Building a Cross-Site Continuous Improvement Culture at a Pharmaceutical Contract Developer and Manufacturer
Client Context
A pharmaceutical contract developer and manufacturer faced declining margins, capacity constraints, and inconsistent performance across its six production sites in two countries following multiple mergers.
With demand outpacing capacity and operational inefficiencies in both production and laboratory environments, the company needed to increase sales and margins without additional CapEx. Additionally, harmonizing cultures and implementing continuous improvement across the organization was critical for long-term success.
Key Challenges
- Inconsistent operational performance across multiple sites
- Significant downtime and process variability impacting margins and revenue
- Lack of a standardized continuous improvement culture
- Inefficiencies in production, laboratory, and office processes
- Regulatory documentation complexity (ANSM, FDA, ANVISA)
Approach & Key Success Factors
1. Performance Optimization in Production and Laboratory Areas
EFESO worked closely with the client for one year to increase efficiency, reduce downtime, and improve performance across key product value chains. The focus areas included:
- Production: Improving OEE, reducing changeover times, implementing Total Productive Maintenance (TPM), and optimizing line speed and work balancing.
- Laboratories: Implementing “Lean Lab” principles to consolidate resources and streamline testing and documentation processes.
- Office Operations: Reducing and simplifying regulatory documentation to enhance compliance efficiency.
2. Workforce Engagement and Capability Building
- Training managers and site champions in daily operational performance reviews, problem-solving methodologies, and auditing systems.
- Establishing a structured governance model through a cross-site Operations Excellence Council to drive best-practice sharing and continuous improvement.
3. Sustainable Continuous Improvement Culture
- Ensuring long-term alignment by standardizing operational excellence initiatives across all sites.
- Embedding a culture of performance improvement with structured KPI tracking and accountability mechanisms.
Results
22%
OEE improvement
30%
Increase in labor productivity
42%
Reduction in equipment downtime
€4.7
Million EBITDA savings
3-to-1
Consolidation in laboratory operations
By integrating structured continuous improvement practices, EFESO helped the client enhance operational efficiency, increase capacity, and sustain long-term profitability, positioning the company for continued growth in a competitive market.