Operational Transformation in a Pharmaceutical Company

Challenge
A state-owned pharmaceutical manufacturer was struggling with high manufacturing costs, an inventory surplus, and inefficient utilization of its plant capacity. It was failing to meet the performance levels of its competitors and needed to stimulate its sluggish growth.

Discovery
After an intensive one-month diagnostic study of the company’s operations, we recommended a comprehensive plan to transform its production and distribution practices. We worked closely with the client to redesign its manufacturing systems to improve equipment efficiency and labor productivity. We helped the client slash manufacturing costs and substantially boost productivity through more efficient use of equipment and plant capacity. We also helped implement a new “pull” production system that minimized the company’s finished goods inventory.

Impact
The company reduced pilot product inventory in the pilot project by 40 percent and increased productivity by 15 percent. The client is now ready to implement this system on its other product lines, and is positioned to increase profits while capturing more market share.