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in.kaizen.com
KAIZEN IN
PHARMACEUTICALS
Pharmaceutical industry requires a paradigm shift to deal with the
challenges
Lean thinking, Kaizen philosophy, tools and techniques have brought about significant benefits to a large number of companies in a wide array of industry sectors across the world; and their success is well documented. In the challenging and demanding environment of pharmaceutical industry where process control and process reliability play an immensely critical role, kaizen implementation could be greatly beneficial in delivering a competitive edge to an organization. Gaining a thorough understanding of every process and striving to improve every process continuously is a fundamental tenet of Kaizen thinking.
Kaizen in Pharmaceuticals
Production Lead Time ( Days) 120-180 1-7 7-120 5-10 3-7
Finished Goods Inventory ( Days) 60-90 3-30 3-30 5-50 10-40
Overall Equipment Effectiveness 10-60% 70-85% 50-70% 80-90% 70-90%
Labour value- add time 20% 60-70% 60-70% 60-70% 60-90%
Direct/ Indirect Labour Ratio 1:01 10:01 10:01 10:01 10:01
Annual productivity improvement 1-3% 5-5% 5-10% 1-3% 5-15%
First pass Yield – Zero Defects 60% 90-99% 70-90% 90-99% 90-99%
Number of suppliers/ FTE 24 8
Spend / Supplier ( in US $ Million) 7 22
Source : McKinsey & Co., quoted in The Gold Sheet, December,2009
Measure Pharma AutomotiveAeroSpace
ComputerConsumerPackageGoods
Call : + 91 79 26407756, + 91 922 552 7911 - Email : [email protected] - in.kaizen.com
Our experience in different Pharmaceutical companies worldwide has demonstrated a clear correlation between lean implementation and overall business performances. There is a clear need to increase capacity while reducing operating costs to stay competitive in the market sector.
Processes not robust and reliable
Low first-pass-yield or first-time-right quality
Sub-optimal equipment performance - low Overall Equipment Effectiveness (OEE)
High changeover times
Long production lead times
Changing customer demand leading to high inventories
Daily firefighting at production lines; and not enough time to focus on systematic improvement efforts
Opportunities
Creating Robust process design and built-in quality
Implementing SMED to reduce changeover times and maintain small batch sizes
Initiating Total Productive Maintenance (TPM)™ to improve equipment performance
Employing ‘Pull Production’ and ‘Lean Production & Logistics’ to reduce throughput times and inventories
Engaging people in daily problem-solving leading to a culture of continuous improvement in the organizationTPM is a registered trademark of JIPM
Typical payoff – Savings!
100%90%
50% 50%
30%
90%
Inventory
Cut By
Productivity
Increased By
Defects
Decreased By
Throughput
Time
Decreased By
Manufacturing
Costs
Reduced By
Floor
Space
Reduced By
Culture : Kaizen Spirit
Kaizen Institute’s implementation experience
Quantum ofImprovement
BenefitRealized
PerformanceIndicator
Where
Reduced
Increased Without Investment
Increased
By 70%
By 80%
By 30%
Capacity
Productivity
Time
Tablets
Lyophilization
Packing Line
Changeover
EYE OPENING RESULTS : CASE STUDY
Compression &Other Equipment
Overall EquipmentEfficiency
Reduced
Increased
By 70%
From 45% to 80%
Through Put Time
Lean Impacts via
INCREASED VALUE
BY ATTACKING
WASTE
HIGHER ON TIMEIN FULL,
ERROR FREE
IMPROVED FLOW BOTH MATERIAL &
INFORMATION
Call : + 91 79 26407756, + 91 922 552 7911 - Email : [email protected] - in.kaizen.com
Unfortunately, only few companies are aware of these opportunities and how to easily achieve these savings.
Kaizen is a journey and not a destination
and it requires a very high degree of top management commitment.
Assessment Leading
To Roadmap
Pilot Projects
Train Core Team
Implemnt and
track KPI’s
Sustain
HOW?
About Us
Kaizen Institute is a global pioneer and knowledge based organization which provides consulting, coaching and training services to companies represented in Europe, Asia-Pacific, Middle-East, Africa and America. Kaizen Institute India is the Indian business unit offering its services to companies in the public, service, and manufacturing sectors, focusing on organizational change, lean manufacturing, and continual
Masaaki ImaiFounder Kaizen Institute
improvement implementation. Interestingly KII strongly believes in practicing what it preaches. We strive hard to apply Kaizen in our own day to day business. Call us and we shall be happy to show you our Lean & Green office at Pune, India.
Our Clients
India
+ 91 79 26407756
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+ 91 922 552 7911
Rev.No.03/08 Sept 15
