Executive summary

Johnson & Johnson Incorporation is a private company that is engaging in the manufacturing and R&D (Research & Development) of products in the healthcare field. Mainly the company is focusing on its operation to develop effective products and achieve customer satisfaction. But it is facing risks related to the development of products. We are facing product quality risks related to the implementation of medical devices. Due to present issue company operation is completely affecting and lead to a decrease in sales and business performance. To eradicate such issues, it is required to take different actions by the business management.

Some of the major actions are implementing product quality analytics, using kaizen for continuous improvement, a quality control management system, and incorporating quality standards. These actions will lead to improving the business operation and eliminate a present issue that is facing the organization. The suggested solution is product quality analytics for its operation because it will analyze the data related to production and provide insights that will help to make proper decisions. Business management should consider quality analytics where it will process the data and focus on achieving proper analytical results. Moreover, improving the business operation and producing effective quality products will help to provide proper customers and achieve a competitive advantage.

Table of Contents

Executive summary. 2

1.    Identify the most important facts surrounding the case. 3

2.    Identify the key issue. 5

3.    Analytical data to support your identification of the issue including charts, graphs, spreadsheets, etc. 8

4.    Specify alternative courses of action. 10

5.    New data models to support your alternative solutions including charts, graphs, spreadsheets, etc. 11

6.    Evaluate each course of action. 14

7.    Recommend the best course of action. 16

8.    Conclusions 17

References 17

1. Identify the Most Important Facts Surrounding the Case

One of the companies which are selected to conduct the case analysis is Johnson & Johnson Incorporation. It is a pharmaceutical company that was established in the year 1886 in New Jersey, United States. It is the largest company in the healthcare industry. After conducting research, it is identified that the company has been divided into two publicly traded companies such as pharmaceuticals and consumer products. It is engaging in manufacturing, R&D (Research & Development), and selling pharmaceutical products. The company is focusing on developing various products and increasing its profits. Currently, Johnson & Johnson Incorporation is operating in 60 countries and has more than 250 subsidiaries. The main purpose of Johnson & Johnson Incorporation is to protect employee health and achieve effective results. Also, its aim is to serve quality products to customers which impact positively on the business and increase performance.

Johnson & Johnson (J & J) Incorporation is developing and selling a wide variety of products for customers. In this case, it is clearly specified that the three key segments that the company focusing include consumer, pharmaceutical, and medical devices. Some of the consumer products which are developed by the business include skin and hair care, topical care, baby care, and other products. Whereas medical and diagnostics products provided by businesses will support hospitals and doctors to provide effective service in different conditions(Johnson & Johnson Private Limited, 2018).

Current Business Challenges at Johnson & Johnson

The pharmaceutical segment focuses on health needs and areas like infectious diseases, metabolism, and immunology. These are the various key segments that are focused on by the business. The products are helping different people and making consumers happier. The major competitors of the current company include Merck, 3M Health Care, Abbott Laboratories, and Novartis. The company is also maintaining proper structure and infrastructure within the organization. Along with the structure, it has outlined various guidelines to achieve the proper outcome and increase business performance. Finally, it also developed different rules and regulations for the business.

The major fact of the present case is Johnson & Johnson Incorporation is facing different issues that are impacting the business operation. Some of the important facts which are related to the current case include;

• Delay in the manufacturing process
• Reduction in the quality of products affects company earnings
• Mostly it is relying on third parties for the development of products
• Competitive products in the market are affecting business profits

The issues will affect business sales and decrease the customer demand for company products. The main aim of getting lost for the organization is due to the failure in the implementation of technology. Another major fact that was recognized after conducting the case analysis is that the quality and other issues of the company will result in reputational damage to the organization and decreases its performance. By observing the issues, it is understood present issues have a major impact so the company needs to take different actions for eradicating them and increasing business sales. In the year 2020, due to the covid-19 pandemic, there was an impact on business finances and resulted in a negative impact on business operations.

2. Identify the Key Issue

After conducting the case analysis, Johnson & Johnson Incorporation is facing one significant organizational issue which is quality control for the business products. This is a major issue for the business where it impacts the organization’s performance. While manufacturing and developing consumer products and pharmaceuticals, the company must focus on product quality that will help to achieve success and reduces the issues for business. In the firm, due to the low quality of consumer products and devices, there is a decrease in achieving its goals and objectives. Not only consumer products but it is developing pharmaceutical products business. Because of its quality, there was a decrease in company sales.

For example, in the Covid-19 pandemic situation company has developed various products and focused on the development of the Covid-19 vaccine. But due to the quality issue of the product, people may not trust the Johnson & Johnson Incorporation vaccine. It will decrease business operations. For the pharmaceutical business and medical devices, there is a need to focus on developing improved products with quality. But there was a decrease in product quality because of a lack of quality control system and standards. Not only standards but the company is not adopting appropriate technology which is necessary for the development of products according to the customer’s need to and achieves competitive advantage.

Competitive Advantages

In recent days, the company is operating in a highly competitive market so it is developing various products with less cost and quality products. So, it pressures the company to develop quality products by the business(Johnson & Johnson, 2021). Majorly companies need to focus on adopting new technology that will help to develop medical devices and company products as requested by the customer and better than competitive business in business because it will help to achieve competitive advantage. Due to the present issue, there is a chance of a negative impact on business.The company is developing various products but it is relying on a third party in order to manufacture the company product.

But when the company relies on the third part there is a chance of not meeting the manufacturing requirements which results in decreasing business sales. As per the company’s request to produce quality products but third party will not be able to deliver to the affected business. Also, if third parties which are involved in developing company products are not providing quality assurance as per the agreement, it will lead to achieving various financial difficulties for the organization and it is failing to provide a quality product. Due to current issues, the company will result in delays in developing products and impacts on business. So, to reduce the quality issue companies should not rely on a third party, it needs to focus on implementing different procedures or quality control programs.

Figure 1: Process of company issue and its impact.

Johnson & Johnson Incorporation is focusing on manufacturing different products in order to deliver timely but not developing high-quality products. The most important reasons for particular issues in the business include production quality deviations and actions that are followed by the business management while developing products(Johnson & Johnson, 2021).  The present issue related to quality products is impacting the business manufacturing operation and declines in business sales. To improve particular issues in the business there is a need to focus on making different actions that will improve its efficiency and provide products on time for the customer.

Majorly businesses should do proper research and develop innovative products in the market that will help to achieve competitive advantage. In this case, if a company continuously developlow-quality customer product or devices then it decreases its profits and sales. The current issue has led to a decrease in business sales. Therefore, it is a major issue that will result in decreasing organization performance and affect the business operation.

3. Analytical Data to Support Your Identification of the Issue Including Charts, Graphs, Spreadsheets, etc.

After conducting the case analysis, it was recognized that one of the important issues that are facing the organization is manufacturing quality products. Also, the company is mostly relying on third-party organizations and not delivering products on time to customers. The analytical data that is supporting for the company issues include;

Analytical data for quality control issue

Figure 2: Analytical data of business problems resulting from poor quality.

The figure provided has described Johnson & Johnson Incorporation’s quality control in the business for the development or manufacturing of medical devices(Won, et al., 2019). The current quality control issue is increasing due to improper actions made by the business and not using appropriate technology to control the present issue in business. Day by day it is decreasing the control of quality for developing products.

Analytical data for delivering products timely

Figure 3: Analytical data of product delivery on time.

The figure provided is related to analytical data on product delivery on time. Based on the graph, it is provided that 3.78 is for product delivery. So, the value is low due to the understood company not delivering products on time and decreasing the business performance.

4. Specify Alternative Courses of Action

In the healthcare industry, Johnson & Johnson Incorporation is a leading company that needs to focus on developing high-quality products. This will enable us to increase customer satisfaction and achieve business success. After conducting the case analysis, it was discussed that more data is collected by the business and shared within the business and complete industry. The main purpose of the gathering is to respond to future challenges. One of the alternative courses of action suggested for the business is product quality analytics. The analytics will help to analyze such data and improve business properly for developing effective products and decreasing cost.

The selected product quality analytics is beneficial for Johnson & Johnson because it will analyze data related to production and existing developed products. After analysis, it will provide insights and information. Based on the information, the company will be able to develop new products and focuses on improving developed product quality. This will help to increase customer satisfaction and provide an effective solution.

The main aim of choosing particular analytics action for business is to decrease the current issue that is facing the organization. With the provided information, the company production manager and quality engineer will be able to take proper action based on the business and customer needs. Majorly there is a possibility to change the manufacturing process and avoid business problems like technology and quality issues. The present alternative course of action will improve customer satisfaction and the company will be able to make effective improvements for increasing the quality of products in the business(Cao, 2018). The particular solution for the organization is to enhance organizational performance and decrease the challenges of business. Finally, the action will help businesses to optimize their products. Also, it supports businesses to eradicate the development of improper quality products.

5. New data Models to Support Your Alternative Solutions Including Charts, Graphs, Spreadsheets, etc.

For Johnson & Johnson Incorporation, it is suggested to focus on various technologies and solutions that will help to avoid the present issues and future challenges. One of the alternative solutions is product quality analytics which will help in offering critical information related to company products and focuses on product quality.

Figure 4: Data model of product quality analytics.

The above-shown figure is related to product quality analytics. The present analytics will help the organization to analyze the root cause of the quality issue in business. Also, it will investigate the current problem which is product quality(Hwang & Yoon, 2021). Majorly understands different market needs and competitor product quality based on that provided information. Along with information, it provides consumer needs that will help the organization to develop effective products and achieve success.

Figure 5: Data model of continuous improvement.

Kaizen is another important model which is considered for business product quality improvement. It will majorly focus on eradicating waste and implementing effective quality products(Whittington, 2015). The above-shown data model is performed in eight different stages by understanding the business problem and providing the solution to the business in order to develop products as per needs and improves the process. The present model will majorly focus on recognizing the different areas of improvement for developing a quality product and developing a proper solution.

The next model which is suggested for the business to reduce business issues is the quality control management system. It is most important for business because it helps in performing direct activities and improves its effectiveness. By observing the current data model, it is recognized that a quality management system focuses on various aspects like design control, resources, changes, production control, preventive actions, and other elements. From the data model, it is understood that the company needs a quality control management system that will focus on all aspects of the manufacturing organization and implements quality products to improve its operation.

Figure 6: Data model of Quality Control Management System.

These are some of the data models which will provide alternative solutions for the current organizational issue. Based on these solutions, Johnson & Johnson Incorporation will be able to eradicate the current issue and improve business operation.

6. Evaluate each course of action

Product quality analytics

The alternative action which was provided for business is the best solution for the organization. If the present organization adopts product quality analytics in business then it will decrease issues related to product quality control. Not only product quality but improves the manufacturing operation. It will enhance business sales and increase the company’s reputation. One of the major reasons is the company will be able to analyze production data and offer predictions for the business to increase the issue and achieve proper output in the business operation. Some of the benefits which will be achieved by adopting product quality analytics are that the company can utilize raw materials effectively for the development of business products. Also, it will increase the production and machine efficiency of the organization.

Continuous improvement using Kaizen

The business is suggested to take another course of action to address the present issue it is facing. Most manufacturing organizations are using Kaizen to enhance manufacturing consumer product quality. In the business world, Johnson & Johnson Incorporation identified an issue that Kaizen addressed. Next, brainstorm the possible improvements that can be made to the current existing process. Later, develop those improvements in order to evaluate its quality and achieve the final results that are expected by the business to achieve success(Information Resources Management Association, 2019). The major opportunities achieved by the organization with Kaizen are increased business productivity, decreased wastage, and enhanced customer satisfaction. Through the use of Kaizen, major support is provided in changing operations and continuous improvement is achieved, leading to positive changes in manufacturing.

Quality control management system

The business will focus completely on quality control and suggest the following action to eradicate the present issue. With the present system, businesses make sure to improve product quality and meet the needs of customers. By implementing a quality control management system in the business there is a possibility to increase the efficiency of using business resources and also make sure to enhance the profits of the business. Using a quality management system, Johnson & Johnson Incorporation measures and detects quality defects in a timely manner.

Majorly there is a chance of reducing the gaps in organization operation. The benefits of the implementation of a quality management system include improving customer satisfaction, better control of the business operation, and control of the complete process. Due to the present action, the company will reduce quality issues facing in business.

Develop quality management standards

It is also another action that must follow by the business along with present technology or systems. Businesses must follow ISO 9001:2015, one of the important standards, to increase product quality and make their operations effective. The standard is based on the different quality management principles like relationship management, customer focus, engagement, improvement, leadership, and others(Zgirskas, Ruzevicius, & Ruželė, 2021). By applying the present standards company can promote the organization’s improvement. The company uses six sigma so along with its need to use ISO 9000 and AS9100 quality standards in business to focus on product quality and decreases present issue.

7. Recommend the best course of action

The above section provided different courses of action and their benefits for reducing the present issue. But from all those actions, product quality analytics is recommended for the business to improve its operation and satisfy customers. The main goal of recommending the present course of action for Johnson & Johnson Incorporation is to decrease quality control for the developing products. The major process followed by current analytics technology is collecting data that is related to production that will analyze effectively and provide predictions. Also, it will recognize the insight and offer recommendations for the manufacturing process to control quality. Furthermore, one of the opportunities achieved by the current manufacturing organization is to increase production and offer various opportunities. By following prescriptive quality analytics and checking product quality, we will produce product quality analytics.

Also, it will use predictive quality analytics to reduce the issue and take corrective action for decreasing loss and increase productivity. Predictive quality analytics is present in the suggested solution. It has the ability to process complete data and extract insights regarding the business process. In addition, to achieve results, the company needs to make the appropriate decision(Jugulum, 2018). Additionally, the organization will effectively serve customers and provide them with the product according to their demands. Furthermore, it will lead to increase business sales and profits. Finally, the organization should decrease the issues faced by the firm to ensure the best solution.

8. Conclusions

Johnson & Johnson Incorporation considers and addresses organizational issues and provides solutions for businesses. In addition, it focuses on developing different kinds of products and medical devices. Additionally, pharmaceuticals is an important segment of the business where the company is manufacturing and selling the products for customers. Furthermore, the organization identifies the issues in the report and proposes an effective course of action for resolving them and improving business processes. Lastly, one major issue observed for the current company is the need to ensure product quality control. The issue is impacting the organization’s performance and production.

Use product quality analytics to resolve such issues. It has the ability to check the issue properly and resolve it by providing predictions. Resources require the involvement of management to effectively address the issue, as their decision will significantly impact the outcome. Additionally, the business will develop a product of higher quality through the decision made. Furthermore, along with the present solution, providing other solutions like implementing a quality management system, quality standards, and Kaizen for continuous improvement. Business management needs to focus on all these solutions to implement in the organization because those will improve the quality of products and achieve various opportunities.

References

Cao, L. (2018). Data Science Thinking The Next Scientific, Technological and Economic Revolution. Springer International Publishing.

Hwang, J., & Yoon, Y. (2021). Data Analytics and Visualization in Quality Analysis Using Tableau. CRC Press.

Information Resources Management Association. (2019). Disruptive Technology Concepts, Methodologies, Tools, and Applications. IGI Global.

Johnson & Johnson. (2021). Position on Quality and Compliance. Johnson & Johnson .

Johnson & Johnson Private Limited. (2018). Our Business. Retrieved from jnj: https://www.jnj.in/our-business

Jugulum, R. (2018). Robust Quality Powerful Integration of Data Science and Process Engineering. CRC Press.

Whittington, O. R. (2015). Wiley CPAexcel Exam Review 2016 Study Guide January Business Environment and Concepts. Wiley.

Won, Y. L., Ko, K. S., Park, J. O., Choi, Y. j., Lee, H., Sung, J.-m., & Lee, M.-y. (2019). Achievements, Problems, and Future Direction of the Quality Control Program for Special Periodic Health Examination Agencies in Republic of Korea. Safety and Health at Work, 10(01), 125-129. Retrieved from www.tripwire.com.

Zgirskas, A., Ruzevicius, J., & Ruželė, D. (2021). Benefits of Quality Management Standards in Organizations. Standards, 01(02), 154-166. doi:https://doi.org/10.3390/standards1020013

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