1. Merger Integration, Process Improvement, Increased Collections And Cost Reduction within a Pharmaceutical Firm BackgroundBackground The client is a major integrated plasma collection business supplying their parent Fortune 500 Company the source plasma for a variety of protein-based therapies. In the year 2000 they more than doubled their number of collection centers to a total of approximately 80 centers spread out across the United States. The client was seeking to fully integrate the additional collection facilities into the existing operation while improving overall collections and reducing costs. To be successful, the company would have to change its culture and integrate the best practices of both organizations. It was critical to stabilize the flow of source plasma to their manufacturing plants. Only a predictable supply could insulate them from the fluctuations of the world markets and allow them to produce their product base at an acceptable rate and cost. SPG’s Consulting AssignmentSPG’s Consulting Assignment SPG consultants were assigned to identify opportunities to integrate the two organizations, reduce production costs through improved efficiencies and increased collection volumes, and reduce employee turnover. SPG - Business Analysis FindingsSPG - Business Analysis Findings The SPG analysis revealed opportunities to improve performance, as well as position the business for future growth, by:  Standardizing Key Performance Indicators (KPI’s) with clear definitions and a methodology for using these indicators to manage their business at all levels of the organization.  Improving customer service to increase the repeatability of the existing donor base and improve recruiting and retaining new donors.  Reducing process cycle times from 160 minutes to 90 minutes through process modifications and optimizing utilization of personnel and equipment.  Reducing turnover by 25% (annualized) through improved hiring practices, training and internal relations with employees.  Developing a user friendly, data driven management system that leveraged the existing computer system, leading to greater reporting flexibility, quicker KPI communication, and elimination of redundant record keeping. Results and Quantitative BenefitsResults and Quantitative Benefits Utilizing detailed functional mapping and evaluation techniques, an implementation plan was developed to increase collections, reduce costs, reduce employee turnover, and develop a universal system for managing. The plan was implemented over a period of one year utilizing an integrated team of SPG consultants and high potential client personnel.  Metrics were standardized for all business units, allowing management to effectively track and manage the business at all levels.  Developed a support data-based system for the metrics to help reduce the manual data entry requirements.  Increased repeatability of donor population by approximately 4% enabling the collections to surpass the budgeted numbers within 1 year. (They hadn’t made budget in the previous 4 years).  Reduced employee turnover by more than 35% in 1 year against an annualized target of 25% by year-end.  Reduced costs by greater than $2 per liter with an annualized benefit potential of more than $23M per year.  Reduced processing times by 30 - 40%. The average processing time of 160 minutes was reduced to between 80 and 110 minutes depending on collection center. The project team also:  Implemented behavioral change methodology that greatly enhanced customer service.  Developed next generation IT requirements to further enhance their tracking capabilities and reduction of errors from manual input.  Developed and piloted a Continuous Donor Processing methodology that will be migrated throughout the businesses.  Assisted in development of a new organization strategy for future growth and designed a center layout to maximize productivity as they build new centers.  Designed and implemented a labor scheduling process that allowed management to align resources according to donor arrival patterns, thereby controlling labor costs while providing a better experience to the customer.  Schrudder Performance Group, LLC. Proprietary Information - 1203