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