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Overview
Our client, a CDMO, wants to understand the causes of its EBITDA loss and better assess its selling
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
Objectives
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,...).
COMPLETE VERSION
Discover the methodology, tools and results supporting this business case
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Optimizing the Manufacturing Cost of a Pharmaceutical Subcontractor
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