When Dr. Reddy’s Laboratories, Ltd., a $2 billion pharmaceutical giant based in Hyderabad, India began looking for a provider with deep understanding of supply chain management and a strong SAP supply chain solutions practice, senior management quickly focused on Deloitte as a leading candidate.
The search began as operations management at the company recognized the potential for improving production performance at one of their major plants in Hyderabad, called FTO3, based on rated capacities and actual outputs. They were looking for help in exploring ways to address performance more effectively. The production scheduling process, a complex and difficult exercise involving many products and machines in the factory, was carried out manually on Excel sheets with no real-time integrity of their business master and transaction data. Moreover, manual scheduling found it difficult to reap production scheduling efficiencies, while adhering to the rules particular to the pharmaceutical industry, which are mandated and monitored by agencies, such as the FDA (U.S. Food and Drug Administra...
In recent years there has been evidence of a new sort of supplier. CRO and biotech companies support major pharmaceutical companies through several stages of R&D. Examples of support offered include the existing knowledge in new chemical entities and drug trials. However, this does not present a big threat due to the fact that they do not have significant expertise in many of the essential elements and they are more dependent to pharma companies than pharma companies towards them. (Business Data Insight, 2013)
...pital resources like distribution vehicles and storage warehouses should be outsourced to help reduce the high cost of operation which in turn can lead to reduction of its products price. The company should concentrate on product development and evolution and delegate distribution roles to outsourced firms. Such initiatives have worked well in the new Indian market and should be implemented in other areas.
The pharmacy division’s initial goals for 2006-07 were to increase patient safety by improving turnaround time (TAT) by 25% for the preparation, dispensing, and delivery process for first dose medication orders. Improved TAT means that the patient receives medication when he or she needs it without delay, thus ensuring optimal, timely, and safe administration of the medication. The goals changed after the data were analyzed by lean team using the value-stream map. Systems Thinking (thinking transformation) and Kaizen (continuous improvement) were the principle means which demonstrated marked improvement.
In Starbucks’ supply centers, automation is more comprehensively used. For example, it uses a P-system and a EOQ system for manage inventory on a store level. This order is placed P-system orders every seven days with a three-day lead time. The entire inventory of Starbucks sets 15% on its over stock, to ensure that supply have enough retail for customers. The second order use EOQ which it has a two-day lead time. EOQ is placed for all the materials, including espresso, milk, and so on (Stapp & Dennis 1999). These systems help Starbucks decline unnecessary waste in production process and shrinkage within their inventory. What’s more, Inventory system uses advanced computer technology, set the sale, purchase, storage, multiple links in one information platform. The aim of inventory management is to minimize stock out and ensure continuous supply of coffee products (Stapp & Dennis 1999).
TOC was initially a manufacturing method, but evolved and developed into a theory about management in many forums and arenas of business. The TOC philosophy applies to any organization that has a constraint and has been useful in discovering either one constraint or many small constraints that can plague and dominate an entire system. The secret of the TOC’s success lies within managing the constraints that are found in the process or subsystem while managing the entire process to gain the most benefit out of the complete system. Drum-Buffer-Rope scheduling theory, another of Goldratt’s scheduling techniques, is a metaphor to understand the flow of a supply chain by increasing throughput by adjusting buffers by utilizing a rope and controlling the speed of the supply chain by a drum. The metaphor for the Drum-Buffer-Rope could find application with the TOC, where adjustments need to be made anywhere along the process where functions happen too soon or not soon enough in order to keep the process moving at the same pace throughout. Utilization of this theory and identifying the constraints with the TOC are among some of the general principles espoused in Goldratt’s book, The Goal, which has proven useful for successful manufacturing and process management (Balderstone & Mabin,
The CEO has also hired employees with good experience like CIO Dunst from Safeway, and for the supply chain management team, some technology experts from companies like PepsiCo, Dell and even Wal-Mart. This allows the company to be in line with the latest technologies available and demonstrates the future planning undertaken by the CEO.
Many historical milestones have shaped Operations Management, some of these are computer age, scientific management and human relations. For over two century’s operations and production management has been recognized as an imperative factor in a nation 's financial development.
A commercial drink such as beer, soft drink, energy drink or juice is usually contained in a can or bottle, it can be a small or large packaging depends on the market approach. A beverage manufacturer normally does not sell its product directly to the end customer but prefer to distribute product through retailers. As a result, retailer satisfaction is considered to the most important of beverage industry. In recent years, beverage industry is been under pressure from retailer to reduce price and also from new born beverage firms (Bommer and O’Neil, 2001, p18). Nevertheless, because of the high competition, manufacturers are not able to reduce Marketing cost. Therefore, the answer seems to be efficiency of SCM to satisfy retailer and customer, manufacturer must improve its SCM process. Several concepts are involved in SCM improvement in recent decades such as “lean production” is for reducing waste in manufactory and “just-in-time” delivery is to satisfy their retailer. However, no matter what concept that company desires, it need to be conducted by “IT”, or it can rephrase as business process re-engineering or ERP. An ERP system mission itself is to integrate and analyze data from various sections such as finance, logistics, inventory, sales, et cetera in an organization (sometimes between organizations). According to Al-Mashari, there are various resources to prepare for implementing ERP system; infrastructure resources planning, local area network, servers, terminal PCs, trainings, human resource planning and education about ERP (2002, pp166-167). As a result, it can be seen that most tasks are about information technology and human resource approach.
In today’s competitive world, there is a big emphasis by organization to provide products at cheaper rates with excellent quality. In order for the business to provide such facilities it has to have a strong coordination and synchronisation between its internal departments. Every business organisation has an operating function, which is known as “operations”. The main aim or goal of most organisations involves the production of products or services.
Thus, the role of operations management is to ensure a smooth production process that contributes to the output of goods and services of an organization. Operations managements are responsible for or associated with making decisions about product development, process and layout decisions, the location, and capacity. At the tactical level, operations management addresses the issues relevant to efficiently scheduling material and labour within the constraints of the firm 's strategy and making aggregate planning decisions. Operations managers have a hand in deciding employee levels, inventory levels, and capacity. At the operational level, operations management is concerned with lower-level planning and control. Operations managers and their subordinates must make decisions regarding scheduling, loading, and work assignments. Today 's operations manager must have knowledge of advanced operations technology and technical knowledge relevant to their industry, as well as interpersonal skills and knowledge of other functional areas within the firm. Operations managers must also have the ability to communicate effectively, to motivate other people, manage projects, and work on multidisciplinary
Institute for Supply Management, INDIA (ISMS-INDIA) based in Gurgaon (Delhi-NCR), which have many chapters in major, cities of India. ISM-INDIA is affiliated to Institute for supply management in the USA which is the world’s largest institute for supply chain management. The main aim of cooperation is to provide opportunities for the promotion of supply management professions and expansion of skills and knowledge of professionals. ISM-INDIA works with many MNC’s, major companies and public sector of India in professionalizing supply management activities.
Production Management System did many things for the growth of economy. The first is planning and organizing in fast production, this is the first ...
In my capacity as a Maintenance Planning Engineer at Hindustan Petroleum Corporation Limited (HPCL), I was primarily involved in tasks that required strategizing and organizing. Working for a multi-billion dollar enterprise, I saw the effects of operational efficiency on the Balance Sheet. This experience has driven me in my pursuit of delivering better performance with every attempt and has shaped my decision to pursue a career in Industrial Engineering (IE), a field that strives to increase productivity and efficiency by systematic study and application of non-traditional methods.
In business, operation planning and scheduling play a very important role to manage supply chain effectively. The effectiveness and efficiency of the operations is the key of successful of a company. To meet the forecasted demand, a firm must design or develop a perfect plan to supply the resources needed. Operations planning and scheduling is a process to ensure that the demand and supply plan are in the balance, from aggregate level to short term scheduling level. As lying at the core of supply chain integration, operation planning and scheduling have to determine whether which plans are tend to make up and make down the supply chain of an organization, from suppliers deliveries to customers
The Just-In-Time (JIT) means having the quality product a customer wants when the customer wants it. This is in contrast to the traditional production model of producing items in anticipation of a need or having surplus on hand just in case (JIC) a demand arose or for the marketing department to create more demand. The system JIT requires tight control and synchronization of many factors: machinery must be in excellent orders, suppliers must be reliable so there is a consistent flow of supplies, product quality must be high, production consistent and resources flexible enough to respond to any shifts (REFERENCE). Creating products to meet customer demand is supposed to eliminate the waste associated with excess inventory, over production and waiting. Implementation of JIT requires that organizations examine each segment of production and inventory process to identify what processes can be adjusted. The organization is responsive to the customer.