Powdering Up
Pharma Tech, a manufacturer with plants in Royston, Georg., and Union, Mi., reached a milestone in August 2005 when it assumed a large majority of the production of the world's output of Johnson's Baby Powder. Many U.S.-based manufacturers are shifting production to overseas locations, so Pharma Tech was fortunate to win the business from Johnson & Johnson (J&J) in the first place.
Pharma Tech President Carl Oberg says, "Our Union plant produces overthe- counter pharmaceuticals. Our Royston plant manufactures cosmetics and both must comply with FDA regulations and undergo periodic inspections. Since Johnson's Baby Powder is considered a pharmaceutical, there is a high level of comfort and confidence in having the powder produced in Pharma Tech's FDA controlled environment."
Pharma Tech also participates in the Good Manufacturing Practices (GMP) program, which includes system, process and test method validation; accountability and traceability; change control and batch recording; an extensive SOP program; a calibration program; and annual product reviews and trend analysis.
ENABLING PARTNERS
Enabling such a large project required the right technology. Kristin Brown, Pharma Tech customer service and planning manager, credits SYSPRO and its Atlanta-based reseller Edgeware. "Without the dedication from the Edgeware team, we would not have experienced the level of success we've had so far with our implementation of SYSPRO."
Enabling such a large project required the right technology. Kristin Brown, Pharma Tech customer service and planning manager, credits SYSPRO and its Atlanta-based reseller Edgeware. "Without the dedication from the Edgeware team, we would not have experienced the level of success we've had so far with our implementation of SYSPRO."
The driving reason for changing ERP systems was that although Pharma Tech would continue to manufacture Johnson's Baby Powder, it would no longer be owned by J&J. The establishment of a new entity owned by Pharma Tech Industries provided the opportunity to change to a system that was more user-friendly, oriented to a smaller company, had more flexibility and was cost effective.
Brown first learned about SYSPRO ERP software through a professional association and was subsequently put in touch with Edgeware Computers, a SYSPRO reseller. The company was looking for a new system to meet the needs of the changing business. Brown says, "When our Royston facility was purchased by Pharma Tech Industries, we no longer wanted to use our former system. We needed something that was more in line with our size company."
PROJECT CHALLENGES
A main challenge on this project was the configuration of the new system in a very short time. "We also had certain requirements to meet for our former owner who turned into our customer -- Johnson & Johnson. Our system had to be designed to receive, via an XML format, a weekly forecast from J&J, as well as send out advanced shipping notices electronically upon completion of loading each trailer of finished product. Our barcode system also had to be configured to meet customer specs," explains Brown.
A main challenge on this project was the configuration of the new system in a very short time. "We also had certain requirements to meet for our former owner who turned into our customer -- Johnson & Johnson. Our system had to be designed to receive, via an XML format, a weekly forecast from J&J, as well as send out advanced shipping notices electronically upon completion of loading each trailer of finished product. Our barcode system also had to be configured to meet customer specs," explains Brown.
After a demonstration, she was convinced that the solution could be successfully implemented in the required time. Brown notes that the Edgeware team visited the Phama Tech site even before the demo and gathered information about certain Pharma Tech codes. "Then they did the demo using our own codes, which made it so much easier to see how SYSPRO could relate to our business," she says. The implementation was accomplished in less than four months.
The SYSPRO software runs on Windows 2003 with SQL server in a three-tier architecture. There are 12 concurrent users. Because the SYSPRO software has been live for just a few months, Pharma Tech has been concentrating on utilizing its basic functionality. The company uses the solution in all aspects of the manufacture of Johnson's Baby Powder.
"We import the orders/forecast into SYSPRO, schedule jobs for the production floor, order raw materials and track raw material inventory, receive inventory, and of course do sales orders. We also use it for all of our accounting functions," says Brown, adding, "We have been focusing on basics and rolling out SYSPRO across the plant. Down the line, we fully expect it will be a major factor in enabling us to streamline other processes."
Part of the implementation included the use of the "WIP" module to create weekly jobs for continuous production processes, which provides the ability to track costs and tie out production numbers to specific jobs created in SYSPRO. The new system was designed and has been continually enhanced for tracking and investigating any discrepancies in the production process related to costs, inventory and shipping.
Because J&J has contracted for a specified quantity of baby powder over a particular time period, forecasting is not currently a concern. Brown says, "And since we receive purchase orders from our other customers along with rolling forecasts, this is not a major issue for Pharma Tech at present." She sees SYSPRO capacity planning tools playing a key role in the near future to help Pharma Tech adjust factory schedules to accommodate new orders.
SYSPRO software has been so successful at the Royston plant, the implementation of the solution at the Union plant is now under consideration according to Oberg.