Case Study | Lean Transformation Success Started and sustained lean transformational program at a Pharma facility, leading to >20 million € yearly savings in a major strategic production site
In the dynamic world of pharmaceuticals, where high margins and growth had been the norm, OSICS NETWORK was called upon to navigate a challenging landscape. This case study delves into OSICS NETWORK’s transformative journey with a major pharmaceutical company based in Germany, boasting approximately 4,500 employees.
Facing mounting cost pressures due to increased price competition and the necessity to enter less affluent emerging markets, the pharmaceutical giant sought a solution to safeguard its profitability while maintaining its commitment to quality and compliance. OSICS NETWORK stepped in to facilitate a profound mindset shift, placing cost efficiency at the forefront of operations. This case study explores the strategic approach, the systematic implementation, and the impressive outcomes of this lean transformation initiative.
SITUATION
The German campus, boasting approximately 4,500 employees, had long enjoyed high margins and sustained growth. However, mounting pressures, particularly in the pricing of their flagship product and the necessity to penetrate new markets characterized by limited purchasing power, necessitated a fundamental shift in perspective.
Historically, the organization had prioritized quality and compliance over cost efficiency. OSICS NETWORK recognized that a substantial change in mindset was required to reduce costs significantly.
APPROACH
OSICS NETWORK initiated the transformation process by zeroing in on the value chain bottleneck – the packaging site, which employed approximately 800 individuals. A comprehensive 4-week diagnostic was executed to ascertain the potential value at stake and determine the key areas for intervention and major initiatives. The first wave of implementation focused on a single production hall and the quality control team, yielding savings of 10-15% in these areas within three months of implementation.
Over the subsequent year, three additional waves of implementation covered all areas of the packaging site. Following the successful completion of the first wave, OSICS NETWORK extended the same transformational program to other sites within the campus, ultimately yielding similar impressive outcomes.
IMPACT
After two years of relentless implementation, applying the same approach to various site areas, OSICS NETWORK achieved total annual savings exceeding €20 million. The packaging site, once the bottleneck of operations, experienced a remarkable 20% improvement in productivity. This improvement was driven by an 8% reduction in costs and a 12% increase in production volumes. The success of this site was acknowledged by its nomination as the “Site of the Month,” celebrating the outstanding achievements.
Furthermore, OSICS NETWORK’s transformational methodology had a profound ripple effect. More than 100 employees underwent training in this new approach, subsequently integrating its pragmatic and quantitative principles into their daily work routines. This approach played a pivotal role in delivering the significant results witnessed throughout this transformative journey.
OSICS NETWORK’s engagement with the major German pharmaceutical company serves as a testament to the company’s prowess in driving lean transformational programs.
By strategically addressing cost pressures without compromising on quality and compliance, OSICS NETWORK enabled the pharmaceutical campus to secure annual savings exceeding €20 million. This success story not only underscores the effectiveness of OSICS NETWORK’s approach but also highlights the organization’s commitment to fostering a culture of continuous improvement and operational excellence.