REPORT:

Total Quality Management (TQM)

GlaxoSmithKaline(GSK)

Submitted to: Sir Ashar

Submitted by: Grouop No: 03

Group Members: 1. M. Salamn Ayub 2. Murtaza Ali

3. Faraz Ahmed. 4. Faiz ur Rehman
5. Wasim Ahmed

BSPA FINAL YEAR (MORNING)

DEPARTMENT OF PUBLIC ADMINISTRATION

UNIVERSITY OF KARACHI.
Table of Contents
EXECUTIVE SUMMARY ................................................................................................................................... I
INTRODUCTION .............................................................................................................................................. 1
GSK Pakistan....................................................................................................................................... 1
About the Products ........................................................................................................................ 1
GSK’s Governance and Structure System ...................................................................................... 1
GSK’s Vision, Mission and Core Values................................................................................................... 2
Strategy .............................................................................................................................................. 2
Total Quality Management at GSK ......................................................................................................... 3
TQM Basis ........................................................................................................................................... 3
The concept of Continuous Improvement by TQM ...................................................................... 3
Steps to Creating a Total Quality Management System .............................................................. 3
TQM METHODOLOGIES APPLIED ........................................................................................................... 5
Journey of Accelerating Delivery and Performance (ADP) .......................................................... 6
The future of ADP .............................................................................................................................. 6
OTHER TQM TECHNIQUES APPLIED IN GSK .......................................................................................... 6
Quality Planning ................................................................................................................................. 6
Quality Council ................................................................................................................................... 7
Quality Cost ........................................................................................................................................ 7
ENVIRONMENT MANAGEMENT SYSTEM .............................................................................................. 7
QFD AT GSK ................................................................................................................................................ 7
BENCHMARKING ....................................................................................................................................... 7
QUALITY MANGEMENT SYSTEM ............................................................................................................ 8
Customer Complaints ....................................................................................................................... 8
Risk Management .............................................................................................................................. 8
Quality Month .................................................................................................................................... 9
Periodic Product Review .................................................................................................................. 9
Employee Training and Award System ........................................................................................... 9
Employee Suggestion System .......................................................................................................... 9
CONCLUSION ........................................................................................................................................... 10
 Executive Summary
This report on implementationof Total Quality Management(TQM) in GlaxoSmithKaline(GSK).
GSK, being a global competitor in pharmaceutical industry and having its footprints across
the globe, remains one of the companies which prioritize quality over other strategic
competencies. This provides GSK with a competitive edge though it requires it to invest in a
lot of areas to improve and enhance the quality of its products and to have a good financial
growth rate. In this report it is discussed that how GSK adopts and implements the TQM
methodologies and the steps which are required for successful implementation of TQM
in the the pharmaceutical industry. The whole action plan has been discussed which covers
the Lean Six Sigma approach, various TQM methodologies, steps for creating TQM system
and other steps taken continuously by the company to meet its goals.
INTRODUCTION
GSK stands for GlaxoSmithKline, It is a global pharmaceutical, biologics, vaccines and
consumer healthcare company headquartered situated in London, United Kingdom.
It is world’s third largest pharmaceutical company measured by revenues after
Johnson and Johnson and Pfizer. There is a wide range of products for some serious
disease including asthma, cancer, infections, mental health, diabetes and digestive
conditions. GSK is a public limited company incorporated in December 1999 under
British law. Its shares are listed on the London Stock Exchange and the New York
Stock Exchange.

GSK Pakistan
GlaxoSmithKline started their company in Pakistan in 2001. GSK is a very established
investor in pharmaceutical sector of Pakistan. Our legacy company Glaxo Laboratories
Pakistan Ltd. Is the first pharmaceutical company to be listed in pharmaceutical sector
of Karachi Stock Exchange in 1951.GSK Market Capital is Rs.31, 531.50M. Chef
Executive Office of GSK Pakistan is Mr. Sohail Ahmed Matin.
About the Products
GSK Pakistan operates mostly in two industry segments: Pharmaceuticals and
consumer healthcare. In Pakistan, GSK manufacture a lot of products in many areas
Anti infective, Respiratory, Vaccines, Analgesics, Urology, Central Nervous System,
Allergy and Vitamins.
GSK has clear vision to provide quality products to their customers to help to develop
the quality of their lives. There are some leading pharmaceutical brands include
Augmentin, Amoxil, Zantac and Calpol and renowned consumer healthcare brands,
which include Panadol, Sensodyne and ENO.
Today GSK Pakistan is market leader in pharmaceutical sector of Pakistan by value
and volume of share in the Pakistan. Major competitors are Abbott, Novartis, Pfizer,
Sanofi and local companies like Getz and PharmEvo. GSK Pakistan currently employs
about 2,300 persons across the country.
GSK's Governance and Structure System
GSK's Vision
"The opportunity to make a difference to millions of lives every day."

Mission
"Help people to do more, feel better, live longer."

Core Values
GSK has the core values such as of "keeping consumers first, demonstrating respect
for people, acting with integrity and operating with transparency.” The company's
commitment to its core values is what that enables it to provide its customers with
quality products
Strategy
The company focuses on the delivery of four strategic priorities to achieve our mission.
These four strategic priorities were established by the company in 2008 to meet its
goals. The four strategic priorities are as under:
1. Grow a balanced business
2. Deliver more products of value
3. Simplifying the operating model
4. Responsible business.
TOTAL QUALITY (TQM) AT GSK:
TQM Basis
The concept of management of quality control embarked during 1920, it remained
unknown in western world, as it achieved outstanding results in Japan until 1980s.
TQM approach is highly based on long term success mainly focusing on customer
satisfaction. The core purpose of TQM is to maintain quality that is an ultimate
purpose of any organization which aims at designs and effective processes.
Improving quality enables organization to restore prevented activities and brings about
change with the passage of time, as the change has been major need of any
company’s product or service.

The concept of continuous improvement by TQM

Continuous improvement is believed to improve the operations that are closely
associated to the workers on the floor, who can determine the need of change,
because employees are more indulged with continuous programs. In order to maintain
maximum quality of products and services change/continuous improvement plays
important role because it opens the door to grow the business and maintains the
stability. According to GSK, if a side of business faces the challenges then other
branch can recover its overall profit.

Steps to creating a total quality management system

GSK pursues sturdy quality management process, it basically go after TQM to give
finest product with SIX SIGMA which makes it certain with zero error. GSK cannot
take risk as it provides food and drugs, GSK vigilantly selects its suppliers and
scrutinize from beginning to end because it has to sustain utmost quality of a product.

1. Simplify vision, mission and values

The organizational strategy and objectives are linked with the employees’ work they
do. Employees must understand the way of organization it is heading (vision). What it
aims to achieve (mission) and create specific rules and regulations (values) which will
guide the requirements and control.
Initiate the process to enhance employee’s awareness when new workers orientation
takes place which engages employee directly with Vision, Mission, and values.

2. Identify critical success factors (CSF)

Critical success factors are very useful or the organization which aims at attaining

the objective and to achieve the mission. It helps the company to keep everything

monitored and updated that how efficiently the organization’s objectives are met.

There are some examples of CSF below:

 Financial Performance

 Customer Satisfaction
  Process improvement

 Market Share

 Employee Satisfaction

 Product Quality

3. Develop Measures and Metrics to Track CSF Data

As the factors are acknowledged it then requires to measure to be placed and
continuously monitored and tracked the improvement. It is possible when employees
share the collected data with seniors.
For Instance: if a core objective is to increase consumer satisfaction survey scores,
the major purpose should be considered and measures to exhibit action of the goal.

4. Identify key customer group

When the organization is built they have only one focus that how to attract the
customers, in this era mostly those organizations are succeed which understand who
the targeted customers are, so that they can provide products and services as per
customer’s requirements. The organization fails to achieve the mission because it
ignores the key customer group.
Examples of key customers group: Employees, Customers, Suppliers, Vendors and
Volunteers.

5. Solicit Customer Feedback

Organization comes to know through one way, they directly ask them question
regarding their requirements that whether the product is needed to be improved; the
structured feedback implies that what a customer wants and what is important to them.
One thing an organization must highlight to avoid that they know what their customer
wants and ask them wrong questions while taking feedback.

6. Develop Survey Tool

Now build up the customer satisfaction survey tool which virtually figures out what is
important to customers. For instance: customers are more concerned about the quality
than the cost if the organization focus on reducing the price and compromising on
quality that you are creating the product which will not satisfy the customer
requirement.
7. Survey each customer group.
A survey should be arranged for each customer group in order to have insight
regarding customers’ perception as prime data. This data could help us to have clear
points for improvement will enable to demonstrate progress and improvement plans
are executed.
8. Develop Improvement Plans
As the baseline data is gathered, improvements plan are supposed to be developed
according to the reaction of each customer group during survey. Improvement plans
must be designed as SMART goals.
 Goals may include some of the following:
 Process improvement initiatives, I.e. Hold gap during customer call duration.
 Leadership growth, walk-the-talk.
 Management Training & Development: procedure to deal with employees in
quality horizon.
 Employees Training & Development: Customer Services.
 Performance Management: Estimating the limit of expectation leading
towards creating jobs description that maintains stability to keep vision clear
and make employees to accept responsibility.

9. Resurvey
A review should be held after a passage of time (12-18 months) in order to recognize
the level of key customer’s needs enhancement, customer’s needs and requirements
tend to be fickle, so for the success of organization consistent improvement is
important factor.

10. Monitor CSF

Monthly Monitoring plays vital role to ensure that the consistent improvement towards
goals is achieved. This helps us to make corrections and change precedence and
objectives while reviewing as per requirement of customers.

11. Incorporate Satisfaction Data into Marketing Plans

When the desired results are achieved, which is meeting the requirements of your
data collected during feedback and survey, should be used as promotion tool.
Many successful organizations lose opportunities by hiding what they do well.
Customers are always curious about internal process work, which can provide
outstanding results.

12. Technology
It is necessary to ensure that the technology is uncomplicated and aims to achieve
desired improvements. For instance: web surfing have got to be trouble-free to use
and as much easier to access (SEO) and the content should be précised and
specific.

TQM METHODOLOGY APPLIED

1. In Global Manufacturing and Supply (GMS), Lean Six Sigma was delivering
solid and quantifiable business improvements.
2. In the Consumer Healthcare business, Project Management was noticeably
improving the execution of projects.
3. And across the company OD teams were driving higher levels of
engagement and effective change.
Journey of Accelerating Delivery and Performance (ADP)
A small team was formed with the CEO’s sponsorship in 2009 to identify some simple
approaches drawn from Organization Development (OD), Lean Six Sigma and Project
Management. The fusion of these approaches became ADP.
At the heart of ADP is a set of six core principles for accelerating change:
 All change starts with self.
 Active, committed and visible sponsorship by key stakeholders is
imperative.
 Ensure that simple, time-bound measures tied to financial results.
 Include people who are impacted by change to own and design it.
 Focus on the few vital things that you can change now.
 Design fit for purpose solutions that address customer needs, not
wants.
Applying the OD cycle–as the ADP team engaged with the customers, a clear
diagnosis of the current state of each project was established as the start of a
consulting cycle working around the GSK Change Framework. This defined business
problems and opportunities for sustainable improvements– all with a keen eye on value
for the external customer and patient. Based on this, GSK apply a “Forum, Fieldwork,
Feedback” approach. In a series of ‘Forum’ workshops, intact teams are taught the
change framework approaches and get to apply them immediately to their real work;
in the ‘fieldwork’ between workshops they are coached and observed in applying
their new-found knowledge, providing them with critical ‘feedback’.

The future of ADP

The program continues with an ambition of bringing the rigor of ADP to the whole of
GSK over the next 3-5years. It will continue to adapt and evolve. The challenge
moving forward is to embed and sustain the new capabilities and continue to realize
tangible benefits. To achieve this, GSK continues to operate a ‘pull’ based approach.
Once a business unit starts believing the new ways of working, they are encouraged
to invest in their own (small) team of consultants to establish the new ways of working
as the new system.

OTHER TQM TECHNIQUES APPLIED IN GSK

Quality Planning
The overall planning can be summarized as the following steps:
 Customer needs
 Forecast the future.
 Gap- analysis.
 Closing the loop holes.
 Alternatives Evaluation.
 Implementation.
These steps are used to identify the gaps and set SMART objectives to measure it
through PDCA.
Quality Council
The organization has formed a different quality department and circles to assure the
quality at every process.
 Develop the quality-based core values, vision statement and quality policy
statement.
 Design the long-term strategic plan with annual goals for quality improvement
programs and objectives.
 Establish total education and training plan and procedure.
 Continually monitor and update with the help of best practices.
 Determine the measures that are the performance measures for organization
with coordination with different organizational functional areas.
 Unwavering focus on the issues regarding external and internal customers.
 Develop a system to solve those problems.
 Monitor and revise the benchmarks to remain updated.
 Look for certifications and recognition for the best practices followed in the
organization.

Quality Cost
 Comparing with the companies in the industry that is evaluating the
alternatives for doing the same job with low cost.
 Focusing to attain maximum results at individual level so that the quality gets
ensured from the beginning.
 Creating relationships among the cost categories – linking the cost drivers to
minimize the cost.

ENVIRONMENTAL MANAGEMENT SYSTEM

GSSK has always shown strong commitment and support for public health, awareness
and many social causes. GSK does not have a fixed budget for CSR because they
believe in funding as many deserving charities & NGOs as possible. It focuses on
improving health and education.

QFD AT GSK
The QFD model basically concerned with two departments at GSK
1) Manufacturing Department and
2) Commercial Department.
The manufacturing department helps in identifying technical descriptors i.e. material
and process required for making a product, and commercial department helps in
identifying customer requirements. Commercial department also measure level of
GSK`s customer`s satisfaction by different means periodically.

BENCHMARKING
The quality department at GSK has established certain criteria for benchmarking its
performances which set at global level and implemented in every country. They have
set their own standards by integrating ISO standards. They follow WHO, FDA, TGA
standards align with GSK global standards.

QUALITY MANAGEMENT SYSTEM

The Quality Management System (QMS) is designed to support the GSK quality
statement. It provides a framework that ensures quality, regulatory compliance,
product safety, and efficacy and support continuous improvement at GSK. The whole
system is centrally managed which is published on GSK intranet and implemented at
sites through local SOP (standard operating procedures) systems. At GSK SOPs
implement QMS locally and comply with the Global Quality Policy requirements.

CUSTOMER COMPLAINTS
At GSK they have developed a system for handling customer complaints called
`COMPLAINT HANDLER`. The system works in following manner. First, it investigates
customer`s past experience, secondly, they analyze the customer complaint. Thirdly
they develop complaint resolution procedure accordingly. And finally identify process
and material variation and then work to eliminate the root cause. At GSK a
department called COMMERCIAL DEPARTMENT is also established that deals and
identifies customer expectations and their satisfaction and constantly monitors them.
They tend to act on customer complaints within 24 hours.

RISK MANAGEMENT
At GSK there is very big section for Risk Management Processes, who carry out the
risk management of all operational, financial and manufacturing activities. There is a
board called (RMCB) Risk Management Compliance Board that aids, instructions and
procedures to the risk management committee for identifying problems related to the
following:
 Machine Maintenance Production Volume Product Labeling Working instruction
and conditions.
 They also analyze the impact of each risk in short term and long term both and
after analyzing they rate each risk on the basis of their type (minor or major)
and on the basis of their impact in short and long term, the rating is done
globally at GSK.
QUALITY MONTH
At GSK they use to make QUALITY MONTH once in a year to promote a culture
towards total quality management. During this month new tools or improved tools are
used for bringing in and assuring more and more quality everywhere within the
organization. Several interactive sessions take place and all employees and senior
management share their findings and their solutions which ultimately promote a
culture towards quality.

PERIODIC PRODUCT REVIEW

It is their prior responsibility to review their products annually. The process of
reviewing the products includes tools like STATISTA. They have software called
LIMPS. This software is a LAB INFORMATION MANAGEMENT PERFORMANCE
SYSTEM in which all the product reviews are saved. All the past data saved in it and
thus they can easily compare that where they were last year and where they stand
today.

EMPLOYEE TRAINING & AWARD SYSTEM

Before an employee joins the organization, he is fully trained about his work and the
culture of the organization. After training an audit and only then he can join the
organization. Recognition is given to employees by giving titles such as “EMPLOYEE
OF THE MONTH”. Besides this monthly activity they also give ERA awards
everywhere.

EMPLOYEE SUGGESTION SYSTEM

GSK is open to accept any recommendation and suggestion from their employees.
Annually appraisal is done at the beginning of every year in which targets given to
each employee are matched with its performance. It is done for:

 Basis for Reward (Increment Bonus)

 Basis for Promotion

 Placement

 Training And Development

Conclusion
Total Quality Management is an integrated management effort to continuously improve
quality of service or product and to increase profits of any organization whether being
a profit or non-profit, service or manufacturing one. It plays pivotal role in enabling a
firm to deliver quality products that results in, at each stage of the business, with
increased level of customer services, satisfaction, and loyalty to the company and
competitive edge to the company. TQM methods and tools, currently being applied by
GSK, are very effective in guiding TQM implementation successfully mainly for the
marketing, sales, operations and other divisions of the company. TQM strategy at
GSK has called for establishing formalized, quality assurance program that has
improved company's efficiency and enhance service to customers that help it grow
and become more profitable. The lean system approach also helps company in grow
its global operations and build a strong platform for it to compete with and to have a
competitive edge over its competitors like Pfizer, Merck & Co. and etc. The company's
approach towards following a strict Quality Management System has led to no or
minor observations through regular audits by the third parties as the part of its
continuous improvement program. Significant improvements are being achieved every
year through the pharmaceutical supply system that has been instrumental in enabling
growth in key areas. This phenomenon is the result of essential capability-building and
infrastructure investments made by the supply chain through the performance
management. This has also made conducive environment for the company to avail
improved supply output and increased financial performance. The company strives to
achieve higher targets for products supply while maintaining quality of the products
that are the characteristics of any ambitious organization in industry like
pharmaceuticals. The company’s continued investment R&D program has led it
achieve many milestones in producing new vaccines and medicines that really reflects
its mission of “helping people to do more, feel better, live longer’.