From prototype to market readiness in record time - Interview in Technik + Einkauf

Innovation cycles are short at L.B. Bohle (special machinery for the pharmaceutical industry). Flexibility and speed therefore also characterise the collaboration between Dr Robin Meier (Scientific Director) and André Klug (Head of Purchasing). It often only takes a few months from prototype to market maturity.

Dr Meier, as a pharmacist specialising in pharmaceutical technology, you are at home at the interface between process, formulation and medicinal product. What interface do you have with Purchasing?
Robin Meier: In the new and further development of our machines, collaboration with Purchasing is becoming increasingly important and intensive. In a small organisation like ours, things have to happen quickly. Purchasing plays a major role here as the main interface.

Mr Klug, can you always react as quickly as the technology requires?
André Klug: As a company, we are very flexible, our decision-making processes are short and our hierarchies are flat. The teams make their own decisions and don't have to go through time-consuming approval processes for every detail. There are hardly any internal obstacles.

At what point does Purchasing become involved in innovations?
André Klug: That varies. There are products where we are involved right from the start and others for which a semi-finished prototype exists when we join in. From then on, we try out together what makes sense and what doesn't.

So the prototype is the linchpin?
Robin Meier: Our development workshop can turn ideas into prototypes very quickly and imaginatively. This proof of concept is initially about whether what we have in mind works in principle. The process is very open and dynamic and we do indeed develop very quickly. It often only takes a few weeks from the idea to the prototype and barely a year to the first commissioning - as is the case with our latest development.

Products that are quickly ready for the market, what does that mean for purchasing?
André Klug: As a rule, we are already involved in prototype construction and procure components for this. In the next step, we look at what we can improve economically and technologically. Then it's about finding the right suppliers and the right materials. The suppliers also provide their input and we redesign if it makes sense from a production point of view.

Which components do you procure, where do you focus?
André Klug: We are increasingly buying fully assembled components. In the pharmaceutical industry, the quality requirements are extremely high, which means that not every supplier is an option for us. Stable partnerships are important. The majority of our suppliers come from the region.

What requirements does the technology have?
Robin Meier: In addition to metal parts, we buy components that control and record the process: sensors, actuators, air technology, drive technology, fans that are precisely designed for pressure ratios, throughput rates and temperature. That's why we often operate within a very small window when it comes to selecting suppliers for these components.

André Klug: It is important that we work together with the supplier right from the development phase. That we develop the solution with the application in mind.

Robin Meier: Sometimes the original supplier still doesn't fit. As in the case of a flow meter for liquids in very small quantities. The original supplier was simply unable to supply the device in this size. Then you have to look around again.

André Klug: In some product groups, the choice is actually very limited. Added to this is the capacity utilisation of the suppliers, who are not necessarily dependent on new customers.

What do you do then?
André Klug: That's a challenge with electronics. It's easier in the metal sector, but here too, defined values narrow down the selection.

Is a second source even an option for you?
André Klug: We welcome it in purchasing. But we also receive specifications from our customers that precisely define the products. Then there is no alternative for the electric motor, for example. You have to manage this skilfully so that delivery capability and price still fit in the end.

How do you manage delivery risks?
André Klug: Due to our size, we still know very well which are the critical products and suppliers. We have implemented appropriate measures there and work with call-off orders, stock levels or fixed replenishment times.

How transparent do you have to be with customers in the supply chain?
André Klug: The requirements for transparency and Documentation are definitely increasing. Where possible, we fulfil these requirements. However, some questions regarding the origin of individual raw materials, for example, are almost impossible to answer due to the size and structure of our supplier base

Robin Meier: Of course, we meticulously check the material quality of the stainless steels in all areas that come into contact with the product by X-raying components and materials in the incoming goods department. Of course, we also document this.

Do you have different expectations of your suppliers today?
André Klug: Instead of buying individual parts, we buy assemblies. This means, for example, that we expect finished, coated turned parts including connecting material. We leave the coordination of the intermediate steps to the suppliers.

Does this have an influence on the machine design?
Robin Meier: At the start of development, we benefit from the fact that we can do a lot ourselves. We enter into discussions with suppliers later and adapt specifications when we realise that it is easier this way and has no influence on the process, its stability and quality.

Is this why the dialogue with suppliers is increasing?
André Klug: Definitely. Today, we have the supplier design the engine - after all, he is the specialist. There has been a rethink.

Robin Meier: We have components that would have taken much longer to develop without the involvement of suppliers, partly because we would have had to do a lot more testing. Some suppliers are prepared to get intensively involved right from the start.

Where are there points of friction between technology and purchasing?
Robin Meier: Less in the innovation phase, more in day-to-day business. When it comes to machines that have to be delivered to the customer on a fixed date.

André Klug: The time window is getting tighter and tighter. Our customers' decision-making processes are long and there can be years between the offer and the contract. But the originally announced delivery date remains the same. This is sometimes difficult for procurement because there are currently long delivery times on the supplier side too.

How do you get the goods on time?
André Klug: We now use a new tool to give our suppliers a weekly preview of their specific requirements. This is linked to a monthly supplier evaluation. The supplier must check the delivery list and actively contact us if they are unable to deliver the quantity. In this way, we have increased delivery reliability and can coordinate in advance in the event of delivery difficulties.

How do you manage the fast pace of development?
Robin Meier: Innovations take place alongside day-to-day business, which also has to run. You can only manage this if you recruit new employees on a selective basis, as we have done. However, innovation is also an intellectual challenge. The task is to hit exactly the critical point that the competition does not cover, but which is crucial for customers. The fact that we have now succeeded in doing this several times is confirmed time and again by the market.

How do you know what customers need?
Robin Meier: We spend a lot of time at trade fairs and specialist conferences on continuous manufacturing. You hear a lot there, as well as field reports from companies. When we presented our new concepts, it quickly became clear that points such as uniformity in the product flow or uniform drying with different Particle Sizes hit a nerve. This is a nice confirmation that you are on the right track.

You develop quickly and optimise a lot, how does purchasing reflect this?
André Klug: If a machine quickly becomes market-orientated, we have to keep up with the pace of sales. However, as we continue to optimise the products even after they are ready for the market, the article masters often change again. We then stop the process and procure new ones. That's part of what makes our flexibility and speed so effective.

What's on the agenda for 2019?
Robin Meier: In terms of development, we have made a lot of progress in the last two years. The primary goal now is to finalise this, complete the model update and achieve a standard that we can maintain. We also want to use our university partnerships to generate data and publish test series that show what the machines can do.

André Klug: We are expecting good sales for the new developments, which means that unit numbers will increase very quickly. We have to secure the supply for this through framework agreements and purchase commitments. Nevertheless, capacity is an issue. The biggest problem for any supplier investing in a new machine tool today is the operator. The shortage of skilled labour is clearly noticeable. Also on the customer side, where we supply turnkey solutions - i.e. machines including installation, assembly and commissioning. We need skilled labour worldwide for this. In addition, only certain suppliers are authorised by our customers. Not just anyone can enter a pharmaceutical production facility. This is not only an organisational challenge for purchasing, but also an economic one.

Source: TECHNIK + EINKAUF Process Industry 1/2019