Brazil is no doubt the best place to enjoy the World Cup this year, but Belgium is definitely celebrating the event with colors, team gear and soccer centric activity everywhere. I had the opportunity to be in Antwerp the night Belgium beat Algeria last week and spirits were running high.
But of course that was not the main reason for my visit last week. Among other things I was there to spend time with a very smart group of folks at BlueGrass Consulting. BlueGrass has a strong legacy in supply chain consulting focused often on inventory, processes and logistics. Over the last couple of years, it has recognized the opportunities for improving the effectiveness of the workforce. I haven’t seen the BlueGrass team in almost a year and they were excited to share with me their work on process improvement within the Quality Control labs at several pharmaceutical companies. These labs face a couple of workforce related challenges. First is that they have several streams of work that flow through their labs. Checking the quality of products throughout the production process, mixing reagents in order to support the testing procedures and running experiments on new products are some of the major ones. Some of these streams are dependent on each other. For example, running more production tests requires more reagents. The second challenge is that they can’t predict with certainty when work will come into the lab. They can generally narrow it down to a thirty day window, but for many types of work that’s about as precise as they can get. Also challenging is that there are certain competencies required to perform certain tasks. So if a critical person is missing or already busy, production is delayed. Additionally, competencies of the employees are constantly changing as people leave the organization and as others complete training.
There are some opportunities to improve throughput as well; Often the same kind of testing will come through in multiples during the same time period. When this happens, the work can be grouped, reducing the number of set-ups required.
The flow of work can be predicted from demand drivers such as the production schedule created in ERP, which has a rough cut version planned out over the next year.
Through their software application BINOCS (Binoculars) BlueGrass has linked the production schedule to the employee schedule and through a heuristic process, optimized the employee schedule around production. This schedule ensures that the work can be processed without delay. As the production schedule is refined, the application can be re-run to ensure the appropriate people with the right skills continue to be available.
Geert VanHove, a principal at BlueGrass, was understandably very happy during my visit when he received the first employee schedule that their customer had created on their own through BINOCS.
Branded pharmaceutical manufacturers continue to become more demand driven and shrink finish good inventories. The ability to remove one more potential production bottleneck without creating excess capacity is obviously extremely valuable. Goooal!