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| PICK UP PACE |
| PRODUCTIVITY |
| Productivity allows us to do more with less. The more
productive we become, larger the number of people we
can impact in lesser time with same or lesser resources. |
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| In our march towards our goal of 'Good Health Can't Wait'
there is no better accelerator than productivity. We have institutionalised a productivity enhancement programme,
aptly christened PACE (Programme to Achieve Cost and
Capabilities Excellence) across Dr. Reddy's. |
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| While phase 1 of PACE focussed on procurement
excellence, phase 2 achieved operational excellence -
both these phases have witnessed successful completion. |
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| Overview |
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Productivity is an important part of our values as it is key to
delivering on our purpose and the expectations of our patients,
partners and other stakeholders. |
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Higher productivity is a means for us to reach our goal of helping patients across the world get faster access to affordable and
innovative medicines. We do this by working smarter, making
better decisions, creating more efficient processes, and
enhancing the capabilities of our manpower through a leaner and
more focussed structure. |
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Across disciplines, be it research, manufacturing, technology or
talent, we are always looking for better and newer ways of doing
things. For sharper focus on productivity interventions, we have segmented them under three core baskets -- People, Machine
and Material. |
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We continue to benchmark ourselves against the best in the
world. McKinsey's pharma benchmarking services, POBOS,
assesses our operations against global pharma companies to
help quantify our improvement potential, make us focus on high
impact areas, monitor our performance over time and compare the improvement pace against that of the industry. |
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As per POBOS report, our material productivity in FY14 was
94.3% against an industry average of 97%, Machine OEE (overall equipment effectiveness) was 53% as against industry standard
of 47% and People Productivity was 132 Production Units/Full
time equivalent employee/contract employee as against industry standard of 179 PUs/FTE (Production Unit in '000). |
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Top quartile companies are three times more productive than
those in the bottom quartile and it is our aim to reside among the
top quartile companies. To accelerate fulfilment of this objective,
we have set ourselves a target of undertaking 52 simplification
projects a year. |
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| Our Approach |
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We ensure that no improvement possibility is left unexplored, so we practice a systems approach towards productivity enhancement.
Each project follows a 16-week wave plan as per the DMAIC
(define, measure, analyse, improve, control) methodology. |
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| DMAIC as followed at Dr. Reddys |
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Core team defined -
team leader, facilitators, team
members |
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Cross functional
team defined as well |
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| Roles explained |
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Map and
baseline current KPI values |
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Finding out benchmark
values |
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Stretch aspiration
– KPI
performance and institutionalisation |
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Generate ideas and levers through
multiple sources of
idea generation (CFT meets, experts, other plant visits, as applicable) |
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| Initial thoughts on institutionalisation |
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Prioritise ideas
for detailed evaluation |
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Ideas to reach IL
stage |
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| Business case of prioritised ideas and sign off (IL3) |
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Final
improvement
target |
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Final OS-MI-MC
to institutionalise |
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Implementation
plan, detailed feasibility analysis and assigned responsibility |
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| Start implementation |
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Review
and rigorous
tracking |
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| Refine, if applicable |
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