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
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Operations Referent

Operations Business Cases