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Linking Improvement to Transformation: A Global Manufacturing Strategy for Life Sciences The Deloitte Consulting Approach Consulting
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Page 1: Linking Improvement to Transformation: A Global ... · How Deloitte Consulting Delivers: Case Study ... • increased competition from generics and the growing number of “me too”

Linking Improvement to Transformation:A Global Manufacturing Strategy for Life SciencesThe Deloitte Consulting Approach

Consulting

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Table of Contents

Introduction: The Life Sciences Industry Today ......................................................................... Page 1

Why Develop a Global Manufacturing Strategy? ...................................................................... Page 3

The Deloitte Consulting Approach to Global Manufacturing Strategy Development ................ Page 5

Focus on Patient and Shareholder Value ................................................................................... Page 6

Deloitte Consulting’s Strategic Manufacturing Index .................................................................. Page 7

Scenario Planning for Life Sciences Manufacturing .................................................................... Page 9

Global Manufacturing Strategy Development: The Breakdown .............................................. Page 11

How Deloitte Consulting Delivers: Case Study ........................................................................ Page 13

Why Choose Deloitte Consulting? .......................................................................................... Page 15

What Now? ............................................................................................................................. Page 16

Questions and Next Steps to Consider in Creating a Global Manufacturing Strategy................... Page 16

Contact Information ................................................................................................................ Page 16

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Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

1

Introduction: The Life Sciences Industry Today

Growth is the goal. Life sciences companies are at a critical point in time.

Business models that had yielded profitable growth

for years face mounting challenges such as increased

competition, more demanding patients and payors,

and a constantly evolving regulatory environment

(Figure 1).

Leaders at companies experiencing growth and those

where it is stalled all face the pressure of addressing

these issues with solutions that encourage and

maintain growth and increase shareholder value.

Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

2

The question for life sciences companies is: “Where are the untapped opportunities to drive growth and enhance value?”

Deloitte Consulting LLP believes a great untapped source

of value within life sciences companies is manufacturing

operations. We have found that well-integrated, flexible

and cost-efficient manufacturing networks can help

companies balance short and long-term challenges and

create value for patients and shareholders.

This white paper was prepared for Chief Operating

Officers and senior manufacturing executives. It explores

current challenges and presents an effective approach

to developing responsive and cost-effective global

manufacturing strategies that drive growth and value.

The paper illustrates the Deloitte Consulting approach

by exploring:

• the rationale for a global manufacturing strategy

• the Deloitte Consulting approach to scenario planning,

and our proprietary, quantitative modeling tool, called

the Strategic Manufacturing Index (SMI)

• a client-tested approach to capitalize on

improvement opportunities

• ways we have helped clients in their efforts to improve,

including development of a global manufacturing strategy

for a large, international pharmaceutical company

• questions to get you started

[Figure 1]

This paper provides an insightful look at how improving manu-

facturing operations can help transform your company and

drive value for patients and shareholders.

Life Sciences Industry: Current Challenges

Lower revenue growth due to:

• increased competition from generics and the

growing number of “me too” drugs

• less leverage in pricing as consumer demand

is aggregated by governments or insurers

• longer product development cycles, which

shorten the period of patent-protected sales

• increased scrutiny from patients, caregivers, insurers, governments, and the equity markets due to recent high-profile product recalls

Increased operating costs due to:

• higher costs of bringing new products to market because of increased requirements

and difficulty in differentiating products

• greater dependence on external

innovations to fill development pipelines

• international expansion to enter new markets and operate global marketing,

selling and distribution networks

• an ever-changing, increasingly complex

regulatory environment

• protection of product integrity against

counterfeiting and re-importation

• ensuring business continuity by securing the enterprise value chain against internal and external threats, e.g., natural disasters, terrorism, a flu pandemic, etc.

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Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

4

Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

Why Develop a Global Manufacturing Strategy?Life sciences manufacturing executives need to apply a fresh

perspective to balance the present and future challenges

they face (Figure 2, next page). Short-term challenges, e.g.,

increasingly complex global supply chains, aging facilities,

very high or low equipment utilization, and long lead times

require executives to re-evaluate current manufacturing

strategies. Simultaneously, emerging long-term trends could

have even greater implications. Companies are shifting

from blockbuster drugs to smaller-volume products, and

are adopting new production technologies to support

innovative products and novel delivery platforms. These are

pressing issues for life sciences companies as pharmaceutical

portfolios become more complex to manufacture, and cost

pressures increase due to slower top-line growth. The key

to future growth and profitability is a well-integrated, cost-

efficient and responsive manufacturing network.

We believe Deloitte Consulting’s approach to Global

Manufacturing Strategy development can help to unlock

the hidden value in manufacturing operations. This is

accomplished through a comprehensive, enterprise-wide

assessment of the strategic objectives and unique challenges

that define a company, and then the identification of

improvements to the manufacturing network that directly

impact these issues. The Deloitte Consulting approach

guides clients through a process that helps to:

• determine internal and external drivers of change

• assess the current state of operations

• determine the gaps between current and desired performance

• develop an integrated plan to improve capabilities across

the global manufacturing network

3

1 Source: “Pharmaceutical Intermediates: A Long Climb Back,” Chemical Week, December 1, 2004; “Pharmaceutical Contract Manufacturing,” CIBC, December 2002

An effective global manufacturing strategy focuses on improving the organization’s ability to serve patients, manage risk and drive shareholder value.

[Figure 2]

Challenges Facing Life Sciences Manufacturing Executives

Short-Term Long-Term

Lower revenue growth due to:

• Increasing pharmaceutical pricing pressures, resulting in a focus on reducing costs

• Historically low production asset utilization (global utilization is less than 50 percent for API and formulation)

• Low-cost manufacturers from developing markets (e.g., India and China) that continue to increase their capabilities and add to overcapacity

• M&A activity that has consolidated manufacturing assets and increased redundancies

• Plants designed for high-volume production that require significant investments to repurpose

• Aging facilities that require significant investments to operate and maintain

• Long lead times and poorly integrated supply chains, resulting in ineffective plans and large amounts of unnecessary inventory

• Underdeveloped sourcing strategies

Increased operating costs due to:

• Shift from production of blockbusters to a larger number of smaller-volume products

• Increasingly complex operations required to manufacture, release and track product

• New production technologies for:

– manufacturing biotherapeutics

– manufacturing novel genetic-based products (e.g., RNAi, cDNA)

– novel formulations to support controlled release or new indications

– delivery systems that combine drug and device (e.g., inhaled insulin, nanotechnology)

– distinctive packaging types to support new products

• Increased safety and environmental performance requirements

• Highly uncertain and dynamic market demands

• Maintaining internal expertise to commercialize and manufacture new products

• Increased competition from biopharmaceutical companies commercializing their own products

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Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

The Deloitte Consulting Approach to Global Manufacturing Strategy DevelopmentOur approach first focuses on the overall strategic

objectives of the entire global company. We then work

closely with client teams to understand the areas that

drive growth in their company and focus

on those that intersect with the operations of the global

manufacturing network. The result is a “big picture”

view that connects the operational changes that can

further a company’s objectives.

From the “big picture” we work with the client to develop

the Global Manufacturing Strategy and Implementation

Roadmap that are key to the Deloitte Consulting approach.

The Roadmap:

• aligns manufacturing capabilities with evolving product

portfolio requirements

• incorporates improved manufacturing practices into the

company’s operations where applicable, selected from a

list of leading practices we have identified

• provides flexible responses to a range of possible

future scenarios

• identifies organizational impediments to achieving

strategic objectives

• serves as a comprehensive, yet executable guide for

implementing the strategy

65

Focus on Patient and Shareholder ValueLife sciences companies share a central objective: improve

human life. We at Deloitte Consulting believe there is a

direct link between improved operations and increased

value to patients and this belief guides our work in helping

our clients improve their manufacturing operations. Our

experience shows that reducing costs and increasing

profitability can yield a strong, efficient company able

to reinvest larger sums in discovering and delivering

life-improving treatments. To help life sciences clients

achieve this level of performance, we focus on helping them

improve the manufacturing operations that most support

long-term company needs and, therefore, drive the most

shareholder and patient value.

To that end, Deloitte Consulting has developed the

Enterprise Value Map (EVM). The EVM is used to illustrate a

company’s operations, how these drive value and highlight

the areas with the most potential to yield more value

throughout the whole company. This map allows us to help

our clients quantify and prioritize specific recommendations

for change, and to aggregate the total impact of these

changes on their ability to drive patient and shareholder

value. The figure below represents a condensed version of

our EVM for life sciences manufacturing networks, with a

small subset of operational levers that can help drive patient

and shareholder value.

Enterprise Value Map for Life Sciences

Example levers:• Improvetimetomarketthrough

bettercoordinationoflaunchactivitiesacrossthesupplychain

• Buildflexibleoperationsabletorespondtochangingmarketdemands

• Enhancefillratesandimproveproductavailability

Example levers:• Increaseefficiencyoftransactional

processesfromordertocashbyrationalizingbusinessprocessesandinformationtechnology

• Capturepricereductionsbyanalyzingrawmaterials,sourcingstrategiesandrenegotiatingsuppliercontracts

• Reducetaxburdenbydesigningnetworkofassetsacrossgeographies

Patient & Shareholder Value

Revenue Growth Operating Margin Asset Efficiency

InventoryProperty,Plant &

Equipment

Income Taxes

Cost ofGoods Sold

(COGS)

PriceRealization

VolumeReceivables

&Payables

Example levers:• Rationalizemanufacturingand

distributioncapacitytoimproveassetutilization

• Improvedemand/supplyplanningtoincreaseinventoryturns

• Improvedaysreceivablesandpayablesbyreducingorder-to-cashcycle

Selling,General &

Administrative(SG&A)

The Deloitte Consulting Approach

Operational Components and Business Processes

SeviceDeliver MAKE Source PlanDesign

Manufacturing is critical to an efficient supply chain

What Drives Your Business

Customer & Market Drivers• Product Portfolio• Brand Reputation• Customer Requirements• Market Trends

Environmental/Market Drivers• Regulatory Environment • Trade Agreements• Import/Export Risk

Business Drivers• Strategic Intent/ Core Competencies • Acquisition Strategy • Competitors Strategy

Financial Drivers• Return On Investment and Assets • Cost Reduction • Cash Flow

Operational Drivers• Process Maturity• External Benchmarking• Key Performance Indicators

How to Make It Happen

Global Manufacturing Strategy

Implementation Roadmap

What Will Drive Your Business Further

Supporting Infrastructure

IT HR Finance/Tax

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Deloitte Consulting’s Strategic Manufacturing IndexTo build a flexible, cost-effective platform for the future,

life sciences manufacturing leaders must determine how

to align the requirements of evolving product portfolios

with the capacities and capabilities of their manufacturing

network. This alignment requires assessment of present and

future product portfolio demands and a comparison of these

needs to current and projected manufacturing capacity.

Understanding demand requirements and available capacity

across the network enables leaders to evaluate and improve

their global asset utilization. The challenge lies in making

these direct “apples to apples” comparisons among sites in

a timely fashion.

To help our clients address this challenge, Deloitte Consulting has developed the Strategic Manufacturing Index (SMI) tool set that provides a standardized approach to calculate and compare demand, capacity, and utilization across a company’s entire manufacturing network. The SMI can be used to help manufacturing executives answer key questions, including:

• How much internal capacity is needed? How much

capacity is needed across different technology platforms

and at what levels of scale?

• What is the right amount of highly flexible capacity, and

what is the right amount of dedicated capacity?

• By outsourcing certain products, how much and what

type of capacity is no longer needed?

• How well does the organization’s current network meet

these needs?

Using SMI, the demands of each manufacturing step are

calculated by accounting for three dimensions:

• Time represents the required processing time of a

particular step

• Scale of process volume represents the average capacity

required for the step

• Fit of process operations represents the required

number of unit operations per batch manufactured

For any given manufacturing step, the demand index is

therefore equal to the normalized time factor (X), scale factor (Y), and fit factor (Z). Because this technique

offers a standardized approach to determining demand for

each of a company’s manufacturing steps, demand can be

aggregated across sites, across technologies, or even across

the entire global network

Demand IndexY

X

Scale of Process Volume

Time

ZFit of Process Operations

Evaluating Demand

Understanding Utilization by Evaluating Capacity and Demand Together

Utilization =

Demand Index

Capacity Index

Y Scale of Process Volume

X Time

ZFit of Process Operations

Evaluating Capacity

Capacity Index

Y Scale of Process Volume

X Time

ZFit of Process Operations

Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

87

Using SMI, the potential capacity for each manufacturing

area is calculated by accounting for:

• the amount of time the area is available for use

• the scale that represents the average volume of the

equipment

• the fit that represents the number of pieces of equipment

in the area

For a given manufacturing area, the capacity index is

therefore equal to the time factor (X), scale factor (Y), and fit factor (Z) that have been normalized to the

company’s average manufacturing step. Similar to demand,

this standardized approach of evaluating capacity means

that capacity can also be aggregated across sites, across

technologies, and across the company’s global network of

manufacturing assets.

Using SMI, demand and capacity can be directly compared

since both the demand index and capacity index use the

same three dimensions and are normalized to the company’s

average manufacturing step. Dividing the aggregated

demand index at a particular site or for the entire global

network by its corresponding aggregated capacity index

yields an overall percentage for capacity utilization. By

accounting for the three dimensions of time, scale, and fit,

this approach provides a complete and unbiased view of

capacity utilization across sites, technologies, or a company’s

entire global network.

The result of using SMI is that manufacturing leaders can

obtain a standardized and holistic view of demand, capacity,

and utilization both within and across a global network

of sites. This insight will allow them to make better long-

term strategic decisions to align evolving product portfolio

requirements with the capacities and capabilities of the

global manufacturing network.

Demand IndexY

X

Scale of Process Volume

Time

ZFit of Process Operations

Evaluating Demand

Understanding Utilization by Evaluating Capacity and Demand Together

Utilization =

Demand Index

Capacity Index

Y Scale of Process Volume

X Time

ZFit of Process Operations

Evaluating Capacity

Capacity Index

Y Scale of Process Volume

X Time

ZFit of Process Operations

Demand IndexY

X

Scale of Process Volume

Time

ZFit of Process Operations

Evaluating Demand

Understanding Utilization by Evaluating Capacity and Demand Together

Utilization =

Demand Index

Capacity Index

Y Scale of Process Volume

X Time

ZFit of Process Operations

Evaluating Capacity

Capacity Index

Y Scale of Process Volume

X Time

ZFit of Process Operations

Understanding Utilization by Evaluating Capacity and

Demand TogetherEvaluating CapacityEvaluating Demand

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Contingent Strategies

Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

109

Scenario Planning Illustrated

Ultimately, defining and executing the appropriate core and contingent strategies provides our clients with the “strategic

flexibility” to successfully react to a wide range of future possibilities.

Core Strategies

Identify Issues

Service

Products

Organization

Operations (Staff/Process)

Technology

Partnership

Strategy D

evelop

men

t

Scenario

Iden

tification

, Selectio

n an

d D

efinitio

n

Economy

Technology

Regulations

Market/Competition

Consumers

Globalization

Politics

Measure Performance

Identify Triggers

Scenario Planning for Life Sciences ManufacturingManufacturing leaders in life sciences companies must continually address short-term pressures to reduce cost

with the long-term need to build a cost-effective, flexible platform for the future. However, leaders cannot

predict the future uncertainties that can significantly impact the effectiveness of strategies they execute today.

How can manufacturing leaders make strategic decisions in light of an uncertain future?

Sourcing Strategy Exampleproduct portfolio was segmented

into three buckets: strategic, important and least important

Core Strategy • Always internally produce “strategic” products

• Always externally produce “least important”

products

Contingent Strategy • If demand increases:

– Tap into dual sourcing

– Outsource more “important” products

– Build capacity

• If demand decreases:

– Internally source more “important” products

– Utilize production capacity for development

Today’s decisions…Rely upon predictions

of tomorrow

• How much internal capacity should be built or

maintained?

• What products or technologies should be internally

sourced and which should be outsourced?

• Which facilities should be expanded and which

closed?

• How can flexibility be built into operations at a

reasonable cost?

• Will product demand grow, slow or decline?

• Will contract manufacturers in low-cost countries

achieve the expertise and regulatory compliance

needed to support outsourced operations?

• What regulatory changes does the future hold and

how much investment will they require?

At Deloitte Consulting, we utilize Scenario Planning techniques to help clients react better to the uncertainties of the future.

Rather than forcing leaders to make a “best guess” about aspects of the future that are out their control — exposing them

to great risk if that guess is wrong — Scenario Planning is used to help evaluate how strategic decisions made today might

impact an organization within a range of possible future scenarios.

During a Scenario Planning workshop, facilitators lead participants through testing of “strategic options” (i.e., a

combination of actions across areas such as sourcing strategy, risk management strategy, network structure, geography,

and flexible capacity) against possible future scenarios not within the company’s control, such as “changes in product

demand” or “changes in regulations.” The testing uses evaluation criteria such as “reduced cost structure,” “managing

growth,” “remaining flexible,” and the “ability to manage product stock-out risk” to determine which strategies perform

successfully and which fail within a range of future environments. The resulting output is the identification of successful

“core strategies” that form the backbone of an implementation plan and “contingent strategies” that perform well only if

and when specific environmental conditions become a reality.

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Our Structured Process for Strategy Development

Global Manufacturing Strategy Development: The BreakdownDeloitte Consulting’s manufacturing strategy approach can be broken down into four distinct phases.

The first two phases identify possible improvement opportunities. The third and fourth phases prioritize a

defined set of strategic options, select a strategy, and develop an implementation plan. While these phases

form the basis of our approach, application is flexible and determined by a company’s unique situation, culture,

and change initiatives. Structuring projects into four distinct phases achieves a comprehensive diagnosis,

thorough assessment of viable strategic alternatives, and a resulting strategy that has buy-in and ownership

from key stakeholders.

• Develop a set of strategic options to fill

gaps in capacities and capabilities across the

manufacturing operations – each strategic

option provides suggested actions in areas

such as sourcing strategy, physical assets, asset

location, centralization of key technologies,

flexible vs. dedicated configurations,

co-location of facilities, synergies with other

operations, and cost and tax structures.

• Provide a comprehensive list of relevant

manufacturing operations leading practices

that we have identified from within and beyond

the life sciences industry.”

• Analyze potential drivers of environmental

change that cannot be directly controlled

(e.g., regulatory changes, level of competition,

advances in technology, tax law, etc.) and

prioritize them based on potential impact to

the company.

• Construct plausible future scenarios that use

the elements of environmental uncertainty to

test the effectiveness of strategic choices.

• Conduct a facilitated executive workshop, with

the following objectives:

– Test the performance of each strategic option

against the uncertain future conditions

scenarios

– Understand how strategic decisions might

perform in possible future environments

– Use the strategic options that performed

most effectively within future test scenarios

to identify core strategies – Identify

contingent strategies that can be executed

if and when specific environmental

conditions occur

– Typical Activities – Typical Activities

– Typical Activities

Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

Phase II: Options Development and Scenario Testing – Typical Activities

• Identify the appropriate workstreams, what’s needed to get them in place, associated timeframes and the ripple effects of these changes.

• Assign ownership responsibilities and create detailed plans for implementation activities.

• Assess key implementation risks and develop mitigation strategies.

• Develop a change management and communication plan.

Phase IV: Implementation Planning – Typical Activities

Phase III: Business Case Development – Typical Activities

• Develop comprehensive business cases based on models that detail the cost, operations requirements and anticipated benefits of core and contingent strategies.

• Develop recommendations based on the business case that aligns most closely with

the long-term financial and operational goals of the manufacturing organization and those of the entire company.

• Prepare executive briefings to present recommendations and gain approval of key stakeholders.

Phase I: Situation Analysis – Typical Activities

• Interview key stakeholders to identify, validate, and prioritize the company’s current and future business challenges and objectives.

• Segment customers and markets and identify current and future consumer requirements.

• Assess the current and future product portfolio, and determine the ability to meet evolving consumer requirements.

• Translate projected product volumes into the capacities and capabilities for each component of manufacturing operations.

• Identify gaps between current performance and future business requirements.

• Assess current improvement initiatives and estimate their potential impact on manufacturing operations.

• Evaluate the current capacities, capabilities, and performance of the existing manufacturing operations against effective practices and benchmarks from life sciences and other industries.

• Understand the level of regulatory compliance in manufacturing operations, and assess current risk mitigation practices.

Phase I

SituationAnalysis

Phase II

OptionsDevelopmentandScenario

Testing

Phase III

BusinessCaseDevelopment

Phase IV

ImplementationPlanning

1211

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Case StudyThe client: A large global pharmaceutical company

The challenge: The client’s manufacturing organization faced

several challenges in constructing a long-term

strategy, including:

• Shifting the product portfolio from

small-molecule to biotechnology products

and from low-potency to high-potency

compounds

• Significant use of manufacturing assets

for non-strategic products, including third

party business

• Excessive inventory levels

• Current capacities and capabilities that did not

support the client’s long-term needs

We have helped a number of global companies

execute our approach to improving pharmaceutical

and biotech manufacturing and these clients have

achieved benefits including:

• Focused, more efficient manufacturing

organizations

• Improved supply assurance

• Flexible sourcing strategies that proactively manage

risk and cost

• Improved speed and reduced cost for new product

launches

• Identification of core competencies and realignment

of roles and responsibilities of the manufacturing

group and supporting functions

• Identification of clear investment guidelines focused

on executing the organization’s defined strategy

• Improved operating costs

• More efficient use of assets

• Confidence in managing future demands

The Deloitte Consulting approach: Deloitte Consulting helped a dedicated client

team use our structured four-step approach

(situation analysis, options development and

scenario testing, business case development, and

implementation planning) to analyze and understand

the organization’s capacities and capabilities in

relation to projected business requirements. The

analysis revealed that our client’s capacity utilization

was significantly lower than originally thought.

Our client had estimated capacity utilization in

the range of 60-70 percent; however, this number

was inflated due to inconsistent evaluation and

reporting standards for asset utilization across sites.

In addition, the client’s original utilization evaluation

only examined time, rather than three standardized

dimensions of time, scale, and fit, around which

long-term improvements can be made.

Using Deloitte Consulting’s Strategic Manufacturing

Index (SMI), we helped the client standardize

calculations across sites and discovered that asset

utilization was actually in the range of 40-50 percent. It

was also revealed that third-party business comprised a

much larger percentage of total capacity than originally

thought. A clear picture of actual utilization enabled

the combined Deloitte Consulting and client teams

to explore a wider range of options to match future

demands with the asset base.

Typical of life sciences companies, our client was also

challenged by predicting future demand across the

product portfolio, as it had launched new drugs with

highly uncertain patient demand. A scenario planning

workshop helped our client identify core and contingent

strategies, including attributes of risk management,

sourcing strategy and capacities and capabilities.

Relevant and effective core strategies were identified

and allowed our client to make strategic decisions

on internal sourcing and outsourcing of products.

Additionally, contingent strategies were developed that

could be executed in future situations where product

demand was significantly above or below forecast.

The benefits: • Effective core and contingent strategies helped

align physical assets with the future capacities

and capabilities required by these strategies.

• Identified over $300 million NPV savings over

10 years.

• Reduced overall cost structure and capital requirements.

• Realigned manufacturing network and reduced

site locations.

• A five-year implementation roadmap created

for executing the strategy is expected to grow

capacity utilization to 70 percent by 2009 (versus

an originally projected 40 percent), improve return

on assets and decrease cost of goods sold.

• A flexible sourcing strategy (the result of Scenario

Planning) allowed our client to meet a sudden,

four-fold increase in product demand and

demonstrated future ability to adjust to similar

changes across the entire product portfolio.

Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

1413

How Deloitte Consulting Can Deliver

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Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences

1615

We are distinguished by:• Strong functional capabilities and real-world

manufacturing experience in life sciences and across a

breadth of industries.

• A virtually unparalleled range of capabilities, with access

to resources that can provide services in areas such as

corporate strategy, operations, revenue enhancement,

enterprise risk management, human capital, corporate

finance, real estate, tax, and US/EU regulatory

and compliance.

• A strong implementation bias that blends analytical rigor

and industry insight with a pragmatic mindset to the

services we provide, recognizing that a strategy which

cannot be implemented is meaningless.

• Strong life sciences industry experience and a track record

of providing value-enhancing services. Among Deloitte &

Touche USA clients are 10 of the top 10 pharmaceutical

manufacturers, 8 of the top 10 biotech companies, and

10 of the top 10 medical equipment manufacturers (as

ranked by Hoover’s Inc.).

• A future-oriented approach that helps our clients look

forward over five- and 10-year time horizons and test

solutions for feasibility in uncertain future environments.

• The capabilities to support global initiatives for our clients

in the U.S. and Europe.

• A distinctive collaborative and team-oriented approach

where Deloitte Consulting professionals work side-by-side

with clients.

Our combination of distinctive skills, capabilities and approach positions Deloitte Consulting as a valuable

advisor for life sciences companies.

Why Choose Deloitte Consulting?

• What is your company’s strategic mission and vision,

and how does the manufacturing team contribute?

• Broadly defined, who are your key stakeholders, and

how do you provide value to them?

• How do stakeholder groups assess the performance of

manufacturing operations?

• What are your key strengths, weaknesses, challenges,

and opportunities?

• What is your current performance, and how does it

compare to others in your industry?

• Do you have the information you need to make critical

decisions in a timely manner?

• What are the key drivers of change in your

environment, and how will you adapt?

• What are your competitors doing to change?

• What can you learn from other industries?

• How do you currently measure capacity utilization

across your network?

• Do you feel comfortable that utilization across your

network is calculated in a meaningful way?

• How will changes in your product portfolio and

sourcing strategy impact your required manufacturing

capacities and capabilities in the future?

What Now?

Questions and Next Steps to Consider for Creating a Global Manufacturing Strategy Deloitte Consulting recognizes that output reflects input. Therefore, it is critical to ask the right questions at the start of

developing a robust Global Manufacturing Strategy.

Below are questions you can ask about your own organization to begin the process.

Contact Information

ServiceLineLeaderLifeSciencesConsulting

GlobalDirectorLifeSciencesConsulting

Jacques Mulder PrincipalDeloitte Consulting LLP25 BroadwayNew York, NY 10004-1010Tel: [email protected]

Pete MooneyPrincipal200 Clarendon St., Suite 2000Boston, MA 02116-5091Tel: [email protected]

This publication contains general information only and is based on the experiences of Deloitte Consulting LLP practitioners.

Deloitte Consulting LLP is not, by means of this publication, rendering business, financial, investment, or other professional

advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis

for any decision or action that may affect your business. Before making any decision or taking any action that may affect

your business, you should consult a qualified professional advisor. Deloitte Consulting LLP, its affiliates, and related entities

shall not be responsible for any loss sustained by any person who relies on this publication.

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NotesNotes

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Notes

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As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/aboutfor a detaileddescription of the legal structure of Deloitte LLP and its subsidiaries.

Copyright © 2008 Deloitte Development LLC. All rights reserved. MemberofDeloitte Touche Tohmatsu


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