Results and discussion

Implementation of Lean at Lundbeck has led to a number of measurable outcomes. Significant lead time reductions have been achieved across the supply chain, amounting to 50–75% for the overall supply chain. In some individual areas lead time has been reduced as much as 90% (see sidebar). Additionally, productivity has been increased dramatically in all areas. Scrap and yield have also been revolutionised. • After the first Lean event took place, packaging changeover time was reduced by 40% (Figure 2). • After three years, the Finished Goods Production department are now able to produce twice the volume with the same number of people and on the same number of machines (Figure 3). • Lead time in quality approval has been reduced by 90% from ten days to one day. This has also resulted in a major improvement in productivity where fewer people approve significantly more batches than before (Figure 4). • Lundbeck won the Danish Supply Chain Award in 2008. This is awarded for a logistics solution that focuses on innovation, development, customer value, and gaining the involvement of the company's employees. • Despite reduced sales pricing and adverse exchange rates, production and supply chain costs as a percentage of revenue have been brought down from 19% to 13% on internally produced products, which is well below the industry average of approximately 23% for traditional pharmaceutical companies. (Figure 5)