Managing Quality Problems at a small Pharmaceutical Company - A case study

Abstract

Final product quality is greatly dependent on the quality of the incoming purchased materials, thereby managing supplier relations is of great importance influencing customer satisfaction and thereby commercial success of any firm. It is critical to ensure good communication with upstream supply chain members in order to control the input entering focal firms system and to secure desired quality. Conducting this study is valuable for manufacturers to ensure keeping costs under control, quality and to deliver products on-time. Quality Management (QM) is of high importance for the opportunities it can provide to firms including efficient use of resources, waste and cost reductions. For its impact on improving the company’s performance and supporting commercial success, QM attracts attention by firms. Adopting TQM perspective allows firms to creates source of competitiveness by improving their delivery reliability and supplying desired quality. A bio-pharmaceutical company, Company X, understands that purchasing has a critical role in the customer satisfaction through ensuring product quality as well as profitability of the company. Company X has therefore identified the need of examining causes of high production waste regarding non-sterile product group at the production site. The purpose of the thesis is to identify on-going quality problems at Company X, to investigate state of the supplier relationships and, visualize the impact on Company X’s business. Investigation reveals underlying reasons for quality issues, as well as associated consequences and implications. The thesis results help Company X to gain insight regarding on-going operations. Solutions compiled from internal interviews and adapted according to industry best practices are recommended.