Case Study: The $500 Million Human Element

May 2025 | By ALULA

Case Study

When Process Meets Behavior

Picture a bustling vaccine packaging facility where the hum of machinery is punctuated by frustrated sighs. Line changeovers drag on for hours. New standardized work "playbooks" sit unused. Visual management boards display metrics that never seem to improve. Despite having all the right process improvement tools in place, vaccines worth hundreds of millions of dollars sit in inventory, unable to reach patients who need them.

"We were working hard but couldn't keep up," recalls a team leader from the global pharmaceutical company. "There was plenty of product, but the packaging operation couldn't meet market demand."

Perfect Process, Imperfect Results

The stakes couldn't have been higher. With revenue projected to double and production units expected to increase by 60%, the bottleneck at packaging threatened both business outcomes and patient care.

The company had diligently implemented what appeared to be a comprehensive approach to operational excellence:

  • Lean Six Sigma methodology
  • Visual management boards
  • Kaizen events
  • Standardized work "playbooks"

Yet improvements were fleeting. Recognition programs created temporary performance spikes followed by predictable backslides. The standardized processes remained largely unused without constant supervision.

What made this puzzle particularly challenging was that the tools themselves were sound. The company had followed the operational excellence playbook to the letter. Something else was missing.

The Human Bottleneck

Beneath the surface, human challenges created the real bottleneck:

⚠️83% of employees had less than one year of experience

⚠️New supervisors lacked leadership capability

⚠️Employee resistance followed a labor agreement change

⚠️A culture where overtime was financially incentivized meant efficiency improvements threatened paychecks

⚠️Only 12% of data entry was error-free

"We had the people, structure, and tools, but weren't getting traction due to people's resistance to change," reflected a director. "We needed people to engage."

The Behavior Breakthrough

The turning point came when the company partnered with ALULA to integrate behavioral science with their operational excellence program. The approach was deceptively simple: identify the specific behaviors that would drive results, then build leadership capability to influence those behaviors.

The production floor began to transform. Supervisors who once spent their days monitoring began coaching instead. They held one-on-one conversations with each operator monthly in dedicated private spaces—something that had never happened before.

"When ALULA's behavioral emphasis came in, it helped supervisors see the powerful effect it can have on the operators. People felt they were being heard more," explained an executive.

From Resistance to Engagement

The transformation was remarkable. Operators who previously felt ignored became engaged problem-solvers. The results spoke volumes:

  • Line changeover time dropped from 2.5 hours to just 1 hour
  • Data accuracy improved from 12% to 59%
  • Production capacity increased by 88-107% across lines
  • $8.6 million in operational savings materialized

Most significantly, these improvements required zero capital investment—they were achieved entirely through human performance optimization, unlocking $500 million in previously unavailable vaccine sales.

"Our issues are finally getting addressed," shared one technician. "We're finally showing what we can do. Keep investing in us—we're worth it."

The Lasting Lesson

For manufacturing leaders, the message is clear: technical excellence creates potential, but behavior determines whether that potential becomes reality.

In environments where efficiency is paramount, behavior represents the highest-ROI opportunity for sustainable performance improvement. As this global healthcare leader discovered, the science of behavior isn't an alternative to operational excellence—it's what makes operational excellence possible.

 

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ALULA

Written by ALULA

Posted in: Behavior, Leadership, Operational Excellence, Team Culture, Culture, Coaching, Case Study, Manufacturing, Lifesciences, Performance Improvement

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