ERP Solutions for Pharmaceutical Manufacturing Company

QUANTUM ERP

Need of time

The Pharmaceutical Industry is faced with intense competition, rise in input costs, poor
infrastructure, price control by the Government etc. These are just some of the factors
that threaten to reduce market share and profitability and bring generic drugs
manufacturers to forefront. Growth in Revenue and Improvement in Margins is
becoming more and more challenging due to ever increasing competition, government
regulations, product segmentation, high lead time for drug development, probability of
drug development failure etc. Successful pharmaceutical companies are looking to
manufacturing software and technology to not only survive but also grow in these
turbulent and changing times. These companies are utilizing software to streamline
operations, reduce production costs, and be more responsive to demand fluctuations.

The pharmaceutical industry is increasingly complex. Customers seek better service.

Shareholders demand profitability. The government agencies require that you keep
current with regulations and follow them to the letter. In this environment pharmaceutical
manufacturers are confronted with a number of unique challenges viz.

• Need for accurate and timely forecast of customer demands.

• Capability to respond quickly to the availability and changes in raw materials
• More Market demand for innovative products at more competitive prices
• Ability to maintain brand equity and increase market position through superior
quality and value added services.
• Expiring patents on blockbuster drugs and insufficient new drugs in the pipeline.
• Visibility to and analysis of real-time, enterprise-wise information throughout the
supply chain
• Support creative, promotional pricing tailored to a region, class of customers, or
product lines.
• Many Regulatory, Security and Reporting requirements
• Continual streamlining of operation processes to minimize costs and maximize
yields.
• Control and optimize inventory levels to reduce carrying cost and maintain
optimal inventory.
• Adequate flexibility required being pharmaceutical industry highly dynamic

Great dependency on third party data since most Pharmaceutical Inventory is sold to
wholesalers and not directly to the end customers, making difficult to analyze sales data,
without third party information.

Faced with this dynamic landscape, pharmaceutical manufacturers must adapt to the
marketplace while being responsive to changing customer preferences. Successful
manufacturers are effectively and efficiently leveraging technology to respond to these
challenges and to satisfy current demands while anticipating future requirements.

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 ERP Solutions for Pharmaceutical Manufacturing Company

Solution

Quantum ERP is enterprise resource planning solution specially designed and developed
for pharmaceutical product manufacturers. It gives a real-time view of the business and
the information needed to make effective decisions.

A pharmaceutical company depends on data from every link in the supply chain:
inventory receipts, quality control and quality assurance test results, payments for
purchases, production records, customer orders, shipments and invoices, payments from
customers, maintenance of equipment and facilities, investments and taxes, etc.
Quantum ERP is designed to reflect the particular needs of company’s business
processes like items with multi-pack, multi-size finished goods, bulk storage and
replenishment control management, shelf life and batch expiry control, product
development and specifications, centralized and local purchasing.

Quantum ERP is tailored to meet the needs of pharmaceutical industry. It can deliver
the power, scalability, and robust e-business functionality in a cost-effective manner, with
rapid implementation. Quantum ERP comprises versatile analytics and MIS reports,
which gives the power to run businesses at peak performance.

Salient Features of Quantum ERP

• Presents real time organisational status with improved visibility

• Material costing, batch costing, product costing, WIP
• Equipment calibration, preventive maintenance, equipment capacity utilization
• Electronic batch record generation viz. BMR & BPR
• Batch reconciliation, RM / PM / FG management with batch / lot control
• Pre-configured Pharmacopoeia, Quality Groups, Tests, Calculations with efficient
laboratory management
• Vendor analysis / evaluation ensuring effective material procurement with
pharmaceutical specific supply chain management
• Sales tracking at primary & secondary level with sales & returns analytics
• Sales force management with targets, achievements, incentives
• Material distribution with comprehensive routing & rating details
• Budgeting, Accounts Receivable / Payable, Treasury management
• Effective HR & Payroll management
• Intelligent messaging / alerts to manage workflow
• Support to multi-location activities, sub-contracting
• Compliance to specific needs of 21 CFR Part 11, FDA, cGMP, cGLP, WHO,
eCTD etc (Not validated)
• Supports Data Warehousing & Business Intelligence
• Increased visibility of key performance indicators (KPIs) across portfolio
• Effective User Administration & Security management

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 ERP Solutions for Pharmaceutical Manufacturing Company

• Use of cutting edge technologies

List of Modules

Sr. Name of the Module

No.
1 Material Procurement
2 Inventory Management
3 Production Management
4 Quality Control
5 Quality Assurance
6 Costing
7 Equipment Maintenance
8 Sales & Distribution
9 Excise Documentation
10 Export Documentation
11 Sales Force / MR Management
12 Financial Management
13 Time Office & Payroll
14 HR Management
15 User Administration

Material Procurement

• Material Procurement process initiation from production planning department

• Indicates Shortages of Material for execution of plan
• Material procurement cycle Indent / Enquiry / Quotation with approved vendors
• Quotation Comparison & Analysis
• Purchase Order creation with facilities for imported, staggered deliveries, multiple
currencies
• Interface with Stores, Production Planning and Finance
• Report on pending PO’s and reminders to suppliers
• Purchase Rate History
• Vendor Analysis: Analysis of approved vendor on the basis of on-time deliveries,
returns, quality of goods, rate and other purchase statistics
• Vendor Rating
• Purchase return management
• Purchase rate variance against standard rate

Inventory Management

• Goods Receipt & Inventory Management: Follow-on activity to purchase order

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 ERP Solutions for Pharmaceutical Manufacturing Company

• GRN captures information like vendor's batch, AR Number, date of

manufacturing, expiry period / BBU etc. with online update of Physical
Inspection Checklist
• Generation of Quarantine labels and intimation to QC for quality control activities
• Stock Status: The stock in a warehouse is categorized as Open, Quarantine, Under
Inspection and Blocked
• The Stock Statement is available for any desired material and desired period
• Date Controls: The system keeps track of multiple dates at the batch level,
including Expiration, Manufactured, Best Before, Shelf Life and Re-test
• Generation of Requisition, Issues (RM / PM) and Dispensing are provided on
FEFO basis
• Assay calculation in material issue process for batch
• Valuation of the inventory
• Use of Bar Code readers, ABC analysis, FSN Analysis
• Interface with Production, Quality and Finance (Accounts Payable) modules

Production Management

• Batch planning, Equipment planning, including personnel planning for optimum

plant performance and Work-in-Progress
• Product formula / BoM: Enables to define formula consisting of Raw Material
(RM), Coating Material (CM) and Primary / Secondary Packing Material (PM)
for theoretical batch size of the product.
• Facilitates to define various tasks / operations for Batch Manufacturing (BMR)
and Packing Process (BPR)
• Batch Planning: Enables planning of the batch on the basis of Production Plan and
Sales Orders, blocking of material based on product formula, addition of
recovery.
• Production Process: Facilitates step-by-step entry of the batch manufacturing
process maintaining complete documents for the same (adherence to cGMP).
Allocation of manpower and equipment utilisation (Active / Passive) task-wise,
facility to enter IPQC results for the task / operation.
• Monitoring of Material Yield Product-wise, Batch-wise, Stage / Task-wise
• Annual Product Review based on yield, hardness, weight, assay etc.
• WIP / Recovery transfer: Transferring bulk, blend etc. to WIP warehouse and
intimation to QC for testing
• Valuation of the work-in-progress inventory including cost of raw material and
value addition at each stage of production
• Production deviations during manufacturing, Out of Specifications, Market
Complaints etc
• Interface with MRP, Quality, Costing, and Sales

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 ERP Solutions for Pharmaceutical Manufacturing Company

Quality Control

• Enable the product quality performance monitoring and management

• Maintenance of Pharmacopoeia, Quality Groups, Quality IDs, Tests, Standard
Limits, Protocols and Method of Analysis
• Define the test specification for the quality management during production (for
IP, BP, USP and In-house etc.)
• Quality of Goods Receipt: Quality Management / Batch Management, ensuring
correct quality is purchased, QM inspection results against limits to verify
acceptance of materials
• Laboratory Integration: Integrated quality control, according to cGLP
functionality like In-Process Quality Control on Standard, Storage or Order
specific request for QC
• Product Real-Time & Accelerated Stability Testing
• Control Sample Management
• Reagent maintenance: Date of preparation, expiry, re-test due for the reagent
• Generation of Worksheets for chemist with sample and specification details
• Labels printing – Sampled, Under-test, Approved and Rejected with standard
colour codes
• Quick retrieval of Certificate of Analysis and Analytical Report
• Rejection Analysis helps in improving Material and Supplier Performance.
• Interface with MRP, Production, and Accounts Payable

Quality Assurance

• Calibration of Test Equipment: Automatic generation of calibration orders on a

regular basis and execution with calibration instructions with maintenance of
calibration report
• SOP Management and alerts generation on reviews
• Facility to maintain various audit details like discrepancies found, closure details,
corrective & preventive action etc

Costing

• Cost centre: Definition of cost centres in the manufacturing process

• Production cost per machine per hour includes parameters like OEM data,
overheads, depreciation, interest, cost of planning, inspection, operation and
power consumption etc.
• Process cost determination, Process cost monitoring and Activity based costing
and Plant capacity utilisation
• Batch-wise, Task-wise Raw Material, Packing Material showing standard quantity
vis-à-vis actual used with standard deviation

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 ERP Solutions for Pharmaceutical Manufacturing Company

• Batch-wise, Task-wise Recovery, By-product showing expected quantity and

actually generated
• Batch-wise, Task-wise manpower and equipment utilisation
• Cost-centre-wise equipment utilisation for various costing parameters
• Revenue & Cost Accounting: Provides valuation and recording of financial data
as the basis for all cost- and revenue-related reporting.
• Trend Analysis – Process Cost

Equipment Maintenance

• Facilitates Definition of equipments in system, mapping important spares for

stock purposes, mapping trained manpower on equipment for decision support
• Equipment calibration, blocking of the same on due date and generation of alerts,
maintenance of Log-book, Preventive Maintenance with maintenance history
• Equipment qualification against Design, Installation, Performance and Operation,
also generation of automatic alerts on situational basis
• Generation of alerts upon changing important spares and due for Operational
Qualifications

Sales & Distribution

• Stock transfer between locations

• Rating: Management of freight tariffs
• Decision Support: Transportation Requirements Plan
• Carrier Selection: System driven assignment of carriers against shipments based
on compatibilities and freight costs.
• Quick and Flexible order entry for variety of item types including kits,
configurable products and services.
• Customized treatment for pricing, tax and discounting mechanisms, to handle
various commercial policies
• Multiple order processing
• Order booking / Pack-list / Invoice Generation
• Product issue based on FIFO, FEFO, near expiry and selected batches
• Scheme management for sales promotion
• Return goods management - adjustment of customer balances and sales returns
• Payment from Distributors and adjustments against Accounts receivable
• Batch hold from invoicing
• Interface with Production and Finance

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 ERP Solutions for Pharmaceutical Manufacturing Company

Excise Documentation

• Maintenance of various statutory documents viz. RG23A Part I & II, RG1, PLA,
ER-1 etc
• Integration with Inventory, Sales & Finance modules

Export Documentation

• Generation of various mandatory export documents along with Custom Invoice,

Packing List, Form ARE-1 etc

Sales Force / MR Management

• Integration of Warehouse, C & F Agents, Consignee Agents and Depots

• Stock, Sample & Promotional Goods management
• Tour planning and actual visit of MR with online generation of Daily Call Report
• Personal Order Booking
• Distributor management using maximum credit limit, minimum dispatch limit,
maximum invoice value and hold transactions
• Sales achieved product-wise / value-wise/ territory-wise, Region-wise, Zone-wise
• Sales targets against achievements based on primary and secondary sales data
• Retail counter Prescription Audit
• Sales incentives
• Interface with Sales & Distribution and Finance

Financial Management

• The general ledger module integrates with accounts receivable and accounts
payable, covering budgeting, financial reporting.
• Accept details of vouchers, cash, bank receipts and payments
• Reconciliation – Bank reconciliation on regular basis
• Financial Statement - Statutory and management reports like Cash, Bank,
Journals, Credit / Debit Notes, Ledgers, Trial Balance, Profit & Loss and Balance
Sheet
• Ratio analysis, Cash / Fund flow
• Accounts Receivable keeps track of Receivables with automatic data update from
Sales Management system
• Accounts Payable keeps track of Payables with automatic data update from MRP
and QC
• Payment Planning based on Purchase Terms
• Distributor-wise ageing analysis is available
• Sales Tax Register

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 ERP Solutions for Pharmaceutical Manufacturing Company

• Depreciation on fixed assets Statement

• Interface with MRP, Production, QC, Sales, and Payroll

Time Office & Payroll

• Time Management optimises processes for planning, managing, and evaluating

the working times and activities of employees.
• Attendance and Leave management
• Process employee wages and salary
• Payroll processing includes Payroll Accounting, Dearness Allowance, House Rent
Allowance, Tax, Insurance, Travel Expenses Administration, Incentive Wages,
Posting to Accounts.
• Statutory reports to Provident Fund commissioner office, Income-tax office
• Salary advance, bank loan, employee society Management

HR Management

• Employee increments
• Employee training – On Job / GMP / External, Preparation of monthly training
calendar, results, grades, feedbacks
• Employee demographic data for HR
• Employee competency matrix with details like Experience, Qualifications, trained
on SOPs, Equipments etc

User Administration

• Menu-driven ERP administration to manage users, user roles / privileges

• Security management (Module level, Page level, Operations level)
• The audit trail can be viewed by the System Administrator
• Any data entry or modifications are recorded by date, time, user, action
• Security is available in multiple levels like database, object and instance. It
controls user access from the initial login through to the final logout.

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 ERP Solutions for Pharmaceutical Manufacturing Company

Technology

System Architecture

The deployment diagram is used to show the distribution of components, typically across
a multi-tier system or the deployment of components around a heterogeneous
environment.

In this diagram, we can see a multi-tier system comprising of a client with a web browser.
End-user connects to application on the web server. This, in turn, accesses information
directly from the database server, via a tier of components on a component server.
Component server is a set of business objects which communicate with the database
through a common data access component.

Development Tools

• The Package has been developed using cutting edge technology that gives the
security and ruggedness to ensure its functionality in the prevailing conditions at
the shop floor
• The Front-end is developed using PHP 5.0, JAVA
• Operating System Linux / Windows
• Web server Apache / IIS
• The Backend used is Oracle 9i / Oracle 10g XE as the RDBMS that ensures total
security and no data loss or corruption

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 ERP Solutions for Pharmaceutical Manufacturing Company

Implementation Methodology

Preconfigured Solution

Quantum ERP is preconfigured with Quality Control Pharmacopoeia. Database

contains Tests, Limits, Protocols & Method of Analysis which are readily available
during testing process and documents are maintained as per WHO-cGLP as well.

Gap Analysis / Business Process Re-engineering

During the initial phase of implementation, gaps in the existing system & the solution
will be found out. During this process business process reengineering will also be done
as Quantum ERP follows all the processes set by WHO-GMP. Gaps will be approved
by the project steering committee. Customised application treating gaps as a baseline
will be implemented.

User Training

User Acceptance & Testing

Parallel Run

System will be implemented and the results will be matched with existing ERP system or
legacy system. Parallel run will ensure Accuracy, Integrity and Authenticity of
Quantum ERP.

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 ERP Solutions for Pharmaceutical Manufacturing Company

Regulatory Compliance

The solution addresses USFDA guidelines, quality standards like WHO-cGMP.

Clients
Principals have an experience of develop and deploying 100+ projects over last 20 years
in different industry verticals viz. Pharmaceutical Manufacturing, Engineering,
Constructions, and Finance etc.

Correspondence & Communication

Vinay Joshi
Managing Director
9422647870 / 9225544214
vinay.joshi@quadspl.com

Quantum Analytical Data Systems

Rajvant, 797/3 Bhandarkar Road
Pune 411 004
Tel +91-20-3028 2514-20
Fax +91-20-2566 2409

www.quadspl.com

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