Supply chain lead time reduction in a pharmaceutical production warehouse – a case study

2019 ◽  
Vol 14 (1) ◽  
pp. 61-88 ◽  
Author(s):  
Ahmed Zainul Abideen ◽  
Fazeeda Binti Mohamad
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Raw Material ◽  
Value Stream Mapping ◽  
Content Type ◽  
Value Stream ◽  
Lead Time Reduction ◽  
Future State ◽  
Time Reduction ◽  
Pharmaceutical Production

Purpose The purpose of this study is to apply value stream mapping (VSM) in Malaysian pharmaceutical production warehouse. A current and future state value stream map from the raw material receiving end to the production unit was developed to find out waste and unwanted lead time. It was very much essential to cut down the supply chain lead time at the initial phase as the raw material unloading, sorting, temporary storage and dispatch to production were seen contributing to a huge lead time build-up. Design/methodology/approach The study was initiated with the selection of a product family, construction of the current state map, identification of various wastes and the development of future state map. Findings The expected outcomes of the study include the quantification of wastes, improvement in value-added percentage and lead time reduction. Research limitations/implications The study was carried out in a single pharmaceutical company. The results of the study are deployable and can be functional in similar production organizations. Contrary to common VSMs that capture core production processes, this study provides strong insights that shall help design lean supply chains, especially in the pharmaceutical domain. This paper has also addressed the viability of the lean in the pharmaceutical warehouse and the reduction in lead time to improve demand forecasting, marketing and sales. Practical implications The results of this study have indicated that a significant reduction in pharmaceutical warehouse supply chain lead time is possible as a result of the implementation of VSM from the supply chain’s perspective. Social implications The insights from this study help in understanding the pharmaceutical supply chain risks and their outcomes. Originality/value The paper reports a real-time study conducted in a warehouse of a pharmaceutical organization. Hence, the contributions are original.

Improving the performance of a Malaysian pharmaceutical warehouse supply chain by integrating value stream mapping and discrete event simulation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Abideen ◽  
Fazeeda Binti Mohamad
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Discrete Event ◽  
Integrated Approach ◽  
Value Stream Mapping ◽  
Content Type ◽  
Value Stream ◽  
Future State ◽  
The Future ◽  
Value Stream Map

Purpose Lean implementation is vastly incorporated in core manufacturing processes; however, its applicability in the supply chain and service industry is still in its infancy. To acquire performance excellence and thrive in the global competitive market, many firms are adopting newer methodologies. But, there is a stringent need for production simulation systems to analyze supply chains both inbound and outbound. The era of face validation is slowly disappearing. Lean tools and procedures that provide future state assumptions need advanced tools and techniques to measure, quantify, analyze and validate them. The purpose of this study is to enable dynamic quantification and visualization of the future state of a warehouse supply chain value stream map using discrete event simulation (DES) technique. Design/methodology/approach This study aimed to apply an integrated approach of the value stream mapping (VSM) and DES in a Malaysian pharmaceutical production warehouse. The main focus is diverted towards reducing the warehouse supply chain lead time by initially constructing a supply chain value stream map (both present state and future state) and integrating its data in a DES modelling and simulation software to dynamically visualize the changes in future state value stream map. Findings The DES simulation was able to mimic the future state lead time reductions successfully, which assists in better decision-making. Improvements were seen related to total lead time, process time, value and non-value-added percentage. Warehouse performance metrics such as receiving, put away and storage rates were substantially improved along with pallet processing time, worker and forklift throughput usage percentage. Detailed findings are clearly stated at the end of this paper. Research limitations/implications This study is limited to the warehouse environment and further additional process models and functional upgrades in the DES software systems are very much needed to directly visualize and quantify all the possible Lean assumptions such as radio frequency image identification/Andon (Jidoka), 5S, Kanban, Just-In-Time and Heijunka. However, DES has a leading edge in extracting dynamic characteristics out of a static VSM timeline and capture details on discrete events precisely by picturizing facility modification and lead time related to it. Practical implications This paper includes all the fundamental pharmaceutical warehouse supply chain processes and the simulations of the future state VSM in a real-life context by successfully reducing supply chain lead time and allowing managers in inculcating near-optimal decision-making, controlling and coordinating warehouse supply chain activities as a whole. Social implications This integrated approach of DES and VSM can involve managers and top management to support the adoption of anticipated changes. This study also has the potential to engage practitioners, researchers and decision-makers in the warehouse industry. Originality/value This study involves a powerful DES software package that can mimic the real situation as a virtual simulation and all the data and model building are based on a real warehouse scenario in the pharmaceutical industry.

Supply chain redesign for lead-time reduction through Kraljic purchasing portfolio and AHP integration

2019 ◽  
Vol 26 (4) ◽  
pp. 1194-1209 ◽  
Author(s):  
Augusto Bianchini ◽  
Andrea Benci ◽  
Marco Pellegrini ◽  
Jessica Rossi
Keyword(s):  
Supply Chain ◽  
Business Strategy ◽  
Lead Time ◽  
Small And Medium Enterprises ◽  
Evaluation Criteria ◽  
Portfolio Analysis ◽  
Lead Times ◽  
Content Type ◽  
Lead Time Reduction ◽  
Time Reduction

Purpose The purpose of this paper is to provide a flexible and extensible model for the classification of suppliers, within the purchasing guidelines and market trends of an Italian small company, leader in the production of street lamps. The model is applied to identify critical supply chains with the final objective of lead-time reduction. Design/methodology/approach The model is obtained by the application of the purchasing portfolio analysis through the construction of Kraljic matrix. Profit impact and supply risk criteria are selected according to the main company requirements, and then prioritized by the analytical hierarchy process (AHP). Finally, supply chain lead-times are analyzed with Gantt diagrams. Findings The application of the model allows the determination of company criticalities in terms of high lead-times and of the involved suppliers. The analysis of critical suppliers positioning in the Kraljic matrix allows the definition of some possible strategies to implement for lead-time reduction. Research limitations/implications Purchasing portfolio analysis and Kraljic matrix are practical instruments to quickly frame company purchasing situation, but their application is not simple due to the numerous and different factors involved, especially in small and medium enterprises (SMEs), where resource are scarce and several constraints limit operations. The objective of the research is the development of a practical tool for strategic purchasing, simple and robust to be implemented in SMEs, with limited resources and access to quantitative supplier data. Originality/value Evaluation criteria definition is one of the most difficult phases, such as their univocal and quantitative comparison. The problem of selecting and prioritizing both quantitative and qualitative criteria for suppliers classification is overcome with the combined application of Kraljic matrix and AHP. The newly integration of the two methodologies allows the realization of a reliable and robust model for suppliers classification, which can be easily adapted to company business strategy changes.

Managing industrial operations by lean thinking using value stream mapping and six sigma in manufacturing unit

2019 ◽  
Vol 58 (6) ◽  
pp. 1118-1148 ◽  
Author(s):  
Jagdeep Singh ◽  
Harwinder Singh ◽  
Amandeep Singh ◽  
Jashanpreet Singh
Keyword(s):  
Six Sigma ◽  
Lean Manufacturing ◽  
Lead Time ◽  
Manufacturing Industry ◽  
Value Stream Mapping ◽  
Lean Thinking ◽  
Content Type ◽  
Value Stream ◽  
Future State ◽  
Industrial Operations

Purpose The purpose of this paper is to cover the significance of lean thinking using value stream mapping and six sigma methodology in managing industrial operations. Design/methodology/approach Lean manufacturing is an efficient approach for identifying and eliminating waste through a continuous improvement via flow of the product/service at the pull of customer in chase of exactness. This study has been carried out in a manufacturing unit of Northern India that was suffering from high production lead time and work in progress (WIP) inventory. Findings The current state and future state maps for the critical product have been prepared. On comparison of both current and future state maps, it was observed that lead time has been reduced by 14.88 percent, processing time by 14.71 percent and wastage of material movement by 37.97 percent. As proposed in model, the WIP inventories have been reduced by 17.76 percent and workforce by 17.64 percent. Further it would lead to the profit of Rs161,800 per annum. Six sigma projects have been carried out to reduce rejections of the critical product P-19 under study. The total length of the product was undersize of the critical product. Root cause analysis technique has been used through strategic DMAIC implementation. Results of investigation demonstrated net savings of rupees 145,560 annually. Originality/value The paper demonstrates the practical application of lean thinking, showing how it can bring real breakthroughs in saving cost in the manufacturing industry.

scholarly journals Lean PENERAPAN METODE LEAN DENGAN MENGGUNAKAN VALUE STREAM MAPPING TOOLS UNTUK EFISIENSI WASTE PADA PT. SARI BUMI SIDAYU - GRESIK

2019 ◽  
Vol 19 (2) ◽  
pp. 61
Author(s):  
Moh. Dian Kurniawan
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Raw Material ◽  
Value Stream Mapping ◽  
Value Stream ◽  
Analysis Tools ◽  
Big Picture ◽  
Value Add ◽  
Lime Stone

Sari Bumi Sidayu merupakan salah satu dari beberapa perusahaan manufaktur yang bergerak di bidang produksi Batu Dolomit (lime Stone) dengan memproduksi dolomit berkapasitas 38.300 ton per tahun. Proses produksi yang dilakukan oleh perusahaan dengan mengelola raw material dari batu kapur untuk dibakar kedalam tempat pembakaran dengan tujuan mengurangi kadar H2O yang ada di raw material sehingga mendapatkan kadar CaCo3 yang lebih tinggi antara 70%-90%. Melalui proses pembakaran raw material lime stone memiliki MgO mancapai 17-22%, sehingga setelah mengalami proses pembakaran lime stone menjadi dolomite yang bisa digunakan banyak hal, antara lain sebagai netralisir kimiawi pada proses produksi baja, atau bahan campuran pembuatan gypsum eternite, bahkan dunia modern ini bahan tersebut menjadi bahan pendukung produk kosmetik. Untuk mencapai tujuan tersebut PT. Sari Bumi Sidayu harus mengetahui berbagai aktifitas apa saja yang meningkatkan nilai tambah (value add) baik produk barang maupun produk jasa, pemborosan (waste) apa saja yang sering terjadi dan bisa memperpendek proses produksi. oleh karena itu perlu adanya pendekatan lean manufactirung. Kondisi perusahaan digambarkan dalam Big Picture Mapping, pemborosan diidentifikasi dengan seven waste, kemudian dilakukan pemetaan secara detail dengan Value Stream Analysis Tools (VALSAT). Berdasarkan pengolahan data didapatkan bobot rangking waste tertinggi oleh waiting dengan nilai 38.09 %, over production dengan nilai 21,77%, defect dengan nilai 17%, Unnecessary inventory  dengan nilai 11,56 %, Excessive transportation  dengan nilai 8,16 %, Unnecessary motion dengan nilai 3,40%. Adapun detail mapping yang dominan adalah Process Activity Mapping dengan nilai 520,3  dan supply chain respon matrix dengan nilai 515,56. Lead time dalam produksi dolomite sebesar  14.400,02 menit, setelah usulan perbaikan di implementasikan di dapatkan reduksi lead time sebesar  1.440 menit. hasil keseluruhan data tersebut, maka Perusahaan bisa menghemat waktu sampai 12.960,02 menit. Tentu angka tersebut dapat menekan cost operational atau biaya overhead perusahaan dan menambah profit atas penghematan waktu yang dilakukan.

scholarly journals Application of value stream mapping to enhance productivity by reducing manufacturing lead time in a manufacturing company: A case study

2021 ◽  
Vol 19 (1) ◽  
pp. 11-22
Author(s):  
Aditya S. Patil ◽  
Mahesh V. Pisal ◽  
Chandrakant T. Suryavanshi
Keyword(s):  
Lead Time ◽  
Value Stream Mapping ◽  
Value Stream ◽  
Lead Time Reduction ◽  
Current State ◽  
Future State ◽  
Short Lead Time ◽  
Time Gap ◽  
Value Stream Map

Lead time is a time gap between initiation and completion of the processes or product. The lead time directly affects productivity. Short lead time results in higher output thus add more value in a given period. Value stream map is an effective tool to describe the overall process from order to delivery. In this study, there is lead time reduction by generation current state and future state for a process using various techniques. Thus, the main aim of this work to enhance production by reduction of lead time. Finally, gain in production, reduction in lead time, and reduction in inventory between the stations are also reported.

Investigating the value of reducing errors in inventory information from a supply chain perspective

Kybernetes ◽  
2015 ◽  
Vol 44 (2) ◽  
pp. 176-185 ◽  
Author(s):  
Kazim Sari
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Lead Time ◽  
Service Level ◽  
Supply Chain Collaboration ◽  
Content Type ◽  
Useful Knowledge ◽  
Lead Time Reduction ◽  
Customer Service Level ◽  
Time Reduction

Purpose – The purpose of this paper is to investigate the value of reducing errors in inventory information from a supply chain perspective. To this end, the benefits of reducing errors in inventory information are compared with those of lead time reduction and supply chain collaboration. Design/methodology/approach – A simulation model is constructed to perform the analysis. Findings – Results show that lead time reduction is the most important strategy for a supply chain in reducing total supply chain cost. In terms of customer service level, on the other hand, strategy of reducing errors in inventory information is observed as the most considerable strategy. However, the results for supply chain collaboration are somewhat unexpected. Namely, in spite of its popularity, supply chain collaboration provides very limited contribution to the supply chain. Practical implications – This research provides useful knowledge for the managers of a business enterprise in prioritizing various supply chain strategies. Originality/value – In supply chain management literature, greater emphasis is given to lead time reduction and supply chain collaboration than dealing with errors in inventory information. This research makes it clear that errors in inventory information should not be underestimated.

scholarly journals LEAN SUPPLY CHAIN UNTUK MENINGKATKAN EFISIENSI SISTEM MANUFAKTUR PADA PT. XYZ

2017 ◽  
Vol 7 (2) ◽  
Author(s):  
Iveline Anne Marie ◽  
Dedy Sugiarto ◽  
Dara Mustika
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Storage Time ◽  
Value Added ◽  
Raw Material ◽  
Value Stream Mapping ◽  
Company Performance ◽  
Value Stream ◽  
Cycle Efficiency ◽  
Lean Supply Chain

There were wastes in the supply chain flow of PT. XYZ which leads to long lead time in the delivery of customer orders. The result is that the company's planned delivery targets are not fulfilled. The objective of this research is to identify waste and cause of waste and to propose improvement to eliminate waste in PT XYZ supply chain so as to reduce lead time and achieve delivery target as an effort to improve company performance with Lean Supply Chain approach. In this research we use VALSAT to minimize waste and non value added activities in supply chain flow. Based on Value Stream Mapping and analysis of waste we proposed improvements that is application of acceptance sampling method on raw material inspection, application of p control chart on assembling process and store warehouse, 2 days battery storage time limit with kanban card proposed and also change of process sequence of lead part casting. Based on the projection, we got the decrease of manufacturing lead time and the increase of process cycle efficiency from 51.47% to 73.69%.

scholarly journals Optimasi Pelayanan Sertifikasi pada Supply Chain Lembaga Sertifikasi Halal

2019 ◽  
Vol 2 (4) ◽  
Author(s):  
Ahmad Shalihin ◽  
Juliza Hidayati ◽  
Khairunnisa
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Value Added ◽  
Value Stream Mapping ◽  
Value Stream ◽  
Current State ◽  
Future State ◽  
Big Picture ◽  
Document Flow ◽  
Flow Of Information

Di dalam dunia persaingan global persaingan antar kompetitor semakin ketat sehingga dalam faktanya bisnis usaha yang dijalankan perlu terus untuk dikembangkan dan dilakukan perbaikan sehingga perusahaan mampu tumbuh dan bersaing. Sebuah perusahaan yang bergerak di bidang sertifikasi halal mempunyai beberapa kriteria usaha yang disertifikasi meliputi industri pengolahan, restaurant dan rumah potong hewan. Fokus utama objek yang diteliti adalah industri pengolahan. Berdasarkan data historis sertifikasi halal selama 2 periode mengalami kenaikan secara terus menerus sehingga proses pelayanan dan penanganan dalam sertifikasi halal menjadi bertumpuk dan menjadikan aliran informasi dan aliran dokumen pada supply chain menjadi panjang dikarenakan sistem baru yang digunakan merupakan sistem sertifikasi secara online yang belum lama di adopsi. Proses sertifikasi halal memakan waktu sehingga kualitas pelayanan pada aliran informasi dan dokumen tidak maksimal dan berbedabeda, aliran informasi dan aliran dokumen yang tidak efisien waktu yang pada akhirnya membuat lead time proses sertifikasi menjadi panjang dan tidak efektif. Analisis menggunakan value stream mapping (VSM). Hasil yang dicapai berupa (1)big picture mapping current state map dan future state map, (2) mengetahui value added dan non value added pada proses aliran supply chain sertifikasi halal, (3) membuat skala prioritas terhadap 7 waste untuk meminimalisir pemborosan diproses sertifikasi, kemudian jenis pemborosan yang paling sering terjadi pada jenis pembororsan waiting (28%) dan proporsi waktu aktifitas value added (VA) sebesar (54%) dengan non value added (NVA) sebesar (46%). Setelah perbaikan didapatkan hasil proporsi waktu aktivitas menjadi sebesar value added (88%) non value added (NVA) berkurang menjadi sebesar (12%) berdasarkan rancangan aktivitas yang telah di operasikan berkurang dari 30 aktivitas menjadi 28 aktivitas dengan perbaikan waktu proses mencapai 37 hari dari 50 hari.   In the world of global competition, competition among competitors is getting tougher, so in fact, businesses that are run need to be continuously developed and improved so that companies are able to grow and compete. A company engaged in halal certification has several business criteria that are certified covering the processing industry, restaurants and abattoirs. The main focus of the object under study is the processing industry. Based on the historical data of halal certification for 2 periods, it has been continuously increasing so that the service and handling process in halal certification has accumulated and makes the flow of information and document flow on the supply chain lengthy because the new system used is an online certification system that has not been recently adopted. . The halal certification process takes time so that the quality of service in the flow of information and documents is not optimal and varies, the information flow and document flow are not time efficient which ultimately makes the lead time of the certification process to be long and ineffective. Analysis using value stream mapping (VSM). The results achieved in the form of (1) big picture mapping of the current state map and future state map, (2) knowing the value added and non value added in the halal certification supply chain flow process, (3) making a priority scale of 7 waste to minimize the waste of certification processing , then the type of waste that most often occurs in the type of waiting (28%) and the proportion of time value added activities (VA) of (54%) with non value added (NVA) of (46%). After the improvement, the result shows that the proportion of activity time is equal to value added (88%). Non-value added (NVA) is reduced to equal to (12%) based on the activity design that has been operated. 50 days. 

Value stream mapping – Panacea for lead time reduction in ferrite core industry

2021 ◽  
Author(s):  
Abhilash Pathania ◽  
Raj Kumar ◽  
Kuldeep Rojhe ◽  
Bhaskar Goel ◽  
Sorabh Aggarwal ◽  
...  
Keyword(s):  
Lead Time ◽  
Value Stream Mapping ◽  
Ferrite Core ◽  
Value Stream ◽  
Lead Time Reduction ◽  
Time Reduction

scholarly journals Improving Quality Control Process Through Value Stream Mapping

2018 ◽  
Vol 7 (2.29) ◽  
pp. 219
Author(s):  
Zulfa Fitri Ikatrinasari ◽  
Dan Kosasih
Keyword(s):  
Quality Control ◽  
Lead Time ◽  
Value Added ◽  
Maximum Efficiency ◽  
Value Stream Mapping ◽  
Process Time ◽  
Value Stream ◽  
Current State ◽  
Future State ◽  
Quality Control Process

PT. AEMI is one of the growing electronic component manufacturing company. By this time, Kaizen project has been run and managed to become a culture in PT AEMI. However, the project has not integrated, comprehensive and not yet has a long-term goals. Implementation of value stream mapping (VSM) in PT AEMI is expected to make Kaizen projects more focused and to produce increasing of the maximum efficiency. In addition, VSM Kaizen is believed to make the those programs more integrated, effective and comprehensive. This study aims to: (1) create a current state mapping in the Department of Quality Control PT. AEMI, (2) identify wastes in the Department of Quality Control PT.AEMI, (3) create a future state mapping at the Department of Quality Control PT. AEMI, (4) make a plan of improvement and analyzing the application. Stages of the study were as follows: (1) identification of work processes, (2) collect and analysis of work process time, (3) analysis of the current state mapping, (4) calculate of lead time and process time, (5) analysis of value added and non value-added activities, (6) analysis of wastes, (7) make a plan of future state mapping, (8) improvement design (improvement planning), (9) implementation of improvement, (10) analysis of the implementation of improvements. The results of this study are: 1) current state mapping at QC Department shows that the total lead time of 848 minutes where there is non-value added activity of 778 minutes. 2) identify waste on the handling process where the product movement from assembly to QC for 2 minutes, movement transactions from assembly to QC for 479 minutes and the waiting time at  inspection area for 727 minutes. 3) future state mapping at QC Department shows that the total lead time of 516.5 minutes where there is non-value added activity of 446.5 minutes. 4) the improvement to do is to change the lay out where final inspection is moved from QC to manufacturing so as to result in reduce of non-value added activity by 46%. 

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