Lean Manufacturing and also the Pharmaceutical Industry – What’s Been and just what Must be
Over roughly yesteryear decade, the pharmaceutical industry has haltingly tried to embrace lean manufacturing. A producing philosophy using the goals of reducing waste and boosting productivity would likely appear to become a good partner with this industry. However the results, to date, happen to be under dazzling-although this doesn’t need to be the situation.
Up to fairly lately, the pharmaceutical industry has enjoyed healthy income. Might the responsibility of meeting regulatory mandates have brought the to face up to change and focus on maintaining the established order. However with cost pressure growing (especially regarding regulatory compliance), product pipelines dwindling, and competition from generics growing, the image is altering.
Despite an emphasis on quality, the pharmaceutical industry has unsuccessful to maintain other sectors in improving manufacturing productivity and efficiency. Therefore the here we are at an ardent, unreserved dedication to effectively applying lean manufacturing techniques seems to become now.
A 2006 study involving greater than 1,500 pharmaceutical manufacturers produced some eye-opening results. Greater than 50% from the respondents established that their companies have implemented, to some extent or any other, lean manufacturing solutions. But under 50% of individuals happen to be pleased with the outcomes. The main impediment to some effective and thoroughgoing adoption of lean practices would be a perception that efficiency- and productivity-boosting techniques coded in the car industry can’t be implemented within the pharmaceutical industry.
Now, it is a fact that lean manufacturing continues to be more broadly implemented in the market in the past couple of years. Proof of this are visible in the growing quantity of situation studies, articles, and conferences concentrating on it. But, overall, the pharmaceutical industry has proven couple of indications of substantial progress.
Inventory turns could be a reliable indicator of the company’s success in applying lean manufacturing. If your clients are improving processes, then your trend of inventory turns with time should reflect that. The information, however, appears to point that more than last decade there has not been any significant improvement in this region.
Think about this, though. Within the 1980’s the electronics sector in america made an appearance to become moribund. However, owing mainly towards the adoption of those solutions, IBM, HP, and Dell have re-assumed their former role of worldwide leadership in the market. As evidence, HP’s inventory turns improved in an average rate of 6.9% from 2000 to 2009.
Clearly, a lean manufacturing system works. Also it can operate in the pharmaceutical industry with the proper implementation.
The job for that pharmaceutical industry, then, would be to effect a business-wide adoption of lean manufacturing along with consistent use of lean manufacturing techniques. Thus far, consistent, committed adoption continues to be sporadic and isolated.
Next, companies have to take an extensive look at lean manufacturing implementation and check out the availability chain in general and never concentrate exclusively on improved manufacturing operations. Without it broader focus, enhancements will still be limited.
Finally, it is important that management ask the help of pharmaceutical consultants with experience of and understanding of lean manufacturing. By doing this a number of failure factors could be prevented, including insufficient leadership buy-in, unwise cost-cutting, poor product selection, and fewer-than-optimal execution.
The truth that the pharmaceutical industry has lagged behind others inside a completely effective implementation of lean manufacturing solutions can, performed right, end up being an enormous plus. That is because the chance now are available for us to gain knowledge from the mistakes and assimilate the successes of other industries.