Project management in Supply Chain


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Project Management in Supply Chain

- Pharma Project Management Conference, Mumbai - India on 8th May 2013

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  • Opportunity to bring my frame of reference of Project management in Supply chain and its value addition.
  • Product launch First ANDA team facility regulatory product approval logisticsRACI chartChk list
  • Project management in Supply Chain

    1. 1. Project ManagementinSupply-chain managementMegha Thakkar PMP®Supply Chain Management,Cipla Ltd.8th May 2013Pharma Project Management Conference, Mumbai, India
    2. 2. OBJECTIVETo enhance our existing project management flexibility capabilities to aninternational "hands-on" practitioner level.8 - May - 2013Pharma Project Management Conference,Mumbai, India2
    3. 3. Project Management8 - May - 2013Pharma Project Management Conference,Mumbai, India3
    4. 4. PROJECT MANAGEMENTProject management is a system based discipline that relies on projectmanager’s competencies to implement a project within8 - May - 2013Pharma Project Management Conference,Mumbai, India4TIMECOSTSCOPEQUALITY
    5. 5. PMBOK project management8 - May - 2013Pharma Project Management Conference,Mumbai, India5
    6. 6. *RACI Chart –Role of Project Manager8 - May - 2013Pharma Project Management Conference,Mumbai, India6Role → ProjectSponsorCustomer EndUserProjectManagerProjectTeamActivity ↓Development of the project delivery plan A I I R CDelivery of the project outcomes C I I AR CAchievement of project objectives(cost, schedule, scope)C I I AR CEnable the benefits to be realized C I I AR CDevelop and manage team performance I - - AR CDevelop stakeholder management plans C - - AR IManage project risk I AR CDeliver regular project reports I I I AR C* Responsible, Accountable, Consulted, Informed
    7. 7. Pharmaceutical Project Risk ConsequencesProject RiskDelayed or noregulatoryapprovalDelay launch tomarket and topatientsUnacceptableproduct qualityExcessiveproduct lifecyclecostUnacceptableproducttechnicalperformance8 - May - 2013Pharma Project Management Conference,Mumbai, India7
    8. 8. Typical Pharmaceutical Supply Chain8 - May - 2013Pharma Project Management Conference,Mumbai, India8Suppliers Manufacturers Warehouses &Distribution CentersCustomersMaterial CostsTransportationCostsTransportationCosts TransportationCostsInventory CostsManufacturing CostsPlan Source Make Deliver Buy
    9. 9. Supply Chain Management8 - May - 2013Pharma Project Management Conference,Mumbai, India9… historically and currently problematicTechnologyProcessesCultureWarVolcanic eruptionsManagementManufacturingStrikeBoeing, 1997 writes off $2.6billion, due to supplier partsshortagesVipnet, 1999 GSM portallaunch delayed 1 year due tosupplier issuesSonys 2006, PlayStation 3delay gives opportunity to rivals(Microsofts Xbox 360 andNintendos Wii)Airbuss A380super-jumbo 2006delivery to customers,almost 2 years lateSainsbury’s delayedstore openings, cost them£millions in lost revenueLegal
    10. 10. Seven Success Factors for SCPM1. Set realistic GOALS2. Make an EFFECTIVE PLAN3. Find a strong EXECUTIVE SPONSOR4. Assemble good RESOURCES5. Stay FLEXIBLE6. Allow TESTING7. Promote USER BUY-IN8 - May - 2013Pharma Project Management Conference,Mumbai, India10
    11. 11. Similarities between PM and SCMProject Management Supply Chain Management• Defined beginning • Defined beginning• Defined ending • Defined ending• Defined scope • Defined scope• Time associated • Time associated• Defined cost• Defined inputs • Defined inputs• Systems view • Systems view• Customer orientated • Customer orientated8 - May - 2013Pharma Project Management Conference,Mumbai, India11
    12. 12. Supply-chain PM• Changes in key parameters can have asignificant impact on project schedulesand hence change in project delivery– material supply– product orders– customer forecasts– staffing resources• Often, these supply and demand changestake too long to show up in projectmanagement schedules, resulting inmissed milestones, "throw away" work,penalties, and cost overruns8 - May - 2013Pharma Project Management Conference,Mumbai, India12
    13. 13. Need• Enterprises need a single management system that breaksdown the silos between human resource management,supply chain management, demand planning, cashmanagement, and project management to ensure thatphysical and human resource utilization is maximized8 - May - 2013Pharma Project Management Conference,Mumbai, India13
    14. 14. Solution• A control tower solution using Rapid Response approach canprovide project management teams with resources to manageexpectations and keep projects on track despite ever-changing demand and supply variables8 - May - 2013Pharma Project Management Conference,Mumbai, India14
    15. 15. Solution – How?• Specific project management resources include– Multi-scenario gantt charts• summary-level durations, slack time, comparisons to plan• with milestones directly linked to implications on revenue and costs– Material– and non-material-related tasks– Tasks linked to formal work breakdown structures to enableunderstanding of the supply chain drivers and implications on projects– Visibility into cost details for material or non-material-related activitiesfor a summarized view of total project costs, which then supportsproject profitability modeling• "what-if" scenario capabilities– link the supply chain analytics to project schedule projections,enabling companies to quickly assess the implications of potentialmaterial or non-material-related task delays or accelerations8 - May - 2013Pharma Project Management Conference,Mumbai, India15
    16. 16. Benefit• By incorporating project management along withRapidResponse control tower solution, customers can expectto achieve– Fewer missed project milestones– Less financial penalties– Decreased time to revenue recognition– Improved cash utilization– Optimized deployment of staffing resources (avoiding either"time on the bench" or paying overtime)– Alignment between all stakeholders; Project Office, SupplyChain Operations, Finance, and your customers8 - May - 2013Pharma Project Management Conference,Mumbai, India16
    17. 17. Benefit• A control tower solution with RapidResponse approacheliminates the divide between siloed functions with a singleapplication platform that truly delivers on the promise ofintegrating information, capabilities, and people for holisticcoordination of an enterprises operations.8 - May - 2013Pharma Project Management Conference,Mumbai, India17
    18. 18. Case Study - Product to Market• Scenario– As per their business strategy a generic company decided tolaunch an ANDA product post patent expiry• Challenges– R & D, Regulatory, Manufacturing, and supply chaindepartments are located in different locations– TIMELY LAUNCH is THE MOST IMPORTANT GOAL8 - May - 2013Pharma Project Management Conference,Mumbai, India18
    19. 19. Overview - Project teams• Product development team – to increase product efficacy andstability.• Regulatory group – to launch to all markets globally (workingwith the Marketing group to manage the market changes).• Manufacturing Division – to redevelop facilities, review valuestream operations and transfer the developed product intotwo short listed locations.• Global Supply chain – to manage the supply chain changes.• Thus the project was actually a program of interconnectedprojects and therefore virtual teams each delivering a criticalpackage.8 - May - 2013Pharma Project Management Conference,Mumbai, India19
    20. 20. Project manager• The Project Manager for the program reviewed the overallgoals and challenges and then proposed a way of working toaddress any potential issues with the location of the teamsand the criticality of the project.– Set up a collaborative e-area to store and share projectdocuments from each team.– Internet meetings using collaborative tools which were workingsessions as well as for information exchange.– Virtual dashboard so that the large teamwould focus on the overall goal not justtheir part.8 - May - 2013Pharma Project Management Conference,Mumbai, India20
    21. 21. Risk-Based Approach• The team for each critical package was required to report arisk rating with back-up data• The risk rating was collated into a critical path of risks whichwas communicated toteam and to executiveboard to back-up keydecisions on pace anddirection of the project.8 - May - 2013Pharma Project Management Conference,Mumbai, India21
    22. 22. Risk Analysis8 - May - 2013Pharma Project Management Conference,Mumbai, India226Amber50% chance ofsuccessManufacturingMediumprobability ofon-timecompletion,meeting budgetand qualitygoals0 2Amber risks aretrending to redas mitigationplans have notbeen resourcedAmber50% chance ofsuccessProductDevelopmentMediumprobability of on-time completion,meeting productrobustness andquality goals20 6Mitigation plansare all green ortrendingtowards greenGreen>50% chance ofsuccessRegulatoryHigh probabilityof on-timecompletion,meeting qualitygoals0 60Mitigationplans appearto be workingRed<50% chance ofsuccessSupply chainLow probabilityof on-timecompletion,meeting budgetand qualitygoals0 2 6Mitigation planshave failed andneedcontingencyactions ASAPRed>50% chance ofsuccessProject Start-upLow probabilityof on-timesuccessful start-up on timeRed RisksAmber RisksGreen Risks
    23. 23. Outcome• The program progressed significantly before an anticipatedrisk occurred (related to the security of the supply chain for akey raw material).• Because of the team communications in place and the waythe risks were proactively managed.• An alternate vendor though expensive was approved withoutimplicating the overall ability for the product to make itsanticipated impact on the market.• Once launched the product did indeed deliver its intendedbusiness case.8 - May - 2013Pharma Project Management Conference,Mumbai, India23
    24. 24. Lessons Learned• Virtual project teams need a way to effectively work together asface to face sessions are not always practical or indeed possible.Developing these early in the project generated a real team feelingas well as effective work practice• Managing a team across diverse groups requires tools to “bring thepicture together” and the critical path of risks was highlighted as away for groups to explain why something was or was not an issue atthat time in a language that was accessible to others.• Allowing each team to select an appropriate risk tool for theircritical package allowed each to own the risks identified and theway they needed to be controlled and managed.8 - May - 2013Pharma Project Management Conference,Mumbai, India24
    25. 25. Conclusion• Every project or program contains at least one or morecustomers, suppliers, and goods – hence the need for SupplyChain Project Management (SCPM) .• ‘Our job is to get the right goods (product or service) to theright place at the right time for the right cost - but remainflexible to match demand.’Source:1999 - Daniel Newman, J. Sainsbury’s Plc8 - May - 2013Pharma Project Management Conference,Mumbai, India25
    26. 26. Megha Thakkar, PMP ®kotak.megha@gmail.comThank You8 - May - 2013Pharma Project Management Conference,Mumbai, India26