In the manufacturing industry, finding solutions to increase performance can be tricky. Many manufacturers already utilize ERP (Enterprise Resource Planning) solutions, Lean initiatives, and a whole host of other solutions to find the magic combination that will increase their overall performance numbers. To determine what mix of solutions was most effective for pharmaceutical manufacturers, Invistics surveyed 1,500 companies to better understand what works for small- and large-scale producers.

 

The survey concluded that the majority of respondents have an ERP system in place as well as Lean, Six Sigma, or Operation Excellence to address the deficits traditional ERP solutions have specifically in the manufacturing industry. Unlike other sectors, manufacturing sees a higher number of variables due to batch numbers, changes of formularies, and additional needs that make it hard to manage the constantly changing dynamics. 

 

The survey showed performance optimization was essential or crucial for their business success. The revelation that Lean Manufacturing software alone, connected to an ERP solution, had little to no impact on performance. Instead, it revealed even more deficits in the systems in place unique to the manufacturing industry. Therefore, Invistics recommended implementing a flow manufacturing method in conjunction with both simulation and optimization software to address all the issues currently plaguing performance issues. 

 

Flow manufacturing methods increase the agility of the production teams while reducing the impact of limited user skills or training. This creates a platform where decisions can be made based on the flow of products through the factory instead of department metrics. This solution allows more employee control while KPIs related to capacity utilization, inventory, and cycle time drastically improve upon implementation.

 

Once combined with advanced analytics and an optimization solution, manufacturers can utilize real-time data from the floor to make decisions, therefore increasing productivity. This data gets fed back into ERP and MES (Manufacturing Execution System) systems creating an optimized workflow and delivery customized to the individual plant. 

 

To take productivity to the next level, the addition of simulation software allows manufacturers to model a multitude of situations to determine outcomes without risking cost, inventory materials, workforce, etc. When incorporated with flow manufacturing, analytic, and optimization systems, manufacturing simulation solutions address the most significant concern and hurdle manufacturers face, variability. The systems' combined efforts create a more holistic and accurate environment on the plant floor as well at the corporate level. 

 

These systems' collaborative nature allows manufacturers in all industries to leverage better their investments made with ERP, MES, and APS (Advanced Planning and Scheduling) systems. Implementations utilizing Lean, Six Sigma, and Operational Excellence are more successful, allowing managers and key decision-makers to respond to customer demand fluctuations and market needs. By choosing to integrate the additional software with effective flow-based methods, the manufacturing industry can increase its performance by better anticipating demand and addressing market variability rather than using historical data as a guidepost to the ever-changing industry.