Integrating Environment with A Changing Business Model: The PSGA Experience

Transcription

1 Iniciativa GEMI Integrating Environment with A Changing Business Model: The PSGA Experience Brad Gardner Associate Director, Environmental Engineering Pharmaceutical Sourcing Group Americas

2 Our Company Founded in 1886 in New Brunswick, NJ World s most comprehensive and broadly based manufacturer of health care products Consumer Professional Pharmaceutical US $29.2 billion in sales in ,500 employees 190 operating companies in 51 countries Selling products in more than 175 countries

3 2000 Segment Sales Professional $10.3 Billion 35% 24% 41% Pharmaceutical $12 Billion Consumer $6.9 Billion Total Sales - $29.2 Billion

4 Pharmaceutical

5 Philosophy A family of companies Each company has its own identity - including its own name and management board Decentralized management Shares a common bond

6 Welcome Redwood City, CA Puebla, MEXICO Raritan, NJ Titusville, NJ Springhouse, PA Manati, PR San German, PR Gurabo, PR Sao Jose dos Campos, BRAZIL

7 Competitive Advantage for Johnson & Johnson Ensure our competitiveness in the pharmaceutical industry Provide alignment with J&J goal to become the pharmaceutical industry leader in Supply Chain excellence Streamline processes to achieve excellence in customer service Ensure compliance with all regulatory requirements Enhance the opportunity to work as a comprehensive team-based pharmaceutical group Enable the sharing of talent across the organization

8 PSGA s Business Approach Lean Manufacturing Demand-Pull Use of Dashboards Process Excellence

9 PSGA s Environmental Approach Understand Business Objectives Alignment Re-invent environmental role ISO Process Excellence Enhanced Communications GM Level is key Board level - liabilities, risks, innovation

10 Challenges Changing Business Culture Changing Business Language New Business Metrics Environmental is a Support Group Authority vs Influencing

11 Environmental Commitment Our goal is for Johnson & Johnson to be the benchmark standard to which all others aspire to set the standard for environmental leadership Ralph Larsen Chairman of the Board and Chief Executive Officer

12 Environmental Mission Create competitive advantage for the Johnson & Johnson operating companies through a strategy of beyond compliance delivering outstanding service to our customers in pursuit of their business objectives.

13 Business Integration Outcome Competitive Advantage Drivers Cost Reduction Risk Reduction Speed to Market J&J Reputation Dashboard Manufacturing Cost Compliance New Product/ Process Development Public Image/ Brand Equity Unit Costs FDA, EPA Launch/Backorder Philanthropy

14 Business Integration Outcome Competitive Advantage Drivers Cost Reduction Risk Reduction Speed to Market J&J Reputation Dashboard Manufacturing Cost Compliance New Product/ Process Development Public Image/ Brand Equity Energy Usage Regulatory Compliance New Product/ Process Assessment Conservation/ Community Activities Water Usage ISO 14001/ MAARS MAP Compliance Raw Material Usage Non-Product Output

15 ENVIRONMENTAL DASHBOARD 2001 Key Metric PSGA - Brazil PSGA - Raritan PSGA - Gurabo PSGA - Manati OMJ - San German Janssen-Cilag - Mexico Management Indicators MAP Application MAP Completion Status Management Review Management Leadership N/A Performance Indicators MAARS Score Energy Usage Water Usage Raw Material Usage Non-Product Output (NPO) Major Environmental Issues KEY: On Target Caution Immediate Action

16 Dashboard Metrics Management Indicators Semi-annual Management Reviews Environmental Activities funded and completed per schedule Management Leadership - ISO Registration

17 Dashboard Metrics Performance Indicators Energy Water Raw Material Conversion Non Product Output J&J Corporate Audit Results

18 Where We Stand Commitment to leverage strengths Jointly Developed a Vision for PSGA Environmental Understand our role and our ability to effect + change ID opportunities to demonstrate business value

19 Improvement Means Change Even if you are on the right track, you will get run over if you just sit there. Will Rogers