Semester 2 Assgn 2 Opeartion Mng. Vs Quality Management

ASSIGNMENT 2 [TYPE

Zahid Nazir Roll # AB523655

THE COMPANY ADDRESS]

OPERATIONS MANAGEMENT OPERATION MANAGEMENT VS QUALITY MANAGEMENT

ZAHID NAZIR Roll No. AB523655 MBA Executive 2nd Semester , Spring 2009

ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD C O M M O N W E A L T H O F L E A R N I N G1 E X E C U T I V E M B A P R O G R A M M E

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OPERATION MANAGEMENT Every business is managed through three major functions: finance, marketing, and operations management. Figure 1-1 illustrates this by showing that the vice presidents of each of these functions reports directly to the president or CEO of the company. Other business functions—such as accounting, purchasing, human resources, and engineering—support these three major functions. Finance is the function responsible for managing cash flow, current assets, and capital investments. Marketing is responsible for sales, generating customer demand, and understanding customer wants and needs. Most of us have some idea of what finance and marketing are about, but what does operations management do?

Fig: Organizational chart showing the three major business functions

Operations management (OM) is the business function that plans, organizes, coordinates, and controls the resources needed to produce a company’s goods and services. Operations management is a management function. It involves managing people, equipment, technology, information, and many other resources. 2

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Operations management is the central core function of every company. This is true whether the company is large or small, provides a physical good or a service, is for profit or not for profit. Every company has an operations management function. Actually, all the other organizational functions are there primarily to support the operations function. Without operations, there would be no goods or services to sell. Consider a retailer such as Gap that sells casual apparel. The marketing function provides promotions for the merchandise, and the finance function provides the needed capital. It is the operations function, however, that plans and coordinates all the resources needed to design, produce, and deliver the merchandise to the various retail locations. Without operations, there would be no goods or services to sell to customers.

WHY OPERATION MANAGEMENT The importance of operations management was not always recognized by business. In fact, following World War II American corporations were dominated by marketing and finance functions. The United States had just emerged from the war as the undisputed global manufacturing leader due in large part to efficient operations. At the same time Japan and Europe were in ruins with their businesses and factories destroyed. U.S. companies were left to fill these markets: the post-World War II period of the 1950s and 1960s represented the golden era for U.S. business. The primary opportunities were in the areas of marketing, to develop the large potential markets for new products, and in finance, to support the growth. Since there were no significant competitors, the operations function became of secondary importance, because companies could sell what they produced. Even the distinguished economist John Kenneth Galbraith was noted as saying: “the production problem has been solved.” Then in the 1970s and 1980s things changed. American companies experienced large declines in productivity growth, and international competition began to be a challenge in many markets. In some markets such as the auto industry,

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American corporations were being pushed out. It appeared that U.S. firms had become lax with the lack of competition in the 1950s and 1960s. They had forgotten about improving their methods and processes, partly due to the lack of competitive challenge. In the meantime, foreign firms were rebuilding their facilities and designing new production methods. By the time foreign firms had recovered, many U.S. firms found themselves unable to compete. To regain their competitiveness companies turned to operations management, a function they had overlooked and almost forgotten about. The new focus on operations and competitiveness has been responsible for the recovery of many corporations, and U.S. businesses experienced a resurgence in the 1980s and 1990s. Operations became the function at the core of organizational competitiveness. Although U.S. firms have rebounded, they are fully aware of continued global competition. Companies have learned that to achieve long-run success they must place much importance on their operations.

Systematic Approach to Org. Processes

Business Education

Operations Management

Cross-Functional Applications

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Career Opportunities

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SYSTEM OF OPERATION MANAGEMENT (Transformation Process) The role of operations management is to transform a company’s inputs into the finished goods or services. Inputs include human resources (such as workers and managers), facilities and processes (such as buildings and equipment), as well as materials, technology, and information. Outputs are the goods and services a company produces. Figure shows this transformation process. At a factory the transformation is the physical change of raw materials into products, such as transforming

leather and rubber into sneakers, denim into jeans, or plastic into toys. At an airline it is the efficient movement of passengers and their luggage from one location to another. At a hospital it is organizing resources such as doctors, medical procedures, and medications to transform sick people into healthy ones. Operations management is responsible for orchestrating all the resources needed to produce the final product. This includes designing the product;

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deciding what resources are needed; arranging schedules, equipment, and facilities; managing inventory; controlling quality; designing the jobs to make the product; and designing work methods. Basically, operations management is responsible for all aspects of the process of transforming inputs into outputs. Customer feedback and performance information are used to continually adjust the inputs, the transformation process, and characteristics of the outputs. As shown in Figure , this transformation process is dynamic in order to adapt to changes in the environment. Proper management of the operations function has led to success for many companies. For example, in 1994 Dell Inc. was a second-tier computer maker that managed its operations similar to others in the industry. Then Dell implemented a new business model that completely changed the role of its operations function. Dell developed new and innovative ways of managing the operations function that have become one of today’s best practices. These changes enabled Dell to provide rapid product delivery of customized products to customers at a lower cost, and thus become an industry leader. For operations management to be successful, it must add value during the transformation process. We use the term value added to describe the net increase between the final value of a product and the value of all the inputs. The greater the value added, the more productive a business is. An obvious way to add value is to reduce the cost of activities in the transformation process. Activities that do not add value are considered a waste; these include certain jobs, equipment, and processes. In addition to value added, operations must be efficient. Efficiency means being able to perform activities well, and at the lowest possible cost. An important role of operations is to analyze all activities, eliminate those that do not add value, and restructure processes and jobs to achieve greater efficiency. Today’s business environment is more competitive than ever, and the role of operations management has become the focal point of efforts to increase competitiveness by improving value added and efficiency.

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DIFFERENCES BETWEEN MANUFACTURING AND SERVICE ORGANIZATIONS Organizations can be divided into two broad categories: manufacturing organizations and service organizations, each posing unique challenges for the operations function. There are two primary distinctions between these categories. First, manufacturing organizations produce physical, tangible goods that can be stored in inventory before they are needed. By contrast, service organizations produce intangible products that cannot be produced ahead of time. Second, in manufacturing organizations most customers have no direct contact with the operation. Customer contact is made through distributors and retailers. For example, a customer buying a car at a car dealership never comes into contact with the automobile factory. However, in service organizations the customers are typically present during the creation of the service. Hospitals, colleges, theaters, and barber shops are examples of service organizations in which the customer is present during the creation of the service. The differences between manufacturing and service organizations are not as clear-cut as they might appear, and there is much overlap between them. Most manufacturers provide services as part of their offering, and many service firms manufacture physical goods that they deliver to their customers or consume during service delivery. For example, a manufacturer of furniture may also provide shipment of goods and assembly of furniture. On the other hand, a barber shop may sell its own line of hair care products. You might not know that General Motors’ greatest return on capital does not come from selling cars but rather from post sales parts and service. The differences between manufacturing and services are shown in Figure 1-3, which focuses on the dimensions of product tangibility and the degree of customer contact. Pure manufacturing and pure service extremes are shown, as well as the overlap between them.

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Fig: Characteristics of manufacturing and service organizations

Even in pure service companies some segments of the operation may have low customer contact while others have high customer contact. The former can be thought of as “back room” or “behind the scenes” segments. Think of a fastfood operation such as Wendy’s, for which customer service and customer contact are important parts of the business. However, the kitchen segment of Wendy’s operation has no direct customer contact and can be managed like a manufacturing operation. Similarly, a hospital is a high-contact service operation, but the patient is not present in certain segments, such as the lab where specimen analysis is done. In addition to pure manufacturing and pure service, there are companies that have some characteristics of each type of organization. For these companies it is difficult to tell whether they are actually manufacturing or service organizations. Think of a post office, an automated warehouse, or a mail-order catalog business. These companies have low customer contact and are capital intensive, yet they provide a service. We call these companies quasimanufacturing organizations.

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TYPES OF OPERATIONS

Types of Operations

Manufacturing System

Continuous Production

Mass Production (Flow)

Service System

Intermittent Production

Processing Production

Batch Production

Job Production

Basic Types of Production Processes

•Intermittent Production System Production is performed on a start-and-stop basis, such as for the manufacture of made-to-order products.

•Mass Production A special type of intermittent production process using standardized methods and single-use machines to produce long runs of standardized items. Mass Customization –Designing, producing, and delivering customized products to customers for at

or near the cost and convenience of mass-produced items.

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–Mass customization combines high production volume with high product

variety. –Elements of mass customization:

• • •

Modular product design Modular process design Agile supply networks

Continuous Production Processes –A production process, such as those used by chemical plants or refineries, that

runs for very long periods without the start-and-stop behavior associated with intermittent production. –Enormous capital investments are required for highly automated facilities that use special-purpose equipment designed for high volumes of production and little or no variation in the type of outputs. Mass Production System (Flow) Continuous Production

• • • • • • • • • • •

Anticipation of demand May not have uniform production Standardized Raw material Big volume of limited product line Standard facility- high standardization. Fixed sequence of operation Material handling is easier High skilled operator not required More Human problem is foreseen Huge investment. High raw material inventory.

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Processing Production System

• • • • • • •

Extended form of mass production system F.G of one stage is fed to next stage More automatic machines One basic raw material is transferred into several products at several stages. Less highly skilled workers required More human problems foreseen Highly standardized system

Batch Production System

• • • • • • •

Highly specialized Human resource is required Highly specialized multi tasking machines Machines are shared. Production in batches Production lots are based on customer demand or order. No single sequence of operation Finished goods are heterogeneous

Custom built / job order production system

• • • • • •

Highly specialized Human resource is required Highly specialized multi tasking machines Machines are shared Raw material is not standardized Process is not standardized No scope for repetition of production

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Comparative study of different production systems Type

Mass/ Flow

Process

Job

Batch

Per unit manf.cost

High

Low

High

High

Size &

Large

V. Large

Small

Medium

Capital Invest.

Less

High

Low

High

Flexibility

No

No

More

More

Technical ability Skills

Less

Less

High

High

Orgn. Structure

Line staff

Line staff

Functional

Functional

Industrial application

Automobile

Chemical

Construction

Sugar

Petroleum

Bridges

Consumer prod.

Refinery

Milk process.

SPM

Parameter

M/c. Tools

OPERATIONS MANAGEMENT DECISIONS Decisions made in operations management are mainly of two types: • Strategic Decisions • Tactical Decisions Long-term decisions that set the direction for the entire organization are called strategic decisions. They are broad in scope and set the tone for other, more specific decisions. They address questions such as: What are the unique features of our product? What market do we plan to compete in? What do we believe will be the demand for our product?

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Short-term decisions that focus on specific departments and tasks are called tactical decisions. Tactical decisions focus on more specific day-to-day issues, such as the quantities and timing of specific resources. Strategic decisions are made first and determine the direction of tactical decisions, which are made more frequently and routinely. Therefore, we have to start with strategic decisions and then move on to tactical decisions. This relationship is shown in Figure. Tactical decisions must be aligned with strategic decisions, because they are the key to the company’s effectiveness in the long run. Tactical decisions provide feedback to strategic decisions, which can be modified accordingly.

Fig: The relationship between strategic and tactical decisions

FUNCTIONS OF OPERATION MANAGEMENT Operation management involves the management of human, technology and system resources. To manage these resources, operations managers must perform the same basic functions that all mangers are expected to perform. The operations management functions include planning, directing, organizing, staffing, motivating and controlling. PLANNING Planning is a management function that involves the establishment of goals and objectives towards which employees direct a course of action. There are many different type of planning activities.

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• Strategic Planning: It involves the establishment of long-term goals for the entire organization or system. An example of an OM strategic plan is to achieve a goal of growth by building and locating a new production facility. • Tactical Planning: Planning that involves a more specific effort to establish a means by which to achieve the desired goals and objectives in the medium term is sometimes referred to as tactical planning. An example of an OM tactical plan is the stepwise implementation procedures for locating a new plant. • Operational Planning: It’s a shorter term planning that implements the critical objectives. If the first step of an OM tactical plan to locate a new plant is to determine which state the plant is to be located in, an operational plan might establish a team of researchers and detailed methodology to be used by the team to facilitate their state selection decision. DIRECTING The directing function of management involves supervising, ordering and commanding. Examples of directing in operations management include making daily job assignments, giving directions to employees on job-related procedures, and ordering people to perform specific tasks. ORGANIZING The organizing function involves structuring the organization’s systems to achieve planned objectives. Examples of organizing in operation management includes structuring the tasks that make up an employee’s job, defining the procedures that are required to produce a product and coordinating individual and group activities.

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STAFFING The staffing function of management includes recruiting employees, screening job applicants, and selecting and training personnel. Staffing can also include writing job specifications, which are the job requirements that the each worker is expected to perform for a specific job (for example learning to use microcomputers), and job descriptions, which define the type of tasks involved ( such as keeping inventories in the stock room). MOTIVATING The motivating function of management involves guiding, coaching and inspiring employees to achieve planned objectives. In operation management motivating employees involves understanding psychological and sociological factors that affect employee’s behavior in the workplace. In recent years, the motivating function of management has shifted from the study of psychology of the individual working in the OM system to how the individual interacts with the OM system. Management is learning how the OM system can be structured to motivate the employee to achieve planned objectives. CONTROLLING

The controlling management function involves setting standards, monitoring, measuring, observing and when necessary, taking appropriate actions to adjust the system to keep it on track to achieve planned objectives. Both human and physical resources requires some type of control. Examples of operation management controlling include using computerized lasers to spot defects in paint jobs and auditing freight bills to determine the accuracy of vendor delivery times and charges.

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ACTIVITIES IN OPERATION MANAGEMENT In addition to the management functions, operation managers perform many other activities. These operation management activities are what make up an operations manager’s job and are often included in OM job descriptions and job specifications. The OM activities can be organized into three categories of activities:

• Planning for the future • Planning and controlling operations • Improving products and systems a).

PLANNING FOR THE FUTURE operations managers must anticipate the future and plan it for today. Three activities that are focused on planning for the future are total quality management, forecasting and improving technology and international integration of OM systems. Total Quality management Total quality management (TQM) is primarily concerned with the principles and overall philosophy that drive an organization to seek quality in the products and services that it provides to customers. TQM is a corporate level strategy that becomes an operation management strategy for manufacturing and service excellence. TQM is so prerequisite to OM success. Forecasting Operations mangers must be able to accurately forecast demand for timely production of their products. They must be able to forecast human resource needs to acquire necessary worker inputs into their transformation process. Managers must be acquainted with different types of forecasting that affect the OM system. 16

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Improving Technology and International Integration of OM System International competition is forcing operations managers to develop global planning strategies. Adapting and integrating international strategies require operations managers to understand the various restrictive roles the integration of management resources can play, and the strategic opportunities offered by advanced OM technology. For example, manufacturing firms during the 1980’s that choose a strategy of cost reduction to be competitive with international manufacturers found their strategy to be successful in the 1990’s when coupled with the mid 1980s devaluation of the US dollar. b).

PLANNING AND CONTROLLING OPERATIONS Another category of operations management activities involves basic planning and controlling activities. These activities includes production planning, materials management, inventory management and scheduling. Production Planning Production planning activities involves setting and achieving goals specifically related to operations management planning of management resources. Materials Management The materials management activity involves the grouping of management functions supporting material flow. Materials management includes activities such as the purchase and internal control of production materials; the planning and control of work in process (unfinished products in various stages of production; and warehousing shipping and distribution of the finished product.

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Inventory Management The inventory management activity is concerned with the planning and control of inventories. There are two general type of inventory; dependant demand inventory and independent demand inventory. Dependant demand inventory is made up of inventory items that are consumed within an organization to produce a finished product. For example, rubber- the raw material used by the Good Year Company to produce automobile tires for consumers is an example of a dependant demand inventory item. Dependant demand inventory items depend on consumer demand of finished products. Independent demand inventory comprises inventory items consumed by customers external to the organization. For example, a grocery store’s inventory of flashlight batteries is an independent demand inventory item. Scheduling Scheduling involves assigning specific tasks, jobs and work for equipment, facilities and human resources in accordance with a timed planning horizon. c).

IMPROVING PRODUCT AND SYSTEMS Operation management activities in the 1990s must also support continuous improvement of product and systems. These activities include product and service design, quality assurance, facility location analysis and layout design and job design and work measurement. Product and Service Design Product and service design includes all the activities that are required to create and structure a product or service. Although the design stage largely involves design engineers and marketing personnel, operation managers are often included as well, to ensure that the end result is

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producible. Examples of activities in product design includes performing cost analysis to determine if new product designs are economically feasible, linking activities between computer aided design systems and actual production facilities, and sequencing activities to ensure an ordered sequence of production tasks to complete the product. Quality Assurance The quality assurance activity involves the rules and methodological and technological aspects of manufacturing and service quality. It includes a comprehensive analysis of the entire operations management system from input to output on any attribute that can be used to define quality. Quality assurance seeks to implement TQM as an OM strategy. Examples of quality assurance include reducing product defects, maintaining a customer service department and monitoring the quality of incoming raw materials. Facility Location and Layout Design The facility location activity involves determining where to establish a manufacturing plant or a service facility. The layout design activity involves determining how the internal facility (departments, equipment, and service or work stations) will be arranged. Job Design and Work Measurement The job design activity involves the structuring of work tasks assigned to an employee. Job design is the study of the tasks that make up a job. The work measurement activity involves the timing of tasks that comprise a job. Not all operations managers perform all of these activities. Many mangers make a productive career out of performing just one of the above activities. To be a successful manager, one must have some knowledge of all of these activities and the role they play in an organization.

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COMMUNICATION IN OPERATION MANAGEMENT In the age of information, operation managers must be able to communicate and interact with the people with whom they work and with those for whom the work is performed. There are two types of communication: i). Communication or interaction within the organization is known as cross-functional relations. This is the communication b/w different function or departments like accounting, marketing, finance, IT, personnel and technical specialists.

DEPARTMENTAL AREAS WITHIN THE INTERNAL ENVIRONMENT OF THE ORGANIZATION

Marketing

Accounting

Finance

Operations

IT

Management Technical Specialist

Personnel

ii). Communication or interaction with individuals outside the organization is referred to as external relations. External individuals includes customers, public interest groups, competitors, stockholders and owners, suppliers and government.

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THE ORGANIZATION AND THE EXTERNAL ENVIRONMENT

Public Interest groups

Customers

THE

Government

ORGANIZATION

Competitors

Stockholders & Owners

Suppliers

**********************

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QUALITY MANAGEMENT Quality management is a method for ensuring that all the activities necessary to design, develop and implement a product or service are effective and efficient with respect to the system and its performance. Quality Improvement W. Edwards Deming ng is best known for his management philosophy establishing quality, productivity, and competitive position. He has formulated 14 points of attention for managers, some of these points are more appropriate for service management:

• • • •

Break down barriers betwe between departments; Management should learn their responsibilities, and take on leadership; Improve constantly; Institute a programme of education and self-improvement. self improvement.

The following diagram is the Shewhart cycle (PDCA) for quality improvement, made popular by Deming.

SHEWART CYCLE (PDCA)

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The philosophy is to keep improving the quality of an organization. It is defined by four keys:

• Plan: Design or revise business process components to improve results • Do: Implement the plan and measure its performance • Check: Assess the measurements and report the results to decision makers

• Act: Decide on changes needed to improve the process The consolidation phase enables the organization to take stock of what has been taking place and to ensure made to processes that require documentation (both to allow processes to be repeatable and to facilitate recognition of the achievement of some form of quality standard).

QUALITY ASSURANCE It is part of quality management focused on providing confidence that quality requirement will be fulfilled. Productions quality starts with process capable of producing to design Specification and continuous with an inspection program arises if standards are being met. As said earlier the initial deviation concerning specification is based on precision sought by customers and accuracy attainable by production facilities. Given a process capable of obtaining the required precision unacceptable variations still occurs. Bluent tools, misalignment due to wear and tear of machinery, workers unless they can contribute to inferior output from a process inherently capable of acceptable quality. Coordinator controlled activities to prevent this and ensuring what customer wants they get.

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QUALITY INSPECTIONS The single act most costly associated with quality control is inspection (e.g. technicians testing concrete slabs in lab, food inspectors are also inspecting food grading tea, etc). In addition to maintaining quality inspectors provide information by which the performance of sorters, machines, departments, and plans can be evaluated.

COST OF QUALITY Prevention costs

• • • •

Quality planning Formal Technical Reviews Test equipment Training

Appraisal costs

• In-process and inter-process inspection • Equipment calibration and maintenance • Testing Failure costs

• Internal failure costs
Rework
Repair
Failure mode analysis

• External failure costs





Complaint resolution Product return and replacement Help line support Warranty work

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EVALUATION OF QUALITY CONTROL Part 1: The ancient Egyptians demonstrated a commitment to quality in the construction of their pyramids Greeks set high standards in arts and crafts. The quality of Greek architecture of the 5th century BC was the motivation behind subsequent architectural construction of Rome. Roman built cities; bridges and roads inspire us even today. Part 2: up to 1800 production of goods and services was predominantly confirmed to single individuals/family responsible for quality of product (operator quality control period) Part 3: Starting in early 1900 – 1920 . The second phase called former quality control period. With the industrial revolutions (steam engine-James watt-coal and iron) came the concept of mass production which was based on principle of specialization of labor .supervisor will be responsible for overall quality. (Companies with machine power in place of Human power alone came into existence. Part 4: Period from 1920- 1940. This is the inspection quality control period. Product and processes become more complicated and production volume increased. No. of workers reporting to a foreman increased. Inspectors were therefore designated to check the quality of the product item with those of standards. Non-conforming items were either reworked if feasible or were discarded. During the period the foundations of statistical aspects of quality control were being developed. Bell labs proposed the concept of using statistical charts to control the variables of a product dodge and rowing proposed acceptance sampling. 1930 saw the application of acceptance sampling plan in industring .In 1929 Walter show hart got sponsorship of ASTM, ASME, ASA for creating a joint

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committee for the development of statistical applications in engineering and manufacturing. US Food Drugs and cosmetic Act 1938 came into existence-a quality measure. Phase 5: the next phase in the evaluation process occurred between 1940-1960 and is termed as statistical quality control phase. American society for quality control was formed in 1946. Use of quality control procedures however no where close to the level that it should have been even in America. Japan although totally destroyed during World War II embraced the new philosophical whole-heartedly.

QUALITY ASSURANCE • Analysis • Auditing • Reporting Goal of quality assurance

• Provide management with the data necessary to be informed about product quality.

• Make confidence and be sure that product quality is meeting. Quality Standards The International Organization for Standardization (ISO) created the Quality Management System (QMS) standards in 1987. These were the ISO 9000:1987 series of standards comprising ISO 9001:1987, ISO 9002:1987 and ISO 9003:1987; which were applicable in different types of industries, based on the type of activity: designing, production or service delivery. The standards have

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been regularly reviewed every few years by the International Organization for Standardization. The version in 1994 and was called the ISO 9000:1994 series; comprising of the ISO 9001:1994, 9002:1994 and 9003:1994 versions. The last revision was in the year 2000 and the series was called ISO 9000:2000 series. However the ISO 9002 and 9003 standards were integrated and one single certifiable standard was created under ISO 9001:2000. Since December 2003, ISO 9002 and 9003 standards are not valid, and the organizations previously holding these standards need to do a transition from the old to the new standards. The ISO 9004:2000 document gives guidelines for performance improvement over and above the basic standard (i.e. ISO 9001:2000). The Quality Management System standards created by ISO are meant to certify the processes and the system of an organization and not the product or service itself. ISO 9000 standards do not certify the quality of the product or service. Recently the International Organization released a new standard, ISO 22000, meant for the food industry. This standard covers the values and principles of ISO 9000 and the HACCP standards. It gives one single integrated standard for the food industry and is expected to become more popular in the coming years in such industry. The most elaborated and accepted concept of quality management is the model of the EFQM Excellence Model.

THE DETERMINANTS OF QUALITY The degree to which a product or service successfully satisfying its intended purpose has four primary determinants 1) Quality of design 2) How well it confirms to the design 3) Ease of use 4) Service after delivery

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Quality of design Quality of design refers to the intentions of designers to include or exclude certain features in a product or service (e.g.: different automotives with different size appearance, fuel economy, comfort, material used etc) These differences reflect choices made by designers that determines the quality of design. There design decisions take into account customer wants, production or service capabilities, safety, liability cost and similar other considerations. Designers may work closely with marketing and operations department. A poor design can result in difficulties in production or service. For example, materials might be difficult to obtain specifications to meet, procedure difficult to follow, similarly a superior design usually cannot offset poor workmanship. Quality of conformance Refers to the degree to which goods and services conform (i.e. to achieve) the intent of designers. This is affected by factors such as the capability of equipments, skills, training, taking prompt corrective action etc. (That is the reason we want designers to work in close coordination with manufacturing and inspection department during pilot job and procedures for manufacture developed accordingly. Ease of Use The determinants of quality does not stop once the product or service has been sold. Ease of use and user instructions are important. They increase the chances but do not guarantee, that the product will be used for its intended purposes and in such a way that it will continue to function properly and safely. (i.e. user misused case) Much of the same can be applied to services also. Customers, patients, clients must be clearly informed. Much of the instructions takes the form of printed instructions, labels and what to do if something goes wrong.

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Service after delivery For a variety of reasons products do not always perform as expected and services do not always yield the desired results. Through recall adjustment replacement, buyback etc this situation is remedied. Quality of care should be defined in light of both technical standards and patients' expectations. While no single definition of health service quality applies in all situations, the following common definitions are helpful guides:

• • • • • • • • •

Technical performance Access to services Effectiveness of care Efficiency of service delivery Interpersonal relations Continuity of services Safety Physical infrastructure and comfort Choice

QUALITY MANAGEMENT PRINCIPLES Following are the eight quality management principles on which the quality management system standards of the revised ISO 9000:2000 series are based. These principles can be used by senior management as a framework to guide their organizations towards improved performance. The principles are derived from the collective experience and knowledge of the international experts who participate in ISO Technical Committee ISO/TC 176, Quality management and quality assurance, which is responsible for developing and maintaining the ISO 9000 standards. Principle 1 Customer focus Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations.

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Principle 2 Leadership Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization's objectives. Principle 3 Involvement of people People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization's benefit. Principle 4 Process approach A desired result is achieved more efficiently when activities and related resources are managed as a process. Principle 5 System approach to management Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives. Principle 6 Continual improvement Continual improvement of the organization's overall performance should be a permanent objective of the organization. Principle 7 Factual approach to decision making Effective decisions are based on the analysis of data and information. Principle 8 Mutually beneficial supplier relationships An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value.

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BENCHMARKING Benchmarking (also "best practice benchmarking" or "process benchmarking") is a process used in management and particularly strategic management, in which organizations evaluate various aspects of their processes in relation to best practice, usually within their own sector. This then allows organizations to develop plans on how to adopt such best practice, usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event, but is often treated as a continuous process in which organizations continually seek to challenge their practices. A process similar to benchmarking is also used in technical product testing and in land surveying. See the article benchmark for these applications. Advantages of benchmarking Benchmarking is a powerful management tool because it overcomes "paradigm blindness." Paradigm Blindness can be summed up as the mode of thinking, "The way we do it is the best because this is the way we've always done it." Benchmarking opens organizations to new methods, ideas and tools to improve their effectiveness. It helps crack through resistance to change by demonstrating other methods of solving problems than the one currently employed, and demonstrating that they work, because they are being used by others. Competitive benchmarking Advantage of the benchmarking for a company: 1. A better understanding of the wants (expectations) of the customer because it is: based on the reality of the market estimated in an objectivist way.

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2. A better economic planning of the purposes and the objectives to achieve in the company because they are: centered on what takes place outside controlled and mastered. 3. A better increase of the productivity: resolution of the real problems Understanding of the processes and what they produce” 4. Better current practices Search for the change Many decisions practices of break 5. A better competitiveness thanks to: a solid knowledge of the competition a strong implication of the staff new ideas on practices and tried techniques. Benchmarking has consequences which are beyond the process itself: it reforms all the levels of the company.; modifies the process of manufacture of the product leads(drives) ; also reforms the hierarchical organization of the company, the product itself, and the state of mind of the employees.

Procedure 1. Identify your problem areas - Because benchmarking can be applied to any business process or function, a range of research techniques may be required. They include: informal conversations with customers, employees, or suppliers; exploratory research techniques such as focus groups; or in-depth marketing research, quantitative research, surveys, questionnaires, reengineering analysis, process mapping, quality control variance reports, or financial ratio analysis. 2. Identify other industries that have similar processes - For instance if one were interested in improving handoffs in addiction treatment s/he would try to identify other fields that also have handoff challenges. These could include air traffic control, cell phone switching between towers, transfer of patients from surgery to recovery rooms.

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3. Identify organizations that are leaders in these areas - Look for the very best in any industry and in any country. Consult customers, suppliers, financial analysts, trade associations, and magazines to determine which companies are worthy of study. 4. Survey companies for measures and practices - Companies target specific business processes using detailed surveys of measures and practices used to identify business process alternatives and leading companies. Surveys are typically masked to protect confidential data by neutral associations and consultants. 5. Visit the "best practice" companies to identify leading edge practices Companies typically agree to mutually exchange information beneficial to all parties in a benchmarking group and share the results within the group. 6. Implement new and improved business practices - Take the leading edge practices and develop implementation plans which include identification of specific opportunities, funding the project and selling the ideas to the organization for the purpose of gaining demonstrated value from the process.

Cost of benchmarking Benchmarking is a moderately expensive process, but most organizations find that it more than pays for itself. The three main types of costs are:

• Visit costs - This includes hotel rooms, travel costs, meals, a token gift, and lost labor time.

• Time costs - Members of the benchmarking team will be investing time in researching problems, finding exceptional companies to study, visits, and implementation. This will take them away from their regular tasks for part of each day so additional staff might be required.

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• Benchmarking database costs - Organizations that institutionalize benchmarking into their daily procedures find it is useful to create and maintain a database of best practices and the companies associated with each best practice now.

KAIZEN Kaizen, a Japanese term that basically translates to 'continuous improvement' or 'change to become good', is a management concept originated by the Japanese in order to continuously effect incremental changes for the better, involving everybody within the organization from workers to managers. Kaizen is aimed at producing more and more value with less and less wastes (higher efficiency), attaining better working environment, and developing stable processes by standardization. This never-ending process of achieving small improvements within the company everyday is in contrast to trying to achieve breakthrough results from a large improvement once in a while. Kaizen as a management technique is therefore more suitable for organizations with a collective culture that is trying to achieve long-term gains from a continuous supply of small and less radical contributions from its employees. Kaizen implementation is said to operate on the following principles: 1) that human resources are the company's most important asset; 2) that success can not be achieved by some occasional radical changes alone, but more so by incremental yet consistently arriving improvements; and 3) that improvements must be based on a statistical or quantitative study of the performance of the process. Thus, under Kaizen, everyone is a valued contributor to the company's success, and must therefore be given the necessary education and training in order to

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contribute in his or her own way on a continuous basis. Everyone in the organization must genuinely believe in the idea of Kaizen and strive to achieve one small goal at a time, each of which is considered a step towards the company's over-all success. Every person must therefore be willing to: 1) learn; 2) communicate; 3) be disciplined; 4) get involved; and 5) change in order to maximize gains from Kaizen. Management must also be able to support this Kaizen structure by aligning resources, metrics, rewards, and incentives to Kaizen principles, encouraging all employees to contribute in their own ways. Management programs that promote Kaizen include but are not limited to the following: 1) employee suggestion systems; 2) recognition systems for employees who exert effort for continuous improvement; 3) group-oriented suggestion or improvement systems like Quality Circles (small groups that perform quality improvement activities); 4) JIT; 5) 5- S; 6) Total Productive Maintenance; and 7) Total Quality Management.

Kaizen's Business Tenets 1) Not a single day should pass without any kind of improvement anywhere in the company. 2) Improvement strategies must be driven by customer requirements and satisfaction. 3) Quality must always take a higher priority over profits. 4) Employees must be encouraged to recognize problems and suggest improvements to address these problems. 5) Problems must be solved by a collaborative and systematic approach through cross functional teams.

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6) Process-oriented thinking (as opposed to results-oriented thinking) must be practiced by everyone, so that every process gets continuously improved from time to time.

SIX-SIGMA 6-Sigma refers to a quality improvement and business strategy concept started by Motorola in the United States in 1987. In statistical terms, 6-Sigma is the abbreviated form of 6 standard deviations from the mean, which mathematically translates to about 2 defects per billion. Thus, strictly speaking, your process is said to have achieved 6- sigma if it is producing no more than 2 defects per billion parts produced. No company is probably nearly perfect enough to achieve this quality level. Consequently, the term 6-Sigma in the industry has somehow taken on the equivalent defect rate of 3.4 ppm, which in reality corresponds to roughly 4.5 sigmas. Thus, in the industry today, a person speaking of 6-sigma is most likely referring to a quality level equivalent to 3.4 defects per million. Regardless of how one wishes to use the term 6-sigma, though, it is apparent that its purpose when its concept was first incepted is to make processes as consistent as possible in order to reduce the defect rates of their outputs. Consistency of meeting customer specifications as well as the probability of meeting them consistently in the future is the essence of 6-sigma. To see how the number of sigmas relates to the process Cpk and the process ppm level, please refer to the Cpk/ppm Table. 6-Sigma has evolved into a continuous, disciplined, and structured process of improving operations to make products that are consistently meeting customer requirements. In effect, 6-Sigma no longer simply means excellent finished products, but more importantly, excellent processes, services, and administration. When Motorola started 6- Sigma in the 80's, it was applied to

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repetitive manufacturing processes. Presently, however, the use of 6-Sigma is well-established in almost all aspects of doing business in a wide range of industries. 6-Sigma encourages leanness, simplicity, and doing things right the first time, so that wastes and corresponding costs are avoided. Statistics-based problem solving, results orientation, and quantifiable top and bottom-line returns are also ingredients of 6-Sigma. Lastly, 6-Sigma is driven by the voice of the customer.

TOTAL QUALITY MANAGEMENT Total Quality Management is a structured system for managing the quality of products, processes, and resources of an organization in order to satisfy its internal and external customers, as well as its suppliers. Its main objective is sustained (if not progressive) customer satisfaction through continuous improvement, which is accomplished by systematic methods for problem solving, breakthrough achievement, and sustenance of good results (standardization). Total Quality Management (TQM) is a management strategy aimed at embedding awareness of quality in all organizational processes. TQM has been widely used in manufacturing, education, government, and service industries, as well as NASA space and science programs. Total Quality provides an umbrella under which everyone in the organization can strive and create customer satisfaction. TQ is a people-focused management system that aims at continual increase in customer satisfaction at continually lower real costs. Definition TQM is composed of three paradigms:

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• Total: Organization wide • Quality : With its usual Definitions, with all its complexities (External Definition) • Management : The system of managing with steps like Plan, Organize, Control, Lead, Staff, etc. As defined by the International Organization for Standardization (ISO): "TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society."

Principles of TQM 1) Quality can and must be managed. 2) Everyone has a customer to delight. 3) Processes, not the people, are the problem. 4) Every employee is responsible for quality. 5) Problems must be prevented, not just fixed. 6) Quality must be measured so it can be controlled. 7) Quality improvements must be continuous. 8) Quality goals must be based on customer requirements.

5S Five related terms, beginning with an S sound, describing workplace practices conducive to visual control and lean production. The five terms in Japanese are: 1. Seiri: Separate needed from unneeded items-tools, parts, materials, paperwork-and discard the unneeded.

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2. Seiton: Neatly arrange what is left-a place for everything and everything in its place. 3. Seiso: Clean and wash. 4. Seiketsu: Cleanliness resulting from regular performance of the first three Ss. 5. Shitsuke: Discipline, to perform the first four Ss.

Muda, Mura, Muri Three Japanese terms often used together in the Toyota Production System (and called the Three Ms) that collectively describe wasteful practices to be eliminated.

• Muda: Any activity that consumes resources without creating value for the customer.

• Mura: Unevenness in an operation; for example, an uneven work pace in an operation causing operators to hurry and then wait.

• Muri: Overburdening equipment or operators.

CONTROL CHART A control chart is a statistical tool used to distinguish between variation in a Process resulting from common causes and variation resulting from special causes. It presents a graphic display of process stability or instability over time. Every process has variation. Some variation may be the result of causes which are not normally present in the process. This could be special cause variation. Some variation is simply the result of numerous, ever-present differences in the

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process. This is common cause variation. Control Charts differentiate between these two types of variation. One goal of using a Control Chart is to achieve and maintain process stability. Process stability is defined as a state in which a process has displayed a certain degree of consistency in the past and is expected to continue to do so in the future .This consistency is characterized by a stream of data falling within control limits based on plus or minus 3 standard deviations (3 sigma) of the centerline.

ISO 14000 The ISO 14000 environmental management standards exist to help organizations minimize how their operations negatively affect the environment (cause adverse changes to air, water, or land), comply with applicable laws, regulations, and other environmentally oriented requirements, and continually improve on the above. ISO 14000 is similar to ISO 9000 quality management in that both pertain to the process (the comprehensive outcome of how a product is produced) rather than to the product itself. As with ISO 9000, certification is performed by thirdparty organizations rather than being awarded by ISO directly. The ISO 19011 audit standard applies when auditing for both 9000 and 14000 compliance at once.

Standards The material included in this family of specifications is very broad. The major parts of ISO 14000 are:

• ISO 14001 is the standard against which organizations are assessed. ISO 14001 is generic and flexible enough to apply to any organization producing any product or service anywhere in the world. 40

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• ISO 14004 is a guidance document that explains the 14001 requirements in more detail. These present a structured approach to setting environmental objectives and targets and to establishing and monitoring operational controls. These are further explicated by the following:

• ISO 14040 discusses pre-production planning and environment goal setting.

• ISO 14020 covers labels and declarations. • ISO 14030 discusses post-production environmental assessment. • ISO 14062 discusses making improvements to environmental impact goals.

• ISO 14063 is an addendum to 14020, discussing further communications on environmental impact.

• ISO 19011 which specifies one audit protocol for both 14000 and 9000 series standards together. This replaces ISO 14011 meta-evaluation—how to tell if your intended regulatory tools worked. 19011 is now the only recommended way to determine this. ISO 14001 is an internationally accepted specification for an environmental management system. It specifies requirements for establishing an environmental policy, determining environmental aspects and impacts of products/activities/services, planning environmental objectives and measurable targets, implementation and operation of programs to meet objectives and targets, checking and corrective action, and management review.

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ISO 9000 ISO 9000 is a family of standards for quality management systems. ISO 9000 is maintained by ISO, the International Organization for Standardization and is administered by accreditation and certification bodies. For a manufacturer, some of the requirements in ISO 9001 (which is one of the standards in the ISO 9000 family) would include:

• A set of procedures that cover all key processes in the business; • Monitoring manufacturing processes to ensure they are producing quality product;

• Keeping proper records; • Checking outgoing product for defects, with appropriate corrective action where necessary; and

• Regularly reviewing individual processes and the quality system itself for effectiveness. A company or organization that has been independently audited and certified to be in conformance with ISO 9001 may publicly state that it is "ISO 9001 certified" or "ISO 9001 registered." Certification to an ISO 9000 standard does not guarantee the compliance (and therefore the quality) of end products and services; rather, it certifies that consistent business processes are being applied. Although the standards originated in manufacturing, they are now employed across a wide range of other types of organizations, including colleges and universities. A "product", in ISO vocabulary, can mean a physical object, or services, or software. In fact, according to ISO in 2004, "service sectors now account by far for the highest number of ISO 9001:2000 certificates - about 31% of the total" - source: the ISO Survey 2004

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Advantages 1. Create a more efficient, effective operation 2. Increase customer satisfaction and retention 3. Reduce audits 4. Enhance marketing 5. Improve employee motivation, awareness, and morale 6. Promote international trade

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GALXOSMITHKLINE S OVERVIEW COMPANY’S At GlaxoSmithKline,, we conduct our business with integrity and honesty, and aspire to excellence in all we do. We know our people are vital to the success of the business, and encourage everyone to achieve their maximum potential. We offer a competitive benefits benefits package and recognize the need for a healthy balance between work and family life. GlaxoSmithKline welcomes the talent of people from diverse backgrounds to provide the expertise, dedication and imagination to propel us toward a prosperous future. We look look for individuals with daring spirits and inquisitive minds who seek a broad range of opportunities for personal and professional growth, and whose efforts are realized in the improved health of people worldwide. GlaxoSmithKline is an exciting organization, which offers a variety of career opportunities. Our recruitment process aims to achieve the highest level of candidate care by listening to your interests, and treating you like a valued customer.

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BUSINESS UNITS The organizational zational structure of GlaxoSmithKline (GSK) is designed to make our company a model for excellence in the pharmaceutical industry - a new company that represents best practice in every way. GSK is a company with the size and scale to invest in the tools we need to succeed, and to drive that success going forward. To achieve that goal, GSK is organized as a flexible company, capable of responding quickly to a rapidly changing marketplace. Organized globally to coordinate activities and gain the benefits of size ize and scale, the company is built on smaller, customer-focused customer units, dedicated to delivering medicines that relieve the suffering of patients around the world. The new and innovative model for R&D, the focused structure of our pharmaceutical business throughout throughout the world and the organization of our global services such as IT and Procurement are some of the highlights in the approach which will lead our success.

GSK CONSUMER HEALTHCARE HEALTHC GlaxoSmithKline is a leader in the worldwide consumer healthcare market. With nearly $6 billion in sales, over ten million brands and present in 130 markets, the consumer healthcare business brings an added dynamic dimension to GSK. Operating in the fiercely competitive environment of retail and consumer marketing GlaxoSmithKline Consumer Healthcare brings oral healthcare, overover

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the-counter counter medicines and nutritional healthcare products to millions of people. Brand names such as Panadol, Aquafresh toothpaste, Lucozade, Nico Nicorette and Niquitin smoking cessation products are household names around the world. In one year GSK Consumer Healthcare produces - among many others - nine billion tablets to relieve stomach upsets, six billion tablets of pain relief tablets and 600 million n tubes of toothpaste. But the driving force behind GlaxoSmithKline's Consumer Healthcare business is science. With four dedicated consumer healthcare R&D centers and consumer healthcare regulatory affairs, the business takes scientific innovation as seriously usly as marketing excellence and offers leading leading-edge edge capability in both.

GSK CORPORATE FUNCTIONS FUNCTI The Corporate business unit within GlaxoSmithKline,, is responsible for leadership, processes, policies, standards and services in the core business areas of Corporate Communications & Global Community Partnerships, Corporate Ethics & Compliance, Finance, Human Resources and Legal. The functions work individually and in cross cross-functional functional teams across different corporate functions and businesses within GSK. The functions unctions aim to achieve compliance with legal, financial and regulatory frameworks within and outside the corporation; protecting, supporting and motivating GSK people and the communities in which they work. They utilize a responsive business infrastructure infrastructur - combining account management and shared services approaches - to work with GSK's diverse businesses. The Corporate functions count among their audiences; employees, communities, media, governments, analysts, institutions and shareholders worldwide.

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GSK SK INFORMATION TECHN TECHNOLOGY In GSK, Information Technology is a business unit, one that is closely integrated with all parts of the company, all around the world. It is organized to take best advantage of global scale when that is appropriate, while supporti supporting GSK people and businesses locally so they have the IT tools they need to succeed.

Global capabilities: Six IT departments provide core services that are required by each of the business units and by GSK at large. These IT departments are: •

• •

•

•

•

Cross Functional Process Design - Ensures that all proposed systems changes have a significant, positive impact on the performance of the business processes. Global eBusiness - Develops GSK's commercial capabilities in eBusiness. Global Strategy & Applications - Drives the overall IT strategy of GSK and ensures the IT architecture is coordinated in concert with business strategies. Project and Portfolio Management - Builds processes for approving projects, manages project issues as they progress and works with th the project management groups to build skills and capabilities. Systems and Communications Services - Builds, deploys and operates the cost effective, flexible, computing and communications infrastructure required by GSK. Risk Management & Security - Identifies ies and addresses security and other risks resulting from external or internal use of information technology and computerized information.

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IT is supported by six core service teams: Audit, Communications, Finance & Alliances, Human Resources, Legal and Pro Procurement.

GLOBAL MANUFACTURING AND SUPPLY GSK has 85 manufacturing sites in 37 countries with over 35,000 employees. The sites within the GSK manufacturing network:      

supply products to 191 global markets for GSK produce over 1,200 different brands manufacture ture almost 4 billion packs per year produce over 28,000 different finished packs per year supply around 6,900 tons of bulk active each year manage about 2,000 new product launches globally each year

Production of nutritional products is in excess of 300 million million Lucozade/Ribena bottles, 350 million Ribena tetra packs and 20 million Lucozade carbonated cans per year. The annual output of Horlicks is 50 million kilograms, equivalent to about 1,000 million servings. In oral care, the volume of toothpaste manufactured actured annually exceeds 600 million tubes.

GSK PHARMACEUTICALS You would be forgiven for thinking that a company the size of GlaxoSmithKline - with over 100,000 employees around the world - is only ever concerned with the bottom line. But the truth is that every member of our organization is

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equally dedicated to helping helpi people around the world Live ive longer, Feel F better and Do more. We have a diverse portfolio of brands, as well as a health pipeline of new exciting compounds. Every year GlaxoSmithKline invests approx. $5 billion into research and development. GlaxoSmithKline line is a leader in four major therapeutic areas - anti infectives, central nervous system, respiratory and gastro-intestinal. gastro intestinal. Based on 2004 Annual Results, GSK had sales of $37.2 billion and profit before tax of 11.1 billion. Pharmaceutical sales accounte accounted d 24.8 billion with new products representing 22% of total pharmaceutical sales. This continued success is achieved by being a responsible leader, committed to working with healthcare professionals, listening to patients and responding to a changing environment. nment.

RESEARCH AND DEVELOPMENT DEVELOPMENT (R&D) We live in an exciting moment in the history of biomedical science. Disease is giving up its secrets to the intelligence and dedication of scientists aided by technological marvels that might have been the stuff of science fiction only a generation ago. We have every reason to believe that ahead of us lies accelerating progress against many of the afflictions of humankind. At GlaxoSmithKline, scientists in Research and Development are committed to capturing this moment. nt. They bring to it their own very considerable abilities, the resources of a parent company devoted to the scientific enterprise, and the urgency of knowing that their highest purpose is the relief of human suffering. In pursuit of this purpose, they desire desire to make of GlaxoSmithKline a magnet for others who share their talents, whether as prospective corporate colleagues or as collaborators in industry, academe, and government.

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Creating a new medicine is a complex business, costing over $324 million and typically ypically taking between 12 and 15 years. Regulatory hurdles are increasingly stringent, yet escalating costs, medical need and the pressure of competition demand that the whole process is condensed into as short a time as possible. GSK uses the scale of a huge company to reach its goal of applying science to improve patient health. Equally important is its flexibility, allowing teams of scientists the freedom to take an entrepreneurial approach, and enabling them to move quickly, on the basis of informed decisions. de Once a compound has been identified as a potential drug candidate, it goes through an exacting, rigorous process to prove that the new drug is both safe and effective. Any potential new project not meeting the criteria at any stage is dropped from the company portfolio to make way for other, more promising candidates.

GSK IN TIME     

Every second, more than 30 doses of vaccines are distributed by GSK worldwide. Every minute, more than 1,100 prescriptions are written for GSK products worldwide. Every hour, GSK spends more than $450,000 to find new medicines. Every day, more than 200 million people around the world use a GSK brand toothbrush or toothpaste. Every year, GlaxoSmithKline donates more than $138 million in cash and products to communities around aro the world.

GSK employees are each expected to strive for improvement in these key competencies and align themselves with the supportive behaviors. Performance with Integrity - Delivering on promises with organizational and individual trustworthiness.

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People with Passion - People are enabled and motivated to do their best work. Innovation & Entrepreneurship - Competitive advantage through wellexecuted ingenuity. Sense of Urgency - A nimble, focused, resilient and fast-learning organization. Everyone Committed, Everyone Contributing- All employees have an opportunity to make a meaningful contribution, and to succeed based on merit. Accountability for Achievement - Clear expectations; focus on the critical few. Performance matters, and will be rewarded. Alignment with GSK Interests - One team, in single-minded pursuit of our mission, reflecting a common spirit and integrated strategies. Develop Self and Others - A norm of career-long learning agility across the organization. Employees continuously learn and develop their professional potential. Leaders have key roles as teachers, coaches and champions of development. WHAT IS DIVERSITY AT GSK? At GSK, we are committed to creating an inclusive environment for our employees, customers, and stakeholders. For employees, it means creating an environment where we value and draw on the differing knowledge, perspectives, experiences, and styles resident in our global community. For customers, it means understanding who they are, what their changing needs are, and how GSK can help them do more, feel better, and live longer. For stakeholders, it means understanding what they prefer, what they require, and how GSK can work most effectively with them.

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What makes GSK a great place to work? We asked some of our current employees, and here's what they said: "There are lots of local companies that would welcome someone of my background and experience. Here, I get the added bonus of knowing that I am contributing to better lives around the world" "The company offers a compe competitive titive salary and excellent benefits. If you analyze the whole package, you'll find that most companies can't beat it" "Through friendly and supportive teams, individual innovation is encouraged and rewarded." "When you have a project there is a real sense of ownership which means things get done" "It's the people within the company that makes it great"

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GALXOSMITHKLINE PAKISTAN LIMITED Overview GlaxoSmithKline Pakistan Limited was created on January 1st 2002 through the merger of SmithKline and French of Pakistan Limited, Beecham Pakistan (Private) Limited and Glaxo Wellcome (Pakistan) Limited- standing today as the largest pharmaceutical company in Pakistan. As a leading international pharmaceutical company we make a real difference to global healthcare and specifically to the developing world. We believe this is both an ethical imperative and key to business success. Companies that respond sensitively and with commitment by changing their business practices to address such challenges will be the leaders of the future. GSK Pakistan operates mainly in two industry segments: Pharmaceuticals (prescription drugs and vaccines) and consumer healthcare (over-the-counter- medicines, oral care and nutritional care). GSK leads the industry in value, volume and prescription market shares. We are proud of our consistency and stability in sales, profits and growth. Some of our key brands include Augmentin, Panadol, Seretide, Betnovate, Zantac and Calpol in medicine and renowned consumer healthcare brands include Horlicks, Aquafresh, Macleans and ENO. In addition, we are also deeply involved with our communities and undertake various Corporate Social Responsibility initiatives including working with the National Commission for Human Development (NCHD) for whom we were one

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of the largest corporate donors. We consider it our responsibility to nurture the environment we operate in and persevere to extend our support to our community in every possible way. GSK participates in year round charitable activities which include organizing medical camps, supporting welfare organizations and donating to/sponsoring various developmental concerns and hospitals. Furthermore, GSK maintains strong partnerships with nongovernment organizations such as Concern for Children, which is also extremely involved in the design, implementation and replication of models for the sustainable development of children with specific emphasis on primary healthcare and education.

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MISSION STATEMENT Excited by the constant search for innovation, we at GSK undertake our enthusiasm of quest with the entrepreneurs. We value performance achieved with integrity. We will attain success as a world class global leader with each and every one of our people contributing with passion and an unmatched sense of urgency. Our mission is to improve the quality of human life by enabling people to do more, feel better and live longer. Quality is at the heart of everything we dofrom the discovery of a molecule to the development of a medicine. **************

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QUALITY MANAGEMENT SYSTEM (QMS) GSK has developed a comprehensive system of QMS by aligning internationally recognised standards and best practices. The primary goal of this vital exercise is to provide safe and effective products for patients and customers, satisfying the stringent requirements of the regulators and the needs of our shareholders.

For GSK to remain an indisputable industry leader, the company has set a list of stringent criteria that ensures all customer needs are achieved. • Standards: • Global quality policies • Global quality guidelines • Global quality management processes
Training
Material
Auditing
Continuous improvement

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GSK’s Quality Management System is an innovative yet practical tool that is benchmarked against all international standards and guidelines ensuring risk minimization, and more importantly top-notch managerial skills. Our QMS is a ‘living system’ which focuses on the ever changing needs of our main customer groups – patients, regulators, company / shareholders. This is a fast-paced world and industry where changes are constant, and the QMS has been created to ascertain that everything is managed in a controlled and proficient manner.

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To reiterate GSK’s quality statement: “Quality is at the heart of everything we do – from the discovery of the molecule through to product development, manufacture, supply and sale – and vital to all the services that support our business performance.” Andrew Witty, Chief Executive Officer

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