Business Horizons

Cost Rationalization in Pharmaceutical Production

crpb

Cost Rationalization in Pharmaceutical Production

by William Whyte

The pharmaceutical industry is facing increasing pressure to reduce costs, in order to remain competitive. This can be achieved through a variety of ways like cost reduction through sustainable manufacturing strategies, developing a streamlined and consistent global supply network, identifying global suppliers and controlling COGS throughout the product development and manufacturing lifecycle. With low-cost manufacturing, high-quality research and manufacturing facilities and educated personnel, the Indian pharmaceutical industry presents both a competitive threat and partner opportunities. This has resulted in increasing its manufacturing capability to competetive international levels, so that it is fast emerging as a sourcing partner for international pharma majors. India now has the largest number of US FDA approved plants outside the USA and boasts of permanent facilities of USP and US FDA due to the large number of regulated pharma manufacturing facilities.

This book for the first time provides a rare insight into the nitty-gritty workings of Indian pharma companies, how they have managed to bring down the cost of manufacturing to surprisingly low levels while maintaining compliance with world regulatory authorties. With the unique angle of supply chain opportunities, this book provides a scientific study of cost rationalization in production giving numerous examples, case studies, tables/charts and illustrations. Pharmaceutical companies worldwide can now tap into the management resources of Indian pharma companies for obtaining unique cost leverage and control cost of production. This is a very focussed and coincise book dealing exclusively for the first time on cost rationalization in pharmaceutical production through the route of supply chain gaps and opportunities.

 About the Author

GBRK Prasad is working as Associate Director, Supply Chain at Dr. Reddy's Laboratories Ltd, Hyderabad, India's second largest pharmaceutical company by sales. He has over 25 years of experience in the Indian corporate sector across different verticals like automobiles and pharmaceuticals, along with a stint in academics. A graduate in mechanical engineering from IIT Delhi, PGDIE from NITIE, Mumbai, MBA from Jamnalal Bajaj Institute, he pursued his PhD from Osmania University, and is a fellow member (CFPIM) of The Association for Operations Management (APICS).

CONTENTS

MANUFACTURING OPERATIONS RATIONALIZATION

Batch Size Optimization
Conventional Formulation
Alternate Formulation for Manufacturing Flexibility
Suggestions for Future Research
Batch Size Determination – Practical Issues
Make to Stock Items (MTS)
Make to Order Items (MTO)
Relationship Between Batch Size and Cycle Time
Current Practices in Pharma Industry
Production Process
Software for Optimization in Manufacturing
Heuristic for Improving Utilization of Module Type of Production Systems
Other Concepts for Manufacturing Optimization
How to Align Manufacturing to Demand?
Conclusions
Other Ideas in Manufacturing
Yield improvement
Design for Manufacturability
Packaging Materials SKUs Proliferation
Japanese Way to US Market
References

WORKING CAPITAL RATIONALIZATION

Cost Reduction Concepts
Common Excipients
Optimization of Service Levels
Procurement Strategies for MRO Items
Streamlining of MRO Purchases
Constituents of Inventory Turns – Which One to Improve?
Inventory Turns – A Relook
Cycle Stock
Safety Stock
Working Capital Concepts

MARKETING OPERATIONS RATIONALIZATION

Finished Goods Inventory Planning
Controlling Selling, General and Administrative Expenses
Market Share Gaining Model
Organization Design for Selling Process
Judging Marketing Productivity

R & D OPERATIONS RATIONALIZATION

Synergy Among the Medical and Pharmaceutical Sciences
Whether supply chain techniques can help in this regard?
Intellectual Property Issues
QA Related Issues

PROJECT MANAGEMENT

Successful Project Implementation
Optimizing Project Costs
Total Cost of Ownership
Cost Optimization
Product Planning for New Facilities to be Created

SUPPLY CHAIN METRICS FOR EXCELLENCE

Performance of a Global Distribution Centre (GDC) Warehouse
Measures That Need to be Controlled
Performance Evaluation in a Company
Benchmarking of Procure to Pay Processes (P2P)
Metric to Measure Elasticity of Supply Chain – Case of Dr. Reddy's
Another Way to Judge Inventory Performance

 

Order now
Product
402
Cost Rationalization in Pharmaceutical Production
Price/Unit
£ 82.00
Qty
DeliveryCosts