Assignment on Operation Mgt

Operations Management Of “GSK” In ENO Production _______________________

The abstract which highlight major features of the project.

Project Overview Introduction Purpose Of The Project Domain Of Project Major Operation Scope Of The Project Why study OM Members Profile Team Organization Consult With The Professionals

__________________________________________________________________Department Of Commerce

University Of Karachi page 1 of 94


Project overview

Project Title : Operations Management Of “GSK” (ENO Production)

Team Organization : Democratic Decentralize (DD)

Started Date :15th March 2009

Ended Date :31st May 2009

Introduction:

We are analyzing Operation management of a multinational organization “GSK” in ENO Production in this project. This analysis facilitates to know how the operation management activity functions in an organization & how people organize themselves for productive enterprise. This analysis provide a broad understanding that how GSK improve their profitability and enhance its services to society. This will help you explore the numerous and lucrative career opportunity in Operation management..

Purpose Of The Project:

Purpose is to have a deep understanding of operational management and its techniques, tools and its ten decision are how applicable and implemented in an organization. Specially in multinational organization to know about the strategic planning, controlling, organizing and different managerial skills and correct implementation of these strategies.




Domain of the project:

Domain of the project is the basic 10 decisions of operation Management, that how they implement in an organization.

Major Operations:

For this purpose the following major operations are

Design of goods and service Quality Decision Process strategy Location Decision Layout Decision Human Resource management Supply Chain Management Inventory Management Scheduling Decision Maintenance Decision

Scope of the project:

The goal of this project is the better understanding of ten decision of

Operation management in any organization. The goal of this project is to

present a broad introduction to the field of operations in a realistic, practical

manner. Having a solid understanding of the role of operations in an

organization is of substantial benefit to you. This report will also help you

understand how OM affects society & your life. Certainly you will better

understand that what goes on behind the scenes when you purchase

something. Research work has been carried out using all kind of material

from personal interview to Internet.




Why Study OM?

We study OM for four reasons:1. OM is one of the three major functions of any organizations, and it is integrally related to all the other business functions. All organizations market, finance, operation and its important to know how the OM activity functions. Therefore we study how people organize themselves for productive enterprise.2. We study OM because we want to know how goods and services are produced. The production function is the segments of our society that creates the product we use.3. We study OM to understand what operation managers do. By understanding what these managers do. you can develop the skills necessary to become such a manager. This will help you explore the numerous and lucrative career opportunities in OM.4. We study OM because it is such a costly part of an organization. A large percentage of the revenue of most firms is spent in the OM function.

Member profile:Our group consists of the following members:

Sl. # Members Name Seat No.

1. Hira Waris P0757042

2. Rufy Afshan P0757084

3. Tatheer Zehra P0757139




Team organization:

Our team structure is depends on Democratic/Distributed De-centralized (DD). It provides extra flexibility for communication and coordination. Problem solving is done by group consensus. Democratic means all will work separate and decentralized means no boundary, no leader, and no central authority in this team organization.

Use of Internet:

The Internet is the biggest source of information now a days. Therefore, weDecided to use it as much it is required. It is also the source of communication among the group members.

Consult With The Professionals:

To improve the efficiency the group has decided to keep a information with the professionals who are working in the GSK

Muhammad Shakeel KhanProduction officer,Consumer Health CareGSK west wharf

.

Asim ul HasanProduction Officer,Consumer Health Care,GSK west wharf

Shahid SamadHuman Resource Departmend OfficerGSK west wharf




Syed Waris AliHead Mechanical Engineering,GSK west wharf





Operations management focuses on carefully managing the processes to produce and distribute products and services. Usually, small businesses don't talk about "operations management", but they carry out the activities that management schools typically associate with the phrase "operations management." Major, overall activities often include product creation, development, production and distribution. (These activities are also associated with Product and Service Management. However product management is usually in regard to one or more closely related product -- that is, a product line. Operations management is in regard to all operations within the organization.) Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. A great deal of focus is on efficiency and effectiveness of processes. Therefore,




operations management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc.

“TEN DECISIONS OF OPERATION MANAGEMENT”

Ten decisions of Operation Management are;

Design of goods and service

Quality Decision

Process strategy

Location Decision

Layout Decision

Human Resource management

Supply Chain Management

Inventory Management

Scheduling Decision__________________________________________________________________Department Of Commerce



Maintenance Decision

New product is crucial to the survival of most firms.While a few firms experience little product change,most firms must continually revise their products.

Product design is seldom the sole responsibility of the operations function,but operations is greatly affected by new product introduction and vice versa.

A Product can be defined as the output of the operations function.Product definition is the result of the development of a business strategy.Product decision should be closely coordinated with operations to ensure that operations is integrated with product design.Through close cooperation between operations and marketing,the market and product strategy can be integrated with decisions regarding process,capacity, inventory, work force, and quality.

Goods & Service Selection

Product Strategy Options Support Competitive Advantage Product Life Cycle Life cycle & strategy Product By Value Analysis




Generating New Products New products Opportunities

1.Understanding the customer2.Economic change3.Sociological & demographic change4.Technological Change5.Political/legal Change6.Other changes(suppliers,distributor,market practice)

Importance of New Product

Strategies For New Product Introduction

1.Market Driven2.Technology Driven3.Interfunctional




New Product Development Process

New Product Development Process




Role Of Quality Control System:

Quality control wan one of the first fields to be approached scientifically by business organization. The procedures uses by quality control specialists have evolved apace with the evolution of production processes and statistics so that now “QC” is perhaps the most highly refined support area of general manufacturing .As organization grow in size and inspection became more technical. There was a tendency to group inspectors together and make them responsible to an inspection supervisor or chief inspector who reported to the manufacturing manager.

Basic Requrements Of Quality Control System:

To develop a quality control plan ensuring that the final production conforms to product specifications, it is necessary to accomplish the following steps.

1. Define what is to be measured.2. Determine the unit of measurement (inches, pounds, etc) and the

procedure by which it is obtained.3. Establish the desired level4. Perform the measurement and compare it to the desired level.5. Accept or reject the lot, or take action to modify the process.




DATA AND INFORMATION INPUT TO THE QUALITY MANAGER



QUALTY

MANAGER

Expenses

Sampling plan

Inspection

Customer returns

Rework

Defects

Engineers

Field service

Downtime

Mfg.review bd.

Evaluation lab

Scrap

Vendors

Change control

Facilities

New product

Training

Retest

Calibration

Customer complaints


Quality Control Objectives:

Quality objectives should be set down in specific terms and for a prescribed period. The following might be the quality control goals of a firm for the coming year

Reduce the number of customer complaints to 3 percent Reduce the number of customer returns to 2 percent. Reduce the maximum work level to 5 percent. Lower the per unit quality control and inspection costs by 10

percent. Conduct a monthly program for training and updating inspection

personnel.

At the end of the year. Success or failure in meeting these objectives must be seriously analyzed. The objectives may be either extended or revised for the following year.

Measures Of Quality:

There are several ways that quality can be measured.thes is as follow

Grade Fitness for use Consistency Quality conformance

GRADE: Grading presumes that a scale has been created against which comparison s can be made.

FITNESS FOR USE: Fitness for use refers to the degree to which a product satisfies the user.




CONSISTANCY:Product or service output that is consistent, and therefore predictable, is a quality measure.

QUALITY OF CONFORMANCE: Quality of conformance refers to the degree to which product meets its design specifications.

Cost Of Quality:The costs of quality are all of the costs attributable to the production of quality that is not 100 percent perfect cost of quality considers only those costs that are the difference between “what can be expected from excellent performance” and current cost that exist.There are three basic assumptions needed to justify an analysis of the costs of quality:

1. The premise that failures are caused.2. That prevention is cheaper.3. That performance can be measured.

Classifications Of Cost Of Quality:The costs of quality are generally classified into three types:

Appraisal costs: The cost incurred due to the inspection, testing etc, to ensure that the product or process is acceptable.

Prevention costs:The sum of all the costs to prevent defects: the costs to identify the causes of the defect, to implants corrective action to eliminate to cause, to train the personnel, to redesign the product or system and for new equipment or modifications.

Failure costs:a. INTERNAL: The costs incurred within the system :

scrap,rework,repair,etc __________________________________________________________________Department Of Commerce



b. EXTERNAL: The costs for defects that pass through the system: customer warranty replacements. Loss of customer or goodwill, handling complaints, and product repair.

Process options are available for the product and services. process decision commit management to specific technology ,quality, human resources use and maintenances these capital commitments will determined much of the firms time and costA process strategy in an organization approach to transform resources in to goods and services

THE OBJECTIVE OF PROCESS STRATEGY;

The object of the process strategy is to find a way to produce goods and services to meet the customer requirement and product specification with in the cost and managerial constraint

Product focus;

A product focus facility produce high volume and low Varity it require high fixed cost and low variable cost reward high facility utilization

Process focus;

A production facility organized around process to facilitate low volume and high Varity process.

Repetitive focus

A product oriented production process that uses modules.




Facility location decision for both manufacturing and services organizations may determine the firm ultimate success. Errors made at this juncture may overwhelm other efficiencies.

Location selection for the manufacturing firmsMay need to be near raw material or labor is available

Location selection for the services firmsMay need to near customer are available

The strategic importance of the locationOne of the most important strategic decision made by the companies is the location of the company where to locate an organization once manger is committed to a specific location many cost are firmly placed and difficult to reduced itThe location decision is depend upon the type of the business , location ultimately the power to make or break the company for industrial location the strategy is to minimizes the cost where as to retail and services organization is concern strategy focus is to maximizing the revenue ware house strategy is to however is the combination of the cost and speed delivery in general the objective is to maximized the benefit of the location to the firmCompanies make the location decision relatively infrequently usually because demand has out grown the current plant capacity or because of changes in the productivity cost or local attitudes.




Companies may also relocate the their manufacturing or services facilities because of shifts in the demographics and customer demand

Location optionLocation option include the following

Expanding an existing facility instead of moving maintaining the current sites while adding the another facility closing the existing facility and moving to another location

firms through the world using different kinds of techniques and tools to make the strategy of the location

Factors that Affect Location Decision

Country Decision Government rules, attitude, stability, incentives Cultural and economic issues Location of the markets Labor affordability , attitudes productivity and cost Availability of the supplies communication and energy Exchange rate

Community decision Corporate desires Attractiveness of the region Labor availibity,costs,attitudes towards unions Environmental regulation of town Governmental incentives Proxity to raw material and customers Land and construction cost

Site decision Site sixe and cost__________________________________________________________________Department Of Commerce



Air, rail,and water way system Zoning restrictions Nearness of the servicese Environmental impact issues

Labor productivityLabor cost in many under developed contry are now one third of those in the developed nations however cost is the 15%of the manufacturing costthe difference may not over many oter disadvantages of the low labor cost countries

Proximity to markets:For many firms it is extremely important to locate near customers particularly ,services organizations like post office barber and drugstores

Proximately to suppliers:Companies usually depend on the huge bulk of the inventory for this huge transport cost is incurred to curtail the transportation expensescompany want to built companies where transportation cost is less.

Methods of evaluating location alternatives

The Factor Rating Method Locational Breakeven Analysis Services Location Strategy Purchase Power Of The Customer Competition In The Area Quality Of The Competition Operating Policies Of The Firm Quality Of The Management




What is Facility Layout

Location or arrangement of everything within & around buildings. Objectives are to maximize:

Utilization of space, equipment, & people. Efficient flow of information, material, & people. Employee morale & safety.

Trend is towards flexible and dynamic layouts. Helps achieve competitive advantage: Better, faster, cheaper. Determines productivity, cost, quality, flexibility, image, etc. May involve a blend of strategies

Six Layout Strategies

1. Fixed-position layout. For large unique projects such as ships and buildings.

2. Office layout. Positions workers, equipment, and spaces/offices to provide for

movement of information and material. 3. Process-oriented layout.

For low-volume, high-variety production. 4. Retail/service layout.

Arranges facility and allocates shelf space in light of customer behavior.

5. Warehouse layout. Addresses trade-offs between space utilization and material

handling. 6. Product-oriented layout.




For repetitive or continuous production.

Requirements for a Good Layout

Understand capacity and space requirements. Understand information flows. Understand cost of people and product flows. Select appropriate material handling equipment. Consider environment and aesthetics. Consider safety and regulations.

Constraints on Layout Objectives

Product/service design. Volume of business. Process equipment & capacity. Quality of work life. Building and site.

1. Fixed-Position Layout

Project is stationary. Special purpose: Construction, shipbuilding, etc.

Workers and equipment come to site. Complicating factors.

Limited space at site. Changing material needs. Unique projects.

2. Office Layout

Positions people, equipment, & offices. Usually for maximum information flow. Also can consider material flow.

Arranged by process or product.




Example: Payroll dept. is by process. Different cultures have different expectations for space. Relationship (or proximity) chart used.

4. Process-Oriented Layout

Place departments with large flows of material or people close together.

Similar processes and equipment are located in close proximity. For example, all x-ray machines in same area.

Used with process-focused processes. Low volume, high variety.

Process-Oriented Layout Advantages Flexibility.

Allows wide variety of products. Low fixed costs for general purpose equipment. Breakdown of one machine or worker does not stopprocessing.

Process-Oriented Layout Disadvantages Scheduling is difficult. High variable cost. High work-in-process inventory and waiting. High labor skills required.



Costing(3)

Photocopiers

(5)

President’sSecretary

(4)

(2)

President (1)

Engineering

Corridor


5. Retail/Service Layout

Maximize product exposure to customers. Maximize profitability per square foot of floor space or per

linear foot of shelf space. Decision variables:

Arrangement of store. Store flow pattern. Allocation of (shelf) space to products.

Locate high-draw items around the periphery. Use prominent locations (end aisle locations; first or last aisle) for

high-impulse and high margin items. Remove crossover aisles to prevent customers from moving between

aisles. Distribute “power items” (that dominate a shopping trip) around store

to increase the viewing of other items. Locate far apart. Locate on both sides of an aisle.

6. Warehouse Layout

Balance space utilization & handling cost. Similar to process layout.

Items moved between loading docks & various storage areas.

Optimum layout depends on: Variety of items stored. Number of items picked

7. Product-Oriented Layout

Used with product-focussed processes. Facility organized around product. High volume, low variety.




Types: Fabrication line - Builds components. Assembly line - Assembles components into products.

Divide work into small tasks. To be done by workers or machines. Assign tasks to workstations. Balance output of each workstation.

To smooth operations of the line. To make workload equal. To minimize idle time. To achieve desired output.

Standardized product. High production volume. Stable production quantities. Uniform quality of raw materials & components.

Product-Oriented Layout Advantages

Lower variable cost per unit. Lower material handling costs. Lower work-in-process inventories. Rapid throughput. Easier training & supervision.

Product-Oriented Layout Disadvantages

Higher capital investment for special equipment. Any work stoppage stops whole process. Lack of flexibility in volume and product.




Work force focused on the technical skills and labor standards can be consistent output based wage system possiblePeople are an integral and expensive part of an organization. Therefore, the quality of work provide the life to an organization the talent and skill required and their cost must be determined

The Objective Of A Human Resources Strategy

The objective of a human resources strategy is to manage labor and design jobs so people are effectively and efficiently utilized as we focus on a human resources strategy we want to ensure that people.

Are efficiently utilized with in the constraints of other operations management decisions.

Have a reasonable quality of work life in an atmosphere of mutual commitment and trust

Distinct Decision Area Of Human Resources Strategy

Labour Planning Job Design Labour Standards




Labour Planning

A means of determining staffing policies dealing with employment stability and work schedules

Employment Stability Policies Work Schedules Standards Work Schedules Flexible Time

JOB DESIGN

An approach that specifies the tasks that constitute the job for an individual or a group.

Labor Specialization Job Expansion Motivation And Incentive Systems.




A supply chain is the group of components (suppliers, distribution points, transportation providers) necessary to bring your product from its raw material state to the end user. Supply chain management is the term used for controlling and regulating your supply chain. Supply chain management (SCM) is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers.

Components of Supply Chain Model

A simple supply chain model consists of four components:

Supplier: supplies the raw materials Manufacturer: produces the product Warehouse or Distribution Center: Stores and ships the product End User: receives the product




Supply Chain Strategies

Many Suppliers Few Suppliers Vertical Integration Keiretsu Networks Virtual companies

Managing The Supply Chain

Mutual Agreement on Goals Trust Compatible organizational Cultures

Issues in An Integrated Supply Chain

Local optimization__________________________________________________________________Department Of Commerce



Incentives Large lots

Opportunities in An Integrated Supply Chain

Accurate pull data Lot size Reduction Single Stage Control of Replenishment Vendor managed Inventory

Vendor Selection

Vendor evaluation Vendor Development Negotiations

Supply Chain Activities/Functions:

Supply chain management is a cross-function approach to manage the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and then the movement of finished goods out of the organization toward the end-consumer. As organizations strive to focus on core competencies and becoming more flexible, they have reduced their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to

other entities that can perform the activities better or more cost effectively. Supply chain activities can be grouped into

Strategic Tactical Operational




Logistics Management

Distribution System Cost of shipping Alternatives

Logistics,Security & JIT

Logistics management ensures the successful acquisition of goods and services from outside the organization. Of all the knowledge areas, this is often the area of least involvement.It is better to subcontract critical dependencies only within your own country for timely support by the legal system. Never outsource a core competency without a great deal of hesitation. Be aware that vendors can and do subcontract your work. If (or when) this occurs, the problem resolution path will lengthen. Depending on scheduling concerns, timing and pressures, it may be critical to know and have access to the real suppliers of service, despite what contract law advises. Know if you have influence or control over vendor selection. In global companies, it’s not always possible to control to whom work is contracted because of other considerations. Beware of international holidays and their potential effect on delivery dates. Warehousing and logistics provider, DDC can help you manage:

Trucking Warehousing Distribution Freight Forwarding Air Freight Ocean Freight International Shipping




Inventory decision can be optimized only when customer satisfaction, and supplier , production schedules, and human resources planning are consideredIn manufacturing goods inventory of the raw material, work in process and finished goods may be inventoriedAs far as services business is concern other ways are to be found to accommodate changes in the demand

Functions Of The Inventory

To provide the stock of the goods to meet anti cipated customer demand and provide a selection of the goods.

To decouple suppliers from production and production from distribution for example if the supplier ,s fluctuate , extra raw material is available to decouple the production process siilarily if the product demand is high so it can avoid the cost of the shortage and stockouts such procedures is the decouple s production from distribution

To take disadvantage of the quantity discount To hedge against the inflation and upward price changes To protect against delivery variation Safety stock or extra goods on the hands can reduce the risk of the

shortage It permit the operation to continue smoothly




INVENTORY MANAGEMENT

Inventory management system is for the managing the inventory ingredients of the systems is how to classified called abc analysis

a. A. b. c. analysis b. Record accuracyc. Cycle counting

Abc Analysis: A method for dividing the on hand inventory into three classifications based on the annual dollar volume

Types Of The IventoryThere are four types of the inventories

Raw Material Inventory Work In Process Inventory Maintenances And Operating Supply (Mro) Inventory Finished Goods Inventory

Inventory Models

Holding Cost Ordering Cost Setup Cost Setup Time Cost

HOLDING COST : The cost to keep or carry inventory in stock.

ORDERING COST; The cost of the ordering the process.

SETUP COST: The cost to prepare a machine or process for production

ECONOMIC ORDER QUANITY:The objective is to minimized the cost like ordering and carrying the cost of inventory




ScheduleA schedule is a timetable for performing activities, utilizing resources, or allocating facilities, the purpose of operations scheduling in the job shop is to disaggregate the master production schedule into time-phased weekly, daily, or hourly activities. It can also define as the planned workload on the productive system in the very short rum.In designing scheduling and control system, provision must be made for efficient performance of the following functions:

1. Allocating orders, equipment, and personnel to work centers or other specified locations, essentially this is short-run capacity planning.

2. Determining the sequence of order performance; that is, establishing job priorities.

3. Initiating performance of the scheduled work. This is commonly termed as dispatching of orders.

4. Shop floor control(or production activity control)involving:

a) Reviewing the status and controlling the progress of orders as they are being worked on.

b) Expediting late and critical order.

5. Revising the schedule in light of changes in order status




Priority Rules For Allocating Jobs To Machines:

Five of the more common rules are:1) FCS: first come first served; orders are running the order they arrive

in the department

2) SOT: shortest operation time; orders are run in the inverse order to the time required to process item in the department, this is identical to SPT shortest processing time,

3) Due date: earliest due date first; run the job with the earliest due date. Date when referring to the entire job; OPND - when referring to the next operation.

4) Start date : due date minus normal lead time(run the job with the earliest due date first)

5) STR: slack time remaining; this is calculated as the difference between the time remaining before the due date minus processing time remaining. order with the shortest STR are run first.

Schedule Evaluation Criteria The following constitute standard measures of scheduled performance and are used to evaluate prior rules:

1) Meeting due date of customer and or downstream operation.2) Minimizing flow time (the time a job spends in the shop).3) Minimizing WIP.4) Minimizing idle time of machine and workers.




Hiearchy And Location Of Maintenance:

Organizationally, the maintenance management manager may report to the production manager, the plant manager, or, perhaps the plant engineer. His or her responsibilities typically include equipment maintenance and building and building service maintenance.

Classes Of Maintenance:

There are three general classes or type of maintenance.

Remedial maintenance Preventive maintenance Conditional maintenance




Remedial maintenance:

Remedial maintenance refers to carrying out a repair, replacement, or complete over haul of a piece of equipment when it breaks down.such work can be perform immediately after a breakdown occur.

Preventive maintenance: It refers to maintenance performed prior to breakdown and may be either in nature, such as simple adjustment. A preventive maintenance program may include provision for immediate repair or overhaul after a breakdown or over haul for predermined time periods.

Conditional maintenance: it refers to overhaul or repair that is not performed on the basis of inspecting and measuring the state of the equipment. If the equipment passes the test, it might be allowed to operate until it breakdown or until it has reached a certain number of operating hours, after which it is replaced, overhauled, or repaired.




Do more feel better &

live Longer

GSK Mission GSK Vision Did You Know Glaxosmithkline Globally Corporate And Social Responsibility What Is GSK For Their Employees? GSK At A Glance Corporate Functions GSK In Karachi Quality Performance Indicator




GSK Management System Mintzbergh Managerial Role In Gsk




Did You Know??Galaxo Smith Kline



GlaxoSmithKline`s vision is Exciting the Opportunity to make a difference to the lives of billions of people Our vision is to achieve sustainable competitive business advantage through leadershipand excellence in environment, health and safety.GSK is a recognized leader in protecting and enhancing the health of its employees globally,enabling sustainable business success.


Globally……

The only pharmaceutical company tackling the three WHO “priority” diseases: HIV/AIDS, Tuberculosis and malaria.

Four billion packs of the medicines and healthcare products manufactured yearly.

Over 15000 people working to discover new drugs.

65 million compounds screened every year

A quarter of the world’s vaccines supplied by GSK

More than 100 countries benefit from our humanitarian product donations

Corporate and Social Responsibility



“GSK believes that our business makes

a valuable contribution to society by

Developing And marketing medicines

And Consumer health care products

Which improves people’s lives?”


(CSR)

What is GSK for their Employees?






“GSK is a dynamic and global company. Each day presents a new challenge.”

“GSK is like a learning academy, where there is an immense opportunity to apply, practice and grow!”

“The place to be with diversified jobs, people, culture and a company that sincerely cares for its internal and external customers with a desire to do more feel better and live longer”

“GSK provides ample career development opportunities to those who work hard and are open to change and learning.”


COMMITMENT TO

CORPORATE RESPONSIBILITY

GSK is committed to connecting business decision to ethical. Social and environmental concerns. Thus, corporate responsibility is an integrategral

and part of tha way GSK does business.

COMMUNITY INITIATIVES

GSK makes donations of money, medicines, vaccines time and equipment to support good causes. Our community investment strategy focuses on

improving health and education in under served communities.

EMPLOYEES INVOLVEMENT

GSK employees are encouraged to contribute to their local communities through employee volunteering schemes.

RESEARCH AND INNOVATION

The most important element of corporate responsibility for us is the contribution our products make to health. GSK Is involved in various public/ private partnership projects.




GSK At A Glance Our mission is to improve the quality of human life by enabling

people to do more, feel better and live longer We are a research-based pharmaceutical company We are committed to tackling the three "priority" diseases

identified by the World Health Organization: HIV/AIDS, tuberculosis and malaria

Our business employs around 99,000 people in over 100 countries We make almost four billion packs of medicines and healthcare

products every year Over 15,000 people work in our research teams to discover new

medicines We screen about 65 million compounds every year in our search

for new medicines We supply one quarter of the world's vaccines and by the end of

February 2009 we had more than 20 vaccines in clinical development

January 2008 marked the tenth anniversary of our programme to help eliminate lymphatic filariasis (elephantiasis). During those ten years we donated 750 million albendazole tablets, reaching over 130 million people

In 2007 we marked 15 years of our Positive Action programme that helps communities living with HIV/AIDS

In the developing world, we provide certain medicines at preferential prices ensuring that the poorest can still benefit from our treatments and vaccines

Many of our consumer brands are household names: Ribena, Horlicks, Lucozade, Aquafresh, Sensodyne, Panadol, Tums, Zovirax.




Corporate FunctionsM. Salman Burney - Managing Director

Dr. Muzaffar Iqbal - Technical Director, Global Manufacturing and Supply

Pervaiz Iqbal Awan - Director Sales

Maqbool Ur Rahman - Director Sales

Erum Shakir Rahim - Director Marketing & Business Development

Javed Ahmedjee - Director Finance, IT & Logistics

Shahid M. Qureshi - Director Legal, Corporate Affairs, IR, Admin and Regulatory

Fariha K. Salahuddin - Head of Human Resource and Organisational Development

Dr. Ahmad Atif Mirza - Director Medical Affairs and R&D

Sohail Matin - Country Manager, Consumer Healthcare




GSK In Karachi 35- Dockyard Road, West Wharf, Karachi- 74000.Telephones: 111-GSK-PAK (111-475-725)Fax: 2314898 and 2311122

94, Deh Landhi,Karachi.Telephones: 5015040-44Fax: 5015515

F/268, S.I.T.E,Near Labour Square,Karachi-75700Telephones: 2599999 Fax: 2572613 and 2570360

B/63, Estate Avenue S.I.T.E,Karachi.Telephones: 2561200-7Fax: 2564797




QUALITY PERFORMANCE

INDICATORS

PERFORMANCE INDICATOR

TARGET THIS MONTH YTD

BNRFT 10.11% 1.18% 3.09%

Customer complaints (NO.S) NIL NIL

Line clearance failure /rogue

NIL NIL NIL

DEPARTMENT: CHC MONTH: FEBRUARY 2009




GSK Management System



Board

Finance Marketing Quality Manufacturing

Other major function

Design reliability

AdministrationManufacturing quality control

Reliability engineering

Component engineering

Standards laboratory

Material and processes laboratory

Environmental test laboratory

Quality planning

Inspection and test

Test equipment engineering

Quality control engineering

Customer support

Field engineering

Performance data collection

Overall evaluation program planning

and

Statistical services

Budget and controls

Data processing and analysis


Mintzbergh ManagerialRole In GSK

Formal authority Informative role Interpersonal role Decisional role

Informative role Monitor Disseminator Spoke person

Interpersonal role; Figure head Leader Liaison;

Decisional role; Entrepreneurship Disturbances Handler Resources Allocator Negotiator




ENO Yearly Volume ENO Sachet

Yearly Volume ENO Bottles

Packaging Process of ENO Bottles GSK launches ENO Pudina

Safety Data Sheet of ENO




EHS Report Of ENO

ENOENO is an antacid powder which is mixed with water to produce a sparkling antacid drink for the temporary relief of heartburn & acid indigestion caused by too much food and/or drink.

ENO is the most global of GSK's gastrointestinal products. The fast-acting effervescent fruit salts, used as an antacid and reliever of bloatedness, was invented in the 1850s by James Crossley Eno. It has sales of nearly £30 million, with its major markets being Spain, India, Brazil, South Africa and Thailand. It is frequently used as as substitute for baking powder.

ENO is a range of antacid products that treat the symptoms of heartburn and gastric discomfort. It is available in different flavours and pack formats.

Indications: Condition where long term or short term maintenance of alkaline urine is desirable. In condition where temporary relief from minor gastric upsets is desired. In combination with antibiotics; when the effectiveness of an antibiotic is increased in the presence of alkaline urine.



http://en.wikipedia.org/wiki/Baking_powder

http://en.wikipedia.org/wiki/Thailand

http://en.wikipedia.org/wiki/South_Africa

http://en.wikipedia.org/wiki/Brazil

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Spain

http://en.wikipedia.org/w/index.php?title=James_Crossley_Eno&action=edit&redlink=1

http://en.wikipedia.org/wiki/Antacid

http://en.wikipedia.org/wiki/GlaxoSmithKline


Description:Eno is an antacid powder which is mixed with water to produce a sparkling antacid drink for the temporary relief of heartburn & acid indigestion caused by too much food and/or drink.

YEARLY VOLUME ENO SACHET

ENO SACHET PACKS IN MILLIONS




YEARLY VOLUME ENO BOTTLES




PACKAGING PROCESS OF ENO BOTTLES



Bottle blowing

Bottle line for cleaning

Filling

Manual Capping

Manual sieving

Printing





GSK launches ENO Pudina

GlaxoSmithKline Consumer Healthcare (GSKCH) has announced the introduction of ENO Pudina. With the launch of the pudina flavoured variant, the company has expanded its portfolio of products in the antacids segment.

Retaining the well-accepted proposition of significant action, starting within six seconds, the new variant of ENO, would gain from the naturally soothing effect of the pudina herb. The new combination would offer quick and effective relief from the discomfort of acidity. “Pudina has a long heritage of use as a carminative in digestive disorders. Since times immemorial, pudina has been used and recommended for digestive disorders,” says Trupti Bhandari, Marketing Manager of GlaxoSmithKline Consumer Healthcare India. “The main ingredients of Eno Pudina are Svarjikshara and Nimbukamlam which provide the fast action, while pudina provides the benefit of cooling and numbing the oesophagus (food pipe), enhancing the perception of relief.”

ENO Pudina has neutralised acid, both in the stomach, as well as, refluxed acid in the oesophagus (food-pipe). This ability to neutralise stomach acid, in addition to refluxed acid in the oesophagus, makes it a remedy of choice for fast and effective relief against both acidity and heartburn.

The launch of the pudina variant is expected to expand the market for antacids and enhance the equity of the brand ENO accrued over a period of 34 years. ENO Pudina is a pan-India launch, covering the North, West, East and key markets of South.




SAFETY DATA SHEET

Material ENO FRUIT SALTS

COMPOSITION / INFORMATION ON INGREDIENTSIngredients CAS RN PercentageSODIUM BICARBONATE 144-55-8 46.4CITRIC ACID 77-92-9 43.6SODIUM CARBONATE 497-19-8 10

HAZARDS IDENTIFICATIONFire and Explosion Assume that this product is capable of sustaining combustion.Health Handling this product in its final form presents minimal risk fromoccupational exposure.Health effects information is based on hazards of components.Environment No information is available about the potential of this product to produceadverse environmental effects.

FIRST-AID MEASURES__________________________________________________________________Department Of Commerce



Ingestion Never attempt to induce vomiting. Do not attempt to give any solid or liquidby mouth if the exposed subject is unconscious or semi-conscious. Washout the mouth with water. If the exposed subject is fully conscious, giveplenty of water to drink. Obtain medical attention.Inhalation Physical form suggests that risk of inhalation exposure is negligible.Skin Contact Using appropriate personal protective equipment, remove contaminatedclothing and flush exposed area with large amounts of water. Obtainmedical attention if skin reaction occurs, which may be immediate ordelayed.Eye Contact Wash immediately with clean and gently flowing water. Continue for at least15 minutes. Obtain medical attention.NOTES TO HEALTH PROFESSIONALSMedical Treatment None.Medical Conditions Caused or Aggravated by Exposure None for occupational exposure.Antidotes No specific antidotes are recommended.

FIRE-FIGHTING MEASURESFire and Explosion Hazards The combustibility of the product is not known, however the packaging iscombustible.Extinguishing Media Water or foam extinguishers are recommended.Carbon dioxide or dry powder extinguishers may be ineffective.Special Firefighting Procedures For single units (packages): No special requirements needed.For larger amounts (multiple packages/pallets) of product: Since toxic,corrosive or flammable vapours might be evolved from fires involving thisproduct and associated packaging, self contained breathing apparatus andfull protective equipment are recommended for firefighters.If possible, contain and collect firefighting water for later disposal.Hazardous Combustion Products Toxic, corrosive or flammable thermal decomposition products areexpected when the product is exposed to fire.




ACCIDENTAL RELEASE MEASURESPersonal Precautions Wear protective clothing and equipment consistent with the degree ofhazard.Environmental Precautions For large spills, take precautions to prevent entry into waterways, sewers, orsurface drainage systems.Clean-up Methods Collect and place it in a suitable, properly labelled container for recovery ordisposal.DecontaminationProcedures No specific decontamination or detoxification procedures have beenidentified for this product.

HANDLING AND STORAGEHANDLING General Requirements No special control measures required for the normal handling of thisproduct. Normal room ventilation is expected to be adequate for routinehandling of this product.

EXPOSURE CONTROLS/PERSONAL PROTECTION* STORAGE No storage requirements are considered necessary for the control of fireand explosion hazards.None required for normal handling. Wash hands and arms thoroughly afterhandling.

STABILITY AND REACTIVITYStability This product is expected to be stable.Conditions to Avoid None for normal handling of this product.




TOXICOLOGICAL INFORMATIONOral Toxicity Not expected to be toxic following ingestion.Skin Effects Irritation is not expected following direct contact.Eye Effects Irritation is not expected following direct contact with eyes.Sensitisation Sensitisation (allergic skin reaction) is not expected.Genetic Toxicity Not expected to be genotoxic under occupational exposure conditions.Carcinogenicity Not expected to produce cancer in humans under occupational exposureconditions. No components are listed as carcinogens by GSK, IARC, NTPor US OSHA.Reproductive Effects Not expected to produce adverse effects on fertility or development underoccupational exposure conditions.* Other Adverse Effects None known for occupational exposure.

ECOLOGICAL INFORMATIONSummary No information is available about the potential of this product to produceadverse environmental effects. Local regulations and procedures should beconsulted prior to environmental release.

DISPOSAL CONSIDERATIONSDisposal Recommendations Collect for recycling or recovery if possible. The disposal method forrejected products/returned goods must ensure that they cannot be re-sold orre-used.Regulatory Requirements Observe all local and national regulations when disposing of this product.




GSK’S EHS ReportGeneral Safety and Security RulesThe following are some of the reasons for which an employee of a contractor may be temporarily orpermanently removed from GSK premises.Possession or use of alcoholic beverages,regulated drugs not prescribed by a physician,explosives, firearms, ammunition, other weapons,cameras and recording devicesSmokingDeliberate violation of safety or security rulesIllegal dumping, handling, or disposal of hazardous materialsSexual harassment of any individual or group while on GSK premisesDestruction or removal without written permission of any property belonging to GSK, the property owner, employee, or other contractors or employeesAbuse, defacement, or destruction of property, as well as posting of unauthorized signs, notices

Safety Permits and ProceduresObtain a permit or approval through your supervisor before:Working on fire protection/detection systemsDoing burning, welding, cutting, soldering, grinding, or other hot workWorking on an electrical circuitEntering confined spaces (these will be identified by your supervisor)Moving emergency equipment (fire extinguishers,first aid kits, etc.)Turning off any utility (electrical, compressed air,steam, etc.). Each individual working on a system must install their own lockout device on the piece of equipment as directed by their supervisor. In addition, GSK Facilities Operations will shut down and start up operating utilities.




Environmental IssuesHazardous Waste ManagementContractors are responsible for the safe use and disposal of any chemicals brought onto a GSK site, and are limited as to the amount of hazardous chemicalthey may store on GSK property. Contractors that generate hazardous waste on site must notify Environmental Health and Safety for disposaldirectives.Do not store more than 55 gallons of hazardous wasteor one quart of acutely hazardous waste without written approval from Environmental Health and Safety. Waste containers must be clearly labeled as to their contents.Waste must not be transferred between GSK facilities.Do not dispose of hazardous and chemical waste in company dumpsters.

The disposal of waste materials such as asbestos, lead paint, hazardous construction debris, or contaminated soil resulting from demolition, excavation, ormaintenance activities that are not the result of hazardous materials or petroleum products brought on site by a contractor must be approved by GSK.

Spill Prevention and ControlUse appropriate protective procedures such as double containment, employee training, overflow protection, and other measures as part of activities involving the use, storage, or handling of petroleum products or hazardous materials on GSK property.Containers of hazardous materials and petroleum products should be stored in order to prevent releases to the environment. This requires selecting locationsand methods to minimize exposure to rainfall, surface water, and the ground. Enclosures, shelters, and secondary containment should be used whereappropriate.




Electrical SafetyOnly qualified electricians are permitted to work on electrical systems and equipment that uses or controls electrical power.Do not operate electrical tools or equipment in wet areas or areas where potentially flammable dusts, vapors, or liquids are present, unless specificallyapproved for the location.In areas where water or moisture is present or likely to be present, use ground fault circuit interrupters (GFCI) on power circuits. If permanent plant power circuitsare not GFCI, use a portable GFCI box with electrical tools and equipment. Test interrupters on a regular basis.Should a circuit breaker or other protective device “trip,” ensure that a qualified electrician checks the circuit and equipment and corrects problems beforeresetting the breaker.No solvents, paints, or similar flammable, toxic, or irritating materials may be used in areas occupied by GSK employees unless specifically approved inwriting by an authorized Environmental Health and Safety representative




Maintain adequate ventilation when paints or solvents are usedUse proper respiratory protection and protective clothingUse flammable solvents and materials with extreme cautionStore flammable paints and solvents in approved flammable liquid storage cabinets if inside buildings

Closing StatementGSK has a duty to provide a safe workplace that is free from recognized hazards. Because of the number of contract activities on GSK premises, GSK is providingthis handbook to contract employees as part of its safety program to protect its people and property. It is the responsibility of contractors to ensure that theiremployees perform work in a safe manner and in a safe work environment. Contractors must train, supervise, and direct their employees concerning compliance with safety rules, including those required by GSK for work on its premises. This manual is not intended to nullify or assume responsibility that contractors owe to their employees or to other persons

CEHS Mission:In order to achieve its vision,CEHS will provide:

Leadership for the integrated, global effort within GlaxoSmithKline on

Key EHS issues; Governance of EHS performance; Support for GlaxoSmithKline businesses with tools, technology,

information and knowledge; Innovation and continuous improvement for unified EHS systemsand

approaches.




1.DESIGNS OF GOODS AND SERVICES

Product strategy focus on developing a competitive advantage with respect to differentiation, low cost, rapid response. Product design is critical in the highly competitive pharmaceutical organization. GSK keep in touch with their customers and they respond to the market place. With changing consumer tastes, compounded by material changes and ever improving product production, the design function is under constant pressure. These pressures are the constant issue of cost competitiveness combined with the need to provide good value for customers.

GSK know that the basis for an organization’s existence is the good on service it provides society. Great products are the keys to success for GSK. Anything less than an excellent product strategy can be devastating to a GSK. To maximize the potential for success GKS focus and concentrate on their product. Most products have a limited and even a predictable life cycle that’s why GSK constantly be looking for new products to design, develop and take to market. GSK believes on strong communication among customer, product, processes, and suppliers that results in a high success rate for their new products.




For Developing characteristics of product their marketing department is responsible. They takes action according to competitor activities for product design and quality. They also maintain a particular standard & designs of products are change if there is any requirement by the permission of Ministry Of Health.Designs are changed by the suggestion of CSD Creative Service Design.

ENO:More recently they changed their ENO packaging that before they packed them in a paper material but now they are using polythene material.ENO maintain a great quality and has a low price and loyal customer as compare to Citro soda.




2.QUALITY DECISIONGSK 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

o Training

o Material

o Auditing __________________________________________________________________Department Of Commerce



o Continuous improvement

GSK’s Quality Management System is an innovative yet practical tool that is benchmarked against all international standards and guidelines ensuring risk minimisation, and more importantly top-notch managerial skills.

GSK QMS is a ‘living system’ which focuses on the ever changing needs of their 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.

Quality control is alaways a burden to the organization.first time batches are quality product.quality is circulating from person to person and department to department.

Quality assurance department `s job is to do quality control from raw material to finished good.In packing case every two hours batches are cheked.




QUALITY MANGEMENT SYSTEM (QMS) AND ITS PURPOSE IN GSK

THE QUALITY MANAGEMENT OF THE GSK PROVIDE COMPANY FRAM WORK FOR;

Assuring Product Quality,Safety And Efficacy

Delivering Capable Processes And Operational Improvement

Assuring Sustainable Regulatory Compliance

Managing Quality And Compliance Risk And Preventing Quality Failures

As Such The Qms Supports The Aspiration Emboided In Gsk Quality System




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.”

JP Garnier, Chief Executive Officer




3.PROCESS STRATEGY IN GSK;

COMPOSITION / INFORMATION ON INGREDIENTS

Ingredients CAS RN PercentageSODIUM BICARBONATE 144-55-8 46.4CITRIC ACID 77-92-9 43.6SODIUM CARBONATE 497-19-8 10

Gsk process strategy is to transform the input into desirable out come here we have used the term process and transform their objective is to make medicines that meet the customer requirement but as well as it should meet the international standards as all of us know that there are three types of the process strategies like

Process focus Repetitive; Product focus

Process focus;




Seventy five percent of all manufacturing companies are concerning to make low volume and high varity products in places like gsk it make betnovate; ENO, macleans and other medicines this facility provide the benefits

Product process Some of the product of the gsk also use the product process in large quantity and small variety is produced and equipment is special purpose in which operators are broadly skilled like in gsk most of the work is done through machines

Mass customization;Gsk is currently working on that strategy to provide mass customizaton they are cater the market in which customers have a unique desire under this process three strategy become more flexible and convenient for the production department of the firm

Flexibility;They have the ability to respond with little penalty in ;cost or customer value

Process Analysis And DesignThey first design and transform the process which again transform the inputs in to outputs they consider the following process

Is the process design to achieved the competitive advantage in term of the differentiation

Does the process maximized customer value Will the process win the order

according to the manager of the gsk each step of your process must add value to your product because product is the combination of different layouts




Physical Properties

Prolong heating and/ or temperature beyond 200 C may transform physical appearance of powder from white colored powder yellowish brown colored powder.

Low heating below 50 C may result in loss of effervescent effect of ENO. As stabilizing salt is not produced for LOD value doesn’t comply with the standard percentage i.e 37%




ENO Lemon/Orange Manufacturing Process Map




4.LOCATION OF THE GSK:__________________________________________________________________Department Of Commerce



As all of us know that gsk is the multinational company so they use the system that is called geographical information system which not only provide the correct information about the location and customer but also provide the statistical information about the market situation of the particular country for example gsk manager use the technology that is called gis software called atlas gis from strategic location mapping on e of the manager of gsk said that we typically consider the locational break even analysis and transportation method of the linear programming because location is the critical element in determining the revenues for the services retail and other needs of the firm Gsk also used the factor rating method a method that is consider the both qualitative as well as the quantitative method to evaluate the costFrist they consider the exchange rate of the country and cost and attitude market and availability of the suppliers and above mention factors are so much important factors the factory location and capacityLabor productivity is also very important factor mr shekel the production manger of the gsk said the labor cost in many under developed country like Pakistan are increasing in trend but in Pakistan mostly employee are least educated and poor trained and low skilled to trained them aand to aware and educate them it is a big problem in Pakistan.

5.LAYOUT DECISION:__________________________________________________________________Department Of Commerce



Gsk keeps in eyes these factors while purchasing a machine. User request brief URB Market research Financial resource Vendor search Feasibility report Cost effectiveness Pay back period

At the time of installment of a machine or equipment,there are certain documentation done by GSK that

IQ Installment Qaulification: How much space GSK has for installment of a equipment DQ Design Qualification:

First GSK have to design temporary map or sketch then it is approved by supervisors.

OP Operation Qualification:It is basically of machine of environment that how a machine will operate.

PQ Performance Qualificaion: How well a machine or equipment perform in this environment either standards are meet or not.

Room and departments are designed according to the need.For ENO a particular space & capacity needed.For ENO temperature & humanity factors keeps.Recently GSK install a sachet machine line in ENO production department,that give more benefits.

INSTALLATION & COMMISSIONING OF SACHET MACHINE LINES IN CHC IN ENO PRODUCTION DEPARTMENT




BENEFITS1.Replacement of old Sachet filter with double capacity new fibers.2.Elemintion of manual powder feeding with auto vacuum powder transfer system operation.3.Productivity improvement from 35,000 to 70,000 sachet per shift.4.Elemintion of night shift working

There are a individual department in GSK for the control of Noise in a department named EHS Environment Health & Safty.This department completely protects the employee’s health. GSK has Material Safty Data




Sheet which is approved from world wide & which helps to decrease noise pollution and it is also benefit for worker’s ear.GSK understand that their employees are assets & they treat them as the best.There is intercom facility and a backup person available for the urgent need of communication in GSK.Raw material store in front of manufacturing department & quality of raw material must be checked before sending it to manufacturing .Order is given by planner’s to department’s operational manger when raw material needed in GSK.

WarehousingThere are not local vendors. GSK do not have zero inventory .They keep market always full.40% batches must have in stock and 20% unplanned extra is present in warehouse to meet fluctuations.

LAYOUT OF GSK__________________________________________________________________Department Of Commerce



PLANPLAN

SPECIAL ORDER IN PRODUCTIONSPECIAL ORDER IN PRODUCTION

PRODUCTIONPRODUCTION

WAREHOUSEWAREHOUSE

RAW MATERIAL (DISPENSE)RAW MATERIAL (DISPENSE)

MANUFACTURINGMANUFACTURING

QUALITY CONTROL PASSED SAMPLE QUALITY CONTROL PASSED SAMPLE

FILLINGFILLING

QUALITY CONTROL TEST (F/G) QUALITY CONTROL TEST (F/G)

RELEASED RELEASED

F/G STORE F/G STORE




6.HUMAN RESOURCES STRATEGY OF GSKIn GSK they have their own performance development plannerIn multinational organization employee are the assets of an organization. Employee satisfaction is the first priority of the gsk in that specific planner performance of each and every employee is noted and according to the performances promotion and demotion is rewarded every employee feels that he or she is working in his own organization a part from providing bonus and increment to employees they provide medical facility to their employees and influence them by giving them AWARDS and motivated them by giving them different kind of facilities Their standard work hour is 7.75 hr excluding tea break, namaz, lunch but for special orders in order to generate efficiencyExtra over time and bonus is given to employees

Employees Empowerment In GSKEmployees empowerment is the first priority of the g.s.kWe have personally noticed that they have labor union and every employee was provided good food at free of cost

U.S.P OF GSK __________________________________________________________________Department Of Commerce



OPENESS EGALATARIAN HUMBLENESS RESPECT ONE TEAM

They believe in one team work and there is openness for the employee for new experiment and explore new journey and every employee is respected by the management there is no discrimination on the base color cast and creed in the organization.

Recuritment Process Advertising Screen General Test Test PPA Interview Candidate Finalization

ENO maintain a great quality and has a low price and loyal customer as compare to Citro soda.

7.SUPPLY CHAIN MANAGEMENT__________________________________________________________________Department Of Commerce



Supply chain Management is the integration of activities that procure materials and services, transforming them into intermediate goods and final products, and delivering the products to customer through a distribution system.

GSK has chain of transportation vendors, credit and cash transformers, more than 1 suppliers, distributors, Account payable and receivables, warehousing and inventory levels. GSK has always excess inventory and for maintenance of that they have more than 1 suppliers which helps them in the fluctuations period. GSK focuses on maximizing value to the ultimate customers by chain of Suppliers .GSK doesn’t have local vendors. There are a separate department named CPS Corporate Purchase Standard. All the decisions & standards are made by CPS ,cost and standards are very important to material. Relationship with suppliers are very important for smooth production and that’s why GSK have long term relationship with their suppliers, they don’t bound their suppliers and gives security by making long term relationship.GSK employees are responsible for overall quality,marketing,research & designs. There are so many workers who work for suppliers.GSK innovative




supply chain will,it hopes,improve quality and drive down costs as each subcontractors accepts responsibility for its units and worker compensation.

Material: Material management is done by QC that identify what the environment is better.

Outsourcing: Technology and economic efficiency demand specialization that’s why GSK increasing their commitment to outsourcing and supply chain integration.GSK is buying not only materials bus also labor and the related services.Suppliers are integrated tightly into GSK own network.Before any outsourcing,GSK has performed SAT site assessment test and FAT factory assessment test.Recently in ENO department a machine has purchased from China whose output is 80% better than previous one.The cost of this machine is 1.4million. China had also provide all services related to it.They also gives training to GSK’s workers.

Distribution Channels: There are different ways of distribution in GSK.

For huge quantity distribute by sea ships, airplane For small quantity distribute by container

Major Markets Spain India MexicoAsia Australia UK Middle East Africa Pakistan South America Hong Kong Srilanka Dubai

Competitor:There is a single competitor of ENO is Citro Soda by Abbott Pakistan.




OUTSOURCING MACHINE FOR ENO DEPARTMENT

8.INVENTORY IN GSK;__________________________________________________________________Department Of Commerce



To meet anticipated customer demand To decouple the suppliers from production and production from

distributors To advantage of the quantity discount to hedge against inflation

Inventory recording system;

What where and when inventory is required that system in gsk tell continuously up date the management;

BOM(Bill Of The Material Code And Discription That Is Present In The System)

Material Outsourcing;Most of the material is imported from aboard thourgh shippedcorporative standards;We have the corporatative standards which meet the customer requirement amd meet the international standards

Selection Of The Equipment And Technology




Equipment are the converting machines which transform the input into output

Factors;User Request Brief;Then we find the vendor said mr shakeel production manager of the gsk the we prepare the feasibility report then we see market that how many supplier are available it be should be cost effective other wise it will be use less very equipment gives you the pay back periodaccording to replacement or introduction then we allocate the space for the equipment it may create problem in material transportation

Documentation IQ (Installation Qualification) DQ (Design Qualification) OQ (Operational Qualification) PQ (Performance Qualification)

Design Qualification;We draw a map in which we draw sketch about the equipment placement

Operational Qualification;In which we discuss about the operation o the machine we implement the single possible solution from the discussion in performance criteria we discuss the performance of the machine.

EHS(ENVIRONMENT HEALTH AND SAFETY)In every organization it is responsibility of an organization to take care of an employee

Material Safty Data;In material safty date sheet all hazards are given regarding the safety issues it is base on the international standards




Cycle Time ;Eno product cycle time is 90 days in receiving the supply from supplier from delivering the goods to the markets In one sachet manufactureto packaging time is 80 hours

Machine TestThere are two kinds of the test

SAT (site assessment test) FAT (factory assessment test)

In which we give all kind of the specification to the vendor he will catelock and provide training to the employee we are planning to export srilanka Afghanistan target marketing is done by the marketing department




WasteGlaxoSmithKline has targets to reduce the impact of waste from our operation on the environment.Technical guidance had been developed for our EHS standards on Waste Minimisation and Recycling andon Waste Management. Sites identify and assesswaste arising from site activities and then minimize or manage waste through the following measures:• Eliminate or reduce waste generation whenever feasible;• Substitute with sustainable materials whenever feasible to minimise overallimpacts on air, water and land;• Re-use waste whenever feasible;Recycle wastes in a manner consistent with local regulatory requirements;• Use treatment and disposal options that minimise the overall EHS risks and impacts on air, water and land.




9.SCHEDULING IN GSK

Scheduling involves the timing of operations to achieve the efficient movement of unit through a system.

Shop order:Eno is producing according to shop order. Shop order is a document made by market analysis which shows the demand of product in the market and then ENO is produce according to that demand.Demand of ENO is influencing. Its demand increases day by day. Marketing, cost and quality are factors of increasing demand.Scheduling system in GSK are both electronic and manual. How to manufacture the batch is record in document called BMR. BMR stands for batch manufacturing record. It is generated by BPCS (Batch plan and control system).Shop order number is placed on it. It is assigned by management. This number is unique in nature. The same no. is also allot to ENO bottle which is use to trace misbranded or centerfields drug




STANDARD WORKING HOURS

1 DAY 8:15am TO 5:15pm WORKING HOURS 7.75 HOURS

SCHEDULE OF ENO:

OPERATING CYCLE TIME OF ENO 90 DAYS

ENO SACHET PACKAGING TIME 80 HOURS

1 BATCH CONTAINS 77000 ENO SACHET

1 BATCH CONTAINS 3500 ENO BOTTLES

GSK management meets their goal on time by giving extra efforts in shape of

NIGHT SHIFTS EXTERNAL HOURS (OVER TIME) AUTOMATIC MACHINE




10.MAINTENANCE IN GSKThe maintenance management manager may report to the production manager, the plant manager, or, perhaps the plant engineer. His or her responsibilities typically include equipment maintenance and building and building service maintenance.

In GSk mostly preventive and conditional maintenance system is used.

Maximum life of a machine is 20 to 25 years. Machine failure is identified by sensor system Every 3 months calibration is made. Balances are cheked by third

parties who issue maintenance certificates. Zero access system is used. Mostly machines are imported from China. ENO printing machine is imported from China. GSK use outsourcing for maintenance of machines. Technical training/services is given by suppliers.

ENO Printing Machine




During the project development we used the following book reference for our convenience.

Jay Heizer, Barry Render ,8th edition, Operation Management

William Stevenson 6th Edition, Operation Management

Render,B,Stair and Micheal Hanna,9th edition,Quantitative Analysis for Management.

www.om.edu.com by internet

www.acm.org.com by internet

Previous projects by internet

Well known software and tools



http://www.acm.org.com/

http://www.om.edu.com/


Karachi University



Assignment on Operation Mgt

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