Implementing lean manufacturing in Malaysian small and medium startup pharmaceutical company
Domestic pharmaceutical industry has been identified by the Malaysian government as an industry to be developed under its 11th economic development plan. Most homegrown pharmaceutical companies fall under the category of small and medium enterprises (SME) and therefore need to be highly efficient...
| Main Authors: | , , |
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| Format: | Conference or Workshop Item |
| Language: | English English |
| Published: |
IOP Publishing
2017
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/55076/ http://irep.iium.edu.my/55076/ http://irep.iium.edu.my/55076/ http://irep.iium.edu.my/55076/7/55076-Implementing%20Lean%20Manufacturing%20in%20Malaysian.pdf http://irep.iium.edu.my/55076/8/55076-Implementing%20Lean%20Manufacturing%20in%20Malaysian%20Small%20and%20Medium%20Startup%20Pharmaceutical%20Company_SCOPUS.pdf |
| Summary: | Domestic pharmaceutical industry has been identified by the Malaysian government
as an industry to be developed under its 11th economic development plan. Most homegrown
pharmaceutical companies fall under the category of small and medium enterprises (SME) and
therefore need to be highly efficient in their operations to compete with the multinationals.
Though lean manufacturing is a well-known methodology to achieve an efficient operation,
only a small percentage of the local SMEs implement it. The study aims to determine the real
success factors in lean implementation through systematic review of relevant literature on lean
manufacturing implementation in local companies, onsite observation of a selected SME
company, Global Factor Sdn. Bhd. (GFSB), that successfully implemented lean manufacturing
followed by actual implementation of lean project at IKOP Sdn. Bhd., a small startup
pharmaceutical company. Lean tools like Gemba, value stream map (VSM) and spaghetti
diagram were used to analyze and improve a process at IKOP Sdn. Bhd. The literature review
showed that the implementation of lean manufacturing at Malaysian SMEs involved in
pharmaceutical industry is at its infancy. Study at GFSB indicated that successful
implementation of lean manufacturing stems from management support, employee’s
commitment, government support and knowledge on lean among employees. Application of
lean tools in IKOP Sdn. Bhd. to improve the process cycle efficiency of hand sanitizer, i-Hand
4.0, has shown that the GMP guidelines are not jeopardized. The Kaizen improvement project
resulted in 46.3% reduction in lead time. It may be concluded that implementing lean
manufacturing in any small local startup pharmaceutical company is beneficial in reducing
operational costs and increasing the efficiency and effectiveness and does not conflict with the
existing GMP guidelines. |
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