Restructuring of chemical manufacturing operations

A European pharmaceuticals company, with technical operations based in Switzerland, asked Arthur D. Little to help restructure its chemical manufacturing operations


The challenge was to reduce cost in the chemical operations by at least 25 per cent.


We carried out an activity and structure analysis (ASA), then determined performance indicators, cost drivers and assessed workloads/output before relating them to the resources employed. We developed a plan to improve utilisation of the manufacturing capacity.


We helped reduce costs by almost 30 per cent through:

  • Improved use of shifts and production units
  • A 20 per cent reduction in headcount
  • Lower levels of inventories.

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