Operations Management – GlaxoSmithKline

Operation Management in the Business:

Introduction:

• GlaxoSmithKline is a pharmaceutical industry in UK created on January 1st, 2001. The reason of being successful is their quality and essential product that have a positive effect on the lives of human beings.
• They are continuously making effort to increase their brand strength because their brand image is well established.
• In Pakistan they are being successful in running the business. Their manufacturing sites are nearly in Lahore or Karachi.
• They made partnerships with McLaren group to improve the flaws in supply chain.

Task 1:

Operation management:

Operation management means to manage the operations. The operations are of different kind at different level like in HR department the operations are performed differently as compared to financial department. Operation management is defined as the conversion of inputs in to outputs like the conversion of raw materials in to goods and services. Operation management helps manage strategy according to the operations in order to gain competitive advantage or gain efficiency and effectiveness in operations. The functions of operation management is mostly used in manufacturing industries how to produce good quality products in low cost. Operation manager manage the resources to produce good quality products. The decision of operation manager has a great importance on how well the product is prepared and how well it is delivered. Operation management manage the functions of how to convert inputs in to outputs and manage the strategy according to the vision and mission of the organization.

Task 2:

Safe and Security:

The product must be safe and secure for the human beings. The reason of GlaxoSmithKline being successful is because of their quality products. Customer likes quality products because it has a positive impact on the lives of human beings. The products must be deliver secure in order to increase the number of customers. GlaxoSmithKline deliver their products safe and secure in order to attract the customers.

Time:

The product must be deliver on time. Delivering the right product at right time is very important because it is difficult to maintain sustainable competitive advantage. Once the brand image is established the customer satisfaction level and expectations get increases. To respond the sudden changing customer demands the companies should adopt just in time approach.

Cost:

Good quality products need more cost. There should be a balance between cost and quality of product. Good quality products takes more consumption of raw materials but making new strategies to control the cost helps prepare quality products with low cost. Similarly buying raw materials in bulk also helps control cost.

Quality:

Good quality attracts customers, for customers the quality of products is very important. Good quality helps to established brand image. Adopting TQM tools helps maintain the quality of product. In case of GSK’s they maintain the quality of product by adopting TQM tools, total quality management helps to maintain and improve the quality to respond the sudden changing demands of customers.

Compliance with law:

The law helps deliver right product for the safety of human beings. All the companies follows the instruction of law in order to gain good position in the market. In case of GSK’s they manufacture their products under the instructions of their law. Their mission is to provide quality product for the safety of human beings.

Task 3:

Link between strategic objectives and operation management:

To improve the performance of the company new strategies are prepared according to the mission and vision of the organization. First strategic plan is prepared according to the company goals and objectives and then this plan is implemented. It is reviewed in short term or in long term basis to know its working or not. Strategic objectives and operation management are directly proportional to each other. The strategies should be according to operations. If the strategic plan is not good to perform big operations then it’s useless. In case of GSK’s their strategy is according to the operations performed. They have clear and identified goals. They know how to maintain good position in the market. They know the importance of their product for the safety of human beings.

Task 4:

System diagram to illustrate the typical business:

Inputs are converted in to outputs through a proper system in which different steps are involved.

Open system:

Taking the raw material as an input from the environment and send back as an output to the environment is known as open system.

Closed system:

In closed system there is no link with the environment and other systems.

Probabilistic system:

It can be understand using probability analysis.

Sub-system:

A part of larger systems.

Systems in GSK’s:

In case of GSK’s they use different systems like open, closed, probabilistic, and sub-system to prepare products. Once the product is prepared it is delivered and they have a special focus on the views of customers to make improvements.

Task 5:

Economy:

Operation management have to take some policy decisions in order to improve the economy. The decisions taken by the government has positive impact on the economy. Economy policy decisions helps business to run smoothly. The term economy is measured by GDP, due to high GDP economic growth increases. Consumer income and the quantity of goods and services also become increase and the most important benefit is the poverty can be reduced easily.

Efficiency:

When the production level increases by keeping the consumption of raw material remain constant then it will called as efficiency. When the output increases by keeping the input constant is called efficiency.

 

In simple how well the company performs the production process.

Effectiveness:

Effectiveness means to fulfill the needs of customers. It has no relation with the sales, the product should meet the customer requirements. No matter, how much the sales the falling down but the important thing is it should fulfill the customer needs.

Tension between cost minimization and quality maximization:

Cost and quality both are directly proportional to each other. The prices of raw material are too high, and the good quality products needs high consumption of raw material. It is very difficult to produce good quality product with low cost. Hiring the raw material in bulk helps maintain the quality and cost of product. Yet it seems difficult to produce quality product with low cost but making change in the supply chain helps maintain the quality of products.

Task 6:

Five performance management objectives:

Cost:

Good quality products need more cost. There should be a balance between cost and quality of product. Good quality products takes more consumption of raw materials but making new strategies to control the cost helps prepare quality products with low cost. Similarly buying raw materials in bulk also helps control cost.

 

 

Quality:

Good quality attracts customers, for customers the quality of products is very important. Good quality helps to established brand image. Adopting TQM tools helps maintain the quality of product. In case of GSK’s they maintain the quality of product by adopting TQM tools, total quality management helps to maintain and improve the quality to respond the sudden changing demands of customers.

Speed:

Becoming a market leader is not easy, respond the changing customer demands of customer is very important. Delivering the right thing at right time actually matters, with the progress in the technology the demands of customer also increases. It is difficult to maintain the customer loyalty, once the customer start using the products of other companies then it will difficult to pull them back.

Dependability:

Dependability is one of the greatest achievement of life it means people become dependent on your company. They won’t use the product of other companies, they are satisfied from the product of your company.

Flexibility:

Flexibility means to become ready for whatever changes will occur in the market. With the progress in the technologies the market trends and economies also changes. It won’t wait for the companies to adjust. Companies should make new strategies to become flexible in running their businesses.

Task 7:

Linear programming:

Linear programming is a mathematical technique to achieve high output with low input.With low cost high quality products are difficult to make but proper strategic plan and its implementation make it easy. Linear programming is a mathematical technique to produce high level of output with low level of input

Dependent of independent task:

In performing a particular task different steps are involved that are dependent or independent to each other. In case of GSK’s production process different steps are involved that are dependent or independent to each other.

• Discovery research
• Method development
• Method validation
• Method transfer
• Procurement
• Manufacturing
• Marketing

Network planning:

Different steps are involved in performing specific task are dependent or independent to each other, or working in a group or in a team to perform a particular task.

Task 8:

Capacity planning:

Capacity planning means the capacity of organization to do maximum amount of work, or respond sudden customer changing demands. It depends on the efficiency of work. Companies should be prepared to respond the customer changing demands. Companies should review their plans in short term or long term basis.

Classification:

• Long term
• Short term
• Finite
• infinite

Importance of capacity planning:

• Capacity planner prepares a plan to respond the sudden changing customer demands.
• With efficient capacity planning a company becomes ready to face any kind of problem.
• With good capacity planning a company becomes ready to take competitive advantage.

Inventory planning:

Inventory planning is the process in which quantity and timing for adjusting with sales and capacity take place.

Quality assurance and control:

Good quality products increase customer loyalty, it is difficult to maintain sustainable position in the market. Once the brand image is established customer demands also increases. Total quality management helps to respond sudden changing demands of customers. In case of GSK’s they maintain a balance between cost and quality, and adopting TQM tools helps to maintain quality of products. The expectations of customers from your company is high, they want more quality product because once they move towards other company, then it will difficult to pull them back so the companies should be ready to respond the changing demands of customers

Task 9:

Cost:

Good quality products need more cost. There should be a balance between cost and quality of product. Good quality products takes more consumption of raw materials but making new strategies to control the cost helps prepare quality products with low cost. Similarly buying raw materials in bulk also helps control cost.

 

 

Quality:

Good quality attracts customers, for customers the quality of products is very important. Good quality helps to established brand image. Adopting TQM tools helps maintain the quality of product. In case of GSK’s they maintain the quality of product by adopting TQM tools, total quality management helps to maintain and improve the quality to respond the sudden changing demands of customers.

Speed:

Becoming a market leader is not easy, respond the changing customer demands of customer is very important. Delivering the right thing at right time actually matters, with the progress in the technology the demands of customer also increases. It is difficult to maintain the customer loyalty, once the customer start using the products of other companies then it will difficult to pull them back.

Task 10:

Quality assurance and control mechanism:

Fish bones:

A diagram which is mostly used in manufacturing to outline different steps like where the chances of quality issues may arise or where the requirements of resources are high, mostly used in quality control process( business dictionary.com).

Quality circles:

In quality circles 6-10 employees work together and solved problem easily. They don’t need management help, they solve the problem easily. Good quality products increase customer loyalty, it is difficult to maintain sustainable position in the market. Once the brand image is established customer demands also increases. Total quality management helps to respond sudden changing demands of customers. In case of GSK’s they maintain a balance between cost and quality, and adopting TQM tools helps to maintain quality of products

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