Business Operations Essay on Becks Plc

Topics: Safety stock, Manufacturing, Assembly line Pages: 15 (3474 words) Published: September 1, 2013
BECK’S Plc.:
THE PHARMACEUTICAL COMPANY

Reported by:
Vijay Sharma (1102546)
Thomas Dunne (1101782)

BECK’S Plc.:
THE PHARMACEUTICAL COMPANY

Reported by:
Vijay Sharma (1102546)
Thomas Dunne (1101782)

Operational Analysis
Operational Analysis

Table of contents:

Introduction…………………………………………………………………………………………………….

Classifying the operations process type and process layout Production Policy…………………….…………………………………………

Management of materials …………………….…………………………………………………………...

Review of Operations Activities……………….…………………….

Conclusion. ………………………………………………………………………………………………………

Introduction:

This report reviews the operational issues at Beck’s Plc. The report will consider the production policy and factors of capacity used by the organisation and overall conclude with the aspects of the organization’s operational activities and the issues that need to be addressed to meet its customers on going demands.

Beck’s Plc. is a long established pharmaceutical company. Just recently the company has adopted changes within the organization with regards to its operational activities. This is due to an increase in sales and demand of the products that the company manufacture and more competitors arising in the same sector.

Classifying previous and current operations:

In a manufacturing company such as Beck’s, the four V model offers a clear model by which to compare and review the operational changes that have taken place, and creates a platform to discuss the implications of these changes.

The four V model:

This is a diagram representing the four V model for Beck’s Plc.’s current and previous operations. Low Volume High
Low Volume High

High Variety Low
High Variety Low

High Variation Low
High Variation Low

High Visibility Low
High Visibility Low

Current Production
Previous Production
Current Production
Previous Production

Volume:

Recent figures from Beck’s Plc indicate the total volume of annual output of production a year at 150 billion. This shows a very high total volume output of production, however no figure was given with regards to previous operations, making comparison difficult. Further investigation indicated that batch sizes had reduced, although the total number of items in production had increased from 50 to 140. This increase is significant as it means that total number of production runs must have increased, thus increasing time spent setting up, and decreasing total running and production time. Also, the four V model suggests that an increase of the other 3 as aspects of the model would involve a decrease in volume. Therefore with the information from the case study aswell as the assumption provided, it is suggested that volume has decreased in comparison to previous operations.

Variety:

We can see from the variety of Beck’s Plc that in the case study the company previously produced a range of products of 50 different items. This is because previously there were fewer competitors producing the same products, and a lesser demand from consumers. The regular demand for more diversified products, or newer products, has become more prominent, forcing Beck’s Plc to produce a larger variety of products. They now produce 140 items, although due to continuous diversification, the items are subject to change, creating the need for a different approach to their production policy, and overall manufacturing operations.

Variation in Demand:

The variation in demand has many implications that can be seen from the company’s characteristics. For example looking at the case study the variation has changed...
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