Background
A global leader in bioscience, advanced pharmaceutical products, equipment and consumables, chemistry, and biotechnology, operates with an annual revenue of billions and employs thousands of people worldwide. The advanced pharmaceuticals site, responsible for producing 40-60 different products, faced significant operational challenges impacting production efficiency and customer satisfaction.
Challenges
➢ Long Batch Release Times: Average batch release times ranged from 6 to 8 weeks, significantly higher than the target of 4 weeks or less.
➢ Low Schedule Adherence: The site’s schedule adherence was at 60%, falling short of the 75% target.
➢ Low Manufacturing Uptime: Manufacturing uptime was at a very low 40%, against a minimum target of 60%.
➢ Customer Complaints and Lost Contracts: Frequent major customer complaints and the loss of 1-3 contracts every 3-4 months.
➢ High Work in Progress (WIP) Inventory: The warehouse was full, with millions of dollars tied up in WIP inventory.
Implementation
To address these issues, a comprehensive Value Stream Optimization (Kinetics) project was initiated. This project involved several key steps and methodologies:
➢ Shareholder and Site Engagement: Engaged stakeholders and site personnel to ensure commitment and alignment with project goals.
➢ Cross-Functional Team Formation: Established a cross-functional team comprising members from Manufacturing (MFG), Quality Assurance (QA), Quality Control (QC), Supply Chain, Warehouse, and Engineering.
➢ DMAIC Approach: Applied the Define, Measure, Analyze, Improve, and Control (DMAIC) methodology to systematically address and resolve issues.
➢ Value Stream Mapping and Waste Elimination: Created value stream maps to identify and eliminate waste. Root Cause Analysis (RCA), Visual Management, and Six Sigma Belt Projects were employed.
➢ Hoshin Kanri and Pull Systems: Implemented Hoshin Kanri for strategic planning and pull systems to enhance production flow.
➢ Total Productive Maintenance (TPM) and Kaizen: Applied TPM and Kaizen techniques to improve equipment reliability and foster continuous improvement.
➢ Teamwork and Collaboration: Promoted teamwork and collaboration across departments to drive project success.
Results
The implementation of these initiatives led to remarkable improvements:
➢ Reduced Batch Release Time: Achieved an average batch release time of 4 weeks.
➢ Increased Production Uptime: Improved overall manufacturing uptime to 75%.
➢ Enhanced Production Readiness: Achieved 90% production readiness.
➢ QA and QC Improvements: Realized a 68% improvement in QA batch release times, a 30% reduction in QC raw material cycle times, and a 48% reduction in QC rush testing.
➢ Significant Inventory Reduction: Reduced inventory by $6.1 million.
➢ Customer Satisfaction: Re-engaged with customers, celebrating timely batch deliveries and improved turnover.
“Customers called back and celebrated timely batch deliveries and this big change in turnover with us. That was great! Enjoyed every part of this project and learning more about the methodology. “ – VP of Operations
“The project was one of the best examples of how raw material-to-customer delivery value can be increased. It added tremendous value. “ – Head of Engineering
