Erp Implementation At Lupin Information Technology Essay

Erp Implementation At lupin Information Technology EssayLupin is a transnational pharmaceutical comp some(prenominal) producing an extensive cat of quality detail generic and branded formulations and APIs in much than 70 countries like India, USA, Japan, sec Africa, Australia, Philippines, with its headquarters located in Mumbai. Lupin was found in the year 1968 by Dr. Desh Bandhu Gupta who had the vision to fight life threatening infectious diseases and manufacture drugs which had supreme quality. His dream has steered Lupin to be a part of Indias top 5 pharmaceutical companies. Lupins success story begins with the manufacture of tuberculosis drugs followed by a range of intermediaries and APIs and it also strengthened its locating by making innumerable formulations. monetary PerformanceThe following statistics about Lupin gain been impacted by the recent changes in its business integration processes. In FY 2010, net sales grew by 26% to INR 47,405 million up from INR 37,759 the previous year and net kale grew at 36% to INR 6,816 million compared to INR 5,015 million in FY 2009Manufacturing facilitiesLupin has formulation plants at 5 different locations namely Aurangabad, Jammu, Mandideep, Goa and Indore and API plants at Ankaleshwar, Mandideep, Tarapur and Vadodara. Its ultimate aim is to drop out quality and scale, with successful integration of their capabilities and capacities to deliver a wide point of intersection portfolio that caters to the varied necessitate of diverse markets. Precisely committed to quality, safety and the environment, nearly of their manufacturing facilities have been inspected and approved by the US FDA and UK MHRA, WHO, Australian TGA and Japans MHLW.RD look into will continue to be the main driver for Lupins success. Lupin has a state of art Research and development centre at Pune, Maharashtra. It is a 19 acre land with much than 320 scientists working there. Lupin has 145 patents filed and 53 patents granted worldwi de.BACKGROUND BEFORE ERP death penaltyAs we see above, with extensive manufacturing facilities and growths coming in mainly from research, to sustain its position in the market it was essential for Lupin to integrate its manufacturing units by heighten connectivity between them. In the year 2002, it had operations spread across 5 plants and more than 30 depots to manage. They were at this time using the FoxPro based ashess. This system would not work online and the central issue with it was it used to push back more or less 10 days to get the month displace sales figure compiled together and presented to the authorities.With this unwrap problem in the backdrop, Lupin felt the need to adopt and implement an ERP system for its operations. At this point, Lupin initially went for a localized ERP recital which was specific for every location and as per location specific requirements. But the problem here was decentralization. Lack of cohesion hampered the successful implementat ion of this. Thus a ERP software which would help Lupin set up, implement, monitor and evaluate business processes and then make it possible to integrate that information so that steering may take a review of efficiencies was required.TIMELINE FOR IMPLEMENTATIONS OF VARIOUS ERPs AT LUPINIMPLEMENTATION OF SAP ERPImpactSAP ERP package has benefitted LUPIN by streamlining business processes increasing accessibility and connectivity.From the time of implementation, Lupin has not required any additional staff in the expediency areas like accounting, IT, finance and HR.The 4 main modules, namely materials, intersection and quality management, have been adapted into the system.After implementation the conjunction has doubled in size entirely this was possible with the same number of people.It also alter ease of access to available information. For instance, now even a sales manager has access to real time data with respect to the inventory levels which was not possible earlier.Onl ine connectivity has improved the online accounting system considerably.It has also enhanced the inventory tracking and helped in materials planning as now the required raw materials dissolve be ordered online, resulting in cost saving to a large extent.Implementation Problems and its overcomingLupin had to overcome certain hurdles for the successful implementation of this ERP package. about of these included user training including basics such as the mere operation of a computer master data supervision, day to day commove shooting and configuring new business processes coming into the system as per requirements.All these problems were mainly done by several rounds of user training, interaction, discussions which was mainly done by IBM. Also the 1st problem faced for implementation included to get all the disjoined systems connected online. This was done by establishing a complete VSAT meshing and Lotus workflows.This implementation was done by IBM and the initial investment inc luding up gradation of network, hardware installations and cost of implementation cost Lupin around Cr.15. take FOR MORE ADVANCED AND SPECIFIC ERP MODULESBetween the years 2003 and 2008, Lupin had successfully got US FDA approvals for plants in 5 places across India. These approvals specified stringent quality levels which essential to be measured and tracked daily. Sales and order management, travel and expense management and environmental and safety configuration management also become more and more important.It had started operations in Japan, South Africa, Australia, Germany and some others through acquisitions. Regulatory compliance across these different countries needed to be managed. Accounting and financial reporting compliance was also a requirement.It had started its own research centre in Pune which required extensive information protection and security. Management of investigator sites, proper documentation, site agreements and contracts management were some other pr oblems faced by the company.Increasing end-user productivity, product design cost estimations, shared services for HR, talent retention and attraction, procurement were some other business need faced.SOLUTIONSThere were 4 major technology changes that were made to overcome a majority of these problems.Upgradation of breathing SAP software to SAP ERP 6.0 science lab Information Management establishment (LIMS) from LabWareQuality Management System Enterprise version from Novatek InternationalLanguage Independent substantiation Reader Enterprise version from Novatek InternationalLupin has been successful in gaining a competitive advantage by using enterprise resource planning systems in combination with its existing systems. The major reason for this success lies in the fact that it decided to choose an ERP vendor which was familiar with the pharmaceutical industry and this gave it the advantage of financial savings and change magnitude efficiencies.ERP IMPLEMENTATIONSAP ERP 6.0BUS INESS CHALLENGEERP 6.0 ENHANCEMENTIMPACT embody growth planService in new therapy areas and business segmentsAccounting and Financial report ComplianceEnhanced contract accounting and collectionsAutomated allocations and balancing by multiple dimensionsAbility to operate a HR shared service centerNew general ledger for consolidated financial statementsBetter management of internal controls of 8 manufacturing units across the globeContract Accounting with almost 10 contractorsAdvanced financial supply chain managementUniversal work lists for global operationsTime managementHR administrator take in quality compliance in productsAbility to import rules regulations from third party providersSupport for OSHAMonitoring dangerous materialIncreased victuals toOccupational healthWaste managementIndustrial hygieneHazardous material managementThese factors are of utmost importance for a pharmaceutical companySustain position of Global market leader in several drugs like cardiovascular ant i-tuberculosisBetter planningBetter forecasting toolsInvestment trackingSuperior product costing moduleEnables express PlanningBusiness consolidationsProduct design cost estimateImportant from global operations point of view improve operational efficiencies in marrow business processes while bringing overmaster interim costsSales Order ManagementBetter order-entry processSupport to internet salesPrice configurationsTravel Expense managementSpeedy expense reportingBetter travel planningOrder quotation managementAutomated credit card feedsIntegrated mileage calculationMobile travel expenseIntegration with travel agencyThe implementation was done by a multi disciplinary core team from Lupin in partnership with Bristlecone, a company which specializes in SAP supply chain ERP implementation.Increasing end user productivityNew application interfacesUpdated role-based accessGreater use of adobe interactive formsSelf-serviced employees, managersEmployee interaction centerLaboratory In formation Management System (LIMS) from LabWare inquirePatent of new drugs is a very integral part of pharmaceutical companies. Also at Lupin, documentation for intellectual property management was not organized and the IP registration rules were becoming more and more stringent.Another problem faced at Lupin was that research labs were treated as a separate part of the business. As the pharmaceutical industry has gradually progressed, it has been seen that research laboratories have become an integral part if the company want sustainable growth. The key problem here was that it was difficult to communicate RD with other business systems like MRP and Process Control System.WHY LabWare LIMSCan be integrated with SAP ERPThe core code is separated from the configuration and thus allows LIMS systems to be implemented with ease.Easy UpgradationScalable architecture for centralized operations at LupinMulti lingual support which allows application across Lupins operation globallyHigh level of security required by research laboratories in the pharmaceutical sectorCompatible with any browser including Mozilla FireFox operated in LupinLIMS Implementation Support for LUPINTemplates were designed in accordance with the requirements of Lupin as decided by the core team. well-nigh of the important templates designed were stability testing, environment monitoring and QA/QC manufacturing.The following chart gives an indication of the various modules of LIMS used by LUPINMain Business System(s)electronic Document Management Systems (EDMS)Project Management (PM)Customer Relationship Management (CRM)Testing/Stability/Shelf-LifePlease refer appendix 1 for snapshots of stability and ledge life testing using LIMSPlease refer appendix 2 for snapshot of a summary report of sample testing prepared by LIMSImpactThe benefit seen after the implementation of LIMS was that today when Lupin develops a new product, LIMS is used toTest the new prototype product.Scale up manufacturing of the productRelease to the marketTesting defective samples after production.Environment monitoringStorage of historical research dataFull sample tracking exploiter certificationInstrument and calibration managementStandards reagents managementFull auditingReport and sample schedulingBar codingPlease refer appendix 3 to get detailed understanding of how modules work, and information flow within the system using LIMSQuality Management System Enterprise version from Novatek InternationalNeedRisk ReductionIntegration to Key SystemsReporting DocumentationFlexibilityIndustry Best PracticesDocument Management Application ModulesSOPs, policies, work instructions piling recordsCertificates of Analysis (COAs)Regulatory submissionsRegulatory correspondenceCAPA objective evidenceDocumentation related to change controlValidation documentationManuals, instructionsEmployee training and cleverness recordsProject documentationInvestigation documents, photographs, etc.Contractor batch records, quality recordsAudit reports and follow-upsImpactAllows compliance with industry standards like 21 CFR Part 11, 21 CFR Part 210, 211, and ISOConsistent with FDACompatible with ERPMaintenance of quality across different plantsReduce re-works scrap costReduce cycle time and process down timeBy implementing this software, Lupin has been able to manage audits like GMP/GLP/GCP, Clinical support audits, internal quality audits, site audits, pre-clinical studies etc.Language Independent Proof Reader Enterprise version from Novatek InternationalThis software is basically related to Automatic packaging. It has an Analyzer which proof reads insets, cartons and other printed material. It is language indifferent and hence most suitable for Lupin packaging as Lupin is a supplier of drugs across the globe.This software allows to spot and correct not only discrepancies between characters but also changes in color and pictures. This is very important for any drug packaging as it has life threatening outco mes.SOLUTIONS FOR THE FUTURELupin plans to implement more applications like the Human resources, to control attrition rates and developing the internal organizational structure.ERP 6.0 has been successful in bringing together core business components. Lupin now plans to upgrade to SAP Netweaver 7.0 and also Business Intelligence for a more extensive and specific approach to pharmaceutical operations.Personally, I believe the company should aim at integrating their system with the customers i.e. contract manufacturers to enhance their supply chain further.Bandwidth and infrastructure are the two biggest setbacks that Lupin is currently facing and needs to improve upon.APPENDIXAppendix 1LIMS from LabWareModule Testing Stability of a product(Various graphs for pH testing have been produced)Appendix 2 breeze of LIMS showing a summary report of a sample producedAppendix 3Modules used in LIMSalong with their information flow throughout the system