India-based pharmaceuticals giant Dr Reddy’s has implemented business intelligence software from ProGen to analyze data from multiple sources to help understand its manufacturing capacity.
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Dr Reddy's manufactures final products as well as active pharmaceutical ingredients. These ingredients are taken as raw materials and are also sold directly to other manufacturers.
The company’s ERP system was producing quarterly and monthly capacity plans but the planning team needed a system to integrate data from multiple capacity plans. The team also wanted to merge it with actual production data.
The previous method of doing this used Excel spreadsheets to create graphs. Data was fed into Excel from the ERP system manually. This was very time-consuming and was limited in the charts it could display.
Capacity planning is complex for Dr Reddy’s because there are hundreds of pharmaceutical products being produced at different locations using different recipes and machinery.
“We wanted a tool to measure the occupancy and utilization of these resources so that optimum productivity is planned and output is given for a time period,” said Damodar Mantri, director of IT at Dr Reddy’s.
The company selected the PI business intelligence tool from ProGen to replace a process reliant of manual work.
“Usually we end up with capacity constraints with either too much supply or too little to meet the demand. There is a process of budgeting with sales and operations planning where the cross functional team meet and work on the production plans. But doing this manually was a tedious job,” added Mantri.
PI was linked to the core SAP ERP system. The proposed production data is prepared in excel sheet and then feed in SAP system to do a simulation run for capacity planning. The results from the simulation output is sent to PI through an interface known as XI.
The rollout of PI took three months and feedback has shown users found the system easy to use. “The advantage we saw in PI was it is very user friendly. Users can make their own ‘what if scenario’ without depending on an IT person to make the changes in the reporting algorithm.”
Dr Reddy’s has over 16,000 staff with almost 100 IT staff.