Merck tests method for better output
By Laura Keeter Daily Times Staff Writer
Wilson Merck held a celebration Friday for its new business strategy called lean manufacturing.
Employees got a visit from Sue Capps-Morris, the vice president of U.S., Puerto Rico, Latin America and Canada operations. Capps-Morris spoke briefly to employees during a celebration luncheon and congratulated them on the good job they've done to this point.
The Wilson site is Merck's first U.S. site to reorganize around this new strategy. The site in Puerto Rico was the first site overall, and more sites will follow, said Agnes Speight, public affairs manager in Wilson.
This new strategy will eventually be used throughout the company.
The Wilson site applied the new concepts about three weeks ago. Benefits have come already — quicker response times, lower inventories and shorter cycle times. The benefits result in lower costs and more efficient operations, according to a company press release.
"The future of Merck and the future of the Wilson site depend on the changes Merck is making now," said Pat Ryan, plant manager. "We're arming Merck for 21st century competition in an industry that will never be the same as it was in the 1980s, and we're ready at Wilson to play our part. We're used to being the site that leads the way. We don't intend to let that change."
Lean manufacturing was introduced at Toyota more than 50 years ago, and is a proven strategy that's been adopted by many industries, according to the press release.
Merck's lean manufacturing strategy — called the Merck Production System— features some key aspects. The system is lean (elimination of waste), agile (quick response to customer needs) and customer-driven (production based on what the customer actually requires).
Lean manufacturing targets seven areas of waste such as defects, overproduction, motion and inventory. The system isn't used to reduce head count. In many cases, head count may not be affected at all, Ryan said.
The Wilson site began preparing for the April 3 kickoff in the first quarter of 2005. Staff mapped every step of every process. They spent hours determining ways to remove waste throughout the operation.
At Wilson Merck, manufacturing processes have been streamlined, so unnecessary steps were removed. Production is no longer based on sales forecasts but on customer demand.
A prominent feature of a lean facility is the use of visual aids that inform employees about the status of production, improvement opportunities and performance results. The end result is a more flexible, agile and responsive manufacturing process. Now manufacturing delivers what is needed, when it is needed, in a cost-effective manner.
The resulting new organizational structure takes the Wilson facility to a business process focus. Before, Merck operated from a functional (departmental) focus. Now employees work in either an "integrated process team" or a "center of excellence" instead of in individual departments.
Merck is making these changes in response to a pharmaceutical industry that has "changed tremendously" from 10 years ago, the release said. For example, the development of blockbuster drugs without competition for even a short time is now the exception rather than the rule.
"To continue to do business under the old model in the new competitive environment that exists today and expect to be successful is totally unrealistic," Ryan said.
"Merck wants to be the No. 1 supplier of drugs and vaccines in the world again. We at Wilson want to be the company's first choice of manufacturing sites."
