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Huge savings generated by improving industrial efficiency in a Pharma Group

The client is a Pharmaceutical group which has a €15 Billion turnover with approximately 15,500 full-time employees working from 100 sites and offices worldwide.

Situation at the start

The client is a Pharmaceutical group which has a €15 Billion turnover with approximately 15,500 full-time employees working from 100 sites and offices worldwide. The group’s target for 2019 was to increase gross profit by 42%.

The challenge

To achieve this target, a quick cost reduction exercise was necessary, as well as, improvement in industrial efficiency. The latter improvement could be done by setting up key performance indicators.

Production volumes were set to increase across the pharmaceutical product portfolio and the client needed to improve the productivity of the laboratories so that they could increase capacity without increasing headcount.

Putting strategy into action

EFESO helped the client by:

  • Analysing the losses through a review of:
    • Direct labour
    • Indirect labour
    • Supply Chain
    • Non quality cost
  • Running 16 workshops with the relevant populations, to eradicate attackable losses
  • Helping the site to structure its methodology to be able to achieve the expected gains
  • Breaking some culturable paradigms which enabled the client to challenge itself
  • Setting up routines to be responsive and control the performance of the site
  • Development of a problem-solving culture and no longer just problem fixing

Deliver concrete results

  • Savings of €300K YTD
  • In 2020, €550K of savings will be won thanks to the work started by EFESO
  • 20% effectiveness in batch record processing

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