Farmak

Lean Operational Excellence Expansion Case Study

JSC “Farmak” is the leader of the Ukrainian pharmaceutical market and the largest exporter of medicinal products since 2010. With 20 GMP-compliant production lines and 14 lines certified by the European regulatory authority, Farmak holds its processes to the highest European and US standards. However, understanding business challenges and wishing to move forward, they partnered with Lean Coaching Europe to start their journey into building Lean Organisation.

PROBLEM

– Pharmaceutical industry requirements ask for a significant load of documentation (verification and validation processes).

– Lean approaches have to align with GMP standards; creative ways to implement Lean should be developed especially in restricted processing areas (aseptic areas).

– Boost continuous improvement culture and assure achievement of business targets via Lean tools implementation and employee engagement. 

– Assure “success story” of Lean implementation to launch expansion on to other departments. ​

SOLUTION

  • Change agents and people development 
  • Factory of Ideas and Problem-solving boards 
  • Focused improvement 
  • Project management 
  • Shopfloor management (including KPI cascade) 
  • AM and PM
  • Achieving targeted improvement in Lean culture implementation, OEE increase, self-cost reduction, headcount optimisation and productivity increase)​

RESULTS

  • Average estimated self-cost reduction during the pilot phase is 0.6%
  • Average increase of OEE varies from +10 to +16% 
  • 118 FI teams successfully closed in a year (waste reduction, quality defect reduction, safety improvement, productivity increase)
  • The portfolio of cost saving initiatives add up to 900k EUR savings
  • Management leadership maturity increased by training and 1-2-1 coaching of Standard management practices, Lean and TPM approach
  • 29 employees certified as Green and Yellow Lean belts