Case Study

Manufacturing and Schedule Improvement Project $150M Division of a Multinational Pharma Company

"SLKone performed a rapid cost assessment of a Pharmaceutical manufacturer identifying several areas for operational improvement. The improvement plan identified millions in savings to the client without impacting production commitments"

Situation

  • The client was a $150M+ division of a multinational pharma company
  • The company had recently lagged forecasted performance and profitability targets
  • A large customer had dropped their demand significantly (>50%)
  • Their product portfolio was skewed towards lower-margin OTC products
  • The companies operating model and manufacturing operations did not reflect forecasted volume

Bespoke Solutions

  • SLKone worked with leadership to develop an understanding of current operational processes
  • Created in-depth models to forecast volume and manufacturing capacity on a 24X7-4 shift schedule versus proposed 24X5 -3 shift schedule
  • Developed a direct labor demand model to understand implications of scheduling changes on various production departments
  • Established risks and mitigation steps to minimize impact to employee moral and operations if implemented, including change management plans
  • Performed financial analysis to forecast expected savings from the shift change

Leading With Results

  • Developed transition plan to 24X5 schedule with start-up / shut-down crews minimizing any impacted downtime of equipment
  • Rationalized production management without any impact to operational efficiency
  • Identified 5-10% reduction in the direct labor work force primarily driven by the elimination of 1 shift and related supervisor
  • Developed a plan to lead to 80% reduction in planned overtime as a result of eliminating the previously scheduled overtime in the current shift pattern
  • Eliminated excess equipment by mothballing underutilized lines
Case studies and expertise may represent projects and engagements performed by SLKone team members prior to their employment at SLKone
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