 |
PHARMACEUTICAL INDUSTRY :
Organizational Design |
|
| |
Client: |
|
A
global leader in pharmaceuticals, consumer health care products, and
animal health care products, with a significant supply base in Puerto
Rico. |
| |
|
|
|
| |
Problem: |
|
Because
of mergers and divisional realignments, this company had two solid
dose manufacturing plants in Puerto Rico. These plants operated completely
independently. A recent change in the corporate business structure
resulted in both plants reporting to the same vice president.The new
VP wondered if synergies and simplicity could be achieved if the plants
were organized as a single operating unit. Would there also be additional
benefits by further assessing various functions, including quality,
and reporting relationships within the plants with the aim of streamlining
the overall operation? |
| |
|
|
|
| |
Approach: |
|
An
evaluation of the organization of the two plants was conducted. Each
functional area was analyzed with an approach that answered the following
questions:
What were
the best practices at each plant?
How could
these best practices be transferred to the other plant?
Where were
there areas of overlap?
Could functional
groups be centralized providing services for both plants?
Could resources
be better allocated across the plants?
Could a
single functional head handle responsibilities for both plants?
What cost
savings could be realized along with improvements in the operations?
The two plant managers were responsible for the project. Teams
in each functional area were assembled to work through the approach.
To build trust, information on the project was communicated throughout
the two plants.
|
| |
|
|
|
| |
Results: |
|
Numerous
opportunities for synergy, especially in the areas of site services,
calibration, recruiting, purchasing, planning, stability testing,
security operations and preventive maintenance were identified. Because
each functional head now had the responsibility for and the knowledge
of both plants, future improvements continued even after the close
of the project. The newly-aligned organization resulted in better
communication, better execution, and an annual bottom-line savings
to the company of $4.5 million.
|
| |
|
|
|
| |
 |
|
|
| |
|
|
|
|