The fact that manufacturing is viewed as a cost reinforces this defensive mindset and hinders the organization from taking a larger systems view of its performance. Preliminary evidence indicates that more than 95 percent of the cycle time is spent on activities that add no value. There is a significant opportunity to move the focus from external to internal failure costs and from appraisal to prevention. There is substantial room for improvement in the supplier management process. This is indicated by the high raw material inventory levels, high quality control test and release times, and the large number of suppliers.
Inventory management represents a significant opportunity for cost-savings.
The research team is at present further characterizing the pharmaceutical manufacturing mindset and correlating this with performance. The team expects to enhance its database by extending this analysis to a larger number of companies, both within and outside the industry. Work will continue on development of a lifecycle model for assessing the impact of process improvement. Further, a major effort is underway to add a new dimension to the study. In collaboration with several pharmaceutical companies, the researchers have undertaken to study the impact of technology on manufacturing performance.