Legacy Facility: Decision-making Analysis. Case Study of a Pharma Company in Indonesia

Abstract

PT. ABCD has faced the issue of legacy facilities that become findings in routine inspections of NRA. The issue can be escalated to shut down the production facility due to the legacy facility hardly complying with cGMP. The study aims to choose the best alternatives of building a new facility, renovating the current facility, and toll manufacturing with consideration of financial, regulation compliance, project completion speed, and strategy risk. The study is using Analytic Hierarchy Process (AHP) to get a decision from the experts in PT. ABCD. The respondents are seven experts in many fields, including finance, project management, GMP, operations, demand forecasting, technological transfer, business development, cGMP engineering, and the management representative. To analyze the group decision-making, the results of each respondent are aggregated with a geometric mean. Compliance with regulation (0.356) was found to be the top priority, followed by strategy risk (0.295), project completion speed (0.250), and financial aspect (0.098). Results show that (a) building a new facility (0.4563) is the best alternative among the other alternatives, followed by toll manufacturing (0.3251) and renovating the current facility (0.2186); and (b) building a new facility is the best alternative among the other alternatives (0.4563) followed by toll manufacturing (0.3251) and renovating current facility (0.2186) with consideration of criteria financial aspect, regulation aspect, project completion speed aspect, and strategy risk aspect. We recommend implementing the project plan to build a new facility.