Bpr report mavericks

|

MAY 3RD 2011

Business Process Reengineering report

|Business Process Reengineering | 2

SHAFQAUT ALI FAROOQIManager Logistc at Coats Pakistan.

2534

SHEEMA RAZAHead Production, Planning & control feaprtment at HINOPAK

2936

ADIL AZIZExecutive Catagory Analysist at Cambrigde Pvt. Ltd.

2938

KAHKASHAN QAMAR Executive Qaulity Control department at Phyzer

3077

ATIF AFTABSenior Aircraft Technician at Pakistan International Airlines.

2349


Abstract

The report is containing small practices of reengineering which applied in organization in context of improvement and effective utilization of resources and provide the maximum throughput.

This report is based on different case studies which are applied in a pharmaceutical company and a manufacturing company.


We dedicate this report to our dear facilitator Sense AbdullahSense Abdullah AlumniAlumni, whose great efforts of teaching with us through which we learnt a lot and he challenged us to search out the reengineering work in organization and gather implemented project in any organization in the context of business reengineering management and present in professional manner. With the clear vision and strong vision provided by Sense AbdullahSense Abdullah AlumniAlumni, we able to make report on a pharmaceutical organization and manufacturing

Contents

| Preface |........................................................................................................6

| Project 1 |.....................................................................................................7

| Project 2 |.....................................................................................................8

| Project 3 |...................................................................................................10

| Project 4 |...................................................................................................14

| Project 5 |...................................................................................................16


| Preface |

Business process reengineering is the analysis and design of workflows and processes within an organization. According to Daven ports(1990) business process is a set of logically related tasks performed to achieve a defined business outcome.

Re-engineering is the basis for many recent developments in management. The cross-functional team, for example, has become popular because of the desire to re-engineer separate functional tasks into complete cross-functional processes. Also, many recent management information systems developments aim to integrate a wide number of business functions.

Enterprise resource planning, supply chain management, knowledge management systems, groupware and collaborative systems, Human Resource Management Systems and customer relationship management.

Business process reengineering is also known as business process redesign, business transformation, or business process change management.

It is shown that full BPR implementation has significant impact on an organization, particularly in terms of its culture.

Many companies claim to have successfully undertaken business process reengineering (BPR) and point to dramatic improvements in their competitive position. They and their management consultants have quite rightly highlighted the need to address the organizational and people issues, if BPR is to be successful.

Hence, business process reengineering one means ‘to performance improvement’


| Project 1 |

Problem: High water consumption.

Business Case: Efficient utilization of water and reduce water consumption. 90 m3 waste water has been discharge from entire facility per working

day. Average 70 m3 per day treated water has been discharge from WWTP. In a year almost 4804128 gallons treated water has been wasted from

WWTP. No usage of treated water. Lack of water conservation awareness.

Process Improvement:Before Improvement Opportunity: Initiative taken to Utilize Treated Water from WWTP in non-

technical area : Before Implementation of project

Frequency of washing for car parking area per month was 4 times. Water used for one cycle of washing = 2 tanker = 4000 gallons approx. Cost of one tanker = Rs. 1,800 / Water consumption = 4 x 12 x 4000 = 192,000 gallons per year Cost of water for washing = 4 x 12 x 2 x 1800 = Rs. 172,800 per year

After Improvement


Improved Process Impact: Water consumption reduction; 192000 gallons/year. Water cost reduction; Rs. 172,800 per year. 4% better utilization of treated water.

Implementation: A connected line of treated water has been provided near the car

parking area. Required training has been provided to janitorial staff.

| Project 2 |

Problem:Receiving of frequent work orders for replacement of bulb in tanks (bulb fuse) in Liquid Manufacturing area The Liquid Manufacturing Plants are ideal tools for the pharmaceutical industry for the production of Oral Liquids. It is specially designed to take care of two critical factors which directly affect the quality of the Liquids. Minimum manual handling of Liquid. Effective cleanness during manufacturing is requiresBulbs are used to prevent contamination and for safety purpose Extensive wiring have been implemented in this regard. Manufacturers of foods, pharmaceuticals and drinks realize the ethical, legal and economic hazards of product contamination. During the storage, sweeteners and other syrups are subject to airborne contamination and frequently ferment as a result of airborne infection in the condensation on the product surface.

Business Case: In-efficient bulb used Due to high supply voltage Improper wiring (EHS Environment health

and safety issue)

Process Improvement: Replace 100 watts bulbs with 50 watts

halogen projection lamps and connect step down transformer at the end of 220 V supply to get 12 V at its out.

Improve Process In 2010


From work order history ,Job order regarding replacement of bulb was given to engineering department it was found that

Work order related to replace bulb in tank = 8 In each work order average tank = 3

Therefore, Reduce no. of work orders from 25 to 8 Reduce time consumed for maintenance from 62.5 hrs to 12 hrs. Reduce Electrical consumption by replacing 100 watt Bulbs to 50 watts

halogen Bulbs.

Improved Process Impact: Reduced average work order related bulb fuse in tanks by 30%. Reduced time consumed for maintenance. Reduced electrical consumption by replacing 100 watts to 50 watts

bulb and improved EHS performance.

Implementation: Modification in the electrical system wiring has been updated and

documented. Required training has been provided to maintenance staff related to

new change. Maintaining new inventory for 50 watt Halogen bulbs.


| Project 3 |

Problem:Non-availability of assay media for microbial testing of misstating (Nil stat Drops). Nystatin: belongs to the group of medicines called antifungal. The dry powder, lozenge (pastille), and liquid forms of this medicine are used to treat fungus infections in the mouth. NILSTAT is used to treat a condition called oral candidacies or thrush. This is an infection in the mouth caused by the fungus Candida and is marked by sore, creamy-yellow, raised patches in the mouth. NILSTAT is also used in infants to treat gut infections caused by Candida.

Business Case:Nilstat Drops is an Antibiotic with antifungal activity.

It is a running product. In 2009, 44 batches of Nilstat Drops were manufactured.Due to non-availability of assay media, it was difficult to test & release the product. Microbial media: something such as agar were bacteria growsAssay: quantitative or qualitative test of a substance (especially an ore or a drug) to determine its components; frequently used to test for the presence or concentration of infectious agents or antibodies etc microbiological assay Method of measuring compounds such as vitamins and amino acids, using micro‐organisms. The principle is that the organism is inoculated into a medium containing all the growth factors needed except the one under examination; the rate of growth is then proportional to the amount of this nutrient added in the test substance.

Conventional (old) method was in use. Single source vendor for the purchase of Nystatin media. Media was not available at vendor’s end due to shortage.Problem for the release of product from Quality Control Department couldn’t market the product until QC gives approval


http://www.encyclopedia.com/doc/1O39-microorganisms.html

Process Improvement:Alternate HPLC method was searched and validated. High-performance liquid chromatography (or high-pressure liquid chromatography, HPLC) is a sophisticated instrument used in quality control department in most pharmaceutical companiesIt is a chromatographic technique that can separate a mixture of compounds and is used in biochemistry and analytical chemistry to identify, quantify and purify the individual components of the mixture .Mobile phase are the most expensive solvents used during HPLC Analysis

PRODUCT: NILSTAT DROPSASSESSMENT OF MEDIA/BUFFER UTILIZATION/COST USED IN BIOASSAY OF NYSTATIN:

Test

requ

ired

Media

/ B

uff

er

req

uir

ed

Pack

Siz

e

Pri

ce

Pre

para

tion

Quanti

ty

of

med

ia/

Buff

er

re

quir

ed /

batc

h

Quanti

ty o

f m

ed

ia/B

uff

er

req

uir

ed/

year*

*

Cost

of

media

/ B

uff

er/

batc

h

Cost

of

media

/ B

uff

er/

year*

*

Nysta

tin

Bio

assay

Antibiotic Medium # 19

500 gm

Rs. 18750

8.33 Liter

900ml or 0.9Liter

39.6 Liter

Rs. 2026 Rs. 89136

PO4 Buffer (pH 6.0)

1Kg *

KH2PO4=

KH2PO4=

1405ml or 1.41Liter

62.04 Liter

KH2PO4=

KH2PO4=

RS. 160012.5 Liter

Rs. 180Rs. 7941

K2HPO4=

K2HPO4=

K2HPO4=

K2HPO4=

Rs. 1700 25 Liter Rs. 96Rs. 4219

DMF2.5 Liter

Rs. 15003.125 Liter

850ml or 0.85Liter

37.4 Liter

Rs. 408Rs. 17952

TOTAL COST OF MEDIA / BUFFER PER YEAR = Rs. 119248

*PO4 Buffer Contains following ingredients:Potassium dihydrogen Phosphate / 1 Kg / 1600 Rs / 12.5 LIT


http://en.wikipedia.org/wiki/Analytical_chemistry

http://en.wikipedia.org/wiki/Biochemistry

http://en.wikipedia.org/wiki/Chromatographic

Media Preparation (1.5 Hrs) SamplePreparation (45 minutes)

PlatePreparation (20 minutes)

Pouring of Sample + Transfer to Incubator (20 minutes)

IncubationTime

(18 Hrs)

Plate Reading (30 minutes)

DiPotassium hydrogen Phosphate / 1 Kg / 1700 Rs / 25 LIT

** In 2009, 44 batches of Nilstat Drops have been manufactured.

PRODUCT: NILSTAT DROPSASSESSMENT OF MOBILE PAHSE /COST USED IN HPLC ASSAY METHOD OF NYSTATIN:

Test

req

uir

ed

Mob

ile P

hase

Pack S

ize

Pri

ce

Pre

para

tion

Qu

an

tity

of

Qu

an

tity

of

Mob

ile P

hase /

b

atc

hC

ost

of

Mob

ile

Ph

ase /

batc

h

Cost

of

Mob

ile

Ph

ase /

year*

*

Nysta

tin

A

ssay

B

y

HP

LC

2.5 Liter

Mobile Phase / batch

year**

Methanol Required

500 ml

900 Rs.

500 ml

500 ml

22 Liter

Rs. 180

Rs. 7920

TOTAL COST OF METHANOL PER YEAR = Rs. 7920

** In 2009, 44 batches of Nilstat Drops have been manufactured.

Process Flow (Microbial Method)


Preparation of Mobile Phase (20 minutes)

Washing and Setting of HPLC Column(20 minutes)

Sample & StandardPreparation(20 minutes)

Time for One Sample of HPLC(60 minutes)

Process Flow (HPLC Method)

Improved Process Impact: 93% cost saving by using HPLC method for analysis of Nilstat Drops. Reduced time from 21.5 hours to 2 hours. Faster customer service. Cost of microbial method = Rs. 119248/year. Cost of HPLC method = Rs. 7920/year. Saving of Rs. 111328/year (1309 US$/year).

Implementation:Change control approved. Change control within Quality management systems (QMS) is a formal process used to ensure that changes to a product or system are introduced in a controlled and coordinated manner. It reduces the possibility that unnecessary changes will be introduced to a system without forethought, introducing faults into the system or undoing changes made by other users of software. The goals of a change control procedure usually include minimal disruption to services, reduction in back-out activities, and cost-effective utilization of resources involved in implementing change.


Testing method (SOP) updated & implemented. Training provided to concerned staff in Quality Control Department. Nilstat Drops (Nystatin) is tested as per revised & updated testing method

in QC Department.

| Project 4 |NEWLY DEPLOYED CNC MACHINING CENTRE IN MACHINE SHOP.

Hinopak is manufacturing organization in which various types of manufacturing process are applying and strong control on productivity improvement in processes, which is necessary for each department to improve the existing productivity in terms of cost efficient manner. In this regard machine shop department who’s already perform so many drastic tasks in sake of process improvement recently present a wonderful idea which required sound financial approval from top management because there is contribution of a complete machining centre. Here they purpose an idea to improve process time in formation of a blank through which is used during assembly of chassis along with long members and x-member. The stiffener having different process as under;Previous Process Using of Conventional method for die making to matching with CKD part.

No. of Tooling

No. of Operations

Pre Operation cost

Cost per Piece

Total Production per month

Total Labor Cost per month

6 8 2.25 18600

units10,800

Rs.

Pictorial View of Part | STIFFNER |Process # 1 | BLANKING Process # 2 | PIERCING


Process # 3 | BENDING

Problem: Business Case: Difference with drawing dimensions. Longer lead time. Dependency on Outsourced

Vendors. Reliability damage.

Improved Process Implementation:A joint and detail study have been performed with the assistance of Production Engineering department for the installation of machining centre which give not only the cost saving but also provided the better finishing of machining.

On the basis of that report and study a financial approval has been taken for procurement of the machining center and installation had done.

After installation of machining centre productivity measure were enhanced and as follow;

Improved Process Impact:


No. of Tooling

No. of Operations

Pre Operation cost

Cost per Piece

Total Production per month

Total Labor Cost per month

4 6 2.2513.5

6008,100 Rs.

Saving per PieceSaving per

month4.50 Rs. 2,700 Rs.

| Project 5 |

Our welding shop having so many injuries complains and disability of worker health because welding work is health hazard and required highly precaution during operation. ARC welding was used previously.

Problem: Business Case: Extra Labor and Time consumed in chipping.


Welding distortion Pin Holes Cost increase.

Improved Process Implementation:To avoid the injuries and keep the work environment safely rethinking and re-evaluate the process. In which a suggestion came that we replace ARC welding process with CO2 welding. A very successful and beneficial result came due to elimination of chipping work due to CO2 Welding.

Previous Process:

No. of Parts No. of

welders

Consumables charges

Workers

involve in

chipping

Cost of Labor

Total Cost

Cost per

piece (Rs.)

d a b alb = c c/d

10000 4 22,000.00 848,000.

0070,000.

007.00

Improved Process Impact:

Quality Work Improvement:


After Improvement Process | Induction of CO2 Welding:

No. of Parts No. of

welders

Consumables charges

Workers

involve in

chipping

Cost of Labor

Total Cost

Cost per

piece (Rs.)

d a b alb = c c/d

13000 5 30,000.00 032,500.

0062,500.

004.81

Saving per PieceSaving per

month2.19 Rs. 28,500.00 Rs.


Date post:	21-Jan-2015
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