operational excellence for a leading manufacturer of drug ... · operational excellence for a...

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… You helped us helping ourselves. We learned a lot from Capgemini’s methodology and adopted many tools, which will help us to make the benefits sustainable…” Plant Manager, Customer Operational excellence for a leading manufacturer of drug delivery devices After the acquisition by a private equity fund, Capgemini Consulting supported the client in designing and implementing a new production oriented organization and improved operational processes and IT systems, to increase profitability by 25%. The Situation Our customer was facing increasing competition and pressure on profitability, coming from the growing influence of low cost manufacturers. As the existing project oriented setup was not shaped to meet the requirements of the future, it was decided to restructure the operations of all four plants in Germany, France and the USA. Capgemini Consulting supported the restructuring process from the first design phase to the final implementation. Our customer chose us because of the deep functional expertise and the strong methodological approach. The Solution In the first phase of the project the team conducted numerous DILOs (Days In the Life Of), workshops, interviews and value stream mapping sessions to analyze existing processes and identify key-levers for quick wins and long-term improvements. The resulting deep understanding of the internal organizational und functional structure was used to design solutions for each of the plant departments. A new organizational structure was developed for the Production and Quality area. In the SCM function an improved material flow concept was defined and a plant wide S&OP process was introduced. Corrective and preventive processes were developed within the Maintenance

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Page 1: Operational excellence for a leading manufacturer of drug ... · Operational excellence for a leading manufacturer of drug delivery devices After the acquisition by a private equity

… You helped us helping ourselves. We learned a lot from Capgemini’s methodology and adopted many tools, which will help us to make the benefits sustainable…”

Plant Manager,Customer

Operational excellence for a leading manufacturer of drug delivery devices

After the acquisition by

a private equity fund,

Capgemini Consulting

supported the client in

designing and implementing

a new production oriented

organization and improved

operational processes and

IT systems, to increase

profitability by 25%.

The Situation

Our customer was facing increasing competition and pressure on profitability, coming from the growing influence of low cost manufacturers. As the existing project oriented setup was not shaped to meet the requirements of the future, it was decided to restructure the operations of all four plants in Germany, France and the USA.

Capgemini Consulting supported the restructuring process from the first design phase to the final implementation. Our customer chose us because of the deep functional expertise and the strong methodological approach.

The Solution

In the first phase of the project the team conducted numerous DILOs (Days In the Life Of), workshops, interviews and value stream mapping sessions to analyze existing processes and identify key-levers for quick wins and long-term improvements.

The resulting deep understanding of the internal organizational und functional structure was used to design solutions for each of the plant departments. A new organizational structure was developed for the Production and Quality area. In the SCM function an improved material flow concept was defined and a plant wide S&OP process was introduced. Corrective and preventive processes were developed within the Maintenance

Page 2: Operational excellence for a leading manufacturer of drug ... · Operational excellence for a leading manufacturer of drug delivery devices After the acquisition by a private equity

About Capgemini Consulting

Capgemini Consulting is the global strategy and transformation consulting organization of the Capgemini Group, specializing in advising and supporting enterprises in significant transformation, from innovative strategy to execution and with an unstinting focus on results. With the new digital economy creating significant disruptions and opportunities, our global team of over 3,600 talented individuals work with leading companies and governments to master Digital Transformation, drawing on our understanding of the digital economy and our leadership in business transformation and organizational change.

Find out more at:

www.de.capgemini-consulting.com

the way we do itApplication Services

Contact

Our customer is one of the world leaders in the design, development and manufacturing of high quality innovative drug delivery solutions. The product range includes pulmonary inhalers, parenteral pens, containers for oral medicine and nasal spray bottles. Our client runs four plants in total with locations in Germany, France and the USA and produces over 600 million devices per year.

The company was bought in 2014 by a private equity fund for $805m.

Ralph Schneider-MaulVice President [email protected]

Damian ZumbéManaging Consultant [email protected]

Milko TeofilovManaging Consultant [email protected]

About CapgeminiWith 180,000 people in over 40 countries, Capgemini is one of the world‘s foremost providers of consulting, technology and outsourcing services. The Group reported 2014 global revenues of EUR 10.573 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.

Learn more about us at

www.de.capgemini.com

©2016 Capgemini. No part of this document may be modified, deleted or expanded by any process or means without prior written

permission from Capgemini. Rightshore® is a trademark belonging to Capgemini.

organization and the corresponding responsibilities were clarified. A new project organization was set up in the Industrial Engineering department, while new KPIs were installed to improve performance tracking. For all areas realistic use-cases were simula-ted to revise all relevant interfaces between departments.

The focus of the final phase was to ensure sustainable benefits. Detailed project plans were developed and our customer was enabled to manage the long-term changes with the help of the relevant trainings and necessary tools.

The Result

Due to the pragmatic and cooperative approach, the project target of 25% EBITDA increase was exceeded already in the first year. Planned and unplanned downtime, the number of temporary workers and inventory level were reduced significantly. In addition, the number of delayed deliveries was decreased by 80% due to improved production planning and the use of enhanced digital tools. The project benefits exceeded its cost in the first year and the plant achieved an all-time best in productivity and profitability.

How Capgemini Consulting & the client worked together

Capgemini Consulting was chosen as a partner for this transformation process, because of our operational experience in large scale transformation projects and the collaborative, hands-on approach. While working on the project, the friendly team spirit and the straight-forward, productive working environment were valued highly by our customer.

During the first kickoff workshops the Capgemini Consulting team awaked a strong enthusiasm for the project. All stakeholders were eager to start working on the first tasks and added a lot of value by contributing insights and additional ideas. Overall our team was recognized more as a partner than as an external party. Our tools and methodologies were appreciated highly and recognized as an enabler to ensure the sustainability of the achieved benefits.

MaintenanceWe manage technology

MethodsStandardization and

improvement

ProductionWe produce.

AdministrationWe support

Mold ShopCreate value

SCMKnowing today

what the customer needs tomorrow

Quality We ensure conformity

The new production oriented setup divides the plant in service oriented departments, which focus on supporting the Production Engine