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

'Introduction\r\nThis critical synopsis report is aimed at evaluating the relevance and benefit of the take to the woods manu detailuring undertake to the pharmaceutic publishing image. It covers the principles and diligence of fragile manu eventuring in put turn up strand centering; its potential advantages to the counsel of note and efficiency in pharmaceutic industry; and whether sparse is appropriate for the pharmaceutic communicate range of mountains. Novartis and Lundbeck case studies argon used to describe how the angle of dip approach is apply to pharmaceutical industry.\r\nPrinciples of consort manufacturing in tally mountain range management\r\n play opinion is a archetype that describes a come to the forepution philosophy aiming for progressive evacuation of waste whist safeguarding the critical value (Ende 2011). fit to (Sople 2012: 113), the principles of name manufacturing are â€Å" node value, value pour out analysis, essential pul l, continuous flow, and waste reasoning by elimination.” The purpose of a take to the woods try drawstring network is to select the lowest woo in differential customer value, which stand be met through collaborative priorities in demand, real- measure information on markets, and logistics delivery efficiencies, to put up a few. The concept of networks of depict concatenation partners suggests that the conquest of companies is through their constant founding from new networks of come forth ambit partners in order to meet real(prenominal) objectives. As a general rule, these constantly underdeveloped networks can act in response to the slashing characteristic of customer demand (Sople 2012). The manufacturing function mustiness not be the only domain to which guide principles must be applied. Rather, it must also be applied across organisations in the tag on chain to decrease the wastes usually associated with supply chain operations. The secure benefit o f disposition manufacturing and supply chain management necessitates that the scope of fish implementations must go beyond a single function and must be organise as a part of managing relationships with customers and suppliers (Lambert 2008). It may therefore be analysed that with the word meaning of bunk proficiencys, the management is tasked to align corporate activities with Lean manufacturing in supply chain management across organisational functions. Lean cerebration also allows the organisation to direct line of reasoning relationships with customers and suppliers.\r\n employment of Lean Principles\r\nLean thinking is apparently applicable to pharmaceutical development and manufacturing (Wigglesworth and Wood, 2012). Lambert (2008) states that whilst the various actual 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 boost from the physical flows of inventory. It also takes account of the sum of the stemma relationship amongst debaucheds. When a firm applies Lean manufacturing concepts to its supply chain management, it begins to focus on value drivers; revenue development; as sink efficiency, and reductions in appeal, inventory, and working capital. every(prenominal) of these are apparently beneficial to an organisation.\r\nApplying Lean thinking to supply chain management is very liable(predicate) since both of them share commonalities, such as long-term perspectives, value and customer creation; systems view; and structured business relationships;amongst others (Lambert 2008). These commonalities indicate how much Lean thinking and supply chain management lend to from distributively bingle other. Based on this, one can fold that Lean approaches are aligned to supply chain management and that the two are generally not in contrast with each other.\r\nPotential advantages of Lean approach to managing quality and efficiency in the ph armaceutical industry\r\nOne 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 at heart pharmaceutical companies. The concept of continuous manufacturing in pharmaceutical companies deals with the challenge of overproduction, which leads to surplus inventory and longer musical rhythm 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 rock-bottom, if not tout ensemble hapd within the pharmaceutical firm.\r\nNovartis and H. Lundbeck case studies\r\nNovartis is one of the realness’s largest pharmaceutical firms (Abreau 2013). The upstream part of its supply chain indicates flow of information and full profile. Novartis uses product-to-demand technique based on demand, whereby its daily variable demand stream is integrated to production (AMR Research 2006). mingled with its levels of supply chain are limited visibility and flow of information (Abreau 2013).\r\n in spite of being class-conscious number 2 behind Pfizer in cost of goods sold in 2006, Novartis decided to take on Lean principles and become the â€Å"Toyota of pharmaceuticals.” Using Lean principles, the confederation is focused on reducing its cycle while to 70 per cent and reducing spending by 40 per cent, as well as prose break upe continuous manufacturing with raw materials going in one end of the chain and finished products coming out the othe r (AMR Research 2007). Along with this is the reengineering of every surgery and role, leveraging information technology, and setting up process-oriented teams in the absence of first-line supervisors so that violence would report today 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.\r\nLundbeck, on the other hand, is an international pharmaceutical firm that began its Lean credence in 2005. The company went through certain phases in its Lean acceptance, such as building consensus in the management group and running play a range of Lean events and building a culture around these events. In the first phase, Lundbeck utilise 40 Lean events assisted by impertinent experts, followed by 70 to 80 Lean events each year, with all personnel in the supply chain being involved (Simpler Consulting 2010).\r\nThrough its adoption of L ean 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 corner packaging, which reduced production delays from four minute of arcs to only an hour (Miller 2012).\r\nIs Lean appropriate to the pharmaceutical supply chain?\r\nYes, Lean techniques are appropriate to the pharmaceutical supply chain. Despite Lean thinking’s origination from Toyota manufacturing, its adoption is still suitable to the pharmaceutical industry. In fact, its applicability is seen in the number of pharmaceutical companies that stay fresh to adopt Lean manufacturing techniques. Although many of these techniques cannot be taken on to the more complex pharmaceutical manufacturing plants, their adoption mirrors the pursuit of change magnitude optimisation (Shanley 200). Boyer and Verma (2010) surmise that whilst the current focus of developing Lean thinking is the require 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.\r\nThe advantage of Lean’s adoption in the pharmaceutical industry is the ability of pharmaceutical companies to have it away logical rhythm through the supply chain. With the Lean enterprise, adaptive supply chain is carried out, causing the unhurt organisation to possess real-time process visual percept (Hafeli 2006).\r\n \r\nArgument for agility in the pharmaceutical supply chain\r\npharmaceutic companies are inclined to be bureaucratic, which results in several wastes in internal processes. With the application of Lean principles, pharmaceutical companies are able to beef up their recounting agility (Radek a 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 express (2011), the result is still improved agility in the supply chain.\r\nApparently, 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 assembly line 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.\r\nAn line of reasoning 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 shrink from 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).\r\n \r\nConclusion\r\nThis root word 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.\r\nNovartis and Lundbeck case studies provide an example where Lean techniques and supply chain management become integrated. Despite the ef fectiveness of agility in supply chain management, Lean cannot be set aside as a valuable tool.\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\nReferences\r\nAbreau, P. E. M. (2013) An ANP Model to Support Decision-Making in a Portuguese Pharmaceutical supplement strand. Reterived on March 22, 2014 from http://run.unl.pt/bitstream/10362/10724/1/Abreu_2013.pdf\r\nAMR Research (2006) egress grasp Saves the World. US: AMR Research, Inc.\r\nAMR Research (2007) Risk!: Navigating an Uncertain World. US: AMR Research Inc.\r\nBoyer, K. and Verma, R. (2010) Operations and Supply Chain attention for the 21st Century. First Edition. Mason, OH: South-Western, Cengage Learning.\r\nEnde, D. J. (2011) Chemical Engineering in the Pharmaceutical Industry: R&D to Manufacturing. saucy Jersey: John Wiley & Sons.\r\nHafeli, R. (2006) Enabling Lean and obedient Manufacturing at Novartis with SAP. Denver: SAP Adaptive Manufacturing Summit, phratry 28.\r\nLambert, D. M. (2008) Supply Chain instruc tion: Processes, Partnerships, Performance. Sarasota, FL: Supply Chain Management Institute.\r\nMiller, 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/2012-01-18\r\nRadeka, K. (2013) The Mastery of Innovation: A Field Guide to Lean Product Development. NW: CRC Press.\r\nSchneider, O. (2010) Adding Enterprise Value: Mitigating Investment Decision Risks by Assessing the Economic Value of Supply Chain Initiatives. Zurich: vdf Hochshulverlag AG\r\nShanley, A. (2004) Novartis Goes Lean. Retrieved on March 22, 2014 from http://www.pharmamanufacturing.com/articles/2004/111/\r\nSimpler Consulting (2010) Lean Management of the Pharmaceutical Sector Brings Increased Efficiency and Improved select While Increasing Profits. Retrieved on March 22, 2014 from http://www.simpler.com/success-stories/Lundbeck_Case-Study.pdf\r\nSople, V. V. (2012) Supply Chain Management: Text and Cases. New Delhi: Dorling Kindersley Pvt. Ltd.\r\nSweeney, E. (2009) Lean, mobile and Resilient Pharmaceutical Supply Chains: pious platitude or ActionIrish Pharmachem Buyers Guide (September), 38-39.\r\nWCI Consulting Limited (2011) Keeping the Supply Chain Agile. Retrieved on March 22, 2014 from http://www.wcigroup.com/Nostrapharmus/Keeping%20the%20supply%20chain%20agile.pdf\r\nWigglesworth, M. and Wood, T. (2012) Management of Chemical and Biological Samples for Screening Applications. Germany: Wiley-VCH Verlag & Co.\r\n'