scor make element pharmaceutical castillo linares itesm make element of scor
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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
8/10/2019 SCOR Make Element Pharmaceutical Castillo Linares ITESM MAKE Element of SCOR
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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
©2002 by Ileana Castillo
8/10/2019 SCOR Make Element Pharmaceutical Castillo Linares ITESM MAKE Element of SCOR
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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
©2002 by Ileana Castillo
8/10/2019 SCOR Make Element Pharmaceutical Castillo Linares ITESM MAKE Element of SCOR
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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
©2002 by Ileana Castillo
8/10/2019 SCOR Make Element Pharmaceutical Castillo Linares ITESM MAKE Element of SCOR
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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
©2002 by Ileana Castillo
8/10/2019 SCOR Make Element Pharmaceutical Castillo Linares ITESM MAKE Element of SCOR
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Lámina 6
Cost Structure
– Materials
– Line Costs
• Labor Cost• Machine Cost
• Quality Testing Labor Costs
– Product Related Cost
©2002 by Ileana Castillo
8/10/2019 SCOR Make Element Pharmaceutical Castillo Linares ITESM MAKE Element of SCOR
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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
©2002 by Ileana Castillo
8/10/2019 SCOR Make Element Pharmaceutical Castillo Linares ITESM MAKE Element of SCOR
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Lámina 8
Solution Proposed
©2002 by Ileana Castillo
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)
8/10/2019 SCOR Make Element Pharmaceutical Castillo Linares ITESM MAKE Element of SCOR
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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
©2002 by Ileana Castillo
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Lámina 10©2002 by Ileana Castillo
S5: Analysis:!Global Cycle time
Impact
S6: Family Set up
assignation
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Lámina 11
S7:Analysis:
!Line cost impact for each product
!Capacity Variance Impact
!Head Count Impact
!Inventory Value Impact
S8: Conclusions and
recommendations
©2002 by Ileana Castillo
8/10/2019 SCOR Make Element Pharmaceutical Castillo Linares ITESM MAKE Element of SCOR
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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
©2002 by Ileana Castillo
8/10/2019 SCOR Make Element Pharmaceutical Castillo Linares ITESM MAKE Element of SCOR
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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
©2002 by Ileana Castillo