Professional Documents
Culture Documents
Table of Contents
Introduction..............................................................................................2
Process Improvement by GSK...................................................................2
Need of Process Improvement by GSK..................................................2
Objectives of Improving Project Processing...........................................3
Methodologies by GSK for Process Improvement.....................................3
Enterprise Resource Planning (ERP)......................................................3
Lean Management and thinking by GSK...................................................6
Elimination of Waste..............................................................................7
Implementation of appropriate CSR......................................................8
Critical Analysis of followed procedures...................................................9
Enterprise Resource Planning (ERP)......................................................9
Lean Management.................................................................................9
Conclusion.................................................................................................10
References.................................................................................................10
Procurement
Simplified
procedure with
regard to GSKs
needs
Material
management
Safe usage of
chemicals,
quarantine
SOP
management
Authorised by
GSKs
parameters
Audit Trial
Production
Production of
medicines once
approved by
governing
authorities
Distribution
from labs to
storage units
Management of
multiple storage
units
Maintenance
management
Authorised by
GSKs
parameters
Accessible
processes for
labs
The basic target through the implementation of ERP with respect to the
GSKs supply chain was to abridge and regulate the procedures which are
followed for accomplishing a task across GSK network. The functioning of
a single module in the ERP template facilitated the future GSKs operating
model through structuring the scalability which enabled the basic ways of
functioning at all sites. The implementation of the system also took away
obsolescence risk factors involved. GSK implemented ERP which
encompasses the business procedures propped up by a system which are
driven throughout the manufacturing pharmaceutical laboratories of GSK
globally and also provided the management of GSK with end control
synchronisation and business information. The program brought a
business change throughout the organisation with development due to IT
and endowed with generalization for IT changes. GSK further shared
common processes in conjunction with commercial organisational factors
including finance, order to cash and procurement through the alignment
of data into one platform. The entire positive outcomes were only due to
the strategies followed through training more than 16,000 users about
computer literacy, languages, learning styles, support change
communications through expertise and services for technology. External
sources were also used along with 600 simulations and courses. Maximum
participation was required by the employees hence GSK used mix leading
edge learning technology for sustainable business benefits. Assima ATS a
simulation tool was used for the purpose of better training and
understanding of concepts by the employees. The training portal was fully
updated with supported material of reference by the professional
developers (Mandal, 2003).
Options for ERP strategy
For balancing out the complexities of oversimplification through IT and
Line of Business (LOB) the three primary options for ERP strategies were
`
Figure 2 Model
Local
business
entity
German
entity
HUB
Australia
n entity
Malaysia
n sales
branch
Canadia
n
subsidia
Canadian
entity
HUB and
standard
spoke
German
entity
Engineer
to order
division
Customer
finance
subsidiary
HUB
German
subsidiary
After sales
services
through evaluating the gaps and propose practical solutions. The flow can
be created through reducing queues for increasing flexibility and reliability
of products (Bahensky, 2005).
Implementation of appropriate CSR
The main mission for GSK is to recover the quality of human race through
better products. The main focal points include the integrity,
entrepreneurial spirit, innovative ideas and enthusiasm for achieving
targets. Although during 2003 GSK adopted numerous principles of CSR
however it needs to adopt numerous factors through the determination of
key issues. This includes the employee practices in which all employees
are treated equally, access for medicines through the contribution in R&D
sector by collaborative investments, headship and being innovative
through establishing its own standards for influencing others, following all
ethical conducts, considering all environmental factors and in depth
collaboration with the stakeholders (Porter, 2006). For the purpose of drug
testing the industry standards must be met including the Conduct of
Clinical Trials and Communication of Clinical Trial Results which was
developed during 2002 by PhRMA. Although GSK actively participated
during its commencement however some of the aspects are not followed
including the guidelines for research objectivity and clinical practices.
Policies for animal research should also be optimised for reducing the
number of animals studied in each research. It should recognise the fact
that all nations have equal autonomy powers for biological research. The
corporate policy for Pharmaceutical Marketing and Promotion Activity
should also be followed for keeping out employees from bribery. For
supply chain, GSK should instruct the suppliers and contractors to follow
the binding clauses. However during 2003 over 350 suppliers were asked
for observance of these clauses. Regular audits should be performed for
keeping an eye on the operations (Hopkins, 2007).
Advantages
Emphasise upon core business
Widens flexibility for changing
environment
Encourages redesigning of plans
Disadvantages
Dependency
upon
service provider
Loss of critical resources
Issues regarding data
Lean Management
Advantage
Disadvantage
The decrement of waste proves vital Due to dependency upon supply
for
customer
satisfaction
while chain management there can be
delivering the just in time concept
delays in the delivery system
giving
rise
to
customer
discontent
Enhanced form of productivity due to High
investments
due
to
emphasis upon improvements in increasing the productivity and
processing system
standard
of
processes
for
implementation procedure
Organisational change at a high Requirement of high input from
altitude but can be treacherous
the
employee
which
can
overburden due to stress and
compromising the quality
Expansion of quality of products of Results
in
dismantling
the
GSK while considering the needs
preceding systems and purchase
of new machineries demanding
training of employees
`
Conclusion
The present business environment for GSK is challenging. The business
improvement process can create a direct link with the customer through
demographic data. With the large number of operating units of Tesco the
execution orders can publicized easily. Challenges including tight margin
pressure, limited budgeted labour hours and alerting consumer
demographics can easily be met through a diverse cultural change. GSK is
the leading pharmaceutical company in the world with high financial
position. It has a brand image of being environmental friendly along with
customised range of products. However it needs to improve its production
capacity for increasing the strategic position and benchmark. The
operational competence needs to be enhanced in the current political and
economic instability. No doubt the drug designing and pharmaceutical
products require huge investments but there is a need for following
appropriate project planning techniques. This report can guide through the
steps that can be taken for high-levelled strategic management.
References
Bahensky, J. A., Roe, J., & Bolton, R. (2005). Lean sigmawill it work for healthcare. Journal of
healthcare information management, 19(1), 39-44.
Carleysmith, S. W., Dufton, A. M., & Altria, K. D. (2009). Implementing Lean Sigma in pharmaceutical
research and development: a review by practitioners.R&d Management, 39(1), 95-106.
Croom, S., Romano, P., & Giannakis, M. (2000). Supply chain management: an analytical framework
for critical literature review. European journal of purchasing & supply management, 6(1), 67-83.
Gebauer, H., Kickuth, M., & Friedli, T. (2009). Lean management practices in the pharmaceutical
industry. International Journal of Services and Operations Management, 5(4), 463-481.
Finney, S., & Corbett, M. (2007). ERP implementation: a compilation and analysis of critical success
factors. Business Process Management Journal,13(3), 329-347.
Shtub, A., & Karni, R. (2010). Business process improvement. In ERP (pp. 217-254). Springer US.
Smith, S. W. (2010). Drugs and pharmaceuticals: management of intoxication and antidotes.
In Molecular, Clinical and Environmental Toxicology (pp. 397-460). Birkhuser Basel.