Case Study

Oper­a­tional Excellence

A phar­ma­ceu­ti­cal com­pa­ny cre­ates a cul­ture of productivity

June 13, 2022

The client is one of the lead­ing drug man­u­fac­tur­ers in Chi­na, with one of the largest mar­ket shares in the country.

Key results

42%

reduc­tion in equip­ment
down­time

20%

improve­ment in opti­mum
batch pro­duc­tion

97%

pro­duc­tiv­i­ty, an improve­ment
from 91%
 

The chal­lenge

At first glance, the company’s oper­a­tions seemed effi­cient as the plant was equipped with high-end and semi-automated pro­duc­tion lines. How­ev­er, despite their tech­no­log­i­cal capa­bil­i­ties, the com­pa­ny lacked effec­tive man­age­ment and con­trol sys­tems, pro­duc­tion plan­ning and sched­ul­ing tools were inef­fi­cient and staff morale was low. There was inac­cu­rate cost­ing, and project and bud­get over­runs. We worked with the com­pa­ny to iden­ti­fy the root causes.
 

What we did

Ini­tial­ly, com­pa­ny employ­ees were resis­tant to change. How­ev­er, by util­is­ing our proven change method­ol­o­gy, we were able to change employ­ees’ mind­sets. Staff, for­mer­ly com­pla­cent, were now excit­ed to improve the busi­ness and the way of working.
 

Oper­a­tions improvement

  • Ensured that all prod­ucts and devices were avail­able at the out­lets on or before launch date.
  • Ensure that all rel­e­vant per­son­nel, inter­nal staff mem­bers and deal­ers, were well-trained before the launch date.
  • Ensured that Point of Sale Mate­ri­als were made avail­able at out­lets on or before launch date.
  • For­mal service-level agree­ments or operational-level agree­ments were set.
  • Elim­i­nat­ed redun­dant steps in the process which caused unnec­es­sary delays.

Imple­ment­ed cul­ture and behav­ioral change

  • Renoir facil­i­tat­ed man­age­ment and staff train­ing in areas such as skills, effec­tive com­mu­ni­ca­tion, time man­age­ment, devel­op­ment of resource plan­ning and project man­age­ment tools.
  • The once-resistant work­ers now have a new sense of own­er­ship and active­ly par­tic­i­pat­ed in iden­ti­fy­ing issues and find­ing solutions.

Opti­mised busi­ness processes

  • Renoir imple­ment­ed the ABC sys­tem and this result­ed in more trans­paren­cy in the report­ing of work-related func­tions. With this, the com­pa­ny was able to gain a bet­ter under­stand­ing of direct costs and indi­rect costs, enabling them to improve on cost con­trol mea­sures and con­tribute to an increased lev­el of depart­men­tal budgets.
  •  One per­son was tasked to mon­i­tor sales relat­ed activ­i­ties to ensure time­ly com­pli­ance and to esca­late any pos­si­ble delays.
  • Depart­ments relat­ed to sales could meet and update their indi­vid­ual sta­tus and issues through a forum.

Results

The organ­i­sa­tion was able to achieve bet­ter pro­duc­tiv­i­ty and design bet­ter process­es. We also man­aged to help them cre­ate a cul­ture where employ­ees are proac­tive to iden­ti­fy issues and come up with solutions.
 
Some key results achieved includ­ed an increase of 20% in best batch pro­duc­tion (dai­ly vol­ume). The pro­duc­tiv­i­ty increased from 91% to 97%. The equip­ment down­time was reduced by 42%. The time­li­ness of pro­cure­ment improved from 64% to 100% while the inven­to­ry reduc­tion was RMB 1.8 mil­lion.   * We take client con­fi­den­tial­i­ty seri­ous­ly. While we have kept the brand anony­mous, the results are real.      
 

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