Transcript PowerPoint - Consulting for Sustainable Solutions LLC

Using Operational Excellence
to Drive Sustainability
Overview and Case study
Craig Seyfried Sr. Director Wyeth
ISPE Annual Meeting Nov. 11, 2009
1
Session Objectives
• Discuss the Scope of Sustainability
• View One Company’s Approach using
Operational Excellence
• Estimate Potential Benefits – to
Product, Cost and the Environment
We don’t give ourselves enough credit as an industry !
2
Sustainability means satisfying multiple
concerns..…
….Able to be Maintained
….Maintaining ecological balance
– Operational – Improvements in operations and support
that allow capacity gains while maintaining or improving
quality
– Financial- A cost structure that can survive in the face of
increased pricing pressure and maintenance of profitable
margin in all regions of the world
– Environmental- Processes that minimize environmental
impacts thru energy efficiency, waste elimination and overall
carbon reduction
3
“Climate change is the greatest
humanitarian challenge of our time….”*
• Over 300 million people impacted resulting in
hundreds of thousands of deaths per year
• 99% of those dying are in developing
countries least likely to affect climate change
• Total economic costs is over $125 billion per
year and rising
“…Now that we know we must act…”*
* Kofi Annan - Global Humanitarian Forum Report - May 2009
4
Our approach has been limited to date
• Only 17 % have a comprehensive strategy for
combating climate change
• Most of the efforts to date - 94% - have been in
building design and energy supply
• 62 % of us have improved energy efficiency over our
global operations….and will continue to give this a
high priority
• Government Regulations and Compliance will drive
most (90%) companies climate change agendas*
“Company target setting is motivated by market forces
not scientific requirements..”**
•Countdown to Copenhagen a report for the Economist Intelligence Unit 2009
** Carbon Disclosure Project - The Carbon Chasm 2009
5
There are Three Platforms for
addressing Sustainability Challenges
• Technology
• Mitigation
• Adaptation
....and the use of Operational Excellence (OE)
as a process methodology for improving
sustainability encompasses all three
6
Scope of the Initiative - Wyeth
•
•
•
•
Sales of ~$22 Billion
47,000+ employees
28 Plants / 20 Countries and Puerto Rico
Major Product Lines in…
– Pharmaceuticals and Biopharmaceuticals
– Vaccines
– Consumer and Animal Health
– Nutritionals
7
Our Story (Wyeth) Begins in 2007
8
Our Approach: Three Key Levers
Aspire high; blend technical & organizational change;
build capability and let your line leaders own and drive it
9
Deliver Savings &
Continuous Improvement
1
2
3
Maintain and improve our
quality and compliance
performance
Design 25% operational cost
improvement by end of 2009
Cost and
Quality
Performance
Create operational
capabilities, behaviors, and
mindsets to ensure
sustainable, continuous
improvement
1&2
10
3
Implementation Includes Three Types of
Initiatives
11
Diagnostics Cover Multiple Work Streams and Data
Savings opportunity ranges from 15 - 40% per site
12
Transformation Results as of Sept .2009
Our ability to adapt and change manufacturing helps create value
to the business and competitive advantage through improved
quality, speed, cost efficiency and carbon reduction.
7 Standardization
Projects in Process
Across Sites
50 Mini Transformations
Finalized and More Than
80 Underway
25% Operational Run
Rate Improvement
Designed by Year-End
17 Sites Have
Implemented Standard
Site Structure
More Than 100 Mindsets and
Behaviours Trainings
Across 16 Wave I/II Sites
No Compromises
in Quality and
Supply Outcomes
13
Transitioning to Sustainability:
5 Requirements

Continuously assessing against:
 Original and new challenges

Aligned team of local leaders:
 Setting targets for continuous
improvement
 Staying highly visible
 Engaging line leaders

Incorporating targets into key
systems:
Performance
 Desired future state
Transition
 Performance
 Succession
 Planning & budgeting


Step change via
mini-Ts
Strategically communicating
achievements & instilling pride
Driving engagement & behavior
change
14
Sustained gains
via continuous
improvement
Time
Significant Savings Already Achieved
Cost Savings
$M
250
• ~ $250 M savings commitment against a
stretch target of $150 M for 2009 budget
• ~1200+ headcount reduction in 2008
• Additional headcount reductions in 2009
• ~60 site mini-T teams coached in early
stages of the transformation
• Frontline is engaged in change and new
leaders have emerged from the floor
2009
(Committed)
2010
(Expected)
Program has exceeded expectations
15
Potential Impacts on Sustainability
• Operational - 25 % efficiency improvement
Translates to billion of units additional mfg. capacity
• Financial - $ 575 million /yr in cost reductions
The equivalent of 1 major new drug each year
• Environmental – potential reduction of 15-40%
energy consumption equates to a reduction of 200500 k tons/year of GHG emissions
Avoids investment of over $150 mil for renewable
energy generation capacity
16
Conclusion
• To achieve overall Sustainability and meet the global CO2
reduction targets we have to think broader about the solutions
• OE is ideally suited as an approach because it is holistic in
nature
• Need to routinely calculate environmental benefits and capture
CO2 e savings as part of project justifications
• Transform mindsets toward more sustainable design of
processes and supply chain
17
Biotech Case Study
Now let’s see how it can be
done………
Thank You!
Acknowledgement to OE Team Lead - Wendy
Kouba
Presented by Craig Seyfried
Sr. Director International Operations
Wyeth
Collegeville, PA, 19426
484-865-3016
[email protected]
Typical Biotech Environmental Considerations*
Table 15.1 Water/Materials usage for therapeutic proteins for a composite “typical” process.
MATERIALS
kg/kg Protein
Glucose
Salts
Water
Acid/Base Buffers
Urea
Organic Solvents
Hazardous Solvents
200 - 400
200 - 300
10,000 - 20,000
100 - 200
0 – 1,000
0 - 200
0-5
KEY CONSUMABLES
Chromatographic resins
Filters
Membranes
TOTAL CONSUMABLES
2 - 10
10 - 20
<1
~ 10 - 30
*ACS Draft Chapter 15.
Environmental Considerations in Biologics Manufacturing
Sa V. Ho, in “Green Chemistry in the Pharmaceutical Industry”, Dunn, Wells, Williams
(Eds)
20
Typical Biotech Environmental Considerations*
Microbially-Derived Proteins
A Highly
Optimized,
Large-Scale
Water Usage
mAbs from Cell Culture
Typical
Optimized
“Composite”
LargeProcess
Scale
kg per kg API
Highly
Intensified,
Large-Scale
<1000
15,000
4500
1500
Salts + Buffers
1
400
300
100
Consumables
(solid wastes)
Organic
Solvents
1
20
4
2
~0
*ACS Draft Chapter 15.
100 (alcohols,
8
may involve some (alcohols)
hazardous
solvents)
8
(alcohols)
Environmental Considerations in Biologics Manufacturing
Sa V. Hoin, “Green Chemistry in the Pharmaceutical Industry”, Dunn, Wells, Williams
(Eds)
21