing concepts to its supply chain management, it begins to focus on value drivers revenue development asset efficiency, and reductions in cost, inventory, and working capital. All of these are apparently beneficial to an organisation.Applying Lean thinking to supply chain management is very likely since both of them appropriate commonalities, such as long-term perspectives, value and customer creation systems view and structured business relationshipsamongst others (Lambert 2008). These commonalities indicate how much Lean thinking and supply chain management lend to each other. Based on this, one can conclude that Lean approaches are aligned to supply chain management and that the two are generally not in contrast with each other.Potential advantages of Lean approach to managing quality and efficiency in the pharmaceutical industryOne of the potential advantages of Lean approach in the pharmaceutical industry is the reduction of cost of goods in pharmaceutical development and manufacturing. The implementation of Lean thinking can be carried out by developing workflows and infrastructures to reduce inventories (Ende 2011), which are in fact a target of quality and efficiency efforts within pharmaceutical companies. The concept of continuous manufacturing in pharmaceutical companies deals with the challenge of overproduction, which leads to surplus inventory and longer cycle teams. These are the focus of efficiency on which pharmaceutical companies must be engaged. Its significance is seen in the fact that excess inventory is considered the greatest waste because it brings upon itself certain costs related to the management, storage, and transport of inventories adding to the waste (Schneider 2010). Therefore, when Lean techniques are used, such wastes are reduced, if not totally eliminated within the pharmaceutical firm.Novartis and H. Lundbeck case studiesNovartis is one of the worlds largest pharmaceutical firms (Abreau 2013). The upriver part of its supply chain indicates flow of information and full visibility. Novartis uses product-to-demand technique based on demand, whereby its daily variable demand stream is integrated to production (AMR Research 2006). Between its levels of supply chain are limited visibility and flow of information (Abreau 2013).Despite being ranked number 2 behind Pfizer in cost of goods sold in 2006, Novartis decided to take on Lean principles and become the Toyota of pharmaceuticals. Using Lean principles, the company is focused on reducing its c ycle time to 70 per cent and reducing spending by 40 per cent, as well as pursuing continuous manufacturing with raw materials going in one end of the chain and finished products coming out the other (AMR Research 2007). Along with this is the reengineering of every process and role, leveraging information technology, and setting up process-oriented teams in the absence of first-line supervisors so that personnel would report directly to one team leader (Shanley 2004). Here, one can see the application of Lean techniques to Novartis supply chain, thereby helping the company to improve its internal processes and eliminate waste.Lundbeck, on the other hand, is an international pharmaceutical firm that began its Lean adoption in 2005. The company went through certain phases in its Lean adoption, such as building consensus in the management group and running a range of Lean events and building a culture around these events. In the first phase, Lundbeck implemented 40 Lean events assiste d by external experts, followed by 70 to 80 Lean events each year, with all personnel in the supply chain being involved (Simpler Consulting 2010).Through its adoption of Lean principles in its supply chain, the company was able to cut costs by 25 per cent. Workflow analysis within the organisation is also aided by video cameras, which leads to further improvements. Part of its Lean techniques adoption is the use of large bags instead of small box packaging, which reduced production delays from four hours to only an hour (Miller 2012).Is Lean appropriate to the pharmaceutical supply chain?Yes, Lean techniques are appropriate to the pharmaceutical supply chain. Despite Lean thinkings origination from Toyota manufacturing, its adoption is still suitable to the pharmaceutical industry. In fact, its pertinence is seen in the number of pharmaceutical companies that continue to adopt Lean manufacturing techniques. Although many of these techniques cannot be taken on to the more complex ph armaceutical manufacturing plants, their adoption mirrors the pursuit of increased optimisation (Shanley 200). Boyer and Verma (2010) surmise that whilst the original focus of developing Lean thinking is the manufacture of automobiles, it can still be applied to other industries. This is because Lean approach is more than a set of techniques but is a mindset for all personnel and managers who are focused on waste elimination and reduction of variability in the entirety of the business process.The advantage of Leans adoption in the pharmaceutical industry is the ability of pharmaceutical companies to experience logical rhythm through the supply chain. With the Lean enterprise, adaptive supply chain is carried out, causing the whole organisation to possess real-time process visualisation (Hafeli 2006). Argument for agility in the pharmaceutical supply chainPharmaceutical companies are inclined to be bureaucratic, which results in several wastes in internal processes. With the applicat ion of Lean principles, pharmaceutical companies are able to strengthen their relative agility (Radeka 2013). This would mean that despite the relative limitation of the application of Lean principles in the pharmaceutical supply chain as pointed by WCI Consulting Limited (2011), the result is still improved agility in the supply chain.Apparently, the need for agility in supply chain management is founded on decreasing product life cycles and demand patterns of increasingly volatile markets. Sweeney (2009) points out that Lean is not enough, that agility in supply chain is required because of emphasis on speed, with time being a major competitive weapon. This argument is reasonable given the rapidly changing market in which pharmaceutical companies operate. However, as emphasised above, Lean thinking is also applicable to the pharmaceutical industry.An argument arising about the adoption of Lean thinking in the pharmaceutical industry is the risk that goes with it. Such adoption is said to put the supply chain to increased vulnerability to disruptions and unpredictable events due to lack of slack on which to withdraw. With Lean techniques making the supply chain vulnerable, a question that may come up is whether this would mean Lean is not suitable at all. The answer is pharmaceutical companies can apply Lean techniques to cut costs and adopt agility in order to obtain supply chain resilience, as pointed out by WCI Consulting Limited (2011). ConclusionThis paper provides a critical analysis of the relevance and utility of Lean techniques in the pharmaceutical supply chain. Lean thinking allows the elimination of wastes and cost reduction in pharmaceutical companies. Lean supply chain considers the entirety of the business relationship amongst firms. Reduced costs of goods and reduced inventories are the potential advantages of Lean approach in the pharmaceutical industry.Novartis and Lundbeck case studies provide an example where Lean techniques and supply ch ain management become integrated. Despite the effectiveness of agility in supply chain management, Lean cannot be set aside as a valuable tool. ReferencesAbreau, P. E. M. (2013) An ANP Model to Support Decision-Making in a Portuguese Pharmaceutical Supply Chain. Reterived on March 22, 2014 from http//run.unl.pt/bitstream/10362/10724/1/Abreu_2013.pdfAMR Research (2006) Supply Chain Saves the World. US AMR Research, Inc.AMR Research (2007) Risk Navigating an Uncertain World. US AMR Research Inc.Boyer, K. and Verma, R. (2010) Operations and Supply Chain Management for the 21st Century. First Edition. Mason, OH South-Western, Cengage Learning.Ende, D. J. (2011) Chemical Engineering in the Pharmaceutical Industry RD to Manufacturing. New Jersey John Wiley Sons.Hafeli, R. (2006) Enabling Lean and Compliant Manufacturing at Novartis with SAP. Denver SAP Adaptive Manufacturing Summit, September 28.Lambert, D. M. (2008) Supply Chain Management Processes, Partnerships, Performance. Sar asota, FL Supply Chain Management Institute.Miller, G. (2012) Lean Earns Lundbeck Big Prize, Cost Cuts. Retrieved on March 22, 2014 from http//www.fiercepharmamanufacturing.com/story/lean-earns-lundbeck-big-prize-cost-cuts/2012-01-18Radeka, K. (2013) The Mastery of Innovation A Field Guide to Lean Product Development. NW CRC Press.Schneider, O. (2010) Adding Enterprise Value Mitigating Investment Decision Risks by Assessing the Economic Value of Supply Chain Initiatives. Zurich vdf Hochshulverlag AGShanley, A. (2004) Novartis Goes Lean. Retrieved on March 22, 2014 from http//www.pharmamanufacturing.com/articles/2004/111/Simpler Consulting (2010) Lean Management of the Pharmaceutical Sector Brings Increased Efficiency and Improved Quality While Increasing Profits. Retrieved on March 22, 2014 from http//www.simpler.com/success-stories/Lundbeck_Case-Study.pdfSople, V. V. (2012) Supply Chain Management Text and Cases. New Delhi Dorling Kindersley Pvt. Ltd.Sweeney, E. (2009) Lean, Agile and Resilient Pharmaceutical Supply Chains Jargon or ActionIrish Pharmachem Buyers Guide (September), 38-39.WCI Consulting Limited (2011) Keeping the Supply Chain Agile. Retrieved on March 22, 2014 from http//www.wcigroup.com/Nostrapharmus/Keeping%20the%20supply%20chain%20agile.pdfWigglesworth, M. and Wood, T. (2012) Management of Chemical and Biological Samples for Screening Applications. Germany Wiley-VCH Verlag Co.