Pharmaceutical manufacturer
Capgemini evaluated the manufacturing processes at this company and developed new performance metrics based on major activities.
The Challenge
The current method of measuring performance for this pharmaceutical manufacturer was based on standard costing approaches. The company’s management believed that, although this provided one view of performance, it was not representative of actual division productivity and was not adequate information for proactive management. They wanted cost information that was centered on activities, not just raw materials. The client asked us to develop a “blueprint” of new performance metrics, which would be integrated with the newly implemented, automated system for manufacturing documentation.
Capgemini Approach
Our approach involved utilizing our expertise in activity-based costing to develop new performance metrics. We then evaluated the manufacturing processes and developed new performance metrics based on major activities. Our objective was to provide management with more detailed and timely performance information to help them better manage the business.
Once developed, a three-month effort was undertaken to manually gather the measurements and model the performance information so that company management could examine a real life example. The model was approved and an implementation and systems requirement plan was developed to automate the measurement collection in the new operations system.
Value Delivered
The client benefited from our work by receiving timely, accurate operations and performance information to make better business decisions. The new and automated performance measurement method more accurately reflected the performance of the client’s manufacturing operations.
