Idle Time Reduction in Formulation Room

Abstract

The Amgen Manufacturing Limited formulation room was impacted by the increase of forecasted variable demand for 2019 and 2020. During the evaluation it was found that decreases in demand for certain months caused an increase of idle time for manpower up to 87.4 hours. The current headcount for the formulation room is 40 associates. Total cost of associate time ranges from $20-$23 per hour. Time for breaks, transit and gowning and documentation of laboratory testing were identified as the major offenders for this change. The creation of a labor model of the formulation area permitted the detailed evaluation of all the activities performed by the associates. Using distribution of activities within associates, reducing non-value-added activities and a proposal to implement parallel activities when performing the job, the total headcount remained the same but idle time was reduced to 32.60 hours and cost was reduced by 10.86%. Key Terms ⎯ idle time cost reduction, headcount, manufacturing labor activities, nonvalue-added activities.