Selecting a Plant Site for a Pharmaceutical Industry - Coursework Example

Selecting a Plant Site for a Pharmaceutical Industry I have selected a pharmaceutical industry for this project. A pharmaceutical industry is a very delicate industry that is strictly bounded by the rules and ethics that helps it to improve the quality of its production. A location for a pharmaceutical industry has a great influence not only to the cost of production but also to its quality. Considerable care should be taken for selecting a location for a pharmaceutical industry. The plant should be in such a place that causes lower cost, less environmental hazards and provide availability of raw materials and labors at an ease. The final choice of finalizing a site is purely based on an extensive survey of advantages and disadvantages of the site location and ultimately availability of the real estate. The various factors that should be considered while selecting a plant site are discussed in this section. They are as follows. 1. Location with respect to raw materials availability Raw materials availability is the basic need of a pharmaceutical industry. In this case, as most of the raw materials are imported, a location should be near to the port that helps in transportation of such materials and lowers the cost of transportation. 2. Raw Materials Raw Materials of a pharmaceutical industry are very delicate and stored under a high quality control. A very delicate environment as per Standard Operating procedures should be selected that provides a temperature and humidity controlled environment for storage and transportation of these material. 3. Transport facility The location of the site is selected as per demand of the industry. A location near to seaport helps in importation of raw materials and exportation of the production material. Also, a close connection of the site to the national motorway helps in nationwide distribution of the products. 4. Availability of labors A site close to a village or area of lower income people should be preferred. In such area, man power is easily available. An industry every now and then is in need of hard working and pain taking people who put all their efforts in industry. 4. Availability of utilities (Water, Electricity). Utilities like water, electricity and gas are among the basic needs of an industry. It should be taken under consideration that all the utilities are easily available in the selected area. 5. Environmental impact and disposal of waste An area that is free from environmental hazards should be selected. A pharmaceutical industry needs an environment that is free from pollution and waste of other industries. Moreover, a highly maintained disposal area as per standard operating procedures of making medicines should be there so it may not cause harm to the surrounding environment 6. Extra Area to be modified There should be an extra area within the premises of the industry that can be utilized later if needed. An industry with high potential, the future expectations should be kept in mind. In the future, if there is a need to build a store room, manufacturing area or even rooms for the new staff, there should be enough space that on which building can be extended. 7. Legal and taxations restriction While selecting the location of the industry, an area that has less property taxation should be considered. At one side, it decreases the overall cost while on the other, it eases the legal procedures of legislation of the industry. A) Operational Management Designing of products, processes, services and supply chains are very important for an organization to run smoothly. Operation management deals with all these operations in an organization. It considers buying of resources, development of products and providing services to the customers. Operational management is a vast subject that ranges from making specific strategies for a project, strategic management, to identify and deal with the problems that come across in daily business life, tactical management (Mullins, 2005a) . Certain important facts must be considered about operational management are as follows All organizations perform the organizational management because all of them in some or other way are trying to satisfy their customers by producing either products or services. The decision made by operational management is very important as if affects both the cost effectiveness and efficiency of the products and services. Organizations which give strategic importance to operational management are found to be strategically very successful. However, it is being operated in more or less all organization even if they do not have a separate department or specified person for this task. Similarities between operations Processes and resources are found similar in operations in any sort of organization. Let’s consider two types of transforming resources, facilities and staff in two different types of organizations, an obvious similarity is found. 1. Types of Facilities Organizations use different kinds of facilities to run their operations smoothly. For instance, to carry out the basic manufacturing process, a pharmaceutical industry performs operations of mixing, grinding and compounding of the raw material whereas a paper manufacturing machines conduct pulping and vating. Though the processes require machines for this process to their specific type and are quite different from each other but the management of operations is similar. 2. Type of Staff In the same way, if we consider the staff, organizations need electrical engineers to operate a telecom sector while pharmacists are required for manufacturing medicines. The operational management for staffing for both of these industries is similar in function despite of the differences of their fields. B) Difference in Operations Difference in the operations for conducting different types of functions is elaborated by using four dimensions. These dimensions are Volume, variety, variation and visibility. Volume considers the number of products to be produced by the operation, variety provides the differences among the products, variation considers the changing trend in the market and visibility undertakes the idea of its customers towards the internal procedures of working. In most of the industries differences in the operational management can be found by seeing through these four V’s at the end of each operation. These measuring dimensions also give an idea of the cost of the operations. Those operations which have high volume, variety, variation and visibility are costly than those who have low. However, many are of the view that these should not be the only factors while considering the differences among the operational management (Mullins, 2005a) Examples considering four V’s For instance, in transport system, low volume service is taxi while high volume service is bus. In the same way taking variety into consideration, a textile mill has to manufacture different kinds of clothes depending on the season while a bread manufacturing industry keeps the productions of its bread steady. Customer has more interaction with his dentist who is dealing with him directly as compare to the dental technician who is making braces for him. Thus, the fourth V, visibility, is high for dentist and low for dental technician Variety is the tool that organizations measure very sophisticatedly. A departmental store is of low variety that keeps the same the things for the customers to refill whereas a jeans store is of high variety that keeps different types of jeans for his customers. References Mullins, L. (2005a) Management & Organisational Behaviour, (7th Ed), Pearson Education: Harlow Read More