SCOR Make Element Pharmaceutical Castillo Linares ITESM MAKE Element of SCOR

8/10/2019 SCOR Make Element Pharmaceutical Castillo Linares ITESM MAKE Element of SCOR

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Lámina 1

The MAKE element of SCOR in a

pharmaceutical company

Ileana Castillo, Ph.D. Assistant Professor

Ing. Juan LinaresMaster’s Student

ITESM Campus Toluca, Mexico

Supply Chain World-Latin America 2002

9-10 September, Camino Real México

©2002 by Ileana Castillo



Lámina 2

Introduction

– Pharmaceutical Company

– The company’s manufacturing process is Make-To-Stock

– The trigger of the production planning process is

the sales forecast – Products are shipped from finished goods or “off

the shelf”

– SAP / R3 System

– Proprietary Cost Accounting System




Lámina 3

Introduction

– Specialized workers. High salaries

– Workers are organized in an union – Active ingredient comes from parent company

located in Europe, sometimes with a close

expiration date – Only finished products have safety stock. It is

established in days of sales




Lámina 4

Description of Line in Study

– The production line belongs to the packaging area

– It consists of three cells – 23 products are packaged in these cells. It

includes products of local and government sales,

samples and exports – Two shifts are used for aggregated planning, and

usually three shifts in the daily operations

– The aggregated capacity utilization is 160 % forthis line




Lámina 5

Description of Line in Study

– Set up times go from 0.5 to 12 hours. It depends

on the mix of products. For a set of 23 productsthere are 23! permutations




Lámina 6

Cost Structure

– Materials

– Line Costs

• Labor Cost• Machine Cost

• Quality Testing Labor Costs

– Product Related Cost




Lámina 7

Key Performance Indicators(KPI´s)

– The following KPI´s are just some of the ones

involved in the study:

• Head Count

• Capacity Variance

• Cycle time

• Inventory Value




Lámina 8

Solution Proposed


S1: Definition

of Product

Families

S2: Flow shop scheduling

!n jobs (products), one machine

!Generalization of SPT (The larger wi the

more important the job. Months before

expiration)



Lámina 9

S3: Analysis:

!Cycle time for a family

!Line cost impact for each product

S4: Flow shop scheduling

!n jobs (families), one machine

!TSP problem




Lámina 10©2002 by Ileana Castillo

S5: Analysis:!Global Cycle time

Impact

S6: Family Set up

assignation



Lámina 11

S7:Analysis:

!Line cost impact for each product

!Capacity Variance Impact

!Head Count Impact

!Inventory Value Impact

S8: Conclusions and

recommendations




Lámina 12

Benefits and conclusions

– Cycle time reduction• Comparison of actual production plans versus

time taken by the sequence of the TSP

– A base rule to assign the real line cost

• Once the set up is assigned to each product,

update the master recipe and determine theimpact in the cost by each element




Lámina 13

Benefits and conclusions

(cont.)

– Capacity variance reduction

• Once the set up is assigned, update the masterrecipe and determine the capacity utilization for

a given MPS

– Head Count variance reduction

• Once the set up is assigned, update the master

recipe and determine the Head Count (thenumber of operators required for this line in

any period) for a given MPS


SCOR Make Element Pharmaceutical Castillo Linares ITESM MAKE Element of SCOR

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