semester 2 assgn 2 opeartion mng. vs quality management
TRANSCRIPT
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[ T Y P E T H E C O M P A N Y A D D R E S S ]
ASSIGNMENT2
OPERATIONS
MANAGEMENT
OPERATION MANAGEMENT
VS
QUALITY MANAGEMENT
ZAHID NAZIR
Roll No. AB523655
MBA Executive
2nd Semester , Spring 2009
A L L A M A I Q B A L O P E N U N I V E R S I T Y , I S L A M A B A D
C O M M O N W E A L T H O F L E A R N I N G E X E C U T I V E M B A P R O G R A M M E
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OPERATION MANAGEMENT
Every business is managed through three major functions: finance, marketing,
and operations management. Figure 1-1 illustrates this by showing that the vice
presidents of each of these functions reports directly to the president or CEO
of the company. Other business functionssuch as accounting, purchasing,
human resources, and engineeringsupport these three major functions.
Finance is the function responsible for managing cash flow, current assets, and
capital investments. Marketing is responsible for sales, generating customerdemand, and understanding customer wants and needs. Most of us have some
idea of what finance and marketing are about, but what does operations
management do?
Fig: Organizational chart showing the three major business functions
Operations management (OM) is the business function that plans, organizes,
coordinates, and controls the resources needed to produce a companys goods
and services.
Operations management is a management function. It involves managing
people, equipment, technology, information, and many other resources.
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Operations management is the central core function of every company. This is
true whether the company is large or small, provides a physical good or a
service, is for profit or not for profit. Every company has an operations
management function. Actually, all the other organizational functions are there
primarily to support the operations function. Without operations, there would
be no goods or services to sell. Consider a retailer such as Gap that sells casual
apparel. The marketing function provides promotions for the merchandise, and
the finance function provides the needed capital. It is the operations function,
however, that plans and coordinates all the resources needed to design,
produce, and deliver the merchandise to the various retail locations. Without
operations, there would be no goods or services to sell to customers.
WHY OPERATION MANAGEMENT
The importance of operations management was not always recognized by
business. In fact, following World War II American corporations were
dominated by marketing and finance functions. The United States had just
emerged from the war as the undisputed global manufacturing leader due inlarge part to efficient operations. At the same time Japan and Europe were in
ruins with their businesses and factories destroyed. U.S. companies were left
to fill these markets: the post-World War II period of the 1950s and 1960s
represented the golden era for U.S. business. The primary opportunities were
in the areas of marketing, to develop the large potential markets for new
products, and in finance, to support the growth. Since there were no
significant competitors, the operations function became of secondary
importance, because companies could sell what they produced. Even thedistinguished economist John Kenneth Galbraith was noted as saying: the
production problem has been solved.
Then in the 1970s and 1980s things changed. American companies experienced
large declines in productivity growth, and international competition began to
be a challenge in many markets. In some markets such as the auto industry,
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SYSTEM OF OPERATION MANAGEMENT (Transformation Process)
The role of operations management is to transform a companys inputs intothe finished goods or services. Inputs include human resources (such as
workers and managers), facilities and processes (such as buildings and
equipment), as well as materials, technology, and information. Outputs are the
goods and services a company produces.
Figure shows this transformation process. At a factory the transformation isthe physical change of raw materials into products, such as transforming
leather and rubber into sneakers, denim into jeans, or plastic into toys. At an
airline it is the efficient movement of passengers and their luggage from one
location to another. At a hospital it is organizing resources such as doctors,
medical procedures, and medications to transform sick people into healthy
ones.
Operations management is responsible for orchestrating all the resources
needed to produce the final product. This includes designing the product;
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deciding what resources are needed; arranging schedules, equipment, and
facilities; managing inventory; controlling quality; designing the jobs to make
the product; and designing work methods. Basically, operations management
is responsible for all aspects of the process of transforming inputs into outputs.
Customer feedback and performance information are used to continually
adjust the inputs, the transformation process, and characteristics of the
outputs. As shown in Figure , this transformation process is dynamic in order to
adapt to changes in the environment.
Proper management of the operations function has led to success for many
companies. For example, in 1994 Dell Inc. was a second-tier computer maker
that managed its operations similar to others in the industry. Then Dell
implemented a new business model that completely changed the role of its
operations function. Dell developed new and innovative ways of managing the
operations function that have become one of todays best practices. These
changes enabled Dell to provide rapid product delivery of customized products
to customers at a lower cost, and thus become an industry leader.
For operations management to be successful, it must add value during the
transformation process. We use the term value added to describe the net
increase between the final value of a product and the value of all the inputs.
The greater the value added, the more productive a business is. An obvious
way to add value is to reduce the cost of activities in the transformation
process. Activities that do not add value are considered a waste; these include
certain jobs, equipment, and processes. In addition to value added, operations
must be efficient. Efficiency means being able to perform activities well, and atthe lowest possible cost. An important role of operations is to analyze all
activities, eliminate those that do not add value, and restructure processes
and jobs to achieve greater efficiency. Todays business environment is morecompetitive than ever, and the role of operations management has becomethe focal point of efforts to increase competitiveness by improving valueadded and efficiency.
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DIFFERENCES BETWEEN MANUFACTURING AND SERVICEORGANIZATIONS
Organizations can be divided into two broad categories: manufacturing
organizations and service organizations, each posing unique challenges for the
operations function. There are two primary distinctions between these
categories. First, manufacturing organizations produce physical, tangible
goods that can be stored in inventory before they are needed. By contrast,
service organizations produce intangible products that cannot be produced
ahead of time. Second, in manufacturing organizations most customers have
no direct contact with the operation. Customer contact is made through
distributors and retailers. For example, a customer buying a car at a car
dealership never comes into contact with the automobile factory. However, in
service organizations the customers are typically present during the creation of
the service. Hospitals, colleges, theaters, and barber shops are examples of
service organizations in which the customer is present during the creation of
the service.
The differences between manufacturing and service organizations are not as
clear-cut as they might appear, and there is much overlap between them. Most
manufacturers provide services as part of their offering, and many service firms
manufacture physical goods that they deliver to their customers or consume
during service delivery. For example, a manufacturer of furniture may also
provide shipment of goods and assembly of furniture. On the other hand, a
barber shop may sell its own line of hair care products. You might not know
that General Motors greatest return on capital does not come from selling carsbut rather from post sales parts and service. The differences between
manufacturing and services are shown in Figure 1-3, which focuses on the
dimensions of product tangibility and the degree of customer contact. Pure
manufacturing and pure service extremes are shown, as well as the overlap
between them.
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Fig: Characteristics of manufacturing and service organizations
Even in pure service companies some segments of the operation may have low
customer contact while others have high customer contact. The former can be
thought of as back room or behind the scenes segments. Think of a fast-food operation such as Wendys, for which customer service and customer
contact are important parts of the business. However, the kitchen segment of
Wendys operation has no direct customer contact and can be managed like a
manufacturing operation. Similarly, a hospital is a high-contact service
operation, but the patient is not present in certain segments, such as the lab
where specimen analysis is done.
In addition to pure manufacturing and pure service, there are companies thathave some characteristics of each type of organization. For these companies it
is difficult to tell whether they are actually manufacturing or service
organizations. Think of a post office, an automated warehouse, or a mail-order
catalog business. These companies have low customer contact and are capital
intensive, yet they provide a service. We call these companies quasi-
manufacturing organizations.
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TYPES OF OPERATIONS
Types ofOperations
ManufacturingSystem
ContinuousProduction
MassProduction
(Flow)
ProcessingProduction
IntermittentProduction
BatchProduction
JobProduction
Service System
Basic Types of Production Processes
Intermittent Production System
Production is performed on a start-and-stop basis, such as for the manufacture
of made-to-order products.
Mass Production
A special type of intermittent production process using standardized methods
and single-use machines to produce long runs of standardized items.
Mass Customization
Designing, producing, and delivering customized products to customers for ator near the cost and convenience of mass-produced items.
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Mass customization combines high production volume with high productvariety.Elements of mass customization:
Modular product design
Modular process design
Agile supply networks
Continuous Production ProcessesA production process, such as those used by chemical plants or refineries, that
runs for very long periods without the start-and-stop behavior associated with
intermittent production.
Enormous capital investments are required for highly automated facilities thatuse special-purpose equipment designed for high volumes of production andlittle or no variation in the type of outputs.Mass Production System (Flow)
Continuous Production
Anticipation of demand
May not have uniform production
Standardized Raw material
Big volume of limited product line
Standard facility- high standardization.
Fixed sequence of operation Material handling is easier
High skilled operator not required
More Human problem is foreseen
Huge investment.
High raw material inventory.
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Processing Production System
Extended form of mass production system F.G of one stage is fed to next stage
More automatic machines
One basic raw material is transferred into several products at severalstages.
Less highly skilled workers required
More human problems foreseen
Highly standardized system
Batch Production System
Highly specialized Human resource is required
Highly specialized multi tasking machines
Machines are shared.
Production in batches
Production lots are based on customer demand or order.
No single sequence of operation
Finished goods are heterogeneous
Custom built / job order production system
Highly specialized Human resource is required
Highly specialized multi tasking machines Machines are shared
Raw material is not standardized
Process is not standardized
No scope for repetition of production
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Comparative study of different production systems
TypeParameter
Mass/ Flow Process Job Batch
Per unitmanf.cost
High Low High High
Size &
Capital Invest.
Large
Less
V. Large
High
Small
Low
Medium
High
Flexibility No No More More
Technical abilitySkills
Less Less High High
Orgn. Structure Line staff Line staff Functional Functional
Industrialapplication
Automobile
Sugar
Refinery
Chemical
Petroleum
Milk
process.
Construction
Bridges
SPM
Consumerprod.
M/c. Tools
OPERATIONS MANAGEMENT DECISIONS
Decisions made in operations management are mainly of two types:
Strategic Decisions
Tactical Decisions
Long-term decisions that set the direction for the entire organization are called
strategic decisions. They are broad in scope and set the tone for other, more
specific decisions. They address questions such as: What are the unique
features of our product? What market do we plan to compete in? What do we
believe will be the demand for our product?
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Short-term decisions that focus on specific departments and tasks are called
tactical decisions. Tactical decisions focus on more specific day-to-day issues,
such as the quantities and timing of specific resources. Strategic decisions are
made first and determine the direction of tactical decisions, which are made
more frequently and routinely. Therefore, we have to start with strategic
decisions and then move on to tactical decisions. This relationship is shown in
Figure. Tactical decisions must be aligned with strategic decisions, because
they are the key to the companys effectiveness in the long run. Tactical
decisions provide feedback to strategic decisions, which can be modified
accordingly.
Fig: The relationship between strategic and tactical decisions
FUNCTIONS OF OPERATION MANAGEMENT
Operation management involves the management of human, technology and
system resources. To manage these resources, operations managers must
perform the same basic functions that all mangers are expected to perform.
The operations management functions include planning, directing, organizing,
staffing, motivating and controlling.
PLANNING
Planning is a management function that involves the establishment of goals
and objectives towards which employees direct a course of action. There are
many different type of planning activities.
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Strategic Planning: It involves the establishment of long-term goals for
the entire organization or system. An example of an OM strategic plan is
to achieve a goal of growth by building and locating a new production
facility.
Tactical Planning: Planning that involves a more specific effort to
establish a means by which to achieve the desired goals and objectives in
the medium term is sometimes referred to as tactical planning. An
example of an OM tactical plan is the stepwise implementation
procedures for locating a new plant.
Operational Planning: Its a shorter term planning that implements the
critical objectives. If the first step of an OM tactical plan to locate a new
plant is to determine which state the plant is to be located in, an
operational plan might establish a team of researchers and detailed
methodology to be used by the team to facilitate their state selection
decision.
DIRECTING
The directing function of management involves supervising, ordering and
commanding. Examples of directing in operations management include making
daily job assignments, giving directions to employees on job-related
procedures, and ordering people to perform specific tasks.
ORGANIZING
The organizing function involves structuring the organizations systems toachieve planned objectives. Examples of organizing in operation management
includes structuring the tasks that make up an employees job, defining the
procedures that are required to produce a product and coordinating individual
and group activities.
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STAFFING
The staffing function of management includes recruiting employees, screening
job applicants, and selecting and training personnel. Staffing can also include
writing job specifications, which are the job requirements that the each worker
is expected to perform for a specific job (for example learning to use
microcomputers), and job descriptions, which define the type of tasks involved
( such as keeping inventories in the stock room).
MOTIVATING
The motivating function of management involves guiding, coaching and
inspiring employees to achieve planned objectives. In operation management
motivating employees involves understanding psychological and sociological
factors that affect employees behavior in the workplace. In recent years, the
motivating function of management has shifted from the study of psychology
of the individual working in the OM system to how the individual interacts with
the OM system. Management is learning how the OM system can be structuredto motivate the employee to achieve planned objectives.
CONTROLLING
The controlling management function involves setting standards, monitoring,
measuring, observing and when necessary, taking appropriate actions to
adjust the system to keep it on track to achieve planned objectives. Bothhuman and physical resources requires some type of control. Examples of
operation management controlling include using computerized lasers to spot
defects in paint jobs and auditing freight bills to determine the accuracy of
vendor delivery times and charges.
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ACTIVITIES IN OPERATION MANAGEMENT
In addition to the management functions, operation managers perform manyother activities. These operation management activities are what make up an
operations managers job and are often included in OM job descriptions and
job specifications. The OM activities can be organized into three categories of
activities:
Planning for the future
Planning and controlling operations
Improving products and systems
a). PLANNING FOR THE FUTURE
operations managers must anticipate the future and plan it for today.
Three activities that are focused on planning for the future are total
quality management, forecasting and improving technology and
international integration of OM systems.
Total Quality management
Total quality management (TQM) is primarily concerned with the
principles and overall philosophy that drive an organization to seek
quality in the products and services that it provides to customers. TQM is
a corporate level strategy that becomes an operation management
strategy for manufacturing and service excellence. TQM is so
prerequisite to OM success.
Forecasting
Operations mangers must be able to accurately forecast demand for
timely production of their products. They must be able to forecast
human resource needs to acquire necessary worker inputs into their
transformation process. Managers must be acquainted with different
types of forecasting that affect the OM system.
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Improving Technology and International Integration of OM System
International competition is forcing operations managers to developglobal planning strategies. Adapting and integrating international
strategies require operations managers to understand the various
restrictive roles the integration of management resources can play, and
the strategic opportunities offered by advanced OM technology. For
example, manufacturing firms during the 1980s that choose a strategy
of cost reduction to be competitive with international manufacturers
found their strategy to be successful in the 1990s when coupled with the
mid 1980s devaluation of the US dollar.
b). PLANNING AND CONTROLLING OPERATIONS
Another category of operations management activities involves basic
planning and controlling activities. These activities includes production
planning, materials management, inventory management and
scheduling.
Production Planning
Production planning activities involves setting and achieving goals
specifically related to operations management planning of management
resources.
Materials Management
The materials management activity involves the grouping of
management functions supporting material flow. Materials managementincludes activities such as the purchase and internal control of
production materials; the planning and control of work in process
(unfinished products in various stages of production; and warehousing
shipping and distribution of the finished product.
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Inventory Management
The inventory management activity is concerned with the planning andcontrol of inventories. There are two general type of inventory;
dependant demand inventory and independent demand inventory.
Dependant demand inventory is made up of inventory items that are
consumed within an organization to produce a finished product. For
example, rubber- the raw material used by the Good Year Company to
produce automobile tires for consumers is an example of a dependant
demand inventory item. Dependant demand inventory items depend on
consumer demand of finished products.
Independent demand inventory comprises inventory items consumed by
customers external to the organization. For example, a grocery stores
inventory of flashlight batteries is an independent demand inventory
item.
Scheduling
Scheduling involves assigning specific tasks, jobs and work for
equipment, facilities and human resources in accordance with a timed
planning horizon.
c). IMPROVING PRODUCT AND SYSTEMS
Operation management activities in the 1990s must also support
continuous improvement of product and systems. These activities
include product and service design, quality assurance, facility locationanalysis and layout design and job design and work measurement.
Product and Service Design
Product and service design includes all the activities that are required to
create and structure a product or service. Although the design stage
largely involves design engineers and marketing personnel, operation
managers are often included as well, to ensure that the end result is
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producible. Examples of activities in product design includes performing
cost analysis to determine if new product designs are economically
feasible, linking activities between computer aided design systems and
actual production facilities, and sequencing activities to ensure an
ordered sequence of production tasks to complete the product.
Quality Assurance
The quality assurance activity involves the rules and methodological and
technological aspects of manufacturing and service quality. It includes a
comprehensive analysis of the entire operations management system
from input to output on any attribute that can be used to define quality.
Quality assurance seeks to implement TQM as an OM strategy. Examples
of quality assurance include reducing product defects, maintaining a
customer service department and monitoring the quality of incoming
raw materials.
Facility Location and Layout Design
The facility location activity involves determining where to establish amanufacturing plant or a service facility. The layout design activity
involves determining how the internal facility (departments, equipment,
and service or work stations) will be arranged.
Job Design and Work Measurement
The job design activity involves the structuring of work tasks assigned to
an employee. Job design is the study of the tasks that make up a job. The
work measurement activity involves the timing of tasks that comprise ajob.
Not all operations managers perform all of these activities. Many
mangers make a productive career out of performing just one of the
above activities. To be a successful manager, one must have some
knowledge of all of these activities and the role they play in an
organization.
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COMMUNICATION IN OPERATION MANAGEMENT
In the age of information, operation managers must be able to
communicate and interact with the people with whom they work and
with those for whom the work is performed. There are two types of
communication:
i). Communication or interaction within the organization is known as
cross-functional relations. This is the communication b/w different
function or departments like accounting, marketing, finance, IT,
personnel and technical specialists.
Marketing Finance
AccountingOperations
ManagementIT
Technical
Specialist Personnel
DEPARTMENTAL AREAS WITHIN THE INTERNAL
ENVIRONMENT OF THE ORGANIZATION
ii). Communication or interaction with individuals outside the
organization is referred to as external relations. External individuals
includes customers, public interest groups, competitors, stockholders
and owners, suppliers and government.
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CustomersPublic Interest
groups
GovernmentTHE
ORGANIZATIONCompetitors
Suppliers Stockholders &Owners
THE ORGANIZATION AND THE EXTERNAL ENVIRONMENT
**********************
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ALITY MANAGEMENT
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SHEWART CYCLE (PDCA)
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ivities necessary to
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The philosophy is to keep improving the quality of an organization. It is defined
by four keys:
Plan: Design or revise business process components to improve results
Do: Implement the plan and measure its performance
Check: Assess the measurements and report the results to decision
makers
Act: Decide on changes needed to improve the process
The consolidation phase enables the organization to take stock of what has
been taking place and to ensure made to processes that require
documentation (both to allow processes to be repeatable and to facilitate
recognition of the achievement of some form of quality standard).
QUALITY ASSURANCE
It is part of quality management focused on providing confidence that qualityrequirement will be fulfilled.
Productions quality starts with process capable of producing to design
Specification and continuous with an inspection program arises if standards are
being met. As said earlier the initial deviation concerning specification is based
on precision sought by customers and accuracy attainable by production
facilities. Given a process capable of obtaining the required precision
unacceptable variations still occurs. Bluent tools, misalignment due to wearand tear of machinery, workers unless they can contribute to inferior output
from a process inherently capable of acceptable quality. Coordinatorcontrolled
activities to prevent this and ensuring what customer wants they get.
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QUALITY INSPECTIONS
The single act most costly associated with quality control is inspection (e.g.technicians testing concrete slabs in lab, food inspectors are also inspecting
food grading tea, etc). In addition to maintaining quality inspectors provide
information by which the performance of sorters, machines, departments, and
plans can be evaluated.
COST OF QUALITY
Prevention costs
Quality planning
Formal Technical Reviews
Test equipment
Training
Appraisal costs
In-process and inter-process inspection Equipment calibration and maintenance
Testing
Failure costs
Internal failure costs
Rework
Repair
Failure mode analysis
External failure costs
Complaint resolution
Product return and replacement
Help line support
Warranty work
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EVALUATION OF QUALITY CONTROL
Part 1: The ancient Egyptians demonstrated a commitment to quality in theconstruction of their pyramids Greeks set high standards in arts and crafts. The
quality of Greek architecture of the 5th century BC was the motivation behind
subsequent architectural construction of Rome. Roman built cities; bridges and
roads inspire us even today.
Part 2: up to 1800 production of goods and services was predominantly
confirmed to single individuals/family responsible for quality of product
(operator quality control period)
Part 3: Starting in early 1900 1920 . The second phase called former quality
control period. With the industrial revolutions (steam engine-James watt-coal
and iron) came the concept of mass production which was based on principle
of specialization of labor .supervisor will be responsible for overall quality.
(Companies with machine power in place of Human power alone came into
existence.
Part 4: Period from 1920- 1940. This is the inspection quality control period.
Product and processes become more complicated and production volume
increased. No. of workers reporting to a foreman increased. Inspectors were
therefore designated to check the quality of the product item with those of
standards. Non-conforming items were either reworked if feasible or were
discarded.
During the period the foundations of statistical aspects of quality control were
being developed. Bell labs proposed the concept of using statistical charts to
control the variables of a product dodge and rowing proposed acceptance
sampling.
1930 saw the application of acceptance sampling plan in industring .In 1929
Walter show hart got sponsorship of ASTM, ASME, ASA for creating a joint
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committee for the development of statistical applications in engineering and
manufacturing.
US Food Drugs and cosmetic Act 1938 came into existence-a quality measure.
Phase 5: the next phase in the evaluation process occurred between 1940-1960
and is termed as statistical quality control phase.
American society for quality control was formed in 1946. Use of quality control
procedures however no where close to the level that it should have been even
in America. Japan although totally destroyed during World War II embraced the
new philosophical whole-heartedly.
QUALITY ASSURANCE
Analysis
Auditing
Reporting
Goal of quality assurance
Provide management with the data necessary to be informed about
product quality.
Make confidence and be sure that product quality is meeting .
Quality Standards
The International Organization for Standardization (ISO) created the Quality
Management System (QMS) standards in 1987. These were the ISO 9000:1987
series of standards comprising ISO 9001:1987, ISO 9002:1987 and ISO
9003:1987; which were applicable in different types of industries, based on the
type of activity: designing, production or service delivery. The standards have
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been regularly reviewed every few years by the International Organization for
Standardization. The version in 1994 and was called the ISO 9000:1994 series;
comprising of the ISO 9001:1994, 9002:1994 and 9003:1994 versions. The last
revision was in the year 2000 and the series was called ISO 9000:2000 series.
However the ISO 9002 and 9003 standards were integrated and one single
certifiable standard was created under ISO 9001:2000. Since December 2003,
ISO 9002 and 9003 standards are not valid, and the organizations previously
holding these standards need to do a transition from the old to the new
standards. The ISO 9004:2000 document gives guidelines for performance
improvement over and above the basic standard (i.e. ISO 9001:2000).
The Quality Management System standards created by ISO are meant to certify
the processes and the system of an organization and not the product or service
itself. ISO 9000 standards do not certify the quality of the product or service.
Recently the International Organization released a new standard, ISO 22000,
meant for the food industry. This standard covers the values and principles of
ISO 9000 and the HACCP standards. It gives one single integrated standard forthe food industry and is expected to become more popular in the coming years
in such industry.
The most elaborated and accepted concept of quality management is the
model of the EFQM Excellence Model.
THE DETERMINANTS OF QUALITY
The degree to which a product or service successfully satisfying its intended
purpose has four primary determinants
1) Quality of design
2) How well it confirms to the design
3) Ease of use
4) Service after delivery
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Quality of design
Quality of design refers to the intentions of designers to include or exclude
certain features in a product or service (e.g.: different automotives with
different size appearance, fuel economy, comfort, material used etc) These
differences reflect choices made by designers that determines the quality of
design. There design decisions take into account customer wants, production
or service capabilities, safety, liability cost and similar other considerations.
Designers may work closely with marketing and operations department. A
poor design can result in difficulties in production or service. For example,materials might be difficult to obtain specifications to meet, procedure difficult
to follow, similarly a superior design usually cannot offset
poor workmanship.
Quality of conformance
Refers to the degree to which goods and services conform (i.e. to achieve) the
intent of designers. This is affected by factors such as the capability ofequipments, skills, training, taking prompt corrective action etc. (That is the
reason we want designers to work in close coordination with manufacturing
and inspection department during pilot job and procedures for manufacture
developed accordingly.
Ease of Use
The determinants of quality does not stop once the product or service hasbeen sold. Ease of use and user instructions are important. They increase the
chances but do not guarantee, that the product will be used for its intended
purposes and in such a way that it will continue to function properly and safely.
(i.e. user misused case) Much of the same can be applied to services also.
Customers, patients, clients must be clearly informed. Much of the instructions
takes the form of printed instructions, labels and what to do if something goes
wrong.
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Service after delivery
For a variety of reasons products do not always perform as expected andservices do not always yield the desired results. Through recall adjustmentreplacement, buyback etc this situation is remedied.
Quality of care should be defined in light of both technical standards and
patients' expectations. While no single definition of health service quality
applies in all situations, the following common definitions are helpful guides:
Technical performance
Access to services Effectiveness of care
Efficiency of service delivery
Interpersonal relations
Continuity of services
Safety
Physical infrastructure and comfort
Choice
QUALITY MANAGEMENT PRINCIPLES
Following are the eight quality management principles on which the quality
management system standards of the revised ISO 9000:2000 series are based.
These principles can be used by senior management as a framework to guide
their organizations towards improved performance. The principles are derived
from the collective experience and knowledge of the international experts who
participate in ISO Technical Committee ISO/TC 176, Quality management and
quality assurance, which is responsible for developing and maintaining the ISO
9000 standards.
Principle 1 Customer focusOrganizations depend on their customers and therefore should understand
current and future customer needs, should meet customer requirements and
strive to exceed customer expectations.
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Principle 2 Leadership
Leaders establish unity of purpose and direction of the organization. Theyshould create and maintain the internal environment in which people can
become fully involved in achieving the organization's objectives.
Principle 3 Involvement of people
People at all levels are the essence of an organization and their full
involvement enables their abilities to be used for the organization's benefit.
Principle 4 Process approach
A desired result is achieved more efficiently when activities and related
resources are managed as a process.
Principle 5 System approach to management
Identifying, understanding and managing interrelated processes as a system
contributes to the organization's effectiveness and efficiency in achieving its
objectives.
Principle 6 Continual improvement
Continual improvement of the organization's overall performance should be a
permanent objective of the organization.
Principle 7 Factual approach to decision making
Effective decisions are based on the analysis of data and information.
Principle 8 Mutually beneficial supplier relationships
An organization and its suppliers are interdependent and a mutually beneficial
relationship enhances the ability of both to create value.
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BENCHMARKING
Benchmarking (also "best practice benchmarking" or "processbenchmarking") is a process used in management and particularly strategic
management, in which organizations evaluate various aspects of their
processes in relation to best practice, usually within their own sector. This then
allows organizations to develop plans on how to adopt such best practice,
usually with the aim of increasing some aspect of performance. Benchmarking
may be a one-off event, but is often treated as a continuous process in which
organizations continually seek to challenge their practices.
A process similar to benchmarking is also used in technical product testing and
in land surveying. See the article benchmark for these applications.
Advantages of benchmarking
Benchmarking is a powerful management tool because it overcomes
"paradigm blindness." Paradigm Blindness can be summed up as the mode of
thinking, "The way we do it is the best because this is the way we've alwaysdone it." Benchmarking opens organizations to new methods, ideas and tools
to improve their effectiveness. It helps crack through resistance to change by
demonstrating other methods of solving problems than the one currently
employed, and demonstrating that they work, because they are being used by
others.
Competitive benchmarking
Advantage of the benchmarking for a company:
1. A better understanding of the wants (expectations) of the customer because
it is: based on the reality of the market estimated in an objectivist way.
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2. A better economic planning of the purposes and the objectives to achieve in
the company because they are: centered on what takes place outside
controlled and mastered.
3. A better increase of the productivity: resolution of the real problems
Understanding of the processes and what they produce
4. Better current practices Search for the change Many decisions practices of
break
5. A better competitiveness thanks to: a solid knowledge of the competition a
strong implication of the staff new ideas on practices and tried techniques.
Benchmarking has consequences which are beyond the process itself: it
reforms all the levels of the company.; modifies the process of manufacture of
the product leads(drives) ; also reforms the hierarchical organization of the
company, the product itself, and the state of mind of the employees.
Procedure
1. Identify your problem areas - Because benchmarking can be applied to any
business process or function, a range of research techniques may be required.
They include: informal conversations with customers, employees, or suppliers;
exploratory research techniques such as focus groups; or in-depth marketing
research, quantitative research, surveys, questionnaires, reengineering
analysis, process mapping, quality control variance reports, or financial ratioanalysis.
2. Identify other industries that have similar processes - For instance if one
were interested in improving handoffs in addiction treatment s/he would try to
identify other fields that also have handoff challenges. These could include air
traffic control, cell phone switching between towers, transfer of patients from
surgery to recovery rooms.
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3. Identify organizations that are leaders in these areas - Look for the very best
in any industry and in any country. Consult customers, suppliers, financialanalysts, trade associations, and magazines to determine which companies are
worthy of study.
4. Survey companies for measures and practices - Companies target specific
business processes using detailed surveys of measures and practices used to
identify business process alternatives and leading companies. Surveys are
typically masked to protect confidential data by neutral associations and
consultants.
5. Visit the "best practice" companies to identify leading edge practices -Companies typically agree to mutually exchange information beneficial to all
parties in a benchmarking group and share the results within the group.
6. Implement new and improved business practices - Take the leading edge
practices and develop implementation plans which include identification of
specific opportunities, funding the project and selling the ideas to theorganization for the purpose of gaining demonstrated value from the process.
Cost of benchmarking
Benchmarking is a moderately expensive process, but most organizations find
that it more than pays for itself. The three main types of costs are:
Visit costs - This includes hotel rooms, travel costs, meals, a token gift,and lost labor time.
Time costs - Members of the benchmarking team will be investing time in
researching problems, finding exceptional companies to study, visits, and
implementation. This will take them away from their regular tasks for
part of each day so additional staff might be required.
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Benchmarking database costs - Organizations that institutionalize
benchmarking into their daily procedures find it is useful to create and
maintain a database of best practices and the companies associated with
each best practice now.
KAIZEN
Kaizen, a Japanese term that basically translates to 'continuous improvement'
or 'change to become good', is a management concept originated by theJapanese in order to continuously effect incremental changes for the better,
involving everybody within the organization from workers to managers. Kaizen
is aimed at producing more and more value with less and less wastes (higher
efficiency), attaining better working environment, and developing stable
processes by standardization.
This never-ending process of achieving small improvements within the
company everyday is in contrast to trying to achieve breakthrough results froma large improvement once in a while. Kaizen as a management technique is
therefore more suitable for organizations with a collective culture that is trying
to achieve long-term gains from a continuous supply of small and less radical
contributions from its employees.
Kaizen implementation is said to operate on the following principles: 1) that
human resources are the company's most important asset; 2) that success can
not be achieved by some occasional radical changes alone, but more so by
incremental yet consistently arriving improvements; and 3) that improvements
must be based on a statistical or quantitative study of the performance of the
process.
Thus, under Kaizen, everyone is a valued contributor to the company's success,
and must therefore be given the necessary education and training in order to
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contribute in his or her own way on a continuous basis. Everyone in the
organization must genuinely believe in the idea of Kaizen and strive to achieve
one small goal at a time, each of which is considered a step towards the
company's over-all success.
Every person must therefore be willing to: 1) learn; 2) communicate; 3) be
disciplined; 4) get involved; and 5) change in order to maximize gains from
Kaizen. Management must also be able to support this Kaizen structure by
aligning resources, metrics, rewards, and incentives to Kaizen principles,
encouraging all employees to contribute in their own ways.
Management programs that promote Kaizen include but are not limited to the
following: 1) employee suggestion systems; 2) recognition systems for
employees who exert effort for continuous improvement; 3) group-oriented
suggestion or improvement systems like Quality Circles (small groups that
perform quality improvement activities); 4) JIT; 5) 5- S; 6) Total Productive
Maintenance; and 7) Total Quality Management.
Kaizen's Business Tenets
1) Not a single day should pass without any kind of improvement anywhere in
the company.
2) Improvement strategies must be driven by customer requirements and
satisfaction.
3) Quality must always take a higher priority over profits.
4) Employees must be encouraged to recognize problems and suggest
improvements to address these problems.
5) Problems must be solved by a collaborative and systematic approach
through cross functional teams.
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6) Process-oriented thinking (as opposed to results-oriented thinking) must be
practiced by everyone, so that every process gets continuously improved fromtime to time.
SIX-SIGMA
6-Sigma refers to a quality improvement and business strategy concept started
by Motorola in the United States in 1987. In statistical terms, 6-Sigma is the
abbreviated form of 6 standard deviations from the mean, which
mathematically translates to about 2 defects per billion. Thus, strictly speaking,
your process is said to have achieved 6- sigma if it is producing no more than 2
defects per billion parts produced.
No company is probably nearly perfect enough to achieve this quality level.
Consequently, the term 6-Sigma in the industry has somehow taken on the
equivalent defect rate of 3.4 ppm, which in reality corresponds to roughly 4.5
sigmas. Thus, in the industry today, a person speaking of 6-sigma is most likely
referring to a quality level equivalent to 3.4 defects per million.
Regardless of how one wishes to use the term 6-sigma, though, it is apparent
that its purpose when its concept was first incepted is to make processes as
consistent as possible in order to reduce the defect rates of their outputs.
Consistency of meeting customer specifications as well as the probability of
meeting them consistently in the future is the essence of 6-sigma. To see how
the number of sigmas relates to the process Cpk and the process ppm level,please refer to the Cpk/ppm Table.
6-Sigma has evolved into a continuous, disciplined, and structured process of
improving operations to make products that are consistently meeting
customer requirements. In effect, 6-Sigma no longer simply means excellent
finished products, but more importantly, excellent processes, services, and
administration. When Motorola started 6- Sigma in the 80's, it was applied to
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repetitive manufacturing processes. Presently, however, the use of 6-Sigma is
well-established in almost all aspects of doing business in a wide range of
industries.
6-Sigma encourages leanness, simplicity, and doing things right the first time,
so that wastes and corresponding costs are avoided. Statistics-based problem
solving, results orientation, and quantifiable top and bottom-line returns are
also ingredients of 6-Sigma. Lastly, 6-Sigma is driven by the voice of the
customer.
TOTAL QUALITY MANAGEMENT
Total Quality Management is a structured system for managing the quality of
products, processes, and resources of an organization in order to satisfy its
internal and external customers, as well as its suppliers. Its main objective is
sustained (if not progressive) customer satisfaction through continuous
improvement, which is accomplished by systematic methods for problem
solving, breakthrough achievement, and sustenance of good results(standardization).
Total Quality Management (TQM) is a management strategy aimed at
embedding awareness of quality in all organizational processes. TQM has been
widely used in manufacturing, education, government, and service industries,
as well as NASA space and science programs.
Total Quality provides an umbrella under which everyone in the organizationcan strive and create customer satisfaction. TQ is a people-focused
management system that aims at continual increase in customer satisfaction at
continually lower real costs.
Definition
TQM is composed of three paradigms:
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Total: Organization wide
Quality : With its usual Definitions, with all its complexities (ExternalDefinition)
Management : The system of managing with steps like Plan, Organize,Control, Lead, Staff, etc.
As defined by the International Organization for Standardization (ISO):
"TQM is a management approach for an organization, centered on quality, based
on the participation of all its members and aiming at long-term success throughcustomer satisfaction, and benefits to all members of the organization and to
society."
Principles of TQM
1) Quality can and must be managed.
2) Everyone has a customer to delight.
3) Processes, not the people, are the problem.4) Every employee is responsible for quality.
5) Problems must be prevented, not just fixed.
6) Quality must be measured so it can be controlled.
7) Quality improvements must be continuous.
8) Quality goals must be based on customer requirements.
5S
Five related terms, beginning with an S sound, describing workplace practices
conducive to visual control and lean production. The five terms in Japanese are:
1. Seiri: Separate needed from unneeded items-tools, parts, materials,
paperwork-and discard the unneeded.
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2. Seiton: Neatly arrange what is left-a place for everything and everything in its
place.
3. Seiso: Clean and wash.
4. Seiketsu: Cleanliness resulting from regular performance of the first three
Ss.
5. Shitsuke: Discipline, to perform the first four Ss.
Muda, Mura, Muri
Three Japanese terms often used together in the Toyota Production System(and called the Three Ms) that collectively describe wasteful practices to beeliminated.
Muda: Any activity that consumes resources without creating value forthe customer.
Mura: Unevenness in an operation; for example, an uneven work pace inan operation causing operators to hurry and then wait.
Muri: Overburdening equipment or operators.
CONTROL CHART
A control chart is a statistical tool used to distinguish between variation in a
Process resulting from common causes and variation resulting from special
causes. It presents a graphic display of process stability or instability over time.
Every process has variation. Some variation may be the result of causes which
are not normally present in the process. This could be special cause variation.
Some variation is simply the result of numerous, ever-present differences in the
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process. This is common cause variation. Control Charts differentiate between
these two types of variation.
One goal of using a Control Chart is to achieve and maintain process stability.
Process stability is defined as a state in which a process has displayed a certain
degree of consistency in the past and is expected to continue to do so in the
future .This consistency is characterized by a stream of data falling within
control limits based on plus or minus 3 standard deviations (3 sigma) of the
centerline.
ISO 14000
The ISO 14000 environmental management standards exist to help
organizations minimize how their operations negatively affect the environment
(cause adverse changes to air, water, or land), comply with applicable laws,
regulations, and other environmentally oriented requirements, and continually
improve on the above.
ISO 14000 is similar to ISO 9000 quality management in that both pertain to the
process (the comprehensive outcome of how a product is produced) rather
than to the product itself. As with ISO 9000, certification is performed by third-
party organizations rather than being awarded by ISO directly. The ISO 19011
audit standard applies when auditing for both 9000 and 14000 compliance at
once.
Standards
The material included in this family of specifications is very broad. The major
parts of ISO 14000 are:
ISO 14001 is the standard against which organizations are assessed. ISO
14001 is generic and flexible enough to apply to any organization
producing any product or service anywhere in the world.
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ISO 14004 is a guidance document that explains the 14001 requirements
in more detail. These present a structured approach to setting
environmental objectives and targets and to establishing and monitoring
operational controls.
These are further explicated by the following:
ISO 14040 discusses pre-production planning and environment goal
setting.
ISO 14020 covers labels and declarations.
ISO 14030 discusses post-production environmental assessment.
ISO 14062 discusses making improvements to environmental impact
goals.
ISO 14063 is an addendum to 14020, discussing further communications
on environmental impact.
ISO 19011 which specifies one audit protocol for both 14000 and 9000
series standards together. This replaces ISO 14011 meta-evaluationhow
to tell if your intended regulatory tools worked. 19011 is now the only
recommended way to determine this.
ISO 14001 is an internationally accepted specification for an environmental
management system. It specifies requirements for establishing an
environmental policy, determining environmental aspects and impacts of
products/activities/services, planning environmental objectives and measurable
targets, implementation and operation of programs to meet objectives and
targets, checking and corrective action, and management review.
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ISO 9000
ISO 9000 is a family of standards for quality management systems. ISO 9000 ismaintained by ISO, the International Organization for Standardization and is
administered by accreditation and certification bodies. For a manufacturer,
some of the requirements in ISO 9001 (which is one of the standards in the ISO
9000 family) would include:
A set of procedures that cover all key processes in the business;
Monitoring manufacturing processes to ensure they are producing
quality product;
Keeping proper records;
Checking outgoing product for defects, with appropriate corrective
action where necessary; and
Regularly reviewing individual processes and the quality system itself for
effectiveness.
A company or organization that has been independently audited and certifiedto be in conformance with ISO 9001 may publicly state that it is "ISO 9001
certified" or "ISO 9001 registered." Certification to an ISO 9000 standard does
not guarantee the compliance (and therefore the quality) of end products and
services; rather, it certifies that consistent business processes are being
applied.
Although the standards originated in manufacturing, they are now employed
across a wide range of other types of organizations, including colleges and
universities. A "product", in ISO vocabulary, can mean a physical object, or
services, or software. In fact, according to ISO in 2004, "service sectors now
account by far for the highest number of ISO 9001:2000 certificates - about 31%
of the total" - source: the ISO Survey 2004
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Advantages
1. Create a more efficient, effective operation2. Increase customer satisfaction and retention
3. Reduce audits
4. Enhance marketing
5. Improve employee motivation, awareness, and morale
6. Promote international trade
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PRACTICAL STUDY
OF ORGANISATION
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GA
COMPANYS OVER
At GlaxoSmithKline, weaspire to excellence inof the business, and enWe offer a competitivebalance between work
GlaxoSmithKline welcoprovide the expertise,prosperous future. We
minds who seek a broagrowth, and whose efworldwide.
GlaxoSmithKline is anopportunities. Our recrcandidate care by listecustomer.
45
XOSMITHKLI
IEW
conduct our business with integritll we do. We know our people areourage everyone to achieve their m
benefits package and recognize thend family life.
es the talent of people from diverdedication and imagination to prlook for individuals with daring spi
range of opportunities for personorts are realized in the improved
xciting organization, which offersitment process aims to achieve thing to your interests, and treating
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E
and honesty, andital to the successaximum potential.need for a healthy
e backgrounds topel us toward aits and inquisitive
l and professionalhealth of people
variety of careere highest level ofyou like a valued
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The organizational struccompany a model forcompany that represent
GSK is a company withsucceed, and to drive thorganized as a flexible
changing marketplace.benefits of size and scaunits, dedicated to deliaround the world.
The new and innovatipharmaceutical businesglobal services such asapproach which will lea
G
GlaxoSmithKline is a leWith nearly $6 billion imarkets, the consumdimension to GSK.
Operating in the fiercemarketing GlaxoSmithKl
46
BUSINESS UNITS
ure of GlaxoSmithKline (GSK) is desexcellence in the pharmaceutical
s best practice in every way.
the size and scale to invest in theat success going forward. To achievcompany, capable of responding q
rganized globally to coordinate actile, the company is built on smaller,ering medicines that relieve the su
ve model for R&D, the focusedthroughout the world and the o
IT and Procurement are some of thour success.
K CONSUMER HEALTHCARE
ader in the worldwide consumern sales, over ten million brands ar healthcare business brings an
ly competitive environment of retine Consumer Healthcare brings ora
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Roll No. 523655
igned to make ourindustry - a new
tools we need toe that goal, GSK isuickly to a rapidly
vities and gain thecustomer-focusedfering of patients
structure of ourganization of oure highlights in the
ealthcare market.nd present in 130
added dynamic
ail and consumerl healthcare, over-
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the-counter medicinespeople.
Brand names such as PaNiquitin smoking cessatione year GSK Consumbillion tablets to relieveand 600 million tubes of
But the driving force beis science. With four
consumer healthcare reas seriously as marketin
GThe Corporate busineleadership, processes,areas of CorporateCorporate Ethics & Cofunctions work individcorporate functions an
The functions aim to aframeworks within andmotivating GSK peopleresponsive business inshared services approaCorporate functions comedia, governments, an
47
and nutritional healthcare produ
nadol, Aquafresh toothpaste, Lucozon products are household names arr Healthcare produces - among m
stomach upsets, six billion tablets otoothpaste.
hind GlaxoSmithKline's Consumer Hdedicated consumer healthcare
ulatory affairs, the business takes sexcellence and offers leading-edge
SK CORPORATE FUNCTIONSss unit within GlaxoSmithKline, ipolicies, standards and services inommunications & Global Commumpliance, Finance, Human Resourcually and in cross-functional team
businesses within GSK.
hieve compliance with legal, finanoutside the corporation; protectinnd the communities in which theyrastructure - combining accountches - to work with GSK's diversnt among their audiences; employ
alysts, institutions and shareholders
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ts to millions of
de, Nicorette andound the world. Inany others - ninepain relief tablets
ealthcare business&D centers and
ientific innovationcapability in both.
s responsible forthe core businessnity Partnerships,es and Legal. Thes across different
ial and regulatoryg, supporting andork. They utilize a
management andbusinesses. The
ees, communities,orldwide.
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GS
In GSK, Information Tecwith all parts of the coadvantage of global scpeople and businesses l
Six IT departments prov
business units and by GS
Cross Functionalchanges have a sbusiness processe
Global eBusiness - Global Strategy &
ensures the IT astrategies.
Project and Portprojects, manageproject managem
Systems and Comcost effective, flerequired by GSK.
Risk Managementrisks resulting froand computerized
48
INFORMATION TECHNOLOGY
nology is a business unit, one that is
pany, all around the world. It is orgale when that is appropriate, whilcally so they have the IT tools they n
Global capabilities:
de core services that are required by
K at large. These IT departments are
Process Design - Ensures that allgnificant, positive impact on the ps.Develops GSK's commercial capabilitApplications - Drives the overall IT strchitecture is coordinated in conc
olio Management - Builds procesproject issues as they progress a
nt groups to build skills and capabiliunications Services - Builds, deploy
xible, computing and communicati
& Security - Identifies and addressesm external or internal use of inforinformation.
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closely integrated
nized to take beste supporting GSKeed to succeed.
each of the
roposed systemsrformance of the
ies in eBusiness.rategy of GSK andert with business
es for approvingd works with theies.and operates the
ons infrastructure
security and otheration technology
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IT is supported by six cAlliances, Human Resou
GLOBA
GSK has 85 manufacturThe sites within the GSK
supply prod produce ov manufactur produce ov supply arou manage abo
Production of nutritionabottles, 350 million Ribcans per year. The annuto about 1,000 millionmanufactured annually
You would be forgiven f- with over 100,000 emthe bottom line. But t
49
ore service teams: Audit, Communices, Legal and Procurement.
L MANUFACTURING AND SUPP
ing sites in 37 countries with overmanufacturing network:
cts to 191 global markets for GSKr 1,200 different brandsalmost 4 billion packs per year
r 28,000 different finished packs perd 6,900 tons of bulk active each yea
ut 2,000 new product launches glob
l products is in excess of 300 millioena tetra packs and 20 million Lucl output of Horlicks is 50 million kilservings. In oral care, the volu
xceeds 600 million tubes.
GSK PHARMACEUTICALS
or thinking that a company the sizeloyees around the world - is only eve truth is that every member of o
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ations, Finance &
Y
5,000 employees.
yearrlly each year
Lucozade/Ribenaozade carbonatedgrams, equivalente of toothpaste
f GlaxoSmithKlineer concerned withur organization is
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equally dedicated to heand Do more.
We have a diverse porexciting compounds. Ev
GlaxoSmithKline investGlaxoSmithKline is a lecentral nervous systeAnnual Results, GSK hadPharmaceutical sales ac
22% of total pharmaceuti
This continued success iworking with healthcara changing environment
RESE
We live in an exciting mgiving up its secrets totechnological marvels tgeneration ago. We haccelerating progress a
At GlaxoSmithKline, sciecapturing this moment.the resources of a parenurgency of knowing thaIn pursuit of this purposothers who share their tas collaborators in indus
50
lping people around the world Live
folio of brands, as well as a healtry year
approx. $5 billion into researchder in four major therapeutic area, respiratory and gastro-intestinalsales of $37.2 billion and profit befocounted 24.8 billion with new pro
cal sales.
achieved by being a responsible leaprofessionals, listening to patients
.
RCH AND DEVELOPMENT (R&D
oment in the history of biomedicalthe intelligence and dedication ofat might have been the stuff of scive every reason to believe that
ainst many of the afflictions of hum
ntists in Research and DevelopmentThey bring to it their own very cot company devoted to the scientific
their highest purpose is the relief o, they desire to make of GlaxoSmith
alents, whether as prospective corptry, academe, and government.
Zahid Nazir
Roll No. 523655
longer, Feel better
h pipeline of new
nd development.s - anti infectives,. Based on 2004e tax of 11.1 billion.ucts representing
der, committed toand responding to
)
science. Disease iscientists aided bynce fiction only aahead of us liesnkind.
are committed tosiderable abilities,nterprise, and the
f human suffering.Kline a magnet forrate colleagues or
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Creating a new medicintypically taking betwee
stringent, yet escalatindemand that the wholeGSK uses the scale of aimprove patient health.scientists the freedom tto move quickly, on the
Once a compound hasthrough an exacting, rig
and effective. Any potedropped from the comcandidates.
GSK IN TIME
Every seconGSK worldw
Every minutproducts w
Every hourmedicines.
Every day,
GSK brand t Every year,
and product
GSK employees arcompetencies and
Performance witand individual trus
51
is a complex business, costing ov12 and 15 years. Regulatory hurdl
costs, medical need and the pressprocess is condensed into as shorthuge company to reach its goal of aEqually important is its flexibility,take an entrepreneurial approach,asis of informed decisions.
been identified as a potential drugorous process to prove that the ne
tial new project not meeting the critany portfolio to make way for othe
d, more than 30 doses of vaccineside.e, more than 1,100 prescriptions arrldwide.
GSK spends more than $450,
ore than 200 million people aroun
oothbrush or toothpaste.laxoSmithKline donates more than
s to communities around the world.
e each expected to strive for improvalign themselves with the supportiv
Integrity - Delivering on promisestworthiness.
Zahid Nazir
Roll No. 523655
r $324 million ands are increasingly
re of competitiontime as possible.
pplying science toallowing teams ofnd enabling them
candidate, it goesdrug is both safe
eria at any stage isr, more promising
are distributed by
e written for GSK
00 to find new
d the world use a
138 million in cash
ment in these keybehaviors.
ith organizational
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People with Passion - People are enabled and motivated to do their bestwork.
Innovation & Entrepreneurship - Competitive advantage through well-executed ingenuity.
Sense of Urgency - A nimble, focused, resilient and fast-learningorganization.
Everyone Committed, Everyone Contributing- All employees have anopportunity to make a meaningful contribution, and to succeed based onmerit.
Accountability for Achievement - Clear expectations; focus on the criticalfew. Performance matters, and will be rewarded.
Alignment with GSK Interests - One team, in single-minded pursuit of ourmission, reflecting a common spirit and integrated strategies.
Develop Self and Others - A norm of career-long learning agility acrossthe organization. Employees continuously learn and develop their
professional potential. Leaders have key roles as teachers, coaches andchampions of development.
WHAT IS DIVERSITY AT GSK?
At GSK, we are committed to creating an inclusive environment for ouremployees, customers, and stakeholders.
For employees, it means creating an environment where we value anddraw on the differing knowledge, perspectives, experiences, and stylesresident in our global community.
For customers, it means understanding who they are, what theirchanging needs are, and how GSK can help them do more, feel better,and live longer.
For stakeholders, it means understanding what they prefer, what theyrequire, and how GSK can work most effectively with them.
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Wha
We asked some o
"There are lots ofbackground andthat I am contribu
"The company ofanalyze the whole
"Through friendlencouraged and r
"When you havemeans things get
"It's the people wi
53
t makes GSK a great place to work?
our current employees, and here's
local companies that would welcoxperience. Here, I get the addeding to better lives around the world
ers a competitive salary and excellepackage, you'll find that most comp
and supportive teams, individwarded."
a project there is a real sense ofone"
thin the company that makes it grea
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Zahid Nazir
Roll No. 523655
hat they said:
e someone of myonus of knowing
nt benefits. If younies can't beat it"
al innovation is
ownership which
"
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GALXOSMITHKLINE PAKISTAN LIMITED
Overview
GlaxoSmithKline Pakistan Limited was created on January 1st 2002 through the
merger of SmithKline and French of Pakistan Limited, Beecham Pakistan
(Private) Limited and Glaxo Wellcome (Pakistan) Limited- standing today as the
largest pharmaceutical company in Pakistan.
As a leading international pharmaceutical company we make a real difference
to global healthcare and specifically to the developing world. We believe this is
both an ethical imperative and key to business success. Companies that
respond sensitively and with commitment by changing their business practices
to address such challenges will be the leaders of the future. GSK Pakistan
operates mainly in two industry segments: Pharmaceuticals (prescription drugs
and vaccines) and consumer healthcare (over-the-counter- medicines, oral care
and nutritional care).
GSK leads the industry in value, volume and prescription market shares. We are
proud of our consistency and stability in sales, profits and growth. Some of our
key brands include Augmentin, Panadol, Seretide, Betnovate, Zantac and
Calpol in medicine and renowned consumer healthcare brands include Horlicks,
Aquafresh, Macleans and ENO.
In addition, we are also deeply involved with our communities and undertake
various Corporate Social Responsibility initiatives including working with the
National Commission for Human Development (NCHD) for whom we were one
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of the largest corporate donors. We consider it our responsibility to nurture the
environment we operate in and persevere to extend our support to our
community in every possible way. GSK participates in year round charitable
activities which include organizing medical camps, supporting welfare
organizations and donating to/sponsoring various developmental concerns and
hospitals. Furthermore, GSK maintains strong partnerships with non-
government organizations such as Concern for Children, which is also
extremely involved in the design, implementation and replication of models for
the sustainable development of children with specific emphasis on primary
healthcare and education.
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MISSION STATEMENT
Excited by the constant search forinnovation, we at GSK undertake ourquest with the enthusiasm ofentrepreneurs. We value performanceachieved with integrity. We will attainsuccess as a world class global leader witheach and every one of our peoplecontributing with passion and an
unmatched sense of urgency.Our mission is to improve the quality ofhuman life by enabling people to do more,feel better and live longer.
Quality is at the heart of everything we do-from the discovery of a molecule to thedevelopment of a medicine.
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QUALITY MANAGEMENT SYSTEM (QMS)
GSK has developed a comprehensive system of QMS by aligning internationally
recognised standards and best practices. The primary goal of this vital exercise
is to provide safe and effective products for patients and customers, satisfying
the stringent requirements of the regulators and the needs of our
shareholders.
For GSK to remain an indisputable industry leader, the company has set a list of
stringent criteria that ensures all customer needs are achieved.
Standards:
Global quality policies
Global quality guidelines
Global quality management processes
Training
Material
Auditing
Continuous improvement
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GSKs Quality Management System is an innovative yet practical tool that is
benchmarked against all international standards and guidelines ensuring risk
minimization, and more importantly top-notch managerial skills.
Our QMS is a living system which focuses on the ever changing needs of our
main customer groups patients, regulators, company / shareholders. This is afast-paced world and industry where changes are constant, and the QMS has
been created to ascertain that everything is managed in a controlled and
proficient manner.
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To reiterate GSKs quality statement:
Quality is at the heart of everything we do from the discovery of the
molecule through to product development, manufacture, supply and sale and
vital to all the services that support our business performance.
Andrew Witty, Chief Executive Officer
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