Figure 1: Analysis of the Johnson & Johnson Value Chain
Sources: (Atherton, Kleiner, 1998) (Johnson & Johnson Investor Relations, 2012)
Variability in capacity planning and constraint-based modeling of demand has also led Johnson & Johnson to adopt and standardize on Lean Six Sigma as part of its quality management and constraint-based planning strategies (Hunter, Schmitt, 1999). Based on an analysis of their annual reports and filings with the Securities and Exchange (SEC) Commission and (Johnson & Johnson Investor Relations, 2012) the following analysis of the lean manufacturing, Six Sigma and Design for Six Sigma initiatives in the company are profiled. Taken together these form the Johnson & Johnson Enterprise Compliance and Quality Management (ECQM) framework the company relies on for ensuring speed, accuracy, consistency and customer-focused innovation throughout its value chain processes. Figure 2 provides an analysis of how Johnson & Johnson has organized these initiatives as a three-phased approach to continual improvement.
Figure 2: Johnson & Johnson Framework for Continuous Improvement
Source: (Johnson & Johnson Investor Relations, 2012)
It's critical in the Johnson & Johnson organizational structure to continually strive for greater visibility, transparency and control over the inherently uncontrollable aspects of such a diverse and globally distributed supply chain. The company incorporates these factors to create a systematic approach to delivering greater revenue growth, cost reduction and asset utilization through more efficient quality management and compliance programs. Figure 3 defines how business improvements in the company translate over time into the foundations of greater revenue growth, cost reduction and asset utilization. It also provides a reference back to the compliance platform contributions to greater production efficiency as well. This illustrates how strategic capacity planning and the integration of quality management programs all are orchestrated to drive greater profitability over the long-tem.
Figure 3: Translating Compliance Into Cash at Johnson & Johnson
Source: (Johnson & Johnson Investor Relations,...
Johnson and Johnson Annual Report Review Financial Report Review Company: Johnson and Johnson Consolidated Balance Sheets Total Assets: $121,347,000,000 Total Liabilities: $56,521,000,000 Total Shareholder's Equity: $64,826,000,000 Company's Retained Earnings: 85,992,000,000 Shares of common stock the company has been authorized to issue: 4,320,000,000 shares Shares the company has issued: 3,119,843,000 shares Cash (cash and cash equivalents): $14,911,000,000 Decrease in cash and cash equivalents during 2012: $9,631,000,000 F: Increase in cash and cash equivalents during 2011: $5,187,000 Consolidated Statement of Earnings Essentially, the term "consolidated" as used
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