Operations Management in Johnsons & Johnsons †Free Samples

Question: Discuss about the Operations Management in Johnsons Johnsons. Answer: Introduction: Operation Management is a crucial part of management that is related with the controlling and designing the production process. It is concerned with organizing, planning and supervising the manufacturing, production and services provision. It makes the organization more efficient by effectively turning inputs into output. Johnsons Johnsons is a multinational company that deals with medical devices, consumer and pharmaceutical packaged goods (jnj.com. 2018). In the recent times, management combines and transforms different resources applied in the operations subsystem of the firm. This resource is converted into valued added services in an effective and controlled way as per the organizational policies (Hitt, Carnes and Xu 2016). In the recent times, Johnsons Johnsons has formulated all the strategies that lead to overcome the magnitude of changes in its technological and managerial procedures. Operations Management in Johnsons Johnsons: Quality management: Johnson Johnson is the most diversified and largest healthcare organization in the world. According to Heizer and Render (2014) Johnson Johnson takes major step to ensure sustained and consistent high-quality, effective and safe products. The organization took action after evaluating and settings targets to ensure standardization. As per the companys citizenship and sustainability report, it ascertained various material issues. This includes affordability and access to health care, ethical performance, global performance, global health and compliance. As mentioned by Slack, Chambers and Johnston (2010) ensuring safety and product quality is the major issue of Johnson Johnson. The company best serves their customers with its quality product to maintain its autonomy. The company has formed Johnson Johnson Quality Compliance (JJ QC) so that consistent implementation and standardization of its across its standards and policy across the organization. As per Greasley (2009) Johnson Johnson continuous and quality approach includes management review process. This requires the firm to continuously improve the quality system by ensuring adequacy, suitability and effectiveness. On the other hand as per Johnston, Clark and Shulver (2012) Johnson Johnson has achieved major proactive and integrated approach for continuous and quality improvement. The organization continues look at safety and quality throughout all product life cycles phases. Safety and health impacts are assessed for all of organizational important product categories in every business segment throughout the world. Johnson and Johnson recently are exploring innovative techniques to foster its proactive quality culture in a continuous manner. As mentioned by Chase, Jacobs and Aquilano (2006) the firms pharmaceutical segment is monitored continuously before the use of in-market products. Effective decisions on quality matters are taken by the Quality organization. Inventory management: Johnsons and Johnson aggregated amount of materials that are unprocessed should be used in production or manufacturing process raw material and its supplies has increased from 2015 to 2017 (jnj.com. 2018). Besides satisfying the market demand obtaining adequate performance, the effectiveness of organization is known through its enhanced features. The organization has online system for requests and orders that involves the authorized dealers. As per Fitzsimmons and Fitzsimmons (2008) the companys inventory management is massive complex. It is important that that the inventory management system is optimized so that the needs of the patients is met in a more transformational way. Effective inventory policies and high level of medical supplies services are essential objectives of health care industries (Slack et al. 2009). The main focus of the operations management of the firm is made by maintaining optimal inventory holding and ordering. Johnson Johnson addresses this decision is implemented through finished goods inventory by applying just-in-time inventory management. The medicines and related products are immediately shipped to fulfill the needs and orders of the customers. Johnson Johnson holds other products as a crucial finished goods inventory. To ensure optimal ordering of inventory and holding, the companys employees are also trained to increase the speed and transparency related to order fulfillment (Johnston Clark and Shulver 2012). The application of mobile computers by linking it to the databases and central computer has made the process more adequate. Moreover, operations management optimizes the inventory size so that cost is minimized. Job Design and Human Resources: According to Smith, Maull and CL Ng (2014) in this strategic decision area the main focus of Johnson Johnson, the main focus is human resource development. Training and development program is given by the organization to satisfy the concerns of the organization. As per the website report, the organization has also research teams and support centers for the purpose. The capability and adequacy are the major concern of organization in the fields of operations management. The organization uses adequate training programs so that the employees feel more empowered. Johnson Johnson should use proper workflow so that it could integrate creative and innovative ideas. Moreover, while making the decisions for inventory and operational management the company should engage in automation system. This helps in monitoring and controlling its overall inventory. This would further help in evaluating, monitoring and checking the productivity level of Johnson and Johnson. The pharmaceutical company should also use first in first out method so that earlier products are sold first before any new goods are introduced in the market (Choi, Cheng and Zhao (2016). staff motivation is important in the long-run as it would help Johnson Johnson to achieve maximum satisfaction of the employees and also creates performance appraisal. Operational strategy for Johnson Johnson: Johnson Johnson main objective is related to maximizing profit and market growth as a long-term strategy. Johnson Johnson has adopted strategy for global standardization and has lowered its cost by customization of products. Operational strategies consist of customer driven approaches that fulfill the desire and requirements of its potential target market. The quality of the product has been increased through proper innovation and added values (Chan et al. 2017). Johnsons and Johnsons have continuously enhanced its core competencies and on an ongoing basis has developed new strengths. The internal environment is evaluated to ascertain the strategy plan that internally affects the organization. Strengths: Johnson and Johnson being leading health-care brands have been ranked the best among its competitors in the industry. Abundant financial resources are used by the organization and further exploited by Research and Development department so that committed staffs are employed. They further create and innovates hygiene products due to usage of latest technology and companys brand image. Moreover, the focus is on the product leadership that offers its consumers the best product in the overall industry (Knoppen et al. 2015). The employees of Johnson Johnson are well motivated and have provided its employees various incentives. This ranges from personal to personal benefits including bonus for annual incentive, long-term incentives and severance benefits. The organization has expanded all around the world at an international level. The better world-wide distribution skills because of its global standardization strategy have allowed the firm to generate efficient market strategies by cost reduction (Hitt, Carnes and Xu 2016). This approach generally arrives through fast product development and economies of scale that is based on stable relationship with the distribution agents. Weaknesses: The major business strategy of Johnsons and Johnsons is to control cost. This leads rise to major drawback as it results in low customization. The organization is highly dependent on the success of its launch product that is vulnerable due to uncertainty. Conflict with its partner and portfolio companies also creates havoc in the operation management of the company. The ingredients used in the products are unsafe as per the government reports (jnj.com. 2018). The brand image of the company is adversely affected due to negative words of mouth. Therefore, it creates a negative impact on productivity of the organization. Moreover, the manager also lacks the flexibility required to overcome the existing challenge for changes required in the local market. Recommendation: Certain improvements are required in the Johnson Johnson Company. The firm should adopt more centralized approach for management so that the employees are more motivated. The firms need to be more involved in certain initiatives by developing incentives and rewards for achieving the goals of the organization. Though Johnson Johnson has a great collaborative relationship but outsourcing would help the firm in lowering the cost of production. The organization hires it employees completely based on their experience and ability but relocation of staff can also helps the firm to strengthen the companys management structure. The operation management decision of the firm should adopt additional core strategies to evaluate and adopt itself according to the changing environment. Conclusion: Johnson Johnson operation management area has been analyzed and its operational strategy has been reviewed. The firms operational management areas, where decision for quality management, inventory management and job design and human resources. It can be concluded that the organizations operation management decision is adequate but need to be more optimized and updated to yields maximum profit in the long-run. The present activities related to the organization have been analyzed and effective ways for the improvement of information is also considered. The operational strategy of the firm has also influenced and enhanced the firms competitive advantage in the business environment. Moreover, the strength and weakness evaluated from the operational strategy showcased the firms existing position in the business market. References: Chan, H.K., Lacka, E., Yee, R.W. and Lim, M.K., 2017. The role of social media data in operations and production management.International Journal of Production Research,55(17), pp.5027-5036. Chase, R. B., Jacobs, F. R. and Aquilano, N. J., 2006, Operations Management for Competitive Advantage, 11th Ed., McGraw-Hill. Choi, T.M., Cheng, T.C.E. and Zhao, X., 2016. Multi?Methodological Research in Operations Management.Production and Operations Management,25(3), pp.379-389. Fitzsimmons, J. A. and Fitzsimmons, M. J., 2008, Service Management: Operations, Strategy, Information Technology, 6th Edition, McGraw-Hill, New York. Greasley, A., 2009, Operations Management, 2nd Edition, John Wiley Sons APM, 2013, APM Body of Knowledge, 6th Ed. Heizer, J. and Render, B., 2014, Operations Management: Sustainability and Supply Chain Management, 11th Global Ed., Pearson Prentice Hall Hitt, M.A., Carnes, C.M. and Xu, K., 2016. A current view of resource based theory in operations management: A response to Bromiley and Rau.Journal of Operations Management,41(10), pp.107-109. jnj.com (2018).Johnson Johnson Homepage | Johnson Johnson. [online] Available at: https://www.jnj.com/ [Accessed 19 Mar. 2018]. Johnston, R., Clark G. and Shulver, M., 2012 Service Operations Management: Improving Service Delivery. 4th edition. FT Prentice Hall. Knoppen, D., Ate?, M.A., Brandon-Jones, A., Luzzini, D., Van Raaij, E. and Wynstra, F., 2015. A comprehensive assessment of measurement equivalence in operations management.International Journal of Production Research,53(1), pp.166-182. Slack, N., Chambers, S. and Johnston, R., 2010, Operations Management, 6th Edition, FT Prentice Hall. Slack, N., Chambers, S., Johnston, R. and Betts, A., 2009, Operations and Process Management - Principles and practice for strategic impact. 2nd Ed., FT Prentice Hall. Smith, L., Maull, R. and CL Ng, I., 2014. Servitization and operations management: a service dominant-logic approach.International Journal of Operations Production Management,34(2), pp.242-269.