Building a Cross-Site Continuous Improvement Culture at a Pharmaceutical Contract Developer and Manufacturer
Situation
Facing decreasing margins, demand outpacing capacity, and inconsistent performance across locations, Argo was selected as a strategic partner to standardize and improve performance and efficiency in the production, laboratory, and office areas to increase sales and margins without additional CapEx or operational costs.
Additionally, with 6 production sites across 2 countries after multiple mergers, unifying the different production, laboratory, and management cultures and implementing continuous improvement across the organization was critical to success.
Argo’s Actions
Over the course of a year, Argo worked shoulder-to-shoulder with the client to improve performance and reduce downtime and variability along key product value chains, both in direct and indirect areas (“lean lab”), leading to increased margins and revenue potential.
Improvement focus areas:
- Shop Floor: OEE, change overs, TPM, best demonstrated speed, work balancing
- Office: Documentation reduction and simplification (ANSM, FDA, ANVISA)
Participation at all levels was a key factor in project success and future sustainability. Both Managers and site Champions were trained how to conduct focused daily operations meetings, use problem-solving tools, and audit systems.
To sustain and continue improvements, Argo worked with corporate and local management, to build a cross-site Operations Excellence Council to develop cross-site cooperation, best-practice sharing, and maintain focus and momentum for the long term.
RESULTS AT A GLANCE
22%
OEE improvement
30%
Improvement in labor productivity
42%
Reduction in equipment downtime
€4.7m
EBITDA Savings
3 to 1
Laboratory consolidation
Dosage Forms
Solids (tablets, capsules, powders, controlled-release)
Liquids (suspensions, syrups, solutions)
Semi-solids (creams, gels, ointments, suppositories)