Operations Audit at Beck's Plc

Introduction2

Comparitive Analysis of 4V model2

Question no. 1:2

Volume2

Variety3

Variation3

Visibility3

Process Types and Layouts3

Question no. 2:3

Production Policy and Capacity Factors4

Question no. 3:4

Material Management5

Question no 4:5

Reviewing Operations Activities6

Question no 5:6

Conclusion7

Case Study: Operations Audit at Beck's Plc, the Pharmaceutical Company

Introduction

The nature and process of operations differ across and within industries. Manufacturing, finance and hospitality industries use various models and frameworks to define their strategic operations. Reducing costs and maximizing efficiencies are key considerations for operations in pharmaceutical companies. There are various benchmarking tools and best practice opportunities are used to deploy valuable outcomes (Piachaud, 2002). Many pharmaceutical companies have outsourced their business units for optimizing efficiency. They may outsource all the functions rather that specific tasks. This case study discusses the operational performance of Beck's Plc. It incorporates various conceptual frameworks for the auditing of this pharmaceutical company. Various variables are used to highlight its performance of previous and current year. These include 4V (volume, variable, variety and visibility) model of operations, process type and layout, material management and different production policies. The improvement in operations will eventually help to drive profits. This is a complex process to shift manufacturing and supply chain management into emerging economies with changing customer demands. Cost reduction, maximsation of efficiency and revenue enrichment helps to identify the production cycle. This case study reveals the bottom line approach through the auditing of various functions in the company.

Comparitive Analysis of 4V model

Question no. 1:

There is major difference between the current and previous year operations of this pharmaceutical company. The 4V model of operations characterizes volume and variety of outputs. It also signifies the demand variation and degree of visibility of operational processes by the customers.

Volume

Review of operations relatively shows that annual output of table manufacturing plant has increased. The current annual output of this company is over 150 billion tablets and capsules. This has significantly increased from the previous production which includes batch size of almost 250,000 to 1 million tablets. This radical difference is due to the increase in variety of items. Earlier, the production was limited to central warehouse system and a limited stock time.

Variety

Variety of outputs indicates the flexibility in operational processes of the company. Higher varieties in products show diverse product lines to meet higher needs and specification of customers. In this context, the company produces diverse ranges of products. This includes the production of sweeteners, mineral tablets to the effective or potent pharmaceutical products. Changing demands of customers and market, expansion of retail chains and warehouse facility has increased the variety of outputs. Currently, the table manufacturing plant has capacity to produce range of 140 items from 50 items in the previous year. The wide-ranging mix of products and increase in the variety of products has increased the level of flexibility than previous years.

Variation

The prevailing development of competitive environment and technological competencies changed the variations in demand. Manufacturing process of the company has weakened and exposed to increasing competition (Adam Jr, 1983). Communication and marketing channels are more publicized to the ...