Priority queuing for raw material receiving

The Amgen Manufacturing Ltd. facility in Juncos, Puerto Rico faces a challenge encountered by manufacturers across industries: How can they make the best use of their existing resources? As production volume and product mix increase, how are costs kept from increasing as well? This LGO internship looked to answer those questions in the context of raw material receiving for biopharmaceutical manufacturing. Over the course of the seven month project, an analytical planning tool centered on scheduling optimization and priority queuing was developed, highlighting areas for improvement. Based on insight gained from the tool, a plan was established which can reduce turnaround time (TAT) by 50% and work in process (WIP) by 45% in the raw material sampling area. The improvements will not only provide financial and operational benefits to the organization, but serve as a foundation for continuous improvement as the findings from this project are applied elsewhere. This project highlights the importance of understanding how process inputs affect process output. In the case of raw material sampling, the variable mix of incoming materials exceeded the capacity for processing, particularly for solid materials, elevating the average TAT and WIP. Aligning sampling's capabilities to the input work makes it more flexible and better able to handle future demand. However, the ideal state for the area involves working with the upstream group, supply chain, to level-load arrivals. In this case, WIP can be reduced over 60% from its current level while maintaining TAT adherence at the 50% improved rate. Further utilization gains are possible, but only through value stream analysis and enhanced collaboration between functional groups.

Department dc:contributor.department

Leaders for Global Operations Program at MIT

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2014

Author dc:creator

• Bower, Andrew D. (Andrew Douglas)

Advisor dc:contributor.advisor

• David Gamarnik and Stanley Gershwin.

• Mechanical Engineering.
• Sloan School of Management.
• Leaders for Global Operations Program.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/92225

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/92225