“The model showed us exactly where we were losing time and money and proved the business case for new equipment before we committed to it.”
— Plant Manager
The Challenge
A pharmaceutical manufacturer operating five inhaler assembly and packing lines knew their operation had inefficiencies—but couldn’t pinpoint exactly where value was being lost or quantify the gains from proposed improvements. Material movements seemed excessive, labour costs were higher than benchmarks suggested, and OEE figures weren’t where they needed to be.
They were considering investment in new equipment, but couldn’t build a credible business case. Spreadsheet calculations gave rough estimates, but couldn’t capture the interactions between lines, the impact of changeovers, or how improvements in one area would affect constraints elsewhere in the value stream.
The Solution
We built an interactive value stream model of the existing factory, capturing all five assembly and packing lines with their actual cycle times, changeover durations, material flows, and labour requirements. The model included component costs for each product variant, allowing us to trace value and waste through every step of the operation.
Current State Analysis
The model mapped material movements across the facility, revealing where components were being handled multiple times before reaching the assembly lines. It identified constraints that were limiting throughput—some obvious, others hidden by workarounds that had become accepted practice. Buffer storage, yield losses, and equipment efficiency were all quantified against actual production data.
Future State Modelling
With the current state baselined, we modelled the proposed future state with new equipment in place. This wasn’t about assuming improvements—it was about testing whether the investment would actually deliver the expected gains when integrated into the real production environment with its existing constraints and interdependencies.
Production Scheduling Optimisation
We scheduled production runs across the full annual volume to minimise labour costs while meeting demand. The model tested different sequencing strategies and shift patterns, finding configurations that reduced excess labour without compromising output targets.
Material Flow Redesign
The value stream model highlighted unnecessary material movements that were consuming operator time and adding no value to the product. By redesigning flow paths and staging locations, we eliminated handling steps that had accumulated over years of incremental changes to the operation.
The Results
The interactive value stream model delivered measurable improvements across the operation:
12% improvement in OEE through combined gains in material usage, throughput rates, buffer storage efficiency, yield, and waste reduction.
25% reduction in labour costs by scheduling production runs to minimise excess staffing across the annual volume.
20% reduction in non value-added time by eliminating unnecessary material movements across the facility.
Validated equipment investment with a future state model proving the business case before capital commitment.
Annual cost savings quantified through full-volume production scheduling, giving finance the numbers they needed for investment approval.
The manufacturer moved from gut-feel improvement initiatives to evidence-based decisions—with a model they could revisit as conditions changed.