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...
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