Bayer, CEIBS Provide Joint Solutions to the Crisis at 5th International Technology Congress in Chemical & Pharmaceutical Industry

June 26 2009, Shanghai campus -- More than 250 senior executives from world leading chemical companies as well as Chinese champion pharmaceutical manufacturers attended the 5th International Technology Excellence Congress in Chemical & Pharmaceutical Industry today at CEIBS Shanghai campus. The 2009 Congress marks the third consecutive year that CEIBS and Bayer Technology Services have jointly organized the event. The key focus of this year’s congress was hands-on technical and strategic solutions under current challenging maco-economic situation worldwide.

In his Opening Remarks, Mr Michael Koenig, President and CEO of Bayer Group in Greater China, emphasized Bayer’s dedication to energy efficiency, innovation and sustainability. He stressed the importance of innovation at Bayer, telling the audience: "Eighty percent of our most successful products were discovered by Bayer researchers."

Mr Michael Koenig, President & CEO of Bayer Group in Greater China
The first presenter in the Congress session on “Process Improvement” was Dr Dieter Heinz, Bayer Technology Services (BTES) Head of Process Technology. Dr Heinz’s presentation on “Cost Effective Solutions” included details from case studies illustrating improved energy efficiency at batch operated plants and improved production capacity at continuous fine chemicals plants. Next, Dr Helmut Berg spoke on “Online Analytics Key for Process Analyzer Technology.” He argued that plant optimization is important, even during the downturn, as it helps manufacturers to “survive and overcome the current recession.”
In his talk, “A Case Study of Energy Optimization in Agriculture Chemical Industry,”  Manager of Hangzhou Site of Bayer CropScience China Co. Mr Ma Jishen drew upon several real life examples. As one highlight of his presentation, he showed that attractive savings potential can be identified by using the Bayer Energy Efficiency Check. Increasing energy efficiency was also the theme of VACON Suzhou Drivers Manager Mr Hunrey Zhao, who spoke on
“Optimizing Fans and Pumps Using Adjustable Speed Drive.”

Senior economist Dr Xu Xiaonian, CEIBS Professor of Economics and Finance, spoke next on “A Rocky Road to Recovery”. Delivering his trademark frank opinions, he began by disagreeing with economists who expect a quick, "V-shaped" rebound from the current global financial crisis. He also discounted analysts who expect China to lead the rest of the world out of recession. Instead, recovery will depend upon „correcting global imbalances“ in the economic world order, he said. He explained this imbalance as a cycle of low inflation-loose money-strong demand in the United States and over investment-excess capacity-export boom from China. Breaking the cycle will require the US to „deleverage“ by recapitlizing the financial system, while US households shed debt and save more. Meanwhile, he said, China must „destock“by running down inventory and disposing of excess capacity. Prof Xu also urged Chinese policymakers to shift economic drivers from investment to consumption and from manufacturing to services.

In the “Operational Management” session, the Congress first featured BTES Head of Supply Chain & Logistics Dr. Wan Xiaotao. In his presentation entitled, “Working Capital Reduction,” Dr Wan emphasized that the key to optimization is “to align with supply chain strategy and continuously improve relevant business process.” He also urged business leaders to “optimize globally not locally.” 

Turning to the pharmaceutical industry, Mr. Sunil Roy Wadhwa, Director of Technical Operations for Matrix Pharma Group (Xiamen) presented on the challenging issue of “Waste-water Management”.  He described Zero Discharge Plants as a “complete solution” to the problem of waste-water treatment, and he stressed that the recycling of water reduces freshwater intake, thus preserving natural resources. BTES Health Care Technology expert Mr Manfred Martz elaborated further on this topic in his talk on “Effective Waste Water Treatment in Pharmaceutical Industry.”
In his talk on “Effective Operation Via Risk-Based Inspection,” Mr Knuth Schweier, BTES Head of Mechanical Integrity, explained how Risk-Based Inspection can improve safety and mechanical integrity in process plants. He detailed BTES efforts to expand RBI in China, through a pilot program begun in 2008.
 
"Driving Operational Excellence with MES (Manufacturing Execution System," was presented next by BTES Head of Advanced Manufacturing Solutions Dr Udo Ammerahl.  Using a case study of an FDA audit in Ranbaxy, India, he illustrated the effectiveness of MES in safe-guarding quality.

As the Congess’ concluding presenter, CEIBS Operations Management Professor Thomas Callarman spoke on "Potential Impact of Infrastructure Development in China". Taking a cautiously rosy view on China’s economic outlook, he voiced confidence in the Chinese government’s economic stimulus package in terms of positively impacting wages, employment and infrastructure development. Prof Callarman also the current Five Year Plan for its focus on protecting the environment and improving the economic status of roughly 500 million people. He also outlined the benefits for China of continuing to improve its infrastructure development, thus reducing current logistics expenses and inefficiencies.

As a closing speaker for the Congress, CEIBS Dean and Vice President Rolf D Cremer thanked Bayer Group for serving as “a demanding and exacting partner“ that is always interested in pursuing excellence through its partnership with CEIBS. Echoing one of the themes of the event, he emphasized the importance of seeking optimization and efficiency gains, but he also raised a second point. „Generating profits and optimizing efficiency is not enough,“ he said. “We need 2 things to be successful: We need to be excellent in what we do, but we also need to establish trust.“ He emphasized that, in today’s crisis environment, trust has been shaken worldwide. Thus business leaders have a responsibility to show a commitment to establishing and maintaining trust in their business relationships, including business-to-business and business-to-consumer. Said Dean Cremer: „A successful business can only function on a shared set of values that generate mutual trust.“

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