A qualitative and quantitative scenario analysis of a pharmaceutical production facility to determine the improvement potential.
The team of Been Management Consulting and the client:
- Map the current operational performance.
- Develop an analysis rapport with financial and qualitative pros and cons for each scenario
- Compare the current OEE performance with a benchmark analysis to determine the potential output improvement.
- Analyse the ‘cost of obsolescence’, ‘cost of capital’ and ‘cost of storage’ of the inventory and compared it with industry benchmarks to determine the improvement potential.
- Categorise the internal investment proposals translated into a visual overview, including the impact on cashflow in the coming years.
- Create ownership for the results with the senior management team
- One of the clients recently acquired production facilities makes an annual net operating loss.
- The facility has a backlog in delivery and an inadequate planning, therefore they risk losing clients.
- The client requires an analysis of different scenarios to minimize the annual net operating loss with immediate effect.
- Due to the required decision making in the European headquarters, the analysis must be completed within five weeks with limited access to information.
- In cooperation with the client, we define several scenarios to reduce the annual loss. The first scenario is a baseline of the current situation. In the other scenarios we depict the financial impact, and qualitative risks and opportunities in different parts of the organisation.
- To ensure that the deliverables are clear, we validate the expected results and details per scenario at the start of the analysis.
- We obtain data by a clear data request and analyse it using proven Lean Six Sigma tools.
- To effectively use the available time, the data analysis focusses on the elements that have a significant impact on net operating loss.
- We directly validate the results of the data-analysis with the client in several workshops, causing the senior management team of the client to take full ownership of the results.