J&J to Fix Manufacturing Sites to Avoid FDA Violations

Case Type: operations strategy.
Consulting Firm: Trinity Partners first round full time job interview.
Industry Coverage: healthcare: hospital & medical.

Case Interview Question #01115: Your client Johnson & Johnson (NYSE: JNJ) is a global medical devices, pharmaceutical and consumer packaged goods manufacturing company founded in 1886. Headquartered in New Brunswick, New Jersey, United States, the corporation has some 250 subsidiary companies with operations in 60 countries and products sold in over 175 countries. Johnson & Johnson had worldwide sales of $70.1 billion during calendar year 2015.

Your client Johnson & Johnson just recently acquired a smaller company Synthes Holding AG to help grow their orthopedics division. Shortly after the acquisition, the parent company Johnson & Johnson found several quality problems within the acquired company’s manufacturing sites that have to be remediated within six months to avoid FDA violations. You have been hired to come up with a plan that will successfully complete all remediation efforts on time. What would you do?

Possible Answers:

1. Suggested Framework

This case requires a nontraditional framework and requires flexibility and creativity.

A strong candidate should focus on first understanding the scope of this remediation effort and if it is feasible to complete given certain constraints. They should consider the costs, constraints/barriers, and offer potential next steps.

2. Additional Information

Additional key details if asked: (Provide only after initial framework is given by the candidate)
* 5 manufacturing sites are affected
* 25 quality problems found at each site that all need to be remediated.
* Your client Johnson & Johnson can not extend beyond six month time frame and assume six months starts from today.

3. Detailed Analysis

Question #1: There are 5 manufacturing sites that are affected with 25 quality defects found at each site. Their current level of resources can remediate at a rate of 0.125 defects/day. Will they meet their remediation goals? Let interviewee know that they can assume they are working weekends.

Possible Answer:

No, they will not meet their remediation goals.

Calculations:
* 5 sites * 25 defects = 125 total defects
* 0.125 = 1/8 so it takes 8 days to complete one defect
* 125 defects * 8 days = 1,000 total days to complete all defects
* 1000 days / 30 days in month = 33.3 months needed at current rates
* 33.3 months / 6 month timeline = over by ~5.5 times
Conclusion: The client needs 5.5x the number of resources at the same rate or improve their productivity.

Question #2: What do you suggest that our client do in order to complete remediation on time? What are some potential options?

Possible Answer:

This is a brainstorming question. There are many different options, e.g. hire more, increase productivity, contract out, etc. With each option the candidate should be thinking about the potential costs associated or other barriers in addition to how feasible. A great candidate would be able to structure their brainstorming (ex: greatest impact, least cost, feasibility, etc.)

Question #3: The CEO of our client is about to walk into the room, please summarize your findings and suggestion to him. You do not have time to prepare.

3. Performance Evaluation

* This is a fairly easy case but it should test candidate’s ability to structure thoughts and their creativity in suggestions.
* Exceptional candidates will drive to a solution upon discovering the objective is unachievable.
* Exceptional candidates will structure their thoughts logically in response to brainstorming questions (written structure is not required as long as conveyed verbally in a structured manner).