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Pharmaceutical Industry: Cost Reduction

Capability

Biotech Support
Operational Improvement
Technical Services
Turnkey Solutions

Client

A global pharmaceutical manufacturer

Problem

The manufacturer, facing cost challenges at one of its plants, had instituted an operational excellence program, but it did not produce cost improvements of the magnitude or with the speed that the company sought. An analysis by Tunnell indicated that the cost-base at the site was as much as double or triple that of industry benchmarks.

Approach

The manufacturer, facing cost challenges at one of its plants, had instituted an operational excellence program, but it did not produce cost improvements of the magnitude or with the speed that the company sought. An analysis by Tunnell indicated that the cost-base at the site was as much as double or triple that of industry benchmarks.

Results

Drawing on the experience of Tunnell’s pharmaceutical industry experts, each client-led team achieved remarkable results. Among those results:

• The Manufacturing Execution Team shortened throughput time by 56% and reduced work-in-progress by 35%.
• The Yield Team reduced scrap-in-tablet compression by 14%, resulting in more than $1 million savings in raw material costs.
• The Packaging Changeover Team decreased changeover time by 19%.
• The Energy Conservation Team achieved a savings of $288,000 annually.
• The Maintenance Team achieved $800,000 in annual savings.

• Reduced the conversion cost per unit by 22%
• Achieved ROI on the project in less than six months and established a savings rate of more than five times the cost of the project
• Increased direct labor productivity by almost 40%
• Permanently transformed the cost-base and the culture of the site

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