Global producer of medicines

Analysis of improvement potential of a production facility

A qualitative and quantitative scenario analysis of a pharmaceutical production facility to determine the improvement potential.

Key results

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

“The final product that Been Management Consulting provided is impressive, taking the limited time into account. The analysis is detailed and contains the right information to get a clear view of our current situation. With the delivered result, we are able to make an improved decision on different possible future scenario’s.”

The situation

  • 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.

The approach

  • 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.
Roel Beentjes - Been Management Consulting

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