The client is one of the leading drug manufacturers in China, with one of the largest market shares in the country.
42%reduction in equipment
20%improvement in optimum
97%productivity, an improvement
The challengeAt 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 didInitially, 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.
- 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.
ResultsThe 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.