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Michael Rabbat, Dipl.-Kfm.
MBA Chief Operating Officer
Claudia Hardmeier
Kunden-Center
Studienbetreuung
The resources and capabilities of the value chain functions are of strategic importance for the success of a company moving or remaining at the value creation frontier. Therefore, the primary value chain activities of R&D, Production, Marketing & Sales and Customer Services and supporting activities of a company’s infrastructure (information systems, human resources, material management,..), need to be optimised in line with the pursued strategy.
Implementing QbD will have implications on all value chain activities and in return, when fully implemented, all value chain functions will eventually benefit from it realising improved product utility and/or lower costs to build a competitive advantage.
Value chain activities | Drivers for increased utility and lower costs54 | Contribution to QbD | Potential benefits resulting from QbD approach |
R&D | ↑ utility superior value proposition via product excellence and reliability
↓ costs increased efficiency for production of products and development of new products. |
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Production | ↓ costs increased efficiency in production
↑ utility consistently producing reliable quality |
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Marketing & Sales | ↑ utility higher value proposition |
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Customer services | ↑ utility higher value proposition for all customers
↓ costs less recalls, less filing of variations, and complaints; increased flexibility |
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Human resources | ↓ costs improved employee productivity |
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Information systems | ↑ ↓ utility costs improved efficiency and effectiveness of other value chain activities |
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Materials management (logistics) | ↑ costs increased efficiency |
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Supplier and partner management | ↑ ↓ utility costs improved efficiency and effectiveness of other value chain activities |
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Company’s infrastructure including top management | ↑ ↓ utility costs improved efficiency and effectiveness of other value chain activities |
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Table 1: The potential benefit of QbD fort he primary and secondary supply chain activities
As seen from Table 1 the potential benefits for all value chain activities, if QbD benefits are utilised throughout the value chain, are contributing to a significant benefit for the whole company and its ultimate objective to maximise profit growth and sustain profitability. These benefits do no longer solely rely on the improvement of the quality of drug products as initially pursued by the QbD initiative. Instead they really do impact the efficiency and effectiveness at which an improved value proposition of the company’s products can be executed and how cost savings can be derived from doing so, thus generating a competitive advantage for the company.
However, these benefits or the extent at which they may be realised obviously are not granted but need to be realised by constantly evaluating the requirements and potential impacts - throughout the implementation and application of a QbD driven development approach.
54 Jones; Theory of Strategic Management; p 81-84: the value chain activities
55 Fuhr ; Why quality-by-design should be on the executive team’s agenda; 2009; p 195-203