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Just-in-time methodology applied to life science research and development division to improve R&D operating efficiency- A case study

7/19/2020

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Just-in-time is one of many time-tested, scientific business improvement methodologies and can be successfully applied to any industry be it manufacturing, services, government office or an education institute.
Just_in_time methodology applied to life science research and development division to improve RandD operating efficiency_ a case study by Dr Shruti Bhat
Just-in-time (JIT) technique is usually applied to manufacturing and service functions of companies, but not to their R&D divisions. 

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Considering the vast benefits of JIT methodology, I recommended using it in R&D division of a Life science company (my client). This company had a major set back; consequently, had a severe cash-crunch and was looking for a better option to sustain business and avoid employee layoffs.

This project was accomplished few years ago. However, the learnings are relevant today perhaps more than ever before.
The reason being that the Covid-19 pandemic has created a funds-crunch in companies big and small; though start-ups, small and mid-size organizations bear more brunt. Innovation portfolios are being driven in the slow lane, R&D budgets are getting axed and yet the divisions must do more with 'still' less.
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In such a scenario, applying Just-in-time in combination with strategic vendor management will facilitate companies to tide thru this funds-crunch and parallelly continue their R&D endeavor of developing new products.
R&D departments of pharmaceuticals, vitamins & supplements, natural health products, cosmetics and personal product companies need a very large quantity of consumable items. Some of the consumable items are- raw materials, packing material, tools, machine spares etc.

Some of commonly used raw materials in life science R&Ds include- Active ingredients (such as bulk drug, herbal extract), additives (such as bulking agents, colors, flavors, perfumes, emulsifiers, solvents etc.), packing materials (such as tubes, bottles, caps, wads, aluminum foil, paper, glue), machine parts (viz. tablet punches, dies, chromatography columns).

These consumable items are extensively used during experimentation for new product development and testing. In fact, the R&D department cannot function at all if consumables are not provided.

In research-based life science companies and contract research organizations, consumables comprise of 20 – 45 % of their R&D budget. Therefore, any savings in consumable expenses help organizations to lower over-head costs big-time, and Just-in-time methodology does just that!

A four-step approach was taken for this project-

Step 1: The existing supply chain process was mapped, inventory demand-supply schedules reviewed and gaps in these processes were identified.

The objective was to re-design the supply chain process to include Just-in-time technique to lower R&D over-heads (without disturbing R&D output) and the savings generated thereof could be utilized for other needs of the business.

Step 2:  A supply chain process improvement strategy was designed.

Note that, there are several dos and don’ts prior to applying Just-in-time technique for process improvement or process design. One of such important to-dos, is to ensure all items being sourced comply to CQA (Critical Quality Attributes).

Step 3:  A core team comprising heads of R&D, Manufacturing, Quality, Regulatory and Procurement was formed.

Then all consumable raw materials were classified into- expensive, moderate and cheap items, based on their cost and availability. Vendors were approached to provide samples (of raw materials) for testing. Once test results proved compliance to CQA, the vendors were short-listed.

Step 4:  Just-in-time process was set up.

This also involved effective collaboration between R&D, resource planning and quality groups. Then, meetings were conducted with vendors to provide raw materials at negotiated price to R&D. Vendors for expensive raw materials were approached first, followed by those for moderate and cheaper items.

Note that-
  • Depending on the size of the organization and the number of consumable items to be worked on, it might take from 2 to 8 weeks to fully set up Just-in-time in a company.
  • Just-in-time methodology encourages sourcing from local or regional vendors rather than overseas. Should a company go for an overseas vendor, then make sure that vendor has a distribution warehouse situated locally or regionally.
  • Savings from Just-in-time implementation are further augmented when R&D's follow Quality-by-Design (QbD) approach for product development.

Result Dashboard: 
  1. Through flawless execution of Just-in-time technique, around 35% of R&D over-head cost was saved in the first year.
  2. Besides lowering over-heads, Just-in-time also helped free-up warehouse capacities.
  3. Continued implementation of Just-in-time technique maximized over-head savings up to around 80%.
To know more on how Just-in-time technique can benefit your organization-
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You may want to checkout more on Just-in-time:
  • What is Just-In-Time approach?
  • Advantages of Just-in-time strategy
  • Just- In-Time Production Strategy with mastermind Shruti Bhat : Limitations
Keywords and Tags:

​#JustInTime  #ImproveOperatingEfficiency  #ContinueInnovation #ContinueProductDevelopmentInPandemic   #Covid19  #ImproveOperatingExcellence  #ProcessImprovement  #ProcessDesign
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Business Turnaround and Innovation Management in a Global Contract Research Organization- A Case Study

10/30/2019

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Business turnaround and innovation management in a global contract research organization_ a case study
​Innovation Management and Business Turnaround Case Study.

Problem:  A Global Contract Research Organization (CRO) was sick and on the verge of being sold out. The management wanted to give a final shot for its revival prior to potential sell off.

All projects were running late. Not a single project milestone was achieved hence, clients had stopped payment. Company’s cash-flow had come to standstill. Many employees were laid off. As the company had no funds to pay vendors, they had stopped supplying raw materials, hence work stopped too. It was turning into a vicious catch 22 situation. No funds- so no project work was happening and clients paid no funds- because no project milestone was delivered.

Due Diligence: Financial and Technical Audits, RCA, Pareto and Ishikawa studies were conducted to evaluate CRO’s financial health, site, systems, products, problems, processes, human capital, customer complaints etc. The objective was to review the CRO and bring back its glory.

Solution: Business process redesign/ re-engineering was undertaken alongside strategic portfolio management. Hoshin, QbD and DOE were installed for strategic innovation management. Lean and Just-in-time methodologies were installed to help cash-flow and prompt project deliveries. 8D and Kaizen models were executed to turnaround the business.

Result Dashboard:
  • The CRO was reviewed in just 9 months! Balance sheet showed first signs of positive growth within 5 months of ‘process change’ implementation.
  • An effective customer relationship management process was introduced which provided repeat business from existing clients.
  • New clients were added. New contract research projects of over $ 35 million was received.  
To learn more about how Shruti can help your organization achieve new heights or to book a Workshop, Contact Dr. Shruti Bhat via Form or WhatsApp

Follow Shruti on Twitter, Facebook, YouTube, LinkedIn


​​Keywords and Tags:
#ContinuousImprovement #Innovation #BusinessTurnaround #Kaizen #JustinTime #HoshinKanrii #QbD #DOE  #Lean
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Innovation Management, Just-in-time and Kaizen Case Study in a Multi-National Pharmaceutical Company Working on ANDA Para III and IV Drug Products

10/16/2019

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Innovation management _ just_in_time and Kaizen case study in a multinational pharmaceutical company working on ANDA para III and IV drug products
​Innovation Management, Just-in-time and Kaizen Case Study

Problem:  An multi-national pharmaceutical company had an ambitious goal of new product introductions into several developed markets including US (20 products ANDA para III and IV), Brazil (36 products) , Canada (5 products) and Australia (3 products) to be accomplished over a period of 2 years. All the products were new to the company and they wanted to be 2nd or 3rd player in the market.

All the products had to be developed first, followed by regulatory submissions for getting  marketing approvals in US, Canada, Brazil and Australia. The company also wanted to know the LCM for each of the products in order to create appropriate yearly budgets.

Solution:  The Innovation portfolio was strategically designed. Potential value stream maps were designed for each new product and all concerned standard operating processes were put in place. Product development, regulatory, IP, manufacturing, testing, pricing and logistic strategies were developed along with their respective plan for implementation. LCM protocols were submitted to the company’s management board.

Design Thinking, QbD and DOE were employed to succeed with the innovation portfolio. Kaizen and Just-in-time methodologies were applied to bring about a culture of innovation within the organization.

Result Dashboard:  
  • Product approvals for all products was received in time as per schedule.
  • Profit margins further improved as Lean methodology was employed to operations which saved overheads by 18- 20%.
To learn more about how Shruti can help your organization achieve new heights or to book a Workshop, Contact ​Dr. Shruti Bhat via Form or WhatsApp

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​Keywords and Tags:
​
#ContinuousImprovement   #InnovationManagement  #QbD #qualitybydesign #DesignThinking  #DOE  #Kaizen #JustinTime  #LifeCycleManagement
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Just- In-Time Production Strategy with mastermind Shruti Bhat : Limitations

11/10/2013

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While there are many benefits to using Just- In- Time as a production strategy in a business, there are also some drawbacks to be aware of.   When implementing any new practice to a company it is best to be aware of both the advantages and disadvantages in order to make an informed decision and to possibly stop the negative from occurring. 
 
One of the major drawbacks of Just- In- Time is perhaps loss of face. It can be very embarrassing for companies to have to admit that the product is not yet available, not ready in time or other reasons due to errors in scheduling, delivery and so on, of goods. Aside from affecting the reputation of the company, it can also lead to loss in revenue. 
 
When a company decides to apply Just- In- Time, they have to understand that this gives a lot of responsibility to elements outside of their control. These companies have to put a lot of dependence onto the suppliers and maintain a great relationship with them for the greater good of the company. The raw materials provided by suppliers are essential to the company when using this strategy and suppliers have a higher chance of causing harm to the company, such as causing production to terminate entirely at any given moment. 
 
If parts are unavailable then the company is the only one that suffers. Toyota went through this experience once when a company stopped delivering break pieces to Toyota. This caused Toyota to have to shut down their entire production in Japan. It is estimated that Toyota lost sales of around $15 billion when the break parts company was eventually reinstated. 
 
Sometimes it is not even the supplier’s fault that parts could not be delivered, could be due to natural disasters, which can cause a company to completely stop production or make them unable to deliver the goods. 

It can be quite costly, time consuming and tedious to start using Just -In -Time. One of the necessities when implementing  Just- In- Time, in order to save a lot of hassle, is to invest in IT that allows suppliers and companies to communicate easily and effectively via computer systems. This makes it much easier to manage orders and other important planning/ strategic details. 
 
Also, once a company does decide to use Just- In- Time as a strategy, they have to be aware that a large, unanticipated order might not to be able to be met (should there be a flaw or un-anticipated issue) and therefore, their services will be taken elsewhere. 
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​#Manufacturing #JIT #FMEA #BPM #ProcessExcellence  #ContinuousImprovement #QualityImprovement  #Quality  #BusinessProcessManagement  #ServiceIndustry  #ManufacturingManagement  #RiskManagement #Justintime
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Advantages of Just- In -Time Production Strategy with mastermind Dr. Shruti Bhat

11/10/2013

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​There are a number of advantages to using the Just In Time production strategy few have been cited here: such as less waste, better quality and a number of manufacturing process benefits. Specifically, the best reasons for using Just In Time are increased productivity, competitive improvement, lowered costs and increased work satisfaction.
Advantages of Just in time methodology
Increased productivity is a result of using Just In Time since it requires better organization of production. Without any organization, Just In Time will not benefit the company. When using this strategy, it is essential for the company to have complete awareness of the processes involved in production in order to simplify work preparation. Hewlett Packard found that using Just In Time allowed them to save up to 95% of assembly time. 

This strategy also allows companies to gain advantage over their competition because it creates a business that is flexible and sees the need for effective communication between suppliers and customers. This permits companies to make quick decisions in response to the demands of the market. Customer loyalty is often a direct result of implementing Just In Time strategy.
 
Storage costs can be a significant drawback for companies. Just In Time allows companies to lower their costs of storage by a large amount since they only require materials at a certain stage. This makes for better flow of money and lowers the amount that is held in stock. Also, this means that there is less need for space to hold the additional goods. Hewlett Packard lowered their inventory quite drastically by implementing Just In Time. Warehouses can be quite expensive and Just In Time eliminates, or greatly reduces, that issue. 

It is necessary for employees to be completely involved during the process of production. This increases their attention, skill and self-esteem by allowing them to have a fair bit of responsibility. Employees that are valued by their company, which is reflected through decision-making and similar factors, tend to perform better for the good of the company, instead of their area or department. This helps maintain employee loyalty, which results in less employee turnover and lessened costs related to recruitment. The best benefit for employees, and therefore the company, is raised morale. 

Another factor that makes Just In Time very appealing for companies is that the costs that would have otherwise gone to inventory and storage can be used elsewhere, such as marketing, training and other important aspects. The storage space that would have otherwise been used for holding goods (only if it is not an additional warehouse, etc.,) can be used for something more productive. 
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​#Manufacturing #Justintime #JIT #ProcessExcellence #BPM #ContinuousImprovement #Kaizen   #BusinessProcessManagement  #ServiceIndustry  #ManufacturingManagement    #BPM  #LeanManagement  #KaizenLeaderMasterclass    #Kanban  #Sourcing
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What is Just-In-Time approach?

11/9/2013

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Just –In- Time is a production strategy used by companies to improve efficiency, hasten return on investment by reducing inventory, wastes and associated carrying costs, by obtaining goods only when they are required in the process. This drastically lowers cost of inventory. However, it is a process that requires producer’s foresight into accurately predicting what, when and how many goods will be required. 
  
An example of the Just In Time production strategy is to picture an automotive manufacturer that does not have high levels of inventory and who relies on the main supplier to contribute the necessary parts to build a car. The parts come “just in time” since they do not arrive prior or following the time in which they are necessary. 
 
It can also be imagined as the antithesis to “just in case”, which causes producers to stock up on inventory in  expectation of an increase of demands. Just In Time typically relies on sight to determine when pieces or goods are needed. This can be achieved by noticing that a required part is missing or will be necessary in the near future in order to complete the manufacturing process. 
  
When it comes to the Just In Time strategy, a certain number of orders is only restocked when all the items have been used, or a certain level has been reached. There is never an abundance of goods or parts, which is great for those that have limited storage space as well as funding. It can be beneficial to the company due to higher return and profit of the investment. 

There are some on-going discussions about who invented the JIT approach. Was is it Toyota or Ford? Published reports cite that- both have given credits to each other and also collaborated working on JIT approach development. JIT approach has been first implemented by the automobile sector in the 1970’s, based on ideas that were already in use by other manufacturers. Henry Ford’s company also worked on the same principal and found that this method made his process smoother and allowed for higher and quicker turn over, as well as cut costs on excess materials. 
 
When Toyota started to use Just In Time, they found that as long as they were able to evaluate where the flaws were, that they could actually end up building cars at faster pace and at least cost. This fostered their idea of having cars that were built to order, so there would be no potential loss if the car did not sell and eliminated risk entirely. 

They also found that they were able to rely on certain suppliers instead of multiple ones, which ended up having an effect on consistent quality and significantly reduced the need for quality checks. 


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