MOT MBA

NOVO NORDISK ENGINEERING: RUNNING FOR FAST-TRACK

PROJECT EXECUTION
Novo Nordisk Engineering (NNE) had achieved the impossible!
In July 2005 it finished building a new vaccine production facility in the record-breaking
time of 11 months.
Background
In 1991 Novo Nordisk A/S, a leading pharmaceutical company, spun of its engineering
arm as NNE, Expertise in engineering projects for the pharmaceutical industry.
For 10 years, it executed projects solely for customers in the Novo Nordisk galaxy.
By 1999, NNE had close to 1,000 employees and was active in Denmark, China, France,
Sweden and the USA.
Setting the Challenge:
Novo Nordisk would probably seek alternative suppliers for commoditized services.
NNEs value proposition as a high-value-added pharma engineering specialist was not
sustainable.
He called it the Big Overarching Goal: To be able to build a complete plant in less than a
year by 2005.
Finding a Customer to Work With
Shorter construction time offered significant financial returns.
The involvement of both suppliers and the client would also be necessary.
They were reluctant to engage in fast-track projects, assuming that speed would
automatically increase costs. NNE could not afford to bear all the risk, the client would
have to share it.
The First Step
In 1999, Novo Nordisk needed more insulin production capacity fast in order to supply
growing market demand. Because of their long relationship, Novo Nordisk agreed to
partner with NNE for the first-fast track project. Construction began in Denmark in June
2000.
A Modular Approach
Modular technology was used to simplify and speed up the project.
Ensuring Consistency and Quality
To be consistent, NNE had set up a project activity model (PAM) and a quality
management system (QMS).
The Second Step: Learn and Accelerate
New Approach to Human Resources
NNE adjusted its HR strategy accordingly.
Different project management teams (PMTs) managed each project within the fast-track
process. Teams were cross-functional.
Changing the Clients Mindset
From the start, clients had to know what they wanted much earlier, and NNE would
challenge a particular clients specifications in order to stick to its processes.
NNEs modular concept allowed for shorter construction time, even if set-up time was a
bit longer. As a result, both costs and time remained under control.
NNE eventually completed the Novo Seven facility in just 18 months.
The Last Dash
Team Building
Before starting work, NNE organized a one-week team-building exercise for the PMT.

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Rethinking Project Planning

The success of the project would rely on perfect project planning. Nielsen proposed for 11
months project. Nielsen applied backward planning. Nielsen also received full
management support. NNE finally completed the project on time.
What Next?
NNE had finally achieved success after five years of continuous efforts. Voigt had to
prove the sustainability of NNEs business model.
New Challenges
1. Voigt needed to find more customers outside the Novo Nordisk galaxy.
2. Successful strategy in Denmark could be difficult to replicate in other countries.
3. Voigt feared employees motivation would be hard to sustain in the long run. NNE
needed new energy to keep up the fast pace of the previous five years and
maintain the teamgeist of the top teams.

Q&A
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