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Operational Excellence in Mid-Sized Pharma: Boosting Productivity & OEE


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Role: Operationally excellence head
Industry: Mid sized European CMO Pharma company


Situation:

4009 people. C-level governance. Primary challenge: defend the revenue and increase efficiency. Customers are Top 10 big Pharma. Weakness: lack of structure at corporate level for operational excellence and lack of focus on setting proper management flows at a plant level. Main focus on lean and operational excellence to extract value and increase capacity. Main focus for next two years: increase productivity and OEE through a well defined productivity and OEE increase program aimed at debottlenecking of full capacity line


Question to Marcus:


Lean change transformation framework to follow


Based on your specific organizational details captured above, Marcus recommends the following areas for evaluation (in roughly decreasing priority). If you need any further clarification or details on the specific frameworks and concepts described below, please contact us: support@flevy.com.

Operational Excellence

To fortify your company's position against competitive pressures and enhance efficiencies, Operational Excellence should be your cornerstone. This entails a structured approach to identifying inefficiencies and deploying lean methodologies across every facet of production.

Initiating cross-functional teams to systematically review processes, utilize tools such as Value Stream Mapping to uncover waste, and encourage a culture of Continuous Improvement will be key. Given your current lack of structure at the corporate level, establishing robust governance for operational excellence is paramount, as it will ensure alignment and accountability. Regular progress reviews and KPI tracking will provide transparency and maintain momentum. Remember, operational excellence is not a one-time project, but a perpetual state of evolution and improvement.

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Lean Manufacturing

Lean Manufacturing is integral to driving improvements in productivity and Overall Equipment Effectiveness (OEE) for your organization. Implement a systematic lean program that focuses on eliminating waste, simplifying procedures, and optimizing workflows.

Training staff in lean principles is crucial, as their engagement will make or break the initiative. Begin by mapping out all production processes to identify bottlenecks and non-value-adding activities. Initiating Kaizen events and encouraging suggestions from employees can foster a Lean Culture and drive continuous improvement. Moreover, applying 5S methodologies can help maintain order and efficiency on the plant floor, all of which contribute to enhancing capacity and throughput.

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Learn more about Lean Manufacturing Lean Culture Overall Equipment Effectiveness Kaizen

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Change Management

As you aim to restructure operations, Change Management will be an essential part of ensuring a smooth transition. Effectively managing the human side of change will require a structured approach to help employees adapt to new workflows and a lean-focused culture.

A key to successful change management is clear and frequent communication about the benefits and progress of the transformation efforts. Engaging with employees early and seeking their input can also help mitigate resistance. Training and skill development will be necessary to prepare employees for new ways of working. Establishing change agents within the organization can help to drive the change forward and embed new practices.

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Total Productive Maintenance (TPM)

Implementing Total Productive Maintenance (TPM) is a proven strategy to increase productivity and OEE. TPM extends beyond traditional maintenance protocols by involving all employees in proactive and preventive maintenance measures.

Beginning with a pilot area, you can demonstrate the effectiveness of TPM and then scale across the organization. Establishing a TPM committee and training employees on TPM techniques will foster ownership and responsibility at all levels. By focusing on small, incremental improvements, you can achieve significant long-term results. Furthermore, incorporating Autonomous Maintenance can empower operators to conduct routine maintenance, freeing up specialized maintenance staff for more complex tasks.

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Supply Chain Resilience

For your company, strengthening Supply Chain resilience is imperative to ensure a consistent supply of materials and components, which directly affects your production capacity and efficiency. Collaborate closely with your top suppliers to develop Risk Management strategies that address potential Disruptions.

This involves diversifying your supplier base, maintaining safety stocks, and possibly investing in dual-sourcing strategies. Upgrading IT systems to provide better visibility and agility in your supply chain can also help you respond more effectively to unexpected changes. Finally, consider strategic partnerships that provide mutual benefits, such as guaranteed supply or collaborative innovation efforts, to further solidify your Supply Chain Resilience.

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Learn more about Risk Management Supply Chain Supply Chain Resilience Disruption

Performance Management

Effective Performance Management systems are essential to driving efficiency and defending revenue in your organization. This means going beyond annual reviews and establishing continuous performance dialogues that align individual goals with corporate objectives.

Utilize a framework like the Balanced Scorecard to translate strategy into operational terms and measure progress. Investing in a digital platform for real-time performance tracking can pinpoint areas needing attention. Encourage managers to provide regular Feedback and recognize achievements to keep teams motivated. Emphasize the importance of performance data in decision-making to ensure actions are evidence-based and focused on strategic priorities.

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Stakeholder Management

Engaging stakeholders is crucial, especially when your customers include Top 10 big Pharma companies. Stakeholder Management involves identifying all parties impacted by your operational excellence initiatives and understanding their interests and concerns.

Develop a communication plan that addresses their needs and keeps them informed of progress. Regularly seek their input and feedback to ensure alignment and to foster a sense of partnership. Their support can provide critical momentum for your initiatives and can also lead to collaborative opportunities that enhance value for both parties.

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Business Transformation

Business Transformation in your context means fundamentally rethinking how your organization operates. It's about aligning people, processes, and technology to your strategic goals.

This entails a holistic view of the organization to ensure that changes in one area are supportive of those in others. Begin by setting a clear vision for the transformation and communicate it across the company. Then, focus on integrating lean principles into your corporate DNA, which will require a shift in mindset at all levels. Consider leveraging technology to enable better data-driven decisions. Also, pay attention to the agility of your organization so you can quickly adapt to changes in the market or industry.

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Process Improvement

To increase productivity and OEE, Process Improvement should be a continuous endeavor. Apply methodologies such as Six Sigma to define, measure, analyze, improve, and control (DMAIC) your Manufacturing processes.

Engaging cross-functional teams in problem-solving workshops can foster collaboration and innovative thinking. Utilize tools such as Pareto charts and Root Cause Analysis to identify and address the most significant inefficiencies. By continuously refining your processes, you can enhance quality, reduce cycle times, and minimize waste, all of which contribute to higher productivity and better use of your full capacity lines.

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Learn more about Process Improvement Six Sigma Root Cause Analysis Manufacturing

Project Management

Finally, strong Project Management practices will be essential to oversee the implementation of your productivity and OEE increase program. Define clear Project Scopes, deliverables, timelines, and responsibilities.

Use project management tools and techniques to stay on track and to communicate progress effectively to stakeholders. Regularly review project status and adjust plans as necessary to address any risks or roadblocks that arise. Foster a culture where project management excellence is valued and seen as a critical component of operational success.

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