In this episode of SCW for Pharma, host Evren Ozkaya welcomes Fabrice Le Garrec, Founder of The OSICS Network and a global authority on Lean manufacturing and operational excellence.

Fabrice sheds light on the inefficiencies plaguing the pharmaceutical industry, particularly its heavy reliance on outdated processes, paper, and spreadsheets. Drawing comparisons with advanced industries like automotive, he argues that GMP regulations shouldn't be an excuse for inefficiency.

The conversation emphasizes the critical role of Lean manufacturing in boosting performance, productivity, and cost savings. Evren and Fabrice point out the shocking disparity in Overall Equipment Effectiveness (OEE): just 35% in pharma compared to 80-85% in consumer industries. Fabrice claims with existing maturity levels almost any pharma manufacturer can achieve a 20-30% productivity boost within the first year of Lean implementation, even without significant investment.  He claims the ROI is clear—optimizing changeovers, eliminating paperwork, and enhancing visibility through digital tools can generate millions in savings annually for medium-sized pharma factories.

Fabrice highlights the synergy between Lean practices and digital transformation, noting that their combination can significantly amplify their impact. However, he cautions that digital tools are ineffective unless paired with a problem-solving culture. His advice for digital factory transformation is to start with simple, integrated systems, beginning with enhancing shop floor visibility, and then building execution, scheduling, and compliance systems upon that foundation.

With rising tariffs and escalating costs, Fabrice underscores the urgency of optimizing existing sites rather than building new ones. Boosting OEE from 35% to 70% can double output without additional facilities—offering a cost-effective, time-efficient path forward. He also added, tariffs can negatively impact drug prices and availability.