Maria Ferrante, Director, Workforce Development at PMMI06.06.22
Many forces buffet the medical product manufacturing industry: a strict regulatory environment; growth in combination products, at-home treatment, and personalized medicine; commitment to meet sustainability objectives; the ever-present need to maximize patient comfort and safety; difficulty in hiring and maintaining adequate staffing levels; expanding use of automation; transition to Industry 4.0; and increased reliance on outsourcing.
With all these forces at work, many firms are planning to install or upgrade production and packaging lines to increase flexibility, as well as expand the use of automation, digital technology, the Internet of Things, and Blockchain, according to Pharmaceutical & Medical Devices | Trends & Opportunities in Packaging Operations, a report published by PMMI Business Intelligence, a division of PMMI, The Association for Packaging and Processing Technologies.
When designing or updating a production line, equipment cost is always a top-of-mind consideration. However, focusing solely on the price tag of the machine(s) can lead to sub-par performance and/or higher expenses in the long run.
Without a crystal ball, how can a manufacturer figure out the optimum way to organize the line and what machines to buy? The OpX Leadership Network, a group that connects consumer packaged goods (CPG) companies and OEMs, advocates basing decisions on total cost of ownership (TCO), from design and installation through maintenance and environmental concerns.
Important considerations include delivery lead time, machine footprint and height, throughput, changeover time, hygienic design requirements, cleaning and sanitation, operating environment, risk assessment, controls, operator training and learning curve, utilities consumption (electricity, gas, compressed air, water, water treatment), equipment reliability and longevity, consumables, factory acceptance tests, permits, validation, and automation licensing.
Other aspects to consider include spare parts availability, cost of service calls, the potential for remote troubleshooting, the structure of service or maintenance agreements, and warranty cost and time period. Identifying all costs associated with machine operation can mean the difference between a successful capital project and a failure.
Based on input from Network members, who possess decades of experience on all sizes of capital projects, the playbook and checklist provide a consistent set of metrics and decision-making approach to identify and quantify costs. The free, downloadable tool features case study examples documenting the process. The streamlined, easy-to-navigate format includes a customizable Excel workbook, which can be used to record all salient cost information when purchasing a machine.
“The most successful implementation or upgrade of a medical product manufacturing and packaging line depends on understanding ALL costs associated with each machine – design, engineering, purchasing, operation, and maintenance,” says Bryan Griffen, director, Industry Services, PMMI. “The TCO tool, developed by the OpX Leadership Network, makes it easier than ever for companies to quantify the total cost associated with each machine and select the best option.”
Initially released in May 2015 and upgraded in 2020, users have downloaded the TCO tool more than 5,700 times. Free downloads of the TCO tool, as well as guidance related to Requests for Proposals, Factory Acceptance Tests, Asset Reliability Roadmap, Remote Equipment Access, and related topics, are available online here.
To further foster collaboration between CPG companies and OEMs, the group also offers the One Voice Ready assessment-based certificate program. Its goal is to drive adoption of OpX tools and spur the usage of a common language so end users and machine builders can communicate needs better. Tests are based on knowledge of best practices and organized in three streams (people, process, projects) and cover more than a dozen topics. Individuals may earn Bronze, Silver, Gold, or Platinum One Voice Ready Certificates, which never expire.
The OpX Leadership Network was founded in 2011 by PMMI to connect CPG companies and OEMs and ensure they are well-prepared to solve common operational challenges, make smarter decisions, and achieve operational excellence.
From connecting with colleagues and hearing from experts to seeing new technologies, materials, and machinery in action, PACK EXPO International is the most efficient and effective way to discover packaging and processing solutions for over 40 vertical markets. The event will showcase entire production line solutions and offer attendees everything needed to compete in a changing marketplace.
Maria Ferrante is Senior Director, Marketing and Communications for PMMI, The Association for Packaging and Processing Technologies and the producer of the PACK EXPO Portfolio of trade shows. Ferrante is an award-winning writer/editor who has been covering the packaging industry for over 25 years.
With all these forces at work, many firms are planning to install or upgrade production and packaging lines to increase flexibility, as well as expand the use of automation, digital technology, the Internet of Things, and Blockchain, according to Pharmaceutical & Medical Devices | Trends & Opportunities in Packaging Operations, a report published by PMMI Business Intelligence, a division of PMMI, The Association for Packaging and Processing Technologies.
When designing or updating a production line, equipment cost is always a top-of-mind consideration. However, focusing solely on the price tag of the machine(s) can lead to sub-par performance and/or higher expenses in the long run.
Without a crystal ball, how can a manufacturer figure out the optimum way to organize the line and what machines to buy? The OpX Leadership Network, a group that connects consumer packaged goods (CPG) companies and OEMs, advocates basing decisions on total cost of ownership (TCO), from design and installation through maintenance and environmental concerns.
Calculating Total Cost of Ownership
OpX’s Total Cost of Ownership: Packaging and Processing Machine Guidelines consist of a playbook and checklist, which help manufacturers look beyond the purchase price and quantify the true cost of owning a machine.Important considerations include delivery lead time, machine footprint and height, throughput, changeover time, hygienic design requirements, cleaning and sanitation, operating environment, risk assessment, controls, operator training and learning curve, utilities consumption (electricity, gas, compressed air, water, water treatment), equipment reliability and longevity, consumables, factory acceptance tests, permits, validation, and automation licensing.
Other aspects to consider include spare parts availability, cost of service calls, the potential for remote troubleshooting, the structure of service or maintenance agreements, and warranty cost and time period. Identifying all costs associated with machine operation can mean the difference between a successful capital project and a failure.
Based on input from Network members, who possess decades of experience on all sizes of capital projects, the playbook and checklist provide a consistent set of metrics and decision-making approach to identify and quantify costs. The free, downloadable tool features case study examples documenting the process. The streamlined, easy-to-navigate format includes a customizable Excel workbook, which can be used to record all salient cost information when purchasing a machine.
“The most successful implementation or upgrade of a medical product manufacturing and packaging line depends on understanding ALL costs associated with each machine – design, engineering, purchasing, operation, and maintenance,” says Bryan Griffen, director, Industry Services, PMMI. “The TCO tool, developed by the OpX Leadership Network, makes it easier than ever for companies to quantify the total cost associated with each machine and select the best option.”
Initially released in May 2015 and upgraded in 2020, users have downloaded the TCO tool more than 5,700 times. Free downloads of the TCO tool, as well as guidance related to Requests for Proposals, Factory Acceptance Tests, Asset Reliability Roadmap, Remote Equipment Access, and related topics, are available online here.
To further foster collaboration between CPG companies and OEMs, the group also offers the One Voice Ready assessment-based certificate program. Its goal is to drive adoption of OpX tools and spur the usage of a common language so end users and machine builders can communicate needs better. Tests are based on knowledge of best practices and organized in three streams (people, process, projects) and cover more than a dozen topics. Individuals may earn Bronze, Silver, Gold, or Platinum One Voice Ready Certificates, which never expire.
The OpX Leadership Network was founded in 2011 by PMMI to connect CPG companies and OEMs and ensure they are well-prepared to solve common operational challenges, make smarter decisions, and achieve operational excellence.
Finding the Latest Innovations at PACK EXPO International
It is more important than ever that the packaging and processing industries come together to share insights and innovations, and the best place to do that is at PACK EXPO International (Oct. 23-26, 2022; McCormick Place, Chicago).From connecting with colleagues and hearing from experts to seeing new technologies, materials, and machinery in action, PACK EXPO International is the most efficient and effective way to discover packaging and processing solutions for over 40 vertical markets. The event will showcase entire production line solutions and offer attendees everything needed to compete in a changing marketplace.
Maria Ferrante is Senior Director, Marketing and Communications for PMMI, The Association for Packaging and Processing Technologies and the producer of the PACK EXPO Portfolio of trade shows. Ferrante is an award-winning writer/editor who has been covering the packaging industry for over 25 years.