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The Challenge

A global pharmaceutical company’s conversion (manufacturing) cost in $USD per 1000 tablets had increased steadily in recent years and the company wished to take steps to reduce it.

Explic8 consultants defined the Lean strategy for the USA division.

The Solution

After conducting a Lean Assessment, we introduced Lean Manufacturing concepts and disciplines to reduce manufacturing cost and achieve productivity improvements.

We used Lean tools and techniques in a site-wide Cost Reduction Initiative, utilising the following toolkit:

Cycle time reduction, Supply Chain Management, Visual Factory Management, Flow manufacturing, TPM, SMED, 5S, VMI, and some Six Sigma techniques.

The Result

We reduced the conversion cost by 33% and netted $17 million USDsavings in operating costs per annum.

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