sophie wilkinson bayer pharmaceuticals case study
TRANSCRIPT
Structure of presentation
• Overview of Bayer and lean in the pharmaceutical industry
• Challenges faced in lean implementation• Why Bayer are facing these challenges• SWOT analysis• Recommendations and expected benefits
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Overview of the Bayer and the pharmaceutical industry
Lean manufacturing in pharmaceutical industry:– High volume manufacturing– Low variability– Quality
Bayer:– Global chemical and pharmaceutical holding
company– Annual revenue over $43 billion (USD)
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Current challenges in lean implementation
1. Functional organisational structure and resistance to change
2. FDA regulation resulting in delayed implementation of change
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(Shanley, 2007)
Why are Bayer facing these challenges?
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Beliefs
Assumptions
Attitudes
Norms
Values
Organisation
Vision
Strategy
Practices
(Davis, 2013)
SWOT Analysis
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• Internal strengths: Diversified supply chain and long term supply agreements
• Internal weaknesses: Price fixing allegations tarnished brand image
• External opportunities: New high potential drugs (Xarelto and Stivarga)
• External threats: Low cost substitutes
(Mbaskool.com, 2014)
Recommendations and expected benefits
• Concentrate on developing a strong lean culture and growing lean leaders
• Take Lundbeck as an example of how to motivate middle management
• Lean acceleration: intensive training for all leaders from all levels
• Won Danish Supply Chain award 2008
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(Simplier Consulting, 2010)