A pharmaceutical business unit was struggling to meet its financial goals for several years. Leadership determined that the performance issue was rooted in a broad spectrum of issues and that the unit required transformational change. The challenges ranged from conflicting goals, competing values, unpredictable schedules and excessive downtime. As a result, the business had an alignment problem that resulted in a cost per dose that was 15% too high.
Carpedia identified the key barriers inhibiting performance:
- Operating plans did not align to the financial targets
- Equipment suffered excessive waiting and changeover times
- There was a general lack of visibility to performance
- Managers were consumed with unplanned variances
- Managers lacked the skills to plan and communicate
- Management’s actions and behaviors contradicted the stated value system of the business
A blend of process, behavioral and planning solutions were implemented to transform the culture.
Key changes included:
- Aligned business requirements were established, communicated and clarified at weekly operational meetings
- Aligned production plans and schedules minimized changes and maximized equipment utilization and production output
- Lab layouts and set up processes, including kitting tests and bottle prep stations, were redesigned to significantly reduce lost time in the process
- Operating reports were introduced in all production areas to help measure variations to the operating plans
- All managers received formal classroom and on-the-floor coaching to improve active management of the plan, problem solving and to promote staff engagement (Carpedia College)
- All 800+ front-line staff were provided customized change management training
- The value system was simplified to promote collaborative partnerships among all departments
The Results
The installation of Carpedia’s solutions lowered the organization’s annual cost per SPU by 22.0%
Coupled with the alignment of business values, targeted changes in system, behavior and process led to a marked improvement in teamwork and productivity across all departments. Leaders have the visibility to identify and address operating variances as they occur and the tools to communicate their results to the team.
On-the-floor coaching allowed management to acquire the discipline and collaboration necessary to achieve a common goal.
