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Facilities For Capacity And Location

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Evaluate the facilities with regard to capacity and location. As of December 28, 2014, Johnson & Johnson has 134 manufacturing facilities, occupying 21.5 million square feet, operating in 60 countries including the United States. The facilities can be broken down by segment or geographical area. J&J also has major research facilities located in the United States, Belgium, Brazil, Canada, China, France, Germany, India, Israel, Japan, the Netherlands, Singapore, Switzerland, and the United Kingdom. (Johnson & Johnson, 2014)
Geographical Area Number of Facilities Square Footage Percentage of Total Revenue
United States 42 5,892,000 46.79%
Europe 41 7,673,000 25.49%
Western Hemisphere (excluding U.S.) 15 3,005,000 9.63%
Africa, Asia, Pacific …show more content…

To make good decisions in both areas managers should assess needs, develop alternatives, and evaluate the alternatives. A good tool to facilitate location analysis is the break-even analysis because it evaluates location decisions based on cost values. Another good tool is the transportation method because it evaluates the cost impact of adding sites to the network of current facilities.

Evaluate the ERP system. An ERP, or Enterprise Resource Planning, system is a business management software that integrates all levels of operations. It can include product planning, development, manufacturing, sales and marketing. The goal of a successful ERP is to improve the flow of all shared information and data across the entire organization. In the past, Johnson & Johnson have used an ERP developed by SAP, a German multinational software company and one of the worlds largest. More recently J&J took on a massive project to consolidate and harmonize their ERP landscape. J&J 's global enterprise supply chain included 120 manufacturing sites, over 500 external manufacturers, 450 distribution centers, and over 60 ERP systems that support about 275 operating companies (Dignan, 2013). This project was initiated because J&J was finding that they were having trouble keeping some products on shelves which affected sales. They saw an opportunity to better meet the evolving needs of customers and hopefully improve the cost of goods sold efficiently to

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