A major pharmaceutical manufacturer experienced several issues that led to low ROI and lack of market confidence in this company
Background and Challenges
A major pharmaceutical company was suffering from competition from the East, a weak pipeline, and problems in the market place. The company's share-price was at its lowest level for many years, and a step change in cost structure was required to bring the company into higher ROI and restore market confidence.
The company asked Tefen to support its global Lean manufacturing initiative across 11 sites.
The company's targets were:
• Reduce operational cost by 30% over three years
• Reduce lead-time by 50%
A Lean manufacturing program was initiated across all manufacturing sites worldwide. Tefen provided methodology and experience in 4 key areas, as follows:
• Supported the implementation of new value-stream configurations
• Led the organizational realignment program within each site
• Supported design and implementation of the visual management systems
• Provided post-go-live support to ensure change was as smooth as possible
Costs and lead-times have been reduced in line with targets:
• The operational cost were reduced by 30% over three years
• The lead-time was reduced by 50% during the program
In addition, the program achieved a 10:1 ROI. Moreover, the company’s share price has been restored to previous levels.