Capacity utilisation ups profit margins
operations that result in increased profitability as well as
superior product quality and satisfied customers. These are the
findings of a new study from market research company Best
Practices.
Top pharmaceutical manufacturing plants strive to achieve efficient operations that result in increased profitability as well as superior product quality and satisfied customers. These are the findings of a new study from market research company Best Practices.
The report, that set out to investigate the top-performing North American pharmaceutical manufacturing plants, discovered that capacity utilisation is a key driver in cost management and production efficiency. Those facilities getting the most out of their equipment tend to perform better in most categories measured in the study.
A greater variety of product types can lead to under-utilised equipment and diluted management, maintenance, and quality focus, highlights the report. For most companies, focusing on one type of manufacturing process, or a limited line of products, yields significant efficiencies, economies of scale, and a 'fine-tuned operational excellence'.
"A solid understanding of manufacturing costs among world-class companies is the first step in evaluating a company's own current practices," said Keith Symmers, vice president at Best Practices.
Findings from the report were gleaned after interviews and surveys at 11 plants belonging to nine pharmaceutical companies.
