Lean readiness – the case of the European pharmaceutical manufacturing industry

Abstract

Purpose The purpose of this paper is to assess the quality practices of European pharmaceutical manufacturers to determine the level of readiness of this industrial sector to implement and/or sustain lean manufacturing (LM). Design/methodology/approach An assessment framework developed by Al-Najem et al. (2013) was adapted to evaluate how ready European pharmaceutical manufacturers are to implement and/or sustain LM. Therefore, the lean readiness (LR) level of these organisations was assessed through six quality practices related to LM. These included: processes, planning and control, human resources, top management and leadership, customer relations, and supplier relations. One research question and three hypotheses were formulated and tested using a combination of descriptive statistics and non-parametric Mann-Whitney tests. Data were collected through a survey questionnaire distributed to 310 European pharmaceutical manufacturers and responded by 37 of these organisations. Findings Overall, the results of this study indicate an inadequate level of LR for the participating firms. Simultaneously, it was concluded that factors such as company size, type of relationships with suppliers and ISO 9000 certification do not have an effect on the quality practices, and hence LR level, of European pharmaceutical manufacturing organisations. Practical implications This study provides crucial information regarding the LR level of European pharmaceutical manufacturers, which can now be aware of the areas in their practices that require further improvement towards a successful lean journey. Simultaneously, organisations in the pharmaceutical sector that intend to implement LM can consider the results of this study and evaluate their readiness level. Managers can, therefore, refer to this research and use it as a platform to take better decisions regarding what quality aspects of their operations need to be enhanced to successfully deploy or sustain a lean strategy. Originality/value This research is one of the very few studies that have focussed on evaluating whether the European pharmaceutical manufacturing industry is ready to successfully implement or sustain LM. Therefore, this research expands the limited existent body of knowledge of LM in this industry.

Pharmaceutical supply chain transformation through application of the Lean principle: A literature review

“…The lean principle applied through Just-in-Time management requires supplier management to oversee supply reliability in order to prevent the risk of drug shortages (Papalexi et al, 2016). Supplier involvement had a positive effect in achieving the desired level of quality (Garza-Reyes et al, 2018). Guimarães et al (2013) argued that vendor-managed inventory implementation entails strong partnerships, information integration and collaboration with the supplier.…”

“…For instance, Al Hasan and Al-Zu'bi (2014) argued that it constitutes a barrier to innovation because low task and low skill jobs were tightly controlled by the emphasis on speed and standardized processes. The JIT method addresses only the single source with long term partnerships which meet the company's requirements leading to high dependency and lower bargaining power (Garza-Reyes et al, 2018). Furthermore, Kaizen culture also encourages companies to limit employees' access to information and allow them less authority for decision making (Khlat et al, 2014).…”

“…Similarly, Sieckmann et al (2018) and Houborg (2010) who had studied improvement culture agreed that leadership and knowledge were essential since a lack of training and expertise would precipitate lean deployment failure (Sieckmann et al, 2018). However, Houborg (2010) did not emphasize customer relationships during deployment of the improvement initiatives, as recommended by Garza-Reyes et al (2018). In contrast to Sieckmann et al 2018 Figure 5 contains an article distribution list based on each lean supply chain element.…”

“…Therefore, the PSC is not only required to provide high-quality, safe products, but also to ensure excellent service (Mouaky, Berrado & Benabbou, 2016) and regulatory compliance (Sieckmann, Ngoc, Helm & Kohl, 2018). For many years, pharmaceutical companies were in the enviable position of enjoying excellent profit margins due to the percentage expenditure on goods being relatively low vis-a-vis their total cost structure (Garza-Reyes, Betsis, Kumar & Radwan Al-Shboul, 2018). Accordingly, the production lead time required 120 to 180 days, a significantly longer period than that of the consumer-packaged goods industry at only 3-7 days (OPPI & PricewaterhouseCoopers, 2011).…”

An Empirical Research on Lean Production Awareness: The Sample of Gaziantep

“…Besides, these findings indicate that the lean construction approach has a positive effect especially on quality, safety, and environmental level. Also, it is concluded that the main barriers that prevent successful lean construction distribution in Morocco are due to lack of knowledge about lean construction philosophy, unskilled human resources, and insufficient financial resources Garza-Reyes et al (2018) Applied research was carried out to evaluate how ready the European pharmaceutical companies to implement and/ or maintain lean production. Lean awareness and lean production practices of these companies evaluated with six quality applications (senior management leadership, human resources, customer relations, process, supplier relations, and planning and control).…”