Project Management
in
Supply-chain management
Megha Thakkar PMP®
Supply Chain Management,
Cipla Ltd.
8th May 2013
Pharma Project Management Conference, Mumbai, India

OBJECTIVE
To enhance our existing project management flexibility capabilities to an
international "hands-on" practitioner level.
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Pharma Project Management Conference,
Mumbai, India
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Project Management
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Pharma Project Management Conference,
Mumbai, India
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PROJECT MANAGEMENT
Project management is a system based discipline that relies on project
manager’s competencies to implement a project within
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Pharma Project Management Conference,
Mumbai, India
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TIME
COST
SCOPE
QUALITY

PMBOK project management
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Pharma Project Management Conference,
Mumbai, India
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*RACI Chart –Role of Project Manager
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Pharma Project Management Conference,
Mumbai, India
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Role → Project
Sponsor
Customer End
User
Project
Manager
Project
TeamActivity ↓
Development of the project delivery plan A I I R C
Delivery of the project outcomes C I I AR C
Achievement of project objectives
(cost, schedule, scope)
C I I AR C
Enable the benefits to be realized C I I AR C
Develop and manage team performance I - - AR C
Develop stakeholder management plans C - - AR I
Manage project risk I AR C
Deliver regular project reports I I I AR C
* Responsible, Accountable, Consulted, Informed

Pharmaceutical Project Risk Consequences
Project Risk
Delayed or no
regulatory
approval
Delay launch to
market and to
patients
Unacceptable
product quality
Excessive
product lifecycle
cost
Unacceptable
product
technical
performance
8 - May - 2013
Pharma Project Management Conference,
Mumbai, India
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Typical Pharmaceutical Supply Chain
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Pharma Project Management Conference,
Mumbai, India
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Suppliers Manufacturers Warehouses &
Distribution Centers
Customers
Material Costs
Transportation
Costs
Transportation
Costs Transportation
CostsInventory CostsManufacturing Costs
Plan Source Make Deliver Buy

Supply Chain Management
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Pharma Project Management Conference,
Mumbai, India
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… historically and currently problematic
Technology
Processes
Culture
War
Volcanic eruptions
Management
Manufacturing
Strike
Boeing, 1997 writes off $2.6
billion, due to supplier parts
shortages
Vipnet, 1999 GSM portal
launch delayed 1 year due to
supplier issues
Sony's 2006, PlayStation 3
delay gives opportunity to rivals
(Microsoft's Xbox 360 and
Nintendo's Wii)
Airbus's A380
super-jumbo 2006
delivery to customers,
almost 2 years late
Sainsbury’s delayed
store openings, cost them
£millions in lost revenue
Legal

Seven Success Factors for SCPM
1. Set realistic GOALS
2. Make an EFFECTIVE PLAN
3. Find a strong EXECUTIVE SPONSOR
4. Assemble good RESOURCES
5. Stay FLEXIBLE
6. Allow TESTING
7. Promote USER BUY-IN
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Pharma Project Management Conference,
Mumbai, India
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Similarities between PM and SCM
Project Management Supply Chain Management
• Defined beginning • Defined beginning
• Defined ending • Defined ending
• Defined scope • Defined scope
• Time associated • Time associated
• Defined cost
• Defined inputs • Defined inputs
• Systems view • Systems view
• Customer orientated • Customer orientated
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Pharma Project Management Conference,
Mumbai, India
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Supply-chain PM
• Changes in key parameters can have a
significant impact on project schedules
and hence change in project delivery
– material supply
– product orders
– customer forecasts
– staffing resources
• Often, these supply and demand changes
take too long to show up in project
management schedules, resulting in
missed milestones, "throw away" work,
penalties, and cost overruns
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Pharma Project Management Conference,
Mumbai, India
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Need
• Enterprises need a single management system that breaks
down the silos between human resource management,
supply chain management, demand planning, cash
management, and project management to ensure that
physical and human resource utilization is maximized
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Pharma Project Management Conference,
Mumbai, India
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Solution
• A control tower solution using Rapid Response approach can
provide project management teams with resources to manage
expectations and keep projects on track despite ever-
changing demand and supply variables
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Pharma Project Management Conference,
Mumbai, India
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Solution – How?
• Specific project management resources include
– Multi-scenario gantt charts
• summary-level durations, slack time, comparisons to plan
• with milestones directly linked to implications on revenue and costs
– Material– and non-material-related tasks
– Tasks linked to formal work breakdown structures to enable
understanding of the supply chain drivers and implications on projects
– Visibility into cost details for material or non-material-related activities
for a summarized view of total project costs, which then supports
project profitability modeling
• "what-if" scenario capabilities
– link the supply chain analytics to project schedule projections,
enabling companies to quickly assess the implications of potential
material or non-material-related task delays or accelerations
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Pharma Project Management Conference,
Mumbai, India
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Benefit
• By incorporating project management along with
RapidResponse control tower solution, customers can expect
to achieve
– Fewer missed project milestones
– Less financial penalties
– Decreased time to revenue recognition
– Improved cash utilization
– Optimized deployment of staffing resources (avoiding either
"time on the bench" or paying overtime)
– Alignment between all stakeholders; Project Office, Supply
Chain Operations, Finance, and your customers
8 - May - 2013
Pharma Project Management Conference,
Mumbai, India
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Benefit
• A control tower solution with RapidResponse approach
eliminates the divide between siloed functions with a single
application platform that truly delivers on the promise of
integrating information, capabilities, and people for holistic
coordination of an enterprise's operations.
8 - May - 2013
Pharma Project Management Conference,
Mumbai, India
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Case Study - Product to Market
• Scenario
– As per their business strategy a generic company decided to
launch an ANDA product post patent expiry
• Challenges
– R & D, Regulatory, Manufacturing, and supply chain
departments are located in different locations
– TIMELY LAUNCH is THE MOST IMPORTANT GOAL
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Pharma Project Management Conference,
Mumbai, India
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Overview - Project teams
• Product development team – to increase product efficacy and
stability.
• Regulatory group – to launch to all markets globally (working
with the Marketing group to manage the market changes).
• Manufacturing Division – to redevelop facilities, review value
stream operations and transfer the developed product into
two short listed locations.
• Global Supply chain – to manage the supply chain changes.
• Thus the project was actually a program of interconnected
projects and therefore virtual teams each delivering a critical
package.
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Pharma Project Management Conference,
Mumbai, India
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Project manager
• The Project Manager for the program reviewed the overall
goals and challenges and then proposed a way of working to
address any potential issues with the location of the teams
and the criticality of the project.
– Set up a collaborative e-area to store and share project
documents from each team.
– Internet meetings using collaborative tools which were working
sessions as well as for information exchange.
– Virtual dashboard so that the large team
would focus on the overall goal not just
their part.
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Pharma Project Management Conference,
Mumbai, India
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Risk-Based Approach
• The team for each critical package was required to report a
risk rating with back-up data
• The risk rating was collated into a critical path of risks which
was communicated to
team and to executive
board to back-up key
decisions on pace and
direction of the project.
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Pharma Project Management Conference,
Mumbai, India
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Risk Analysis
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Pharma Project Management Conference,
Mumbai, India
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6
Amber
50% chance of
success
Manufacturing
Medium
probability of
on-time
completion,
meeting budget
and quality
goals
0 2
Amber risks are
trending to red
as mitigation
plans have not
been resourced
Amber
50% chance of
success
Product
Development
Medium
probability of on-
time completion,
meeting product
robustness and
quality goals
20 6
Mitigation plans
are all green or
trending
towards green
Green
>50% chance of
success
Regulatory
High probability
of on-time
completion,
meeting quality
goals
0 60
Mitigation
plans appear
to be working
Red
<50% chance of
success
Supply chain
Low probability
of on-time
completion,
meeting budget
and quality
goals
0 2 6
Mitigation plans
have failed and
need
contingency
actions ASAP
Red
>50% chance of
success
Project Start-up
Low probability
of on-time
successful start-
up on time
Red Risks
Amber Risks
Green Risks

Outcome
• The program progressed significantly before an anticipated
risk occurred (related to the security of the supply chain for a
key raw material).
• Because of the team communications in place and the way
the risks were proactively managed.
• An alternate vendor though expensive was approved without
implicating the overall ability for the product to make its
anticipated impact on the market.
• Once launched the product did indeed deliver its intended
business case.
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Pharma Project Management Conference,
Mumbai, India
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Lessons Learned
• Virtual project teams need a way to effectively work together as
face to face sessions are not always practical or indeed possible.
Developing these early in the project generated a real team feeling
as well as effective work practice
• Managing a team across diverse groups requires tools to “bring the
picture together” and the critical path of risks was highlighted as a
way for groups to explain why something was or was not an issue at
that time in a language that was accessible to others.
• Allowing each team to select an appropriate risk tool for their
critical package allowed each to own the risks identified and the
way they needed to be controlled and managed.
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Pharma Project Management Conference,
Mumbai, India
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Conclusion
• Every project or program contains at least one or more
customers, suppliers, and goods – hence the need for Supply
Chain Project Management (SCPM) .
• ‘Our job is to get the right goods (product or service) to the
right place at the right time for the right cost - but remain
flexible to match demand.’
Source:1999 - Daniel Newman, J. Sainsbury’s Plc
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Pharma Project Management Conference,
Mumbai, India
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Megha Thakkar, PMP ®
kotak.megha@gmail.com
Thank You
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Pharma Project Management Conference,
Mumbai, India
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