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Description

prepare a company profile for J&J and evaluate its philosophy on supply chain management. The requirements for the content and length of
each section is provided in the template. materials are included

Supply Chain Management Scenario
Background
Efficient and effective Supply Chain Management (SCM) is integral to business success. SCM
encompasses the end-to-end business processes necessary for a company to produce goods for delivery
to the end consumer. Integration between the processes and collaboration among the entities involved
in the processes is critical. Although there is no single solution to implementing SCM, most companies
have a strategy or approach for managing the various components of SCM.
Perhaps the most important and challenging aspect of SCM is choosing and developing working
relationships with suppliers of parts and materials needed to produce a final product. Organizations
must carefully choose and manage their suppliers to avoid any number of risks associated with failure to
deliver by a supplier. One way to mitigate these risks is for an organization to engage and incentivize
supply chain partners through Supplier Relationship Management (SRM) practices. SRM guides the
expectations and relationships among the parties and provides benefits for both sides.
Today’s complex, global business environment requires more than just agreements with suppliers. The
sources of parts and materials are no longer always procured locally. Supplier sourcing is more likely to
be conducted globally, with the potential to impact people, communities, and cultures in ways that must
be considered and addressed responsibly, legally, and ethically.
Scenario
Johnson & Johnson (J&J) is a large, multi-national company with more than 125,000 employees
worldwide. In its Credo, J&J professes responsible and ethical treatment of all its stakeholders. To that
end, J&J commits to the following: forming strong relationships with suppliers; including suppliers as
stakeholders in innovation; supporting diversity among suppliers; and providing suppliers the
opportunity to make a fair profit. In exchange, suppliers must comply with J&J’s Code of Conduct and
Responsibility Standards for Suppliers.
You serve as Chief Procurement Manager for the Medical Devices Products at J&J, a position that pays
$189,000 annually. You have been with the company for 11 years, and your team works closely with
several functions in the organization, including Finance, Marketing, IT, and R&D. One key aspect of your
job is to identify reputable supply chain partners that can move product to healthcare providers around
the world. In your leadership role, you find it important to follow the J&J Credo, especially the part
stating the following: “Customers’ orders must be serviced promptly and accurately. Our suppliers and
distributors must have an opportunity to make a fair profit.”
Allied Distributors, Inc. (AD) has approached your office about becoming a worldwide distributor for
medical devices. These products are delivered to healthcare professionals in fields like orthopedics,
neurology, cardiology, minimally invasive surgery, wound management, and women’s health. The timing
of this proposal is right because the J&J leadership team has implemented a strategic plan to improve
patient outcomes and expand market share by introducing innovative products. Your job is to engage
the procurement process to introduce a new supplier for medical devices.
©2017 Walden University
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Introducing a new supplier into the supply chain at J&J requires a good understanding of its supply chain
practices and approach to SRM. The resources below provide more detail information in these areas.
J&J Homepage
https://www.jnj.com/
J&J Product Information – Medical Devices
https://www.jnj.com/healthcare-products/medical-devices
J&J Credo
https://www.jnj.com/about-jnj/jnj-credo
J&J Code of Conduct
https://jnj.brightspotcdn.com/33/7c/6d77ff4b4adb8644d10f298d819e/code-of-conduct.pdf
J&J Responsibility Standards for Suppliers
https://www.jnj.com/about-jnj/company-statements/responsibility-standards-for-suppliers
J&J 2015 Citizenship & Sustainability Report
https://jnj.brightspotcdn.com/25/f7/b3172c104796b553e9ea35bac1d0/2015-jnj-citizenshipsustainability-report.pdf
©2017 Walden University
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Supply Chain Management Plan
(Project Name)
Student Name
Walden University
Date
©2017 Walden University
1
Table of Contents
Company Profile……………………………………………………………………………………………………………… 3
Supply Chain Management Philosophy ……………………………………………………………………………… 3
Supply Chain Management Practices ………………………………………………………………………………… 3
Project Scope …………………………………………………………………………………………………………………. 4
Project Schedule …………………………………………………………………………………………………………….. 4
Project Cost ……………………………………………………………………………………………………………………. 6
Project Budget ……………………………………………………………………………………………………………….. 7
©2017 Walden University
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Company Profile
Prepare a company profile. The profile should include the items listed below. (1 page)
General Business Information
• Business Name
• Primary Business Location (e.g., Headquarters Location)
Company Overview
• Business Purpose (e.g., Business Function/Mission Statement)
• Size/Market Reach (e.g., Small, Medium, Large/Local, National, Global)
Business Details
• Principal Customers for Medical Devices
• Major Competitors for Medical Devices
Supply Chain Management Philosophy
Supply Chain Management (SCM) encompasses managing and integrating essential business processes
across an organization. Efficient and effective SCM affords companies an advantage over their
competitors. While most organizations adhere to industry standards and best practices in SCM (e.g., ISO
9000), they may also incorporate unique aspects that differentiate them from the competition. These
unique aspects are typically aligned with the company’s culture, mission, and philosophy on social
responsibility and accountability.
Evaluate Johnson & Johnson’s (J&J) SCM philosophy (2-3 pages)
• Describe J&J’s philosophy on SCM
• Explain how J&J’s philosophy on SCM supports its mission statement
• Explain how J&J’s three key focus areas (People, Places, and Practices) apply to its
relationships with supply chain partners.
Supply Chain Management Practices
Supply Chain Management (SCM) encompasses the end-to-end business processes necessary for a
company to produce goods and services for delivery to the end consumer. Integration between the
processes and collaboration among the entities involved in the processes are critical. In 2001, the Global
Supply Chain Forum recommended a common definition of SCM and identified eight key business
processes that they proposed should be implemented and integrated.
Supply Chain Management Process (1 page)
• Briefly describe each of the eight key business processes identified in the article “The Supply
Chain Management Processes,” including the purpose of each process in managing the
supply chain.
Evaluate J&J’s approach to Supplier Relationship Management (SRM) (2-3 pages)
• What is J&J’s philosophy on SRM?
• What are the requirements for becoming a supplier partner with J&J?
• What role do suppliers play in achieving the mission of J&J?
• How effective are J&J’s SRM practices?
©2017 Walden University
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Project Scope
The scope of the project is derived from stakeholder requirements and is used as input to create the
Work Breakdown Structure (WBS). The WBS depicts the total scope of the project, is the primary source
of information for the development of the project schedule and the determination of project resources,
and is an important element of performance measurement.
The final deliverable for this project is a supplier product agreement between J&J and Allied Distributors
for the production of medical devices. Five sub-deliverables that must be produced before the supplier
product agreement can be created are: Sourcing Requirements; Sourcing Proposal; Supplier Selection
Criteria; Supplier Responsibility Standards; and Supplier Performance Measurement Criteria.
1.0
Supplier Product
Agreement
1.1
1.2
1.3
Sourcing
Requirements
Sourcing
Proposal
Supplier
Selection Criteria
1.4
Supplier
Responsibility
Standards
1.5
Supplier
Performance
Measurement
Criteria
Compose a project scope statement (1 page)
• Describe the overall scope of work required to create the Final Project deliverable, a
supplier product agreement between J&J and Allied Distributors.
• Describe each of the five sub-deliverables that must be created in order to produce the final
project deliverable.
Project Schedule
A project schedule is developed by estimating the duration of the activities that must be performed in
order to produce each of the sub-deliverables. The project schedule is typically represented in a Gantt
Chart. The Gantt Chart depicts the project activities, durations, start and end dates, and predecessors. It
also shows the project’s critical path. Activities on the critical path are those that, if delayed, will impact
the project finish date.
Define Project Activities
• Using the outline view of the WBS below, define at least two activities that must be
performed in order to produce each of the five sub-deliverables. The activities should be
aligned with J&J’s SRM practices for new supplier partners.
1. Supplier Product Agreement
1.1. Sourcing Requirements
©2017 Walden University
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1.1.1.Activity
1.1.2.Activity
1.2. Sourcing Proposal
1.2.1.Activity
1.2.2.Activity
1.3. Supplier Selection Criteria
1.3.1.Activity
1.3.2.Activity
1.4. Supplier Responsibility Standards
1.4.1.Activity
1.4.2.Activity
1.5. Supplier Performance Measurement Criteria
1.5.1.Activity
1.5.2.Activity
Estimate Activity Durations
The next step after defining the activities for the project is to estimate the duration of each activity.
Using Table 2 below and considering the available resources (for this project, only human resources
are required) provided in Table 1:
•
•
•
Estimate the duration for each of the project activities and enter the durations in the table.
Describe the tool/technique you used to estimate the activity durations. (2-3 paragraphs)
Describe a tool/technique other than the one you used that can be used for estimating
activity durations. (2-3 paragraphs)
Table 1: Available Project Resources
Resource
Rate
Project Sponsor
Project Manager
Procurement Manager
Human Resource Representative
Environment, Health, Safety, & Sustainability (EHS&S)
Representative
Legal/Regulatory Representative
$98/hour
$46/hour
$33/hour
$36/hour
$73/hour
$92/hour
Table 2: Project Deliverables/Activities and Durations
Deliverable/Activity
1. Supplier Product Agreement
1.1. Sourcing Requirements
1.1.1.Activity
1.1.2.Activity
1.2. Sourcing Proposal
1.2.1.Activity
1.2.2.Activity
©2017 Walden University
Duration
Duration
Duration
Duration
Duration
5
1.3. Supplier Selection Criteria
1.3.1.Activity
1.3.2.Activity
1.4. Supplier Responsibility Standards
1.4.1.Activity
1.4.2.Activity
1.5. Supplier Performance Measurement
Criteria
1.5.1.Activity
1.5.2.Activity
Duration
Duration
Duration
Duration
Duration
Duration
Gantt Chart
• Assume that the project starts on the first day of this class. Using the data in Table 2 above,
construct a Gantt Chart for the SCM project.
• The Gantt Chart should depict Activity Name, Start Date, Finish Date, Duration, and
Predecessors.
• The Gantt Chart should display the critical path.
Project Cost
Project Cost Management involves estimating how much it will cost to complete all of the project
activities and then aggregating those costs to determine the total cost of the project. In order to
estimate the cost of the project, resources must be applied to the project activities.
Project Cost Estimates
Using the available resources provided in Table 1 above and assuming that all resources will be assigned
100%:
• Record the resources name(s), quantity, and rate in Table 3 below. Note that more than one
resource may be needed for the activities.
• Estimate the cost for each of the project activities and enter the costs in the table. Calculate
the total cost of the project.
• Describe the tool/technique you used to estimate the activity costs. (2-3 paragraphs)
• Describe a tool/technique other than the one you used that can be used for estimating
activity costs. (2-3 paragraphs)
Table 3: Project Deliverables/Activities, Durations, Resources, Cost
Deliverable/Activity
1. Supplier Product Agreement
1.1. Sourcing Requirements
1.1.1.Activity
1.1.2.Activity
1.2. Sourcing Proposal
1.2.1.Activity
©2017 Walden University
Duration
Resource
Name(s)
Resource
Quantity/
Rate
Activity Cost
Duration
Duration
Duration
6
1.2.2.Activity
1.3. Supplier Selection Criteria
1.3.1.Activity
1.3.2.Activity
1.4. Supplier Responsibility
Standards
1.4.1.Activity
1.4.2.Activity
1.5. Supplier Performance
Measurement Criteria
1.5.1.Activity
1.5.2.Activity
Total:
Duration
Duration
Duration
Duration
Duration
Duration
Duration
Project Budget
The project budget is developed after project costs have been estimated. The budget represents the
amount of funding within a certain period that will be needed for the project.
From the cost estimates in Table 3 above:
• Prepare a Basis of Estimates to document the estimating techniques that were used to
determine the project costs. (1 page)
• Prepare a budget for the first quarter of the SCM Project using the “Project Budget” Excel
template.
©2017 Walden University
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