Sophie Wilkinson

Bayer Pharmaceuticals Case Study

Structure of presentation

• Overview of Bayer and lean in the pharmaceutical industry

• Challenges faced in lean implementation• Why Bayer are facing these challenges• SWOT analysis• Recommendations and expected benefits

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Overview of the Bayer and the pharmaceutical industry

Lean manufacturing in pharmaceutical industry:– High volume manufacturing– Low variability– Quality

Bayer:– Global chemical and pharmaceutical holding

company– Annual revenue over $43 billion (USD)

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Master title style

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(Topforeignstocks.com, 2013)

Current challenges in lean implementation

1. Functional organisational structure and resistance to change

2. FDA regulation resulting in delayed implementation of change

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(Shanley, 2007)

Why are Bayer facing these challenges?

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Beliefs

Assumptions

Attitudes

Norms

Values

Organisation

Vision

Strategy

Practices

(Davis, 2013)

SWOT Analysis

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• Internal strengths: Diversified supply chain and long term supply agreements

• Internal weaknesses: Price fixing allegations tarnished brand image

• External opportunities: New high potential drugs (Xarelto and Stivarga)

• External threats: Low cost substitutes

(Mbaskool.com, 2014)

Recommendations and expected benefits

• Concentrate on developing a strong lean culture and growing lean leaders

• Take Lundbeck as an example of how to motivate middle management

• Lean acceleration: intensive training for all leaders from all levels

• Won Danish Supply Chain award 2008

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(Simplier Consulting, 2010)

Any questions?

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