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Establishing manufacturing management strategies
- 1. Establishing manufacturing management strategies Clinical Trials Supply New England 2016 Eyal S. Ron, Ph.D. Chief Technology Officer 501 Boylston Street; Suite 6102 Boston, Massachusetts 02116 Tel: +1 617.308.8200 Email: eron@gelesis.com / Eyal@MADASH.com Web: www.gelesis.com Twitter: @EyalSRon
- 2. Establishing manufacturing management strategies and examining selection processes to ensure the best manufacturer is selected for your company Outline: Introduction Manufacturing Management Strategies Requests for proposals (RFPs) • The organization's culture and needs • Project Requirements • Timeline / Milestones / Deadlines • “Killer” criteria • Decision / Evaluation
- 3. What is a Manufacturing Management Strategy? A pattern of decision making with certain consistency Steady buildup of small decisions that gradually formed as action pattern for the company (all stake holders) Strategy as plan (vision) • Strategy as "what top management says“ or • Strategy as pattern (action pattern) Strategy and implementation are inseparable (and are a vital force in overcoming resistance to change)
- 4. Manufacturing Management Strategies Business Strategy Competitive priorities (e.g., cost) Decision categories (e.g., performance) Manufacturing Strategy Two major constituents of manufacturing strategy: competitive priorities and decision categories
- 5. Request for Proposal (RfP) A request for proposal (RfP) is a solicitation, often made through a bidding process, by an agency or company interested in procurement of a commodity, service or valuable asset, to potential suppliers to submit business proposals. It is submitted early in the procurement cycle, either at the preliminary study, or procurement stage https://en.wikipedia.org/wiki/Request_for_proposal
- 6. What's the Purpose of the RfP Process, and When Do You Need One? Finding the site/vendor/OM that best suits the needs of the organization an opportunity to interview key stakeholders and bridge the gap between the vague aspirations that launch a project and the concrete, measurable requirements that guide it to successful conclusion Accountability and good governance (encourages fairness and transparency while minimizing the likelihood of favoritism)
- 7. Steps in the RfP Process Establish the project's boundaries Identify key stakeholders and advisors Define your project needs Draft the RFP • Create a draft of the scoring criteria • Review with the team (stakeholders and advisors) Select 3 – 5 Regions / vendors / OM Submit the RfP Q & A Review proposals
- 8. What Information Should be Included in the RfP? Organizational background Project Description / objectives Product Description Project Requirements / acitivites Timeline (create a reasonable timeline) • Milestones / Deadlines Questions and required information • A “Killer” criteria • Questions based on past experiences • MSDS, Product specifics (such as physical properties) • Fee structure Contact information and deadline for submissions
- 9. RfP Specifications Examples of quantitative measures that will be evaluated in the vendor's response Product drawings Engineering tolerances Service levels Technical or Business Requirements Functionality Hardware requirements
- 10. RfP’s “Do Nots” Misleading information Different verbal and written communication Ask for “Freebies” Champion receiving lowest prices
- 12. RfP Challenges Not all vendors with the appropriate capabilities will be interested in the amount of business that are offered Forecasts of future needs are uncertain, but they set the foundation for credibility with the vendor Rushing through the process can lead to costs inaccuracies and mistakes Product’s quality must be inline with the competitive priorities and the decision categories With frequent product changes, establishing a single point of communication Managing the end of a relationship is often viewed as adversarial and therefore not addressed until a crisis occurs The vendor’s team that wins often isn’t the team that services the business relationships Ensuring compliance with regulatory directives
- 13. Evaluation Criteria Quality Timeline Cost Quality of communication Project leader Do they “get us”? Contract Cost True Cost Quality Defects/ # of lot failures Delivery Lead time Innovation Number of ideas / improvements from the vendor
- 14. Evaluate RfP by Alex Lichtenberger • Allgemein, IT Governance
- 15. Evaluate RfP - do not judge a vendor solely on the proposal Meet the vendor • Management • Team • Project leader • Communication style Optionally, audit the vendor References Does the vendor really wants to win the proposal?
- 16. Establishing manufacturing management strategies Conduct negotiations Consider subjective criteria other than price in the Award contract
- 17. Relationships / Contracts Partnership PO Relationship Contract RelationshipManaged Relationship Adequacy of the Supplier Importance
- 18. Summary A pattern of decision making with certain consistency Steady buildup of small decisions that gradually formed as action pattern for the company Manufacturing strategy as pattern (action pattern) Strategy and implementation are inseparable Exploited through the RfP process
- 19. Make Manufacturing a Competitive Advantage Thank you! Eyal S. Ron, Ph.D. Eyal@madash.com +1 617-308-8200