Flevy Management Insights Case Study

Measurement Systems Analysis for Pharmaceutical Production

     Joseph Robinson    |    Measurement Systems Analysis


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Measurement Systems Analysis to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR The mid-sized pharma company struggled with MSA due to product line expansion, leading to quality control issues and regulatory risks. Implementing a comprehensive MSA framework reduced measurement variability and non-compliance incidents, underscoring the need for robust Measurement Systems and effective Change Management to ensure product quality and compliance.

Reading time: 9 minutes

Consider this scenario: The organization in question is a mid-sized pharmaceutical company specializing in generic drug production.

It has recently expanded its product line, resulting in increased variability and complexity in its measurement systems. The organization's current Measurement Systems Analysis (MSA) is not robust enough to ensure the precision and accuracy required by regulatory standards, leading to quality control issues and potential regulatory scrutiny. With the goal of maintaining compliance and improving product quality, the organization seeks to enhance its MSA processes to minimize variability and ensure consistent, reliable measurement outcomes.



Given the organization's expansion and the critical nature of accurate measurements in the pharmaceutical industry, initial hypotheses might include inadequate calibration protocols, operator measurement error, or insufficient measurement system resolution. These factors could contribute to the observed variability, affecting both compliance and product quality.

Strategic Analysis and Execution

The organization can benefit from a structured 5-phase consulting methodology to revamp its Measurement Systems Analysis. This process, akin to best practices utilized by top consulting firms, will ensure a thorough and systematic improvement of the organization's MSA.

  1. Assessment of Current Measurement Systems: Evaluate existing MSA processes, identify key sources of variability, and determine the adequacy of current measurement tools and techniques.
  2. Design of MSA Framework: Develop a comprehensive MSA framework that includes updated protocols, tools, and operator training programs to ensure precision and accuracy.
  3. Implementation Planning: Create a detailed plan for implementing the new MSA framework, including timelines, resource allocation, and risk mitigation strategies.
  4. Pilot Testing and Validation: Conduct pilot tests to validate the effectiveness of the new MSA processes and make iterative adjustments based on findings.
  5. Full-Scale Rollout and Training: Implement the validated MSA framework across all relevant operations and provide comprehensive training to all operators and quality control staff.

For effective implementation, take a look at these Measurement Systems Analysis best practices:

Six Sigma - Measurement Systems Analysis (62-slide PowerPoint deck)
Measurement System Analysis (94-page PDF document)
Gage Repeatability and Reproducibility (R&R) Course (90-slide PowerPoint deck)
Lean Measurement System Analysis (MSA) (137-slide PowerPoint deck)
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Implementation Challenges & Considerations

The CEO may be concerned about the time and resources required for a comprehensive overhaul of the MSA processes. Addressing these concerns involves presenting a phased implementation plan that allows for gradual integration of the new systems with minimal disruption to ongoing operations.

Another area of interest for the CEO will likely be the return on investment. By reducing variability and improving measurement accuracy, the organization can expect to see a decrease in non-compliance incidents and a reduction in waste, leading to cost savings and enhanced market reputation.

One potential challenge in the implementation is resistance to change from staff accustomed to the current systems. To mitigate this, a strong change management strategy, including clear communication and extensive training, will be essential.

Implementation KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


That which is measured improves. That which is measured and reported improves exponentially.
     – Pearson's Law

  • Percentage Reduction in Measurement Variability: to track the improvement in measurement consistency.
  • Rate of Non-Compliance Incidents: to monitor regulatory adherence and quality control effectiveness.
  • Training Completion Rates: to ensure staff are fully trained on the new MSA processes.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

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Key Takeaways

For C-level executives, it's crucial to understand that Measurement Systems Analysis is not just a technical necessity but a strategic enabler. A robust MSA process can serve as a competitive advantage, especially in industries like pharmaceuticals where precision is paramount.

In the context of Digital Transformation, integrating advanced analytics and IoT devices into MSA can provide real-time insights and predictive capabilities, further enhancing measurement accuracy and operational efficiency.

Deliverables

  • MSA Process Assessment Report (PDF)
  • MSA Framework Design Document (Word)
  • Implementation Roadmap (PowerPoint)
  • Training Material and Guides (PDF)
  • Regulatory Compliance Dashboard (Excel)

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Measurement Systems Analysis Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Measurement Systems Analysis. These resources below were developed by management consulting firms and Measurement Systems Analysis subject matter experts.

Enhancing Calibration Protocols

One of the critical areas to address is the calibration protocols currently in place. Ineffective calibration can lead to significant errors in measurement, affecting product quality and compliance. The pharmaceutical company must implement a system of regular and systematic calibration checks that align with industry best practices and regulatory requirements.

By adopting a calibration management system, the organization can ensure that all measurement instruments are calibrated according to a predefined schedule and that calibration status is tracked and documented. Implementing such a system can also facilitate the traceability of calibration records, which is crucial during audits. The company should consider investing in calibration software that can send alerts for upcoming calibration events and automatically document the process, thus minimizing the risk of human error and oversight.

Training for personnel involved in calibration is another vital component. Employees must understand the importance of calibration and be proficient in using the calibration management system. Training should cover both theoretical aspects of calibration and hands-on practice with the measurement instruments.

Operator Measurement Error Reduction

Operator measurement error is a significant source of variability in measurement systems. To minimize this, the organization must focus on enhancing the skill set of its operators through targeted training programs. These programs should be designed to address common measurement errors, such as misreading scales, incorrect instrument handling, or environmental factors affecting measurement accuracy.

Furthermore, the implementation of standardized operating procedures for measurements can help reduce operator-induced variability. Visual aids, such as step-by-step guides and checklists, can be useful tools to ensure consistency across all operators. Regular competency assessments can also be used to identify areas where further training is required.

Investing in ergonomic equipment design can also reduce operator fatigue, which can indirectly lead to measurement errors. Finally, fostering a culture of quality and precision among operators can encourage them to take ownership of the accuracy and reliability of their measurements.

Improving Measurement System Resolution

Insufficient measurement system resolution can be a limiting factor in achieving the precision required for pharmaceutical production. The company should evaluate whether the current measurement instruments have the capability to discern fine differences in product attributes. If not, it may be necessary to invest in more sophisticated equipment with higher resolution capabilities.

Advanced analytical instruments, such as high-performance liquid chromatography (HPLC) systems, mass spectrometers, and spectrophotometers, can offer the required sensitivity for certain measurements. The organization should conduct a cost-benefit analysis to determine if the investment in such equipment will yield a sufficient return in terms of improved product quality and compliance.

Moreover, the integration of digital technologies, such as IoT sensors and data analytics, can augment the resolution of measurement systems. These technologies can provide continuous monitoring and data collection, which can be analyzed to detect subtle variations in the production process that may not be apparent through manual measurements.

Maximizing Return on Investment

C-level executives will be keen to understand the return on investment (ROI) from enhancing the MSA processes. According to a recent study by McKinsey, companies that invest in quality management systems can expect to see significant financial benefits from reduced cost of poor quality (COPQ), which includes savings from fewer product recalls, reduced rework, and decreased waste.

For the pharmaceutical company in question, the direct benefits of a robust MSA process can lead to a reduction in variability, which translates into fewer batch failures and a lower incidence of product recalls. The indirect benefits include enhanced reputation for quality, which can lead to increased market share and customer loyalty.

Furthermore, by avoiding regulatory fines and reducing the risk of litigation associated with non-compliance, the company can protect its financial position and ensure long-term sustainability. The organization can also expect to see gains in operational efficiency as a result of streamlined processes and reduced downtime associated with measurement failures.

Change Management Strategy

Resistance to change is a natural human response, especially in an environment where established routines are deeply ingrained. To overcome this challenge, the company must develop a comprehensive change management strategy that addresses the human aspects of the MSA enhancement project.

Key elements of this strategy should include effective communication that conveys the benefits of the new MSA processes to all stakeholders. Messaging should be tailored to address the concerns and interests of different groups within the organization, from the shop floor to the executive suite.

Leadership endorsement is crucial for change initiatives to take hold. Visible support from C-level executives can lend credibility to the project and motivate employees to embrace the changes. Incentives and recognition programs can also play a role in encouraging staff to adopt new behaviors.

Finally, appointing change champions within the organization can help facilitate the transition. These individuals can serve as role models, provide support to their peers, and offer feedback to the project team on the effectiveness of the change management initiatives.

Advanced Analytics and IoT Integration

The integration of advanced analytics and IoT devices into the MSA processes can revolutionize how measurements are conducted and analyzed. Real-time data collection and analysis enable proactive management of the production process, allowing for immediate corrections and predictive maintenance.

For instance, IoT sensors can monitor environmental conditions, such as temperature and humidity, which can affect measurement outcomes. By analyzing this data, the company can identify patterns and correlations that were previously undetectable, leading to enhanced control over the production environment.

Advanced analytics can also be applied to historical measurement data to identify trends and predict future performance. This predictive capability can be particularly valuable in anticipating and preventing quality issues before they occur.

According to Gartner, organizations that successfully integrate IoT and advanced analytics into their operations can expect to see up to a 20% improvement in overall equipment effectiveness (OEE). For the pharmaceutical company, this could translate into significant gains in productivity and quality assurance.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Implemented a comprehensive MSA framework, reducing measurement variability by 15%.
  • Decreased the rate of non-compliance incidents by 20% through enhanced calibration protocols and operator training.
  • Achieved a 100% training completion rate among operators and quality control staff.
  • Introduced advanced analytical instruments and IoT devices, improving overall equipment effectiveness (OEE) by 20%.
  • Streamlined calibration management with software, leading to a 30% reduction in calibration-related errors.

The initiative to enhance the Measurement Systems Analysis (MSA) processes has been markedly successful. The reduction in measurement variability and non-compliance incidents directly correlates with the strategic enhancements made to the MSA framework, including the adoption of advanced calibration protocols and comprehensive operator training. The significant improvement in overall equipment effectiveness (OEE) underscores the value of integrating advanced analytical instruments and IoT devices into the MSA processes. The successful implementation, evidenced by the 100% training completion rate, reflects an effective change management strategy that overcame potential resistance to new systems. However, there might have been opportunities to further enhance outcomes, such as by leveraging more in-depth predictive analytics for preemptive quality control measures or by expanding the scope of IoT integration across more production lines to further reduce variability.

Given the positive results from the MSA enhancement initiative, the next steps should focus on leveraging the established foundation for continuous improvement. It is recommended to expand the use of IoT devices and advanced analytics across all production lines, not just those currently equipped. Additionally, exploring further integration of predictive analytics to anticipate and mitigate potential quality issues before they arise could offer substantial benefits. Finally, instituting a regular review and update cycle for the MSA framework will ensure that the organization remains at the forefront of measurement precision and compliance, adapting to new challenges and technologies as they emerge.


 
Joseph Robinson, New York

Operational Excellence, Management Consulting

The development of this case study was overseen by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.

To cite this article, please use:

Source: Efficiency Enhancement of Measurement Systems Analysis in a Manufacturing Organization, Flevy Management Insights, Joseph Robinson, 2025


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