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The Cost of Quality: a Study on Life Sciences
Aberdeen’s Sector Insights
provide strategic perspective
and analysis of primary
research results by industry,
market segment, or geography.
In Aberdeen's July 2007 benchmark report, The Cost of Quality, it was shown
that Best-in-Class manufacturers have distinct competitive advantages in
performance metrics. In May and June 2008, Aberdeen surveyed 169
additional companies identifying themselves as Life Sciences manufacturers.
In addition to addressing performance, Life Sciences companies have the
additional mandate of complying with government regulation and providing
traceability in their operations. This study will investigate the different
pressures that these manufacturers face and how they can improve
performance while still conforming to regulating bodies so that they may
take advantage of practices used by the Best-in-Class.
Companies focusing on
blood/biologics and medical
devices were studied in this
report and grouped together as
To better understand the practices adopted by these manufacturers,
Aberdeen analyzed the pressures driving them to focus on performance as
well as the added strain of adhering to government regulation. We then
analyzed the strategic actions they are taking in response to these pressures,
the business capabilities they possess to support these actions, and the
technology enablers being adopted to provide those capabilities.
Balancing Performance versus Government Regulation
Results from the Aberdeen July 2007 Benchmark Report, The Cost of Quality,
show that the two top pressures which manufacturers face are their
customers' demand for a higher quality product (65%), and the need to
reduce the cost of quality (55%). However, Figure 1 shows that Life
Sciences manufacturers have a distinctly different primary focus.
Figure 1: Ma