Understanding Operations, Location and layout and Supply Chain Management

This essay explores the issues of new product development, location and layout in Pfizer and provides theories, solutions, and recommendations for operations management.

Understanding Operations,
Location and layout and Supply
Chain Management

Table of Contents
Essay: An investigation on issues of New Product Development and Process and location and
layout on Pfizer................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview of organisation............................................................................................................3
Selected issues.............................................................................................................................4
Review of theories.......................................................................................................................4
Critical discussion and solutions to operations management......................................................5
Recommendations.......................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

Essay: An investigation on issues of New Product Development and Process
and location and layout on Pfizer
INTRODUCTION
The term “Operations Management” can effectively be considered as administration of
various business practices that helps a company in meeting daily, small and long term goals and
objectives. Basically, it is said that this type of management brings optimum utilization of all the
resources that are available (Chen, 2019). On the other hand, it is said that supply chain
management is specifically linked with turning the raw material into finished goods and services.
Away with this, location and layout management is the administration of supply chain element
that is developed and utilized to meet all the different demands of customers considering
controlling, planning along with executing the plan that is directly linked with storage of various
products, services and information from descent to destination in an effective manner. This essay
is based on Pfizer which is a pharmaceutical company of America. Along with this, if it is talked
about the two different areas that has been taken into consideration are : Location and layout and
New Product Development are said to be the two different elements that has been taken into
consideration, which will aid in pulling out favourite outcomes in specified time frame. Report is
going to be enclosed with various theories in regards to both new product development away
with location and layout, which will aid in pulling out favourable outcomes in regards to the
issues faced by company. In the last section, report will focus over different solutions
considering the conclusion away with recommendations.
MAIN BODY
Overview of organisation
Pfizer is one of the leading but multinational pharmaceutical company of America, which
was found in the year of 1849 and listed in New York Stock Exchange. The primary operations
of business includes different range of pharmaceutical products that has been developed by
Pfizer only.

Selected issues
The operational areas which are selected in Pfizer are New product development/process
and location and layout, which is specifically enclosed with different range of pharmaceutical
products like consumer healthcare products where Bavencio® BeneFIX® Besponsa® Bosulif®
Celebrex® Chantix/Champix® Detrol/Detrol® and more are said to be some of the good
examples that company is offering to it's customers (Crane and et. al., 2018).
Review of theories
In present time, it has been found that there are ample number of theories that needs
proper attention in regards to location and layout activities along with new product development
as well that specifically aid a company in meeting the requirements and dealing with various
issues. In present context, a number of theories that can be taken into consideration are presented
underneath:
Just in time, is being considered as one of the effective administrative approach that
adjusts requirements of raw materials from providers straight away with creating plans. This
methodology is applied by business element to boost its proficiency and decays the loss through
asking for the raw materials just when they are required during the time spent creation,
subsequently decreases cost of stock. For appropriate utilization of Just in time approach, Pfizer's
management requires to anticipate the interest of pharmaceutical items and administrations
precisely.
Lean developing which is said to be an effective technique, that can be utilised by Pfizer
to take out the loss in deliberate manner from creating process. Utilization of lean creation
approach may aid Pfizer in deciding those exercises that don't include any of the incentive all the
while so that those can be reduced to minimal This methodology is effective to client
relationship as it endeavours to address different issues and necessities of clients that they have
(Dargham and et. al., 2019).
Total Quality management is being considered as another crucial technique that can
effectively be utilised by the company in recognizing and minimising number of mistakes, which
may happen and would create process, streamlining organization of store network and improving
the experience of clients. This methodology focal points of improving the nature of item by
making steady upgrades among different business practices. It is a client situated methodology as

it specifically guarantees in creating of excellent items that directly may aid Pfizer in meeting the
requirements of customers.
Critical discussion and solutions to operations management
In present time, it is said that New product development can effectively be considered as
one of the crucial methodology, which helps a business company in planning and creating
different items, which directly fulfil necessities along with the requirements of clients.
Organizations are required to take part in this strategy, the reason behind this is that consumer's
perspectives along with their needs gets changes due to many factors like technology and trends
as well. Including this, it is also said that innovative headways and expanding market rivalry
makes it important for an association like Pfizer to remain competitive and consider part in the
NPD procedure so as to keep up its maintainability within the market and business case.
Including this, it is said that launching a new product within the market, where a company could
gain acceptability and maintain its strong position in industry. For building up another item,
Pfizer requires to keep up the regions of its activities, production network and area and format
(Dubey, Gunasekaran and Papadopoulos, 2019).
While growing new pharmaceutical items and administrations, Pfizer may confront
different issues related with innovation, estimating, maintainability and so forth. The association
is propelling a pharmaceutical items and administrations in which top of the line innovation is
regards to increasingly complex diseases. To build up this pharmaceutical items and
administrations, item advancement toolbox model is used by organization. The model includes a
few stages which are referenced underneath:
In planning about the pharmaceutical products and services and its characteristics, quality
functional deployment tool is being utilised, where Pfizer company is performing both
competition and marketing analysis so as to determine the trends of market and preferences of
customers. Along with this, if it is critically analysed then based on the situations of market it
will be required by Pfizer to develop much more effective target costing strategy, which will aid
company in making appropriate prices of different pharmaceutical products along with the
services. This will directly aid Pfizer in taking right decisions so that different desired goals and
objectives could effectively be attained in specified time frame. On the other hand, sometimes
organisation may also go through various issues as well, while setting price of a particular

product. Here, it can be said that Pfizer is dealing within the pharmaceutical industry and
develops number of products and not only in America but in other nations as well like United
Kingdom, company is having good market position due to its pricing strategy that has been
adopted by company. The chosen or the targeted group particularly in regards to pharmaceutical
items and administrations is middle and the lower class individuals who can bear the cost of this
pharmaceutical items and administrations (Elluru and et. al., 2019). Here, Pfizer has considered
various elements like quality, well-being conditions and different highlights, which directly aid
company in looking at different plans and the procedures as well. Aside from this, managers of
Pfizer would also require to build or develop cost sheet when planning the pharmaceutical items
and administrations and creating it. Different expenses are mulled over like creating, material,
fixed expenses and so forth. Standards like structure for get together is considered with the goal
that organization can make in greater amount. Use of such standard aides in limiting the
pharmaceutical items and administrations creating cost and different expenses including get
together (What Is Total Quality Management (TQM)?, 2019).
So as to make decisions in regards to breaking down issues of a particular individuals in
relation with product development quality, Failure modes and effect analysis (FEMA) would be
considered as one of the effective approach that can be utilized. At the hour of creating
pharmaceutical items and administrations, where Pfizer. By the effective model i.e. FEMA,
Pfizer empowers to decide Failure modes and effect analysis that required to be taken for
limiting the number of Failures when propelling the pharmaceutical items and administrations
while looking at the market's situation. On the other hand, it is also said that a control plan is
being built that specifically incorporates number of exercises that are significant in improvement
procedure to ensure that every one of the exercises are on right position, but it can also gets
change as well due to ample number of reasons (Ivanov, Tsipoulanidis and Schönberger, 2019).
On the other hand, another issue that was taken into consideration for this report i.e.
Location and layout. Basically, this approach helps a company in various ways and it also aid a
business organisation in taking right decisions in regards to operational success and economic. In
present context, it is said that Pfizer was also dealing with this issue, because managers were not
aware of the market, that on which place they should open a pharmaceutical layout and on which
location. In regards to this, there are some of the elements like cost minimization, efficient
material distribution, room for expansion, and safety of the outlet operators along with the local

community, plays a vital role. Along with this, it is also said to be one of primal most decision
taker, which is effectively having an appropriate design in regards to locality where Pfizer is
looking forward to expand it's business. Along with this, it is also said that the organisation in
regards to profitability along with the scope of future expansion, it has become vital for Pfizer to
develop a whole new project in regards to developing a suitable site (Lamba and Singh, 2018).
On the other hand, considering the process that has been taken into consideration is directly
carrying it's aim to hit the desired targets as it will help company in meeting requirements of
consumer in much effective and in efficient manner. Including this, if it is talked about the
supply chain management, where area along with the format is one of the essential component
that incorporates generation arranging, gauging request, stock administration, client
administrations, stockpiling, transportation, group, after deals exercises and dissemination. The
conveyance framework used by the business organization, which would help Pfizer in interacting
with purchasers in an effective and efficient manner. They impart the highlights of
pharmaceutical items and administrations in rightful manner.
Including this, it is also said that for a business company like Pfizer in minimising the
overall production cost, through utilising the lean production approach. It has been analysed that
if company would apply this approach, Pfizer would directly become able to perform at optimum
level because, this will reduce all the wastage which is linked to production unit. Including this,
it is also said that Pfizer would directly decrease the cost, which was specifically adding the cost,
because it would help Pfizer in meeting the requirements of people that belongs to middle level
class, where customer's needs and developing products that satisfy them. On the other hand,
another issue that has been taken into consideration location and layout, Pfizer requires to
analyse all the costs associated with the production process and eliminate those which are
unnecessary.
Recommendations
Considering all the above mentioned issues, that has been faced by Pfizer at the time of
operating with an effective supply chain, it will be required by management to consider time
management as one of the crucial approach, where it will be required by company to enhance the
overall new product development process for developing a whole new pharmaceutical product,
which will help in meeting the requirement of customers in an effective and in efficient manner.

Including this, it is also recommended that for a company, which is dealing within the
pharmaceutical industry where the concern is directly linked with health conditions of patients, it
is necessary to follow total quality management as the approach, because it will be required by
firm to maintain quality of its pharmaceutical products and services and ensuring that the
operations are performed effectively (Scott, Lundgren and Thompson, 2018). On the other side.
If it is thought in long term, then it is recommended for the company to perform all the
operations in an ethical manner, where it will be required by the company to keep up the benefit
level in both the context and these are society along with the investors as well. Through this,
Pfizer would directly start looking at the bright side of the whole market where they might start
practising the number of benefits, where company would directly gain competitive advantages in
a much more feasible side. Use of every one of these practices can help organization in
guaranteeing that its creating activities won't hurt the business environment in a negative manner.
Including this, management would also require to ensure with number of activities, that are
directly connected with standards and laws (Zelalem, 2018).
On the other side, it is also recommended that if Pfizer continuously applies the total
quality management approach then the overall cycle in regards to production would directly get
minimised, which will help firm in reducing all the waste materials in a short span. Away with
this, the dimensions in regards to triple bottom line is also recommended to the company where,
it will help Pfizer in sustaining within the market for a longer period of time. While creating and
propelling the pharmaceutical products and services, then some of the components like rules,
norms, technology and more would help firm in hitting targets in specified time frame. Through
this, company would develop effective supply chain, strong logistic approach and would also
help firm in meeting the requirements of customers in a short span (Sharma and Tatavarthy,
2019).
CONCLUSION
Based on the above mentioned report, it is being concluded that both of the elements,
location and layout including the new product development approach are said to be the crucial
elements that would help company in maintaining or gaining competitive advantages. On the
other hand, considering the effective operations management, an organisation could gain
competitive advancement through reducing waste materials and taking in use of limited

resources in an effective and in appropriate manner. Along with this, management within
dimensions in regards to triple bottom line that is enclosed with environmental, social and
economic related elements in regards to sustainability.

REFERENCES
Books and Journals
Chen, H., 2019. Study on PBL Teaching Method of Logistics and supply chain management
course in Higher Vocational Colleges.
Crane, W. J. and et. al., 2018. Supply chain management system. U.S. Patent Application
15/978,680.
Dargham, S. A. and et. al., 2019 OPTIMIZING MATERIAL-RELATED COSTS USING
DYNAMIC SITE LAYOUT AND SUPPLY CHAIN PLANNING.
Dubey, R., Gunasekaran, A. and Papadopoulos, T., 2019. Disaster relief operations: past, present
and future. Annals of Operations Research, pp.1-8.
Elluru, S. and et. al., 2019. Proactive and reactive models for disaster resilient supply
chain. Annals of Operations Research. 283(1-2). pp.199-224.
Ivanov, D., Tsipoulanidis, A. and Schönberger, J., 2019. Layout Planning. In Global Supply
Chain and Operations Management (pp. 293-315). Springer, Cham.
Lamba, K. and Singh, S. P., 2018. Modeling big data enablers for operations and supply chain
management. The International Journal of Logistics Management. 29(2). pp.629-658.
Scott, C., Lundgren, H. and Thompson, P., 2018. Guide to Deliver in Supply Chain Management.
In Guide to Supply Chain Management (pp. 87-106). Springer, Cham.
Sharma, S. D. and Tatavarthy, S. R., 2019, September. Development of optimized solution for a
generic disaster management problem through construction of responsive supply chain a
review. In AIP Conference Proceedings (Vol. 2148, No. 1, p. 030049). AIP Publishing.
Zelalem, L., 2018. Medical Equipment Supply Chain Management System at PFSA: Warehouse
Layout Design and System Software Development (Doctoral dissertation, Addis Ababa
University).
Online
What Is Total Quality Management (TQM)?. 2019. [Online]. Available through:
<https://asq.org/quality-resources/total-quality-management>.