S Pharmaceutical Companies Lean Production Management Model Applied Research

With China joining WTO and the improvement of China market, the competition in pharmacy market becomes fiercer. The international pharmacy group entered the Chinese high end market by making direct investment or setting up join ventures. They have strong finance resources, advanced technology and patent. The domestic small individual-owned pharmacy enterprises have taken up most of the medium and low end market with their flexible management and efficient operation. Under these circumstances, competition becomes more transparent and public. The strategy of differentiation and low cost are two main ways to compete. When quality and price are key factors to competition, the great success of Toyota' s lean production brings hope to enterprises, who are striving for lower cost, better quality, shorter produce time and more comfortable working environment.The current situation is not favorable for S pharmacy enterprise. The competition is more fierce with more imitation products and competitors. The pressure to continue lowering price from government, the rising cost of raw material and labor and increasing customer demand on product quality have pushed pharmacy companies to improve operation efficiency, cut cost and adopt more advanced management. They should have lower cost for the same product, better quality with the same cost, faster reaction to the same market demand, higher resource utilization with the same input. Thus S enterprise will follow the lean production, reform the manufacturing and management process and continually strengthen its competence.The paper is divided into 5 parts. The first part illustrates the purpose of the topic, the current condition and the main content and structure of the paper. The second part talks about basic theory, model and tools of lean production. The third part is research on application of S enterprise. The fourth part compares and evaluates the operations before and after the launch of lean production, in terms of inventory management, operating efficiency and product quality. The fifth part is about the key success factors and accumulated experience of lean production in state-owned enterprises, hoping to provide some lessons for other state-owned pharmacy enterprises...