Why Was Benchmarking So Important for Amgen at the Point in the Company's History When Benchmarking Was Initiated?

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NAME:                                        HARSH SHAH

STUDENT NUMBER:                        0851783

COURSE NAME:                        OPERATIONS MANAGEMENT

SUBJECT NAME:        QUALITY MANAGEMENT

SUBJECT CODE:        MGMT-6087-18S

CLASS/SECTION:        01

ASSIGNMENT NUMBER:        03

PROFESSOR:        PROF. D. BOYLE

DATE:        06/13/2018

CASE STUY : AMGEN

Discussion questions:

1. Why was benchmarking so important for Amgen at the point in the company's history when benchmarking was initiated?  Do you believe that benchmarking will contribute to Amgen's Long-term success?

Ans.         Benchmarking is really important for any company in this fast growing world. Especially, with the advancements in technology and robotics, many of the companies are accepting the concept of benchmarking and making the necessary changes accordingly. As far as this case is concern, YES, it was really important for Amgen to initiate the benchmarking. AMGEN has been the largest biotechnology company in the world for so many years and they have maintained those standards. In the earlier 21st Century, when the technology was hovering to make some big changes to the world, it was important for Amgen to make some changes in the company operations as well. In the past 20 years, Amgen had to make some drastic changes in all the departments of the company. They had to increase their staff from 400 to 7,500 just to be toe to toe with the technological advancements and the need of the new world. Not only that, it was also important for the company to change from a single product company to a multiproduct company. They had many competitors building up to take their place if the changes were not made. Overall, one can say that it was really important decision to apply the benchmarking in the company to be always ahead in the competition.

                To think about the long term success, definitely the company will be benefited from the applied benchmarking. Although, the success would not come from the early stages. Company must keep up the good work and keep improving in all departments with the changing technology and people’s interests. It is not easy at all for any company to keep improving after making the changes, but for a big, successful company like AMGEN, it is not that difficult either. (AMGEN CEO)

1. Was it a good idea for Amgen to solicit the help of the American Productivity and Quality Center? Do you think that Amgen would have been successful without the APQC's involvement?

Ans.                 As mentioned in the given case, Amgen Company solicit the help of the American Productivity and Quality Center (APQC) for the benchmarking process. APQC is one of the most reputed non-profit organization in benchmarking trainings, and help locate the company to benchmark against whom. It is always good that you seek help from somebody who is the best in the business. By getting help from APQC, Amgen not only got succeed in benchmarking, it also helped them to be ahead of their competitors by constant improvisation.