Shruti Bhat PhD, MBA, Lean Six Sigma Black Belt
  • Home
  • About Shruti
  • Consulting
  • Workshops
  • Patents
  • Articles
    • Case Studies
    • Innovation Portfolio Development & Patents
    • Drugs-in-the- making
    • Culture Change & Business Transformation
    • Operational Excellence, Quality & Continuous Improvement
  • Books
  • Digital
  • Blog
  • Videos
  • Contact

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

7/19/2020

0 Comments

 
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. 

​
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.
​
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-
Get In Touch
Follow Shruti on Twitter, Facebook, YouTube, LinkedIn
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
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Shruti Bhat, global leader in business turnaround, operational excellence and continuous improvement

    New Book Released!

    top ten strategic decision-making tools for operational excellence

    Shruti's YouTube Channel ...

    Picture

    Blog Categories

    All
    3D Printing
    5S
    Agile
    Artificial Intelligence
    Automation
    Balanced Score Card
    Biotechnology
    Books
    Business Turnaround
    Case Studies
    Change Management
    Chemical Industry
    CMMI
    Continuous Improvement
    Design Thinking
    Digitalization
    Drug Delivery
    External News Links
    Food Industry
    Hall Of Fame
    Healthcare
    Hoshin Kanri
    HR Development
    Innovation
    ISO
    Just In Time
    Kaizen
    Leadership
    LEAN
    Lean Six Sigma
    Life Sciences
    Machine Learning
    Manufacturing
    Medical Devices
    Mistake Proofing
    Motivational Cards
    Nanotechnology
    Operations
    Packaging
    Patents
    Personal Products
    Process Improvement
    Product Development
    Productivity Increase
    QbD
    Quality Management
    Robotics
    Scrum
    Service Industry
    Six Sigma
    Strategy
    Supply Chain Logistics
    Telecom Industry
    TQM
    Videos
    Voice Of Customer
    Workshops

    Shruti's books...

    Picture
    shruti bhat, business process management, continuous improvement
    kaizen for pharmaceutcials, medical devices and biotech industry book by Dr Shruti Bhat
    Book on Continuous improvement tools by Dr Shruti Bhat
    kaizen for leaders, continuous process improvement tool to increase profit and organizational excellence by shruti bhat
    kaizen, shruti bhat, continuous improvement, quality, operations management
    Picture
    how to overcome challenges of creating effective teams
    how to lead a successful business transformation

    ​Micro-Learning
    ​Partner

    Picture

    Publishing Partner

    fast read books, business management books, health and wellness books, spiritual guidance books, best online book store

    Wellness
    ​Partner

    Picture
© Copyright 1992- 2022 Dr. Shruti Bhat ALL RIGHTS RESERVED.
See Terms and Conditions for details on this site usage.
SHRUTI BHAT, CONTACT
Click to connect.
Created by Macro2Micro Media