Johnson & Johnson Operations Management

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Johnson & Johnson Mitchell Christensen Minnesota School of Business Operations Management Mr. Stewart 12/15/13 Overview/Introduction Johnson & Johnson (JNJ) is a Fortune 500 company that was started in 1886. JNJ was founded by three bothers in New Brunswick, New Jersey, where the headquarters remains (Johnson & Johnson, 2013). JNJ is classified by YAHOO! FINANCE as a major drug manufacturer (2013). However, JNJ also has a strong holding in the consumer products market. One of their greatest inventions is the BAND-AID, which has grown into a household name. Robert Wood Johnson created Our Credo which lays out its priorities, the first being a responsibility to the people using their products, secondly to their employees, next to their communities, and finally to their stockholders (Johnson, 1943). Our Credo is used to guide decisions of management and employees alike. Using this as a key management tool is what JNJ attributes to their continued success throughout their life (Johnson & Johnson, 2013). It is crucial that JNJ understand the importance of operations management, because JNJ has “more than 275 operating companies in more than 60 countries employing approximately 128,700 people” (Johnson & Johnson, 2013). With even the slightest mistake it could end up costing them in a variety of ways. Not only could their profits decline by not getting their products to consumers when they need them, but also that something as simple as a shipping delay could mean the difference between life and death. If there is not medicine that is needed to perform a necessary surgery, then a patient could very well end up dead. Meaning that much testing and thought need to go into making sure that process and procedures are done correctly and efficiently the first time around. Three ways of ensuring sound operations are forecasting, operations

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