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Final Project Assignment: Supply Chain Management Plan

This week, you will complete Part 1 of the Final Project, a plan for integrating a new supplier into the supply chain at Johnson & Johnson (J&J). To prepare for completing this assignment, review the documents provided in this week’s learning resources. Visit the J&J website using the links provided in the “Supply Chain Management Scenario” document.

Using the “Supply Chain Management Plan Template,” prepare a company profile for J&J and evaluate its philosophy on supply chain management. The requirements for the content and length of each section are provided in the template.

Final Project Assignment: Supply Chain Management Plan

Supply Chain Management Plan

(Project Name)

Student Name

Walden University

Date

Table of Contents
Company Profile

Supply Chain Management Philosophy

Supply Chain Management Practices

Project Scope

Project Schedule

Project Cost

Project Budget

Company Profile

Prepare a company profile. The profile should include the items listed below. (1 page)

General Business Information

· Business Name

· Primary Business Location (e.g., Headquarters Location)

Company Overview

· Business Purpose (e.g., Business Function / Mission Statement)

· Size / Market Reach (e.g., Small, Medium, Large / Local, National, Global)

Business Details

· Principal Customers for Medical Devices

· Major Competitors for Medical Devices

Supply Chain Management Philosophy

Supply Chain Management (SCM) encompasses managing and integrating essential business processes across an organization. Efficient and effective SCM affords companies an advantage over its their competitors. While most organizations adhere to industry standards and best practices in SCM (e.g., ISO 9000), they may also incorporate unique aspects that differentiate them from the competition. These unique aspects are typically aligned with the company’s culture, mission, and philosophy on social responsibility and accountability.

Evaluate Johnson & Johnson’s (J&J) SCM philosophy (2-3 pages)

· Describe J&J’s philosophy on SCM

· Explain how J&J’s philosophy on SCM supports its mission statement

· Explain how J&J’s three key focus areas (People, Places, and Practices) apply to its relationships with supply chain partners.

Supply Chain Management Practices

Supply Chain Management (SCM) encompasses the end-to-end business processes necessary for a company to produce goods and services for delivery to the end consumer. Integration between the processes and collaboration among the entities involved in the processes are critical. In 2001, the Global Supply Chain Forum recommended a common definition of SCM and identified eight key business processes that they proposed should be implemented and integrated.

Supply Chain Management Process (1 page)

· Briefly describe each of the eight key business processes identified in the article “The Supply Chain Management Processes,” including the purpose of each process in managing the supply chain.

Evaluate J&J’s approach to Supplier Relationship Management (SRM) (2-3 pages)

· What is J&J’s philosophy on SRM?

· What are the requirements for becoming a supplier partner with J&J?

· What role do suppliers play in achieving the mission of J&J?

· How effective are J&J’s SRM practices?

Project Scope

The scope of the project is derived from stakeholder requirements and is used as input to create the Work Breakdown Structure (WBS). The WBS depicts the total scope of the project, and is the primary source of information for the development of the project schedule and , for the determination of project resources, and is an important element of performance measurement.

The final deliverable for this project is a supplier product agreement between J&J and Allied Distributors for the production of medical devices. Five sub-deliverables that must be produced before the supplier product agreement can be created are:

Sourcing Requirements

;

Sourcing Proposal

;

Supplier Selection Criteria

;

Supplier Responsibility Standards

; and

Supplier Performance Measurement Criteria

Compose a project scope statement (1 page)

· Describe the overall scope of work required to create the Ffinal Pproject deliverable, a supplier product agreement between J&J and Allied Distributors.

· Describe each of the five sub-deliverables that must be created in order to produce the final project deliverable.

Project Schedule

A project schedule is developed by estimating the duration of the activities that must be performed in order to produce each of the sub-deliverables. The project schedule is typically represented in a Gantt Chart. The Gantt Chart depicts the project activities, durations, start and end dates, and predecessors. It also shows the project’s critical path. Activities on the critical path are those that, if delayed, will impact the project finish date.

Define Project Activities

· Using the outline view of the WBS below, define at least two activities that must be performed in order to produce each of the five sub-deliverables. The activities should be aligned with J&J’s SRM practices for new supplier partners.

Supplier Product Agreement

1.1

. Sourcing Requirements

1.1.1. Activity

1.2

. Activity

1.2. Sourcing Proposal

1.2.1. Activity

1.2.2. Activity

1.3

. Supplier Selection Criteria

1.3.1. Activity

1.3.2. Activity

1.4

. Supplier Responsibility Standards

1.4.1. Activity

1.4.2. Activity

1.5

. Supplier Performance Measurement Criteria

1.5.1. Activity

1.5.2. Activity

Estimate Activity Durations

The next step after defining the activities for the project is to estimate the duration of each activity. Using the Table 2 below and considering the available resources (for this project, only human resources are required) provided in Table 1:

· Estimate the duration for each of the project activities and enter the durations in the table.

· Describe the tool/technique you used to estimate the activity durations. (2-3 paragraphs)

· Describe a tool/technique other than the one you used that can be used for estimating activity durations. (2-3 paragraphs)

Table 1: Available Project Resources

Resource

Rate

Project Sponsor

$98/hour

Project Manager

$46/hour

Procurement Manager

$33/hour

Human Resource Representative

$36/hour

Environment, Health, Safety, & Sustainability (EHS&S) Representative

$73/hour

Legal / Regulatory Representative

$92/hour

Table 2: Project Deliverables/Activities and Durations

Deliverable / Activity

Duration

1. Supplier Product Agreement

1.1. Sourcing Requirements

1.1.1. Activity

Duration

1.1.2. Activity

Duration

1.2. Sourcing Proposal

1.2.1. Activity

Duration

1.2.2. Activity

Duration

1.3. Supplier Selection Criteria

1.3.1. Activity

Duration

1.3.2. Activity

Duration

1.4. Supplier Responsibility Standards

1.4.1. Activity

Duration

1.4.2. Activity

Duration

1.5. Supplier Performance Measurement Criteria

1.5.1. Activity

Duration

1.5.2. Activity

Duration

Gantt Chart

· Assume that the project starts on the first day of this class. Using the data in Table 2 above, construct a Gantt Chart for the SCM project.

· The Gantt Chart should depict Activity Name, Start Date, Finish Date, Duration, and Predecessors.

· The Gantt Chart should display the critical path.

Project Cost

Project Cost Management involves estimating how much it will cost to complete all of the project activities and then aggregating those costs to determine the total cost of the project. In order to estimate the cost of the project, resources must be applied to the project activities.

Project Cost Estimates

Using the available resources provided in Table 1 above and assuming that all resources will be assigned 100%:

· Record the resources name(s), quantity, and rate in Table 3 below. Note that more than one resource may be needed for the activities.

· Estimate the cost for each of the project activities and enter the costs in the table. Calculate the total cost of the project.

· Describe the tool/technique you used to estimate the activity costs. (2-3 paragraphs)

· Describe a tool/technique other than the one you used that can be used for estimating activity costs. (2-3 paragraphs)

Table 3: Project Deliverables/Activities, Durations, Resources, Cost

Deliverable / Activity

Duration

Resource Name(s)

Resource Quantity /
Rate

Activity Cost

1. Supplier Product Agreement

1.1. Sourcing Requirements

1.1.1. Activity

Duration

1.1.2. Activity

Duration

1.2. Sourcing Proposal

1.2.1. Activity

Duration

1.2.2. Activity

Duration

1.3. Supplier Selection Criteria

1.3.1. Activity

Duration

1.3.2. Activity

Duration

1.4. Supplier Responsibility Standards

1.4.1. Activity

Duration

1.4.2. Activity

Duration

1.5. Supplier Performance Measurement Criteria

1.5.1. Activity

Duration

1.5.2. Activity

Duration

Total:

Project Budget

The project budget is developed after project costs have been estimated. The budget represents the amount of funding within a certain period that will be needed for the project.

From the cost estimates in Table 3 above:

· Prepare a Basis of Estimates to document the estimating techniques that were used to determine the project costs. (1 page)

· Prepare a budget for the first quarter of the SCM Project using the “Project Budget” ExcelXCEL template.

1.0

Supplier Product Agreement

1.1
Sourcing Requirements

1.2
Sourcing Proposal

1.3
Supplier Selection Criteria

1.4
Supplier Responsibility Standards

1.5
Supplier Performance Measurement Criteria

Supply Chain Management Scenario

Background

Efficient and effective Supply Chain Management (SCM) is integral to business success. SCM encompasses the end-to-end business processes necessary for a company to produce goods for delivery to the end consumer. Integration between the processes and collaboration among the entities involved in the processes is critical. While Although there is no single solution to implementing SCM, most companies have a strategy or approach for managing the various components of SCM.

Perhaps the most important and challenging aspect of SCM is the choice ofchoosing and developing working relationships with suppliers of parts and materials needed to produce a final product. Organizations must carefully choose and manage its their suppliers to avoid any number of risks associated with failure to deliver by a supplier. One way to mitigate these risks is for an organization to engage and incentivize supply chain partners through Supplier Relationship Management (SRM) practices. SRM guides the expectations and relationships among the parties and provides benefits for both sides.

Today’s complex, global business environment requires more than just agreements with suppliers. The sources of parts and materials are no longer always procured locally. Supplier sourcing is more likely to be conducted globally, with the potential to impact people, communities, and cultures in ways that must be considered and addressed responsibly, legally, and ethically.

Scenario

Johnson & Johnson (J&J) is a large, multi-national company with over more than 125,000 employees worldwide. In its Credo, J&J professes responsible and ethical treatment of all its stakeholders. To that end, J&J commits to the following: forming strong relationships with suppliers; including suppliers as stakeholders in innovation; supporting diversity among suppliers; and providing suppliers the opportunity to make a fair profit. In exchange, suppliers must comply with J&J’s Code of Conduct and Responsibility Standards for Suppliers.

You serve as Chief Procurement Manager for the Medical Devices Products at J&J, a position that pays $189,000 annually. You have been with the company for 11 years, and your team works closely with several functions in the organization, including Finance, Marketing, IT, and R&D. One key aspect of your job is to identify reputable supply chain partners that can move product to healthcare providers around the world. In your leadership role, you find it important to follow the

J&J Credo

, especially the part stating the following: “Customers’ orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit.”

Allied Distributors, Inc. (AD) has approached your office about becoming a worldwide distributor for medical devices. These products are delivered to healthcare professionals in fields like orthopedics, neurology, cardiology, minimally invasive surgery, wound management, and women’s health. The timing of this proposal is right because the J&J leadership team has implemented a strategic plan to improve patient outcomes and expand market share by introducing innovative products. Your job is to engage the procurement process to introduce a new supplier for medical devices.

Introducing a new supplier into the supply chain at J&J requires a good understanding of its supply chain practices and approach to SRM. The resources below provide more detail information in these areas.

J&J Homepage

https://www.jnj.com/

J&J Product Information – Medical Devices

https://www.jnj.com/healthcare-products/medical-devices

J&J Credo

https://www.jnj.com/about-jnj/jnj-credo

J&J Code of Conduct

https://jnj.brightspotcdn.com/33/7c/6d77ff4b4adb8644d10f298d819e/code-of-conduct

J&J Responsibility Standards for Suppliers

https://www.jnj.com/about-jnj/company-statements/responsibility-standards-for-suppliers

J&J 2015 Citizenship & Sustainability Report

https://jnj.brightspotcdn.com/25/f7/b3172c104796b553e9ea35bac1d0/2015-jnj-citizenship-sustainability-report

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