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  • 1. Pharmaceuticals Supply Chain 30th March, 2012 Private & Confidential
  • 2. Key facts• Most pharmaceutical plants are relatively small• Nearly all products are made using batch operations• Equipment dedicates to manufacture of single product is very rare, unless product volume is very large• Manufacturing is divided in two parts, Primary and Secondary ( Refer to Next Slide)• Primary manufacturing is not sensitive to short term demand, criticality in deciding lot size to avoid shortage of active ingredients.• Scheduling plays an important role to reduce the impact of long cleaning and setup times that are necessary to ensure quality and avoid cross contamination• Change over with in product family does not take much time but with cross product takes a lot• Primary manufacturing is basically a push process, since it is completely based on forecasted demand and not on the actual orders• Where as secondary manufacturing is a pull process, based on completely wholesaler orders.• Secondary Manufacturing consist of multi purpose production facilities, produces variety of intermediate and finished products through multi stage production process.• Primary and Secondary manufacturing are decoupled with large set of stocks.• Production scheduling becomes critical in secondary manufacturing, since real orders are to be executed with due dates at optimal costs. Private & Confidential
  • 3. Pharma Supply Chain – A Holistic View Business Forecast Primary Production: Make To Stock Secondary Production: Make To Order Forecast based on Actual sales order punched in ERP previous records 1 by marketing team Sales & clients’ data Order 2 MRP is run Planning R/M requirements generatedSuppliers Monthly production plan; participated by tablet, pellet and packaging departments: a) Machine & Customers Resource Allocation, b) Campaign Planning 3 Dispensing R/M supply Granules Capsules Pelletization / Encapsulation 5 4 Tablets Compression Packaging Finished good sent to Primary production of FG Storage in a warehouse Storage of R/M semi-finished goods Warehouse Delivery in small vans Private & Confidential
  • 4. Production Process & ProductsChemical Synthesis – the manufacture of chemical products by chemical synthesisFermentation – the production and separation of medicinal chemicals such as antibiotics and vitamins frommicroorganismsExtraction- the manufacture of botanical and biological products by the extraction of organic chemicals fromvegetative materials or animal tissuesFormulation and Packaging – the formulation of bulk pharmaceuticals into various dosages forms such astablets, capsules, inject able solution, ointments,etc that can be taken by the patient.Chemical Synthesis Natural Product Extraction FermentationAntibiotics, Antihistamines, Anticancer Agents, Enzymes and Antibiotics, Anticancer Agents,Cardiovascular Agents, Central Digestive Aids, CNS Depressants, Vitamins, SteroidsNervous System, Stimulants, CNS Hematological Agents, Insulin,Depressants, Hormones, Vitamins Vaccines Private & Confidential
  • 5. Production Planning Complexity• Large mix of SKUs with different Product Campaigns• Difficulty in managing Change-Over time and Set-up time of different batch process• Managing production scheduling for Fast Moving and Slow Moving Products• Re-scheduling for any reason (Breakdown, Cancellation, Urgent Orders, etc.) takes time• Difficult to asses the impact of re-scheduling and re-allocation• Production of one SKU involves number of different machines• Planning uncertainties have cascading impact on Raw Material Procurement and Storage & Semi – Finished Products’ Inventory• With capacity enhancement OR increase in Orders ,Planning Phase will increase in complexity Private & Confidential 5
  • 6. Production Planning and Scheduling (A Holistic and Integrated approach – Our Solution)Sales Order Packaging, Production Dispatch and ERP Billing Physical/ERP Physical/ERP Forecast PRODUCTION PLANNING SOLUTION Private & Confidential
  • 7. Benefits of a Production Planning and Scheduling System Increased throughput, through extra production enhanced by scheduling system Lower manufacturing cost, due to Tangible higher capacity utilization Lower inventory carrying cost – improve operational cash flow situation Increased transparency both internally and externally Tracking of production variables forIntangible continuous improvement Documentation & Reporting Private & Confidential 7
  • 8. Pharmaceutical Supply Chain Thank You You can get in touch with us at: sales@olinks.co.in 022-41232770 Private & Confidential