Lundbeck is a pharmaceutical company that produces drugs for psychiatric and neurological disorders. They have implemented a Lean transformation over several phases to improve their supply chain and become the best in their industry. The initial "Improve" phase focused on process mapping and kaizen events to identify and implement improvements. Later phases included engaging managers through training and assessments, building systems like policy deployment and boards to guide operations, and fully integrating Lean into daily management to develop a true Lean culture.

2. Nikolai Hansen
Continuous Improvement Director, H. Lundbeck A/S

3. Lundbeck Lean
Creating the Best Supply Chain in the Pharmaceutical Industry

4. Who is Lundbeck?
OUR VISION OUR MISSION OUR VALUES
is to become a world leader in
psychiatry and neurology
is to improve the quality of life of
people suffering from psychiatric and
neurological disorders
Imaginative – Dare to be different
Passionate – Never give up
Responsible – Do the right thing

5. Our Product Areas
The world’s most burdensome illnesses
1. Cancer 14. Osteoarthritis
2. Depression and anxiety 15. Bipolar disorder
3. Ischaemic heart disease 16. Liver cimhosis
4. Cerebrovascular disease 17. Dementia
5. Chronic obstructive pulmonary disease 18. Endocrine disorders
6. Refractive errors in the eye 19. Macular degeneration
7. Hearing loss 20. Nephritis and nephrosis
8. Congential anomalies 21. Drug abuse
9. Alcohol dependence 22. Hypertensive heart disease
10. Diabetes mellitus 23. Epilepsy
11. Cataracts 24.Migraine
12. Schizophrenia 25. Rhematic heart disease
13. Asthma
*) Disability adjusted life years, Source: Lundbeck based on Global Burden of Disease 2004, WHO

6. Our Supply Chain
Lumsås
Padova
Valby
Nice
Valby
Nice
Mexico
China
Pharmaceutical Bulk
Production
Finished Goods
Production
Chemical Production
Suppliers and Industrial Customers

7. Why Lean?
The Best Supply Chain
in
The Pharmaceutical
Industry

8. Our Lean Journey
• Phase 1: Improve
• Phase 2: Lead
• Phase 3: Align
• Phase 4: Strive for perfection
2006
2008
2010
2013

9. “Improve”: Start the Event Machine
• Map processes and activities across
departments (Current, Ideal and
Future State)
• Identify what adds value to your
business. Bring attention to areas
of improvement
• Run Kaizen Events with groups of
employees across departments.
Dedicated for 3 - 5 days to find real
solutions and implement them

10. Lean Year 2 (2007): 70 Events, 1/10 of employees
Event example: Reduction of setup time by 40%

11. Establish Lean Support and Academy
• Project Organization established to direct
Lean initiatives
• All managers trained in Lean tools
• Lean Ambassador Program established to
train employees to facilitate Lean events

12. Lean Academy and
coaches
The “Improve” Phase in a Nutshell
• Strength: Close link between
training and learning by doing
• Characteristic: Transformation was
driven by events rather than daily
management
• Weakness: Lack of systems and
middle management motivation

13. ”Lead”: Get all Managers Onboard
• Senior management group align and communicate leadership
expectations: “The Lean Leadership Model”
• Ambitious development programme executed
The Lean
Leadership
Foundation
Lean People
Leadership
Lundbeck
Lean
Acceleration
Sustaining
Lean
1 2 3 4
Execution
Personal
leadership
Relations
Business focus

14. A Lundbeck Lean Leader should:
Have the combination of detailed
knowledge of the processes and the
ability to develop the employees
Coach and ask questions not provide
solutions
Teach others to learn through their
own experiments and errors
Lean Leadership

15. Engage Managers in the Transformation
• Self-inspection based on the Shingo
model
• All managers were trained in
assessment using the principles in
the Shingo Model of Operational
Excellence
• Managers paired up and assessed
areas outside own division
• Each assessment concludes with
feedback on principles and systems,
and concrete “Strengths” and
“Opportunities”

16. The ”Lead” Phase in a Nutshell
• Strength: Increased leadership
commitment and confidence
• Characteristic: Managers engage
themselves in the Lean
implementation
• Weakness: Lack of alignment and
employee involvement

17. ”Align”: Build Systems that will Guide and Direct
• Policy Deployment
– Link strategic objectives and targets/activities
department and team level
– Targets and activities are prioritized across functions
and departments
• Board meeting system
– Visualise performance in all departments
– Frequent meetings with focus on daily operations
• Improvement Boards
– Manage idea generation and implementation
– The employees are responsible for improving their
everyday work

18. All About People 2011 – Engage teams in Kaizen
Kaizen team of the year

19. First Shingo Silver Medallion in Europe

20. The “ALIGN” Phase in a Nutshell
• Strengths: Good infrastructure in
place. Lean creates results
• Characteristic: Everybody is now part
of the system
• Weakness: Lean is not fully embedded
as a culture

21. “Strive for Perfection” – Develop a Real Lean Culture
21
2013: Integrate SHINGO into Corporate Principles and Teach Lean Culture
• Every month COO broadcasts principles
lecture
• Management teams teach principles
systematically and recognise improvements
and behaviour as principled behaviour

22. Full integration of Lean into Daily Operations
The Daily Lean Leadership Initiative
Ensure that daily
management systems are
aligned and support
production needs
• Deployment of objectives
• Improve response management
• Production follow up
• Daily management systems
• Managers’ roles,
responsibilities and daily tasks
• Standards for daily tasks
• Feedback, coaching and follow
up routines
Standardise how
managers support
operational excellence
and continuous
improvements
Develop the leadership standards that will drive the culture forward

23. Our Lean journey
• Phase 1: Improve
• Phase 2: Lead
• Phase 3: Align
• Phase 4: Strive for perfection
2006
2008
2010
2013