Case Study: Optimizing the Manufacturing Cost of a Pharmaceutical Subcontractor

Overview

Our client, a CDMO, wants to understand the causes of its EBITDA loss and better assess its selling
price effectively.
KEPLER offers to review and challenge the calculation method and the accuracy of the clients’ Manufacturing Cost.

Context

A standard Manufacturing Cost calculation method that cannot be applied to the clients’ model
An urgent need to model the decrease in Manufacturing Cost linked to increased volumes and productivity gains
A need to modify the selling price and improve the margin

Objective(s)

Category: Gaining in Productivity

Recalculating the Manufacturing Cost considering the operational reality and not the theoretical ranges
Identifying the continuous improvement plans that will reduce cost (SMED, VSM, MUDA…)

The main challenge for such a case is to connect and align the different stakeholders: finance, sales and industry, around the Manufacturing Cost issue, and be sure that everyone speaks the same language (EBITDA, productivity, quality,...).
A key factor of success is the cleansing and the combined use of data, originating from multiple sources (in this case: finance, operations and supply chain).
Edouard ALQUIÉ, Director - Operations Practice Leader

COMPLETE VERSION

Discover the methodology, tools and results supporting this business case

Operations Referent

Edouard Alquié

Director

Edouard graduated from Kedge Business School before joining Orange & Autoliv Supply Chain teams. He has more than ten years of experience in consulting. He specializes in industrial…

Edouard Alquié

Edouard Alquié

Director

Edouard graduated from Kedge Business School before joining Orange & Autoliv Supply Chain teams. He has more than ten years of experience in consulting. He specializes in industrial diagnosis and transformation planning for the Manufacturing and Retail sectors.