Inventory drivers in a pharmaceutical supply chain

In recent years, inventory reduction has been a key objective of pharmaceutical companies, especially within cost optimization initiatives. Pharmaceutical supply chains are characterized by volatile and unpredictable demands –especially in emergent markets-, high service levels, and complex, perishable finished-good portfolios, which makes keeping reasonable amounts of stock a true challenge. However, a one-way strategy towards zero-inventory is in reality inapplicable, due to the strategic nature and importance of the products being commercialised. Therefore, pharmaceutical supply chains are in need of new inventory strategies in order to remain competitive. Finished-goods inventory management in the pharmaceutical industry is closely related to the manufacturing systems and supply chain configurations that companies adopt. The factors considered in inventory management policies, however, do not always cover the full supply chain spectrum in which companies operate. This paper works under the pre-assumption that, in fact, there is a complex relationship between the inventory configurations that companies adopt and the factors behind them. The intention of this paper is to understand the factors driving high finished-goods inventory levels in pharmaceutical supply chains and assist supply chain managers in determining which of them can be influenced in order to reduce inventories to an optimal degree. Reasons for reducing inventory levels are found in high inventory holding and scrap related costs; in addition to lost sales for not being able to serve the customers with the adequate shelf life requirements. The thesis conducts a single case study research in a multi-national pharmaceutical company, which is used to examine typical inventory configurations and the factors affecting these configurations. This paper presents a framework that can assist supply chain managers in determining the most important inventory drivers in pharmaceutical supply chains. The findings in this study suggest that while external and downstream supply chain factors are recognized as being critical to pursue inventory optimization initiatives, pharmaceutical companies are oriented towards optimizing production processes and meeting regulatory requirements while still complying with high service levels, being internal factors the ones prevailing when making inventory management decisions. Furthermore, this paper investigates, through predictive modelling techniques, how various intrinsic and extrinsic factors influence the inventory configurations of the case study company. The study shows that inventory configurations are relatively unstable over time, especially in configurations that present high safety stock levels; and that production features and product characteristics are important explanatory factors behind high inventory levels. Regulatory requirements also play an important role in explaining the high strategic inventory levels that pharmaceutical companies hold

MRP-WSCI: Multiple reference point based weak and strong composite indicators.

Política de acceso abierto tomada de: https://v2.sherpa.ac.uk/id/publication/17106The construction of composite indicators is becoming an increasingly important way of managing great amounts of information obtained from multiple single indicators. Obviously, the aggregation of several indicators in a single synthetic measure always implies some loss of information on the way. For this reason, this aggregation must be done in the most informative possible way, so that the results obtained can be easily interpreted, and in an efficient way, so that the information contained in the composite indicator is maximal. In this paper, we propose a novel methodology based on the multicriteria reference point scheme. The decision maker can establish any number of reference levels for each indicator, and the final outcome can be interpreted in terms of the position with respect to these levels. Besides, two different aggregations are proposed: the weak indicator, allowing for full compensation among the single indicators, and the strong indicator, not allowing for any compensation. The joint visualization of both composite indicators provides valuable information that may be unnoticed using other existing approaches. The approach is illustrated using an example based on the EU-Regional Social Progress Index (EU-SPI).The authors would like to thank the financial support received from the Spanish Ministry of Economy and Competitiveness (Project ECO2016-76567-C4-4-R), and from the Regional Government of Andalucía (research group SEJ-417)

Data Quality in Smart Manufacturing

Data quality is important aspect for the business in 21st -century. High quality data is needed more and more in companies for producing high quality products and services. The purpose of this research is to find and define tools and process for improving data quality in case company. These tools consist of software and monitoring process estab-lished in collaboration with delivery management of the case company. This thesis is based on studying on improvement of data quality of materials used in production in case company. Few tools for data monitoring are presented and one was chosen for building a prototype for monitoring data quality. These tools were 3rd party software from SAP and IBM, own solution from case company and a Microsoft Power BI report. This prototype was built with Microsoft Power BI and configured for the needs of delivery management according the scope presented in this thesis. This scope consisted of few key parameters of material data that have impact on production. Based on this study and literature review, a process for improving data quality was found. This process consists of six simple steps, that when followed correctly, can yield great improvements in data quality. These steps were: identifying metrics to collect, identify where to monitor, implementing monitoring process, running a baseline assess-ment, posting monitoring reports and reviewing monitoring trends. Improvement was also found in data quality in this thesis. Issues, for example missing master data parame-ters, in material master data quality decreased significantly, when comparing to time be-fore data monitoring to time after monitoring process was implemented.Datan laatu on tärkeä osa liiketoimintaa 2000-luvulla. Korkealaatuista dataa tarvitaan yhä enemmän yritysten toimesta, että voidaan tuottaa korkealaatuisia tuotteita ja palveluita. Tämän tutkimuksen tarkoitus on löytää ja määritellä työkaluja ja prosessi datan laadun parantamiseksi kohdeyrityksessä. Nämä työkalut ja monitorointiprosessi luotiin yhteistyössä kohdeyhtiön toimitushallinan organisaation kanssa. Tämä lopputyö perustuu tuotannossa käytettävien materiaalien datan laadun parantamisen tutkimiseen kohdeyrityksessä. Lopputyössä on esitelty muutama eri työkalu datan monitorointia varten ja näistä yksi on valittu, josta on rakennettu prototyyppi datan laadun monitorointia varten. Työkaluja olivat kolmannen osapuolen ohjelmistot SAP:lta ja IBM:ltä, kohdeyhtiön oma ohjelmisto sekä Microsoftin Power BI raportti. Prototyyppi rakennettiin Microsoftin Power BI -ohjelmistolla ja se konfiguroitiin toimitushallinan tarpeiden mukaiseksi tutkimuksen määrittelemän laajuuden perusteella. Tämä määritelty laajuus koostuu muutamasta avainparametrista materiaalidatassa, joilla on vaikutusta tuotantoon. Tämän tutkimuksen sekä kirjallisuuskatsauksen perusteella hyvä toimintatapa ja prosessi datan laadun parantamiseksi löydettiin. Tämä prosessi koostuu kuudesta yksinkertaisesta askeleesta joita seuraamalla voidaan saada suuria parannuksia datan laadussa. Nämä askeleet ovat: kerättävien parametrien tunnistaminen, monitorointikohteen tunninstaminen, monitorointiprosessin toteutus, lähtötilanteen arviointi, monitorointitulosten julkaiseminen sekä monitorointitrendien seuranta. Parannus datan laadussa havaittiin myös tutkimuksessa. Ongelmat materiaalidatassa pienenivät huomattavasti, kun verrattiin aikaa sekä ennen että jälkeen monitorointiprosessiin käyttöönoton

RELATIONS BETWEEN READING MOTIVATION AND READING SKILLS IN STUDENTS WITH A READING DISABILITY

The purpose of the present study was to examine the short-term longitudinal relations between two constructs of reading motivation (reading self-concept and value of reading) and two aspects of reading (reading fluency and reading comprehension) in a clinical sample of elementary school students diagnosed with a SLD in reading. Skills in reading fluency and comprehension were assessed by the Gray Oral Reading Tests, Fifth Edition (GORT-5; Wiederholt & Bryant, 2012) and reading motivation was assessed by the Motivation to Read Profile- Revised (MRP-R; Malloy, Marinak, Gambrell, & Mazzoni, 2013). A cross-lag panel analysis was used to examine autoregressive paths (the relation between the same variables at two points of time) and cross lagged paths (reading motivation at time 1 and reading skill at time 2; reading skill at time 1 and reading motivation at time 2) in a reciprocal effects model. Support was found for the autoregressive paths, but not for the cross-lagged paths in the reciprocal effects model. A time-reversed model was also analyzed to rule out the possibility that results from the reciprocal effects model were due to regression to the mean. Limitations of the current study, implications for educational practice, and directions of future research were discussed

A hierarchical approach to multi-project planning under uncertainty

We survey several viewpoints on the management of the planning complexity of multi-project organisations under uncertainty. A positioning framework is proposed to distinguish between different types of project-driven organisations, which is meant to aid project management in the choice between the various existing planning approaches. We discuss the current state of the art of hierarchical planning approaches both for traditional manufacturing and for project environments. We introduce a generic hierarchical project planning and control framework that serves to position planning methods for multi-project planning under uncertainty. We discuss multiple techniques for dealing with the uncertainty inherent to the different hierarchical stages in a multi-project organisation. In the last part of this paper we discuss two cases from practice and we relate these practical cases to the positioning framework that is put forward in the paper

Automated Purchase Order - Experiments and Expectations in Mid-sized Manufacturing Companies

Operational processes were originally designed before of large-scale information technology revolution in industries. Based on this fact, it has been argued that by redesigning business processes with help of information technology, efficiencies in operational processes may be achieved. Process integration and automation should save valuable time and resources at the same time. However, in small and medium sized businesses limited resources reduce possibilities to implement both information technology and changes in business processes. The research in this area concentrates whether on large corporations (in depth or on large samples) or on small and medium sized companies based on statistical information. Longitudinal and deep analysis on business process change in small and medium sized companies is scarce. In depth analysis on small and medium sized companies in the area is scarce. This research investigates the savings in labour and capital that are achievable through automating and integrating routine purchase process within a supply chain. This study investigated the area of purchasing and especially routine purchasing of direct production materials. Through the use of action research, quantitative and qualitative analysis, a variety of methods are used in order to give a broader view to the data and results. From the practical point of view, the purchase process of production materials is often repetitive work based on information from diverse information systems and sources. This study investigated the possibility of increasing efficiency through automated routine processes. As an indicator of increased efficiency, change in inventory turns was chosen. Three research questions were set: will purchase order automation have an effect on inventory turns, what are the main contributors to any observed changes in inventory turns and are the observed changes relevant in a larger context of small and medium sized companies? For the two first questions action research methodology was used with participant observation. Two projects of purchase order automation were conducted and effects on inventory turns were measured. The automation projects were conducted in a medium sized electronics manufacturing company and with two of its suppliers. A controlling sample was collected from the company item transaction database. These results were analysed with quantitative analysis methods. Thedata includes three samples of data between years 2000 and 2004. Results showed that automation does not clearly improve inventory turns but the results are mixed. Observed changes result from improved parameter setting and change in business conditions. The third question was treated separately through semi-structured interviews within purchase professionals in medium sized manufacturing companies. Four interviews were conducted in 2014-2015 to verify results from purchase automation projects. The answers were analysed with qualitative methods. It was found that the process of automation and its results are relevant to medium sized manufacturing companies. Special care, however, should be taken while implementing the system and setting its basic parameters. From the theoretical perspective, the research emphasizes the assumption that the benefits of business process changes are not always clearly visible but some positive results may be achieved. In regard of human decision-making biases it is clear that they exist and the effects of these biases may be reduced through process automation. The use of several different methods in data collection and analysis opens a larger picture for a deep analysis of the processes and their results. Through action research insights to the actual phenomenon are gained and a longitudinal analysis gives more than a snapshot to it. From the managerial perspective, process automation is an option to consider but at the same time it should be part of a larger process change initiative to see that it does not result into sub optimisation of processes at the expense of general process optimisation of a company. It is crucial to understand the biases made by individual decision makers in business processes and see, how the negative effects of these biases may be avoided through careful consideration of process automation.Automatisoitu ostotilaus – kokeiluja ja odotuksia keskisuurissa valmistavissa yrityksissä Operatiiviset toimintatavat suunniteltiin ennen suurimittaista tietotekniikan vallankumousta eri teollisuuden aloilla. Onkin esitetty, että operatiivisten prosessien tehokkuutta voidaan kasvattaa uudistamalla liiketoimintaprosesseja ja käyttämällä niissä tietoteknisiä sovelluksia. Prosessien integroinnilla ja automatisoinnilla voidaan säästää arvokasta aikaa ja resursseja samanaikaisesti. Pienten ja keskisuurten yritysten kohdalla ongelmana ovat resurssien rajallisuus, mikä vaikeuttaa prosessien uudistamista ja tarvittavien tietoteknisten sovellusten käyttöönottoa. Tutkimus aiheesta rajoittuu joko suuryrityksiin (perusteellinen analyysi tai laajempaan otokseen perustuen) tai pieniin ja keskisuuriin yrityksiin tilastolliseen tietoon perustuen. Perusteellinen analyysi pienissä ja keskisuurissa yrityksissä on tällä alueella harvinaista. Tällä tutkimuksella selvitettiin, voidaanko rutiininomaisen ostotyön prosessin automatisoinnilla ja integroinnilla toimittajien kanssa saavuttaa säästöjä toimitusketjun työ- ja pääomakustannuksissa. Tutkimus tehtiin siis ostotyön ja erityisesti suorien tuotannollisten materiaaliostojen alueella. Käyttämällä toimintatutkimusmenetelmää, sekä kvantitatiivisia että laadullisia analyysitapoja, saadaan laajempi näkökulma käsiteltyyn tietoon ja tuloksiin. Käytännöllisestä lähtökohdasta katsoen on tuotannollisten materiaalien ostotoiminta usein toistuvaa, rutiininomaista työtä, joka perustuu tietoon eri järjestelmistä ja lähteistä. Tuottavuuden nostamiseksi oli kiinnostava tutkia saadaanko rutiinityön automatisoinnilla tehostettua kyseistä prosessia. Varaston kierron muutos valittiin tehokkuuden nousun mittariksi. Tutkimuksessa haettiin vastausta kolmeen kysymykseen: onko ostotilauksen automatisoinnilla vaikutusta varaston kiertonopeuteen, mitkä tekijät vaikuttavat havaittuihin muutoksiin varaston kiertonopeudessa ja ovatko tässä tutkimuksessa saadut havainnot merkittäviä suuremmassa joukossa pieniä ja keskisuuria yrityksiä? Kahden ensimmäisen kysymyksen kohdalla käytettiin toimintatutkimusta ja tutkijan osallistumista toimintaan tutkittavassa kohteessa. Kaksi ostotilauksen automatisointiprojektia toteutettiin ja niiden yhteydessä mitattiin varaston kiertonopeuden muutoksia. Automatisointiprojektit toteutettiin keskisuuressa yrityksessä kahden yrityksen tavarantoimittajan kanssa. Vertaileva otos kerättiin yrityksen nimiketapahtumien tietokannasta. Nämä tulokset analysoitiin kvalitatiivisin menetelmin. Materiaali sisältää kolme otosta vuosien 2000 ja 2004 väliseltä ajalta. Tutkimuksessa todettiin, että automatisointi ei selkeästi parantanut varastojen kiertonopeutta vaan tulokset ovat ristiriitaisia. Havaitut muutokset johtuvat pääsääntöisesti parannetusta järjestelmän parametrien asetuksista sekä muista liiketoimintaympäristön muutoksista. Kolmas tutkimuskysymys käsiteltiin erikseen käyttäen puolistrukturoitua haastattelurunkoa, jonka avulla haastateltiin ostotoiminnan ammattilaisia keskisuurissa valmistavissa yrityksissä. Vuosina 2014-2015 toteutettiin neljä haastattelua, jotta voitaisiin tarkistaa automatisointiprojektien tuottamat tulokset. Haastattelujen vastaukset analysoitiin laadullisin menetelmin. Tuloksena havaittiin, että automatisointiprosessi ja sen tulokset ovat merkityksellisiä keskisuurissa valmistavissa yrityksissä. Erityinen huomio tulee kuitenkin kiinnittää käyttöönottoprojektiin ja järjestelmän perustietojen määritykseen. Teoreettisesta näkökulmasta tutkimus vahvistaa näkemystä siitä, että liiketoimintaprosessien muutoksella saadut hyödyt eivät ole aina selvästi näkyvissä, vaikka joitain positiivisia vaikutuksia voidaan havaita. Inhimillisten päätöksentekoprosessien alttius poikkeamille normaalista vaikuttaa myös ostoprosessiin, ja automatisoimalla ostoprosessia sen negatiivisia vaikutuksia varaston kiertonopeuteen voidaan vähentää. Eri menetelmien käyttö tiedon keräämisessä ja tiedon analysoinnissa antaa laajemman kuvan toimintatapoihin ja niiden tuloksiin. Toimintatutkimuksen avulla voidaan päästä lähemmäs asioiden todellisia syitä ja pitkällä tutkimusjänteellä saadaan enemmän kuin yksittäisiä kuvia tilanteesta. Yrityksen johdon näkökulmasta toimintaprosessien automatisointi on yksi mahdollisuus, mutta sen tulisi aina olla seurausta laajemmasta toiminnan arvioinnista jotta vältytään yksittäisten prosessien optimoinnilta koko yrityksen liiketoimintaprosessin optimoinnin kustannuksella. On myös erittäin tärkeää ymmärtää yksittäisen päätöksentekijän aiheuttamat poikkeamat prosessiin, ja se miten nämä poikkeamat voidaan välttää huolellisella valinnalla siitä, mitä prosesseja automatisoidaan.Siirretty Doriast

Pay, productivity and aging in Major League Baseball

Using panels of player pay and performance from Major League Baseball (MLB), we examine trends in player productivity and salaries as players age. Pooling players of all ability levels leads to a systematic bias in regression coefficients. After addressing this problem by dividing players into talent quintiles, we find that the best players peak about two years later than marginal players, and development and depreciation of ability appear to be more pronounced for players with the highest peak ability levels. Within-career variation, however, is less pronounced than between-player variation, and the talent level of players within a given quintile will typically remain lower than the talent level for rookies in the next higher quintile. Free agents are paid proportionately with their production at all ability levels, whereas young players’ salaries are suppressed by similar amounts.Major League Baseball (MLB); career dynamics; player salaries and performance; quintile analysis