Fiscally Fit Facilities: A New Look at What it Means to be Lean
Optimizing the fitness of a manufacturing facility requires a multifaceted approach, using a combination of lowering operating expenses, increasing throughput, and reducing inventory.
Most companies today have taken steps to manage expenses and inventory levels without negatively impacting customer service. Yet for many manufacturers, it is still possible to cut additional days out of their production cycles by implementing a high-throughput, rapid microbial screening system.
Surprisingly, many of today’s modern, automated manufacturing facilities still test for microbiological contamination using a method dating back to the late 1800s. This traditional method relies on visual identification of microbial growth and averages 5 days for non-sterile and a minimum of 14 days for sterile products. During this wait time, raw materials, in-process batch, or finished goods can be quarantined — adding days to manufacturing lead times, tying up working capital, and ultimately leaving the facility far from fiscally fit.
Fortunately, current rapid microbial screening systems — which are validated and accepted by the FDA — enable manufacturers to accurately screen for the absence of microbial contamination in only 24 hours, ensuring product quality and trimming four days from the average production cycle. Similarly, rapid methods also can be used for sterility testing, providing results in 7 days versus 14 to 17 days with traditional methods and cutting a week or more from production.
Quantifying The Value: Manufacturers can accurately quantify the financial value of implementing a rapid microbial screening system.
For example, a high-throughput rapid system can be purchased and installed for less than $100,000, achieve payback in six to nine months, and realize an average five-year net present value in excess of $500,000 for non-sterile testing and well upwards of $1 million for sterility testing at a single plant.
Likewise, implementing a rapid system goes a long way toward boosting a facility’s overall fitness score, with a host of quantifiable benefits:
- Reduces working capital requirements — Rapid methods can decrease the investment in product held in quarantined inventory at any given time. And since it takes fewer days to produce the same amount of product, the shortened cycle time also reduces safety stock requirements and its associated working capital investment.
- Improved operational efficiencies — Shorter cycle times result in a leaner, more responsive manufacturing operation, which improves a company’s financial metrics — including return on invested capital and inventory turns.
- Improves recovery from contamination events — Rapid detection means earlier detection of contamination when it does occur. This helps to minimize the amount of product affected, accelerate corrective action, and get the facility back on track quickly. Also, risk of customer service interruptions or product recalls is minimized.
- Saves warehouse space — Reduced inventories throughout your supply chain may decrease the need for outsourced warehousing or defer the costs associated with facility expansion.
- Shortens the cash cycle — With rapid methods, finished goods are released to market faster, leading to an accelerated revenue cycle.
- Swift decision making — Implementing a rapid screening system provides actionable information that allows product to move forward quickly. When contamination is detected, that batch can be isolated and attention focused on remediation and further process improvement. Even the most efficient operations can benefit from careful analysis of current product release methods to see if micro-hold time can be reduced. The potential cost savings and reduced lead times and working capital requirements can enable companies to pursue more productive endeavors, like funding new projects, developing new products, or even conserving cash.
(Source: “Fiscally Fit Facilities: A New Look At What It Means To Be Lean" by Cindy Lieberman, Vice President, Celsis Rapid Detection)
مقالات من Mohammed Abdul Jawad
عرض المدونةIn no way, I had an interest for writing articles. However, it was passion for poetry that paved me ...
Believe it or not – excessive worldliness, workaholism and waywardness ruins one’s life. Or say the ...
FREE WEBINAR · When: Watch on-Demand · (Anytime) · REGISTER NOW to watch the webinar · Webinar Desc ...
قد تكون مهتمًا بهذه الوظائف
-
Head of Finance
منذ 6 أيام
Tharwah Riyadh, المملكة العربية السعوديةThe Head of Finance is responsible for leading financial planning risk management and ensuring the integrity of financial records and reporting. This role is pivotal in supporting senior management with strategic and tactical insights related to budget management costbenefit anal ...
-
Lead Internal Auditor
منذ 12 ساعة
تطبيق مباشر
Access Talent Group Qatif, المملكة العربية السعوديةThe Role · The internal Auditing department of our client presents a dynamic, unique and significantly career enhancing opportunity, with an open vacancy for Lead Operational Auditor. The role will offer an array of varying projects, departments and operational complexities, requ ...
-
Senior Sales Account Manager
منذ 6 أيام
EXANTE Riyadh, المملكة العربية السعودية دوام كامل· About EXANTE · EXANTE is a wealth tech company that provides centralized trading solutions and B2B financial infrastructure that helps create value through technology. · Our proprietary trading platform enables direct market access to 1M financial instruments from a single mul ...
التعليقات