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
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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
NIBCO is a pipe and valve manufacturing company headquartered in Indiana with ten plants and three distribution centers. NIBCO wanted their business processes to be strategically improved in order for their manufacturing facilities and distribution centers to meet their customer’s requirements (Brown, DeHayes, Hoffer, Martin, & Perkins, 2012). There were multiple systems being utilized within NIBCO and none of the systems had the ability to communicate with each other which created duplicative and wasteful resource efforts. NIBCO’s decision to implement an ERP system was to improve their information systems. Beutler (as cited in Brown et al., 2012) stated that the consulting group reported to NIBCO “to look at integration as a major
1. Such analysis allows the firm to determine at what level of operations it will break even and to explore the relationship between volume, costs, and profits.
Breakeven analysis is a powerful management tool, and one that is critical in planning, decision-making, and expense control. Breakeven analysis can be invaluable in determining whether to buy or lease, expand into a new area, build a new plant, and many other such considerations. Breakeven analysis can also show the impact on your business of changing your price structure. As the price goes down (and so your gross margin goes down), breakeven shoots up - usually very rapidly. Breakeven analysis will not force a decision, of course, but it will provide you with additional insights into the effects of important business decisions on your bottom line.
ERP is a major IT used by General Mills, and is instrumental in integrating information and data into a central source. From financing to supply chain to marketing, ERPs provide a platform for automating multiple applications. General Mills has implemented an extended ERP (Turbin & Volonino, 2010) which allows for supply chain management resources to be shared with business partners. General Mills’ solution, called E-source, is developed by SAP and is a Web-based application that extends the supply chain to external stakeholders (“Esource”, n.d.). SAP is a manufacturer of enterprise application software that creates ERPs for supply chain, human resources and finance, among other business areas.
Most of Johnson & Johnson’s employees are still based in North America with its main headquarters still in New Brunswick, NJ since 1886 (FTSE Russell, 2017). 53.7% of their employees are based in North America, but have branched out globally, where 46.3% based in Asia-Pacific, Europe, the Middle East, Africa, and Latin America (Johnson & Johnson 2016).
The company have more than 265 operating companies in more than 60 countries and they are hiring approximately 127,100 employees throughout the world. Johnson & Johnson’s headquarter is located in New Brunswick, New Jersey and they have appointed
Muscatello, Small, and Chen (2003) state that ERP systems, when they are implemented effectively, can bring impressive strategic, operational and information-related benefits to those firms that adopt them. However, in such situations, a failure in implementation might bring about the financial collapse of the firm. They further state that in the modern world, most of the information about the failures and successes are based on reports that are made concerning ERP implementation in big manufacturing and service organizations. However, it is stated that those who sell ERP systems are now steadily turning their marketing sights on small and medium-sized manufacturers. It is because of this that Muscatello et al state that researchers have been given the opportunity to gather, analyze and disseminate information that will help these firms to
In this system, the whole company is based on a matching database, matching application system, and a continuous interface. In addition, the ERP system combines human resources, accounting marketing, production, and the delivery and supply chain management into one system (Chamg, Wu, & Chang, 2008). When the ERP system was first presented, companies began to handle information more accurately and correctly, and thus reformed and enhanced the quality of the accounting and financial processes. The implementation of Section 404 was very difficult and time consuming; however, businesses have been able to find a little relief by implementing an ERP system to help with the transition. Software companies have taken advantage of companies with few internal controls accentuating that the focal feature of the ERP system is the use of built-in controls that can copy a business’s organization (Morris, 2011). This allowed companies to implement the internal control requirements of Section 404 with a little more
Johnson & Johnson is headquartered in New Brunswick, New Jersey with the consumer division being located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in over 57 countries and products sold in over 175 countries. Through its family of companies, Johnson & Johnson employs approximately 127,000 people worldwide and is engaged in the research and development, manufacture and sale of a broad range of products in the health care field in virtually all countries of the world.
In general, ERP systems are designed to standardize information entry and create data storage for information sharing across the organization. There are numerous advantages of ERP but skeptics argued on the fact that these advantages can be also achieved by simplification and lean production methods. IT systems could be effective and reliable in the long run but at the same time there is an uncertainty about whether it will align with the concerned business process. For instance, the ERP system implemented at the Korey plant to replace MRP system failed. Though it met the requirements of individual unit and enabled employees with wide range of
Johnson & Johnson is a global American health care manufacturer founded in 1886. The Family of Companies – as they call themselves – consists of more than 250 operating companies in 60 countries employing about 118,000 people worldwide. (J&J)
Another benefit companies receive from using an ERP is standardized processes and consistent data. This is important in the energy sector and the oil and gas industry because it allows the business to move rapidly to new markets as well as adjust workloads among offices. (Anderson et al., 119) an ERP system will provide managers with pertinent and timely information on when assets need to be replaced among others which will improve the quality of their decisions. (Anderson et al. 119)
In business, it is important for companies to be able to communicate effectively. Each department of a company relies on the other departments as they add to the value chain. One way for a company to integrate its different departments is enterprise resource planning. ERPs are software programs that allow companies to join together data across operations on a company wide basis (Jessup and Valacich 248). ERPs store company information in a common database and allow all departments to access it from one central location (Koch). Companies without ERPS may contain many legacy systems, each operating with different
Today one of the largest health care companies in the world is Johnson & Johnson. They now have over 128,000 employees and more than 250 operational subsidiaries located in 60 countries around the world. Johnson & Johnson has more than $132.6 billion in total assets. Johnson & Johnson’s headquarters, however, is still located in New Brunswick, New Jersey. Johnson & Johnson research, develop, manufacture, as well as sell health care products all over the world. (Johnson & Johnson)
With the technology advanced and economy blossom, retailer has become an essential part in business chain in this consumers-oriented society. In this paper, I will highlight the the current status of ERP application in the whole retail industry, analyzing diverse ERP software’s strength and weakness and give some