Challenges and Process Management in the UK Dairy Industry - Coursework Example

Manufacturing/ service process design for the Dairy Industry Introduction The process of service delivery and manufacturing in organizations depends on multiple variables and influences. Some of these influences relates to organizational structure, influence of the management teams and other players. Other influences on the manufacturing processes include competition, social economic, political and environmental influences. Environmental influences relates to climatic conditions or weather influence. For example, certain goods are manufactured at specific seasons. Umbrellas being one of such products, force an entrepreneur to specialize in producing two or more other products to cater for poor demand of umbrellas during dry seasons. Socio economic influences relates to the needs of the society, laws relating to production and the purchasing power of people. Therefore, for organizations to effectively manage its production operation or service delivery certain aspects need urgent consideration. Considering food processing as an industry and dairy products manufacturing as the focus, one gets to understand the industry’s processes. These processes start from the point of idea generation to the point of sale. Dairy products undergo diverse processes before reaching market destinations (IDF, 2009). Some of these processes depend on the use of machines while others consider people’s decisions. This means that organizations have to develop capacity in handling such industrial needs. Today’s dairy industry and other manufacturing organizations consider diverse manufacturing steps. Although this is a traditional approach to the manufacturing process, sequence of processes affects organizational success. The manufacturing process for dairy products begins at the point of initiation. The first step to any manufacturing process relates to the initiation. At this, step management teams conduct research on best products for the market. The next step relates to product specification. Product specification relates to product branding, tagging and other advertisement aspects (IDF, 2009). The next step involves the actual process of manufacturing which include, testing, processing and packaging. The final step to the manufacturing process relates to the sale of these products as well as delivery to customers. In the process of manufacturing problems might emerge in relation to quality requirements (Boud, Cressey and Docherty 2005). If such problems occur, appropriate actions save the situation. These actions might include the elimination of the process or recycling the whole process. Manufacturing Dairy products For the dairy industry in the UK, various variables influence production as well as service delivery in the industry. Organizations concentrating in manufacturing dairy products strive to meet industry’s quality standards. Efficient dairy manufacturing plants need to avoid wastage. These organizations additionally need to ensure that products reach customers on time and according to stated budgets. In order to meet these requirements organizations have to analyse their employees and to ensure quality products reach the market. A further look at the dairy industry in the country reveals that in order to meet customer needs, organization need to consider them in the process (Johnson, Clayton and Henning, 2008). Customers have to take part in the manufacturing process. Organizations have adopted different ways of ensuring customers interact in the process. These interactions include customers’ response on the quality of products, their preferences as well as their advice on manufacturing. Dairy industries in the UK have to establish quality control in order to promote customers’ interaction. These organizations need to have quality checks in ensuring that customers experience on the product receives constant evaluation. The process of production in the dairy industry of UK consists of process engineering as well as management of the processes (Andersons, 2013). Organizations in these industries have to undergo challenges that include high cost of business transaction, high start up costs and requirements by the government. It is then essential for these industries to concentrate on the management of the processes and evaluation of costs. In order to achieve the return on investment needs, organizations have to focus on diverse aspects of the dairy industry. These aspects on the industry relate to products output, manufacturing process, employees’ influences, level of technology, government regulations and manufacturing processes. In relation to engineering process capabilities, organizations need to have clear planning, design and production layouts (Johnson et al 2008). Such processes and condition ensure optimization of plants, offers controls for system’s designs, assist in packaging, in project management and in environmental management. Factors influencing manufacturing/ service process design United Kingdom dairy sector has its historical connotation to its people. For decades, this industry has undergone drastic changes on its structure and its policies. It is imperative to state that fewer dairy farmers produce large volumes of milk presently. It is also important for one to note that the industry players face high costs in their production and marketing of dairy products. However, with all of these influences, the industry’s value continues to grow while total jobs in the industry remain steady. Organizations producing dairy products in the United Kingdom need to meet various standards. Industry players have to meet international standards of quality. The quality of such products needs to be in line with government policy on food manufacturing and industrial standards. Factors influencing today’s dairy industry include environmental factors. With respect to these phenomena, there has been a growing outcry from environmentalist to industry players to safeguard the environment. These influences have an effect on every production schedule. In a time of manufacturing process and service delivery, dairy manufacturing firms observe conservancy processes. Policies on environment conservation have an influence on the manufacturing process of dairy plants. This policy points on food safety, hygiene consideration in the production of milk and other dairy products. Such policies have an impact on the production costs of organizations. Other factors influencing the manufacturing and service delivery in relation to the dairy industry include influence of employees, management teams, costs of production, technology advancement and industry policy. Government Policy Influencing Dairy Industry It is crucial for players in the dairy industry in the United Kingdom to consider different policies while manufacturing. These policies relate to food security considerations, influence of market price and standards of production. For milk producers and their suppliers in the country, the challenge is to overcome the ever-declining milk production levels. In the country, there has been a sharp decline in milk production while demand has been on the rise. The government then has to consider developing policies to ensure confidence within the industry, and among farmers (Dawson, 2003). Therefore, dairy farming in the country is central to government’s policy goals. Government policy has an influence on service delivery by making sure that there is a sustainable supply of food at affordable prices. Government policies in the country, however, relates to domestic agricultural policy and common policies on agriculture. These aspects have an influence on the designing as well as the manufacturing process in the industry. It is, therefore, important for organization manufacturing in the country to concentrate on attaining quality standards. Players in the dairy industry further need to understand policy implications related to expansion and contraction of the industry (Johnson et al. 2008). Further industry players manufacturing dairy products, face challenges associated to government policies. Such policy requirements have an influence on the operating costs for such an industry. Recent policy support for using bio fuels has seen animal feed skyrocket. Policies contribute positively and negatively to the dairy industry. However, the government has to take a leading role in research on improving production processes. Such initiatives will the manufactures meet quality standards as meet health needs. Influence of Technology Technology has an influence on product design and service delivery. Technology has an influence on the production process as well as in communication. New technology for the dairy industry has seen an advance in the production of milk and its products. It is now easier to assemble dairy plants than before. Through precision dairy management practices, farmers use technology to measure production, behavioural and psychological indicators on individual animals. The use of technology also involves the use milk yield monitors, automatic temperature regulators, and recording devices (De Jong, 2003). On the management of costs and other variables, different computer software solves organization problems and assists in strategy formulation. Across the globe, dairy farming industry has undergone various challenges. The industry has a characteristic of decreasing profit margins. The sharp decline in profit margin relates to a reduction in government’s involvement. Manufactures in these industries, on the other hand, face stiff competition from multiple players. Therefore, for sustainability, dairy manufacturers as well as service industry in the sector need to use technology effectively. Technology in this industry is essential in the manufacturing and service delivery. Technology for the industry concentrates on the use of precision techniques in designing and executing manufacturing goals (Bewley, 2013). Technology influences the manufacturing design of dairy industries by promoting the use of genetics, management of production units, disease control, reproduction and nutrition. Workforce Influence The dairy industry in the United Kingdom employs over 40,000 people in the processing, distribution and production processes. However, the country has been encountering a decline in the employment rates. This relates to multiple influences in the industry as well as from stakeholders, market influence and from the government. Through decades, the dairy industry in the country has seen tremendous changes as well as challenges. The industrial changes for the industry consists of technological transformations, changes in customer demands, legislation and industry policies. Recent research on the industry reveals that workers in this industry lack efficient skills (Hewell and Associates, 2001). The workforce in these industry lack sales, basic, production operation, engineering and management skills. In retrospect, there has been growing need for well-managed staff, highly skilled workforce. The industry needs to train its employees in order to meet growing environmental needs and in adapting to other industrial challenges. In order for organization to limit negative implication of workforce in the manufacturing process design, dairy industrial players need to consider offering training programs. These training programs assist workforce develop skills and in adapting to new management scenarios (Hewell and Associates, 2001). These training programs will see employees broaden their skills, able to withstand environmental and technological influences. Influence of the Environment/ Competition During manufacturing or service process design in the dairy industry environment, perhaps influence processes. When designing such production processes, dairy industry players need to consider the role of environment in decision-making. When one speaks of the environment, two aspects come into consideration. The first influence of environment relates to competitors and the other relates to the physical environment (Traill and Eamonn, 1998). The physical environment in the dairy industry relates to the manufacturing process. The dairy industries in the United Kingdom have multiple competitive firms whose influence guide in decision-making. Some of the questions such industry players’ answer includes asserting whether organization processes meet policies. Is the organization using power efficient machines? Is the firm using environmentally degradable materials in their production? Are dairy industry players ensuring that customers understand the importance of the environment through using their products? All of these strategies however come at a cost. Such costs increase on organizations’ cost of production and eventually transferred to consumers. Costs of production influence Today’s cost of production for dairy farmers is now higher unlike decades ago. Dairy farming in the country still rely on traditional utilization of pastures. This as well as decrease in pasture makes the future of this industry hangs on the balance. Consumers on, the other hand, push the cost of production to higher levels. Milk consumers, as well as cow welfare advocates, make the situation worse by discouraging caging of animals. These influences push the cost of production in the country to be higher than that of U.S.A firms. Due to grazing on open pastures, cows in the United Kingdom contact fewer diseases. Unlike their equivalents in the USA, dairy product manufacturers in the UK escape various impacts of caging animals. The impacts of feeding animals in zero grazing units promote diseases such as lameness, mastitis and infertility problems. Dairy industry players in the U.K enjoy these benefits but at higher costs of production. Influence of customers Customers in the United Kingdom have an upper hand in ensuring efficient production of dairy products. Customers of these dairy products ensure that organizations conduct their manufacturing according to standards. The country has policies related to consumer rights. Violation of such rights by manufacturers might see their licences revoked or even firms closure. Therefore, production managers when developing manufacturing process design need to consider influences of customers. It is normal practice for manufacturing managers in such industries to develop their process design with customers in mind. Consideration of customer needs ensure that there is observation of standards from dairy firms to the customer. Operational Performance Proper operational performance for organizations ensures that service reaches their destination and that products meet standards. In order for an organization to meet optimum operational performance, certain objectives have to influence decision-making. Operational performance objectives refer to those objectives beneficial to the organization. Such objectives in the dairy industry include the influence of quality, cost, flexibility, dependability and speed. These objectives ensure those customers, suppliers, employees, shareholders and the society benefit (Slack, Stuart and Johnston, 2010). Employees are better is the firm is prosperous, the society benefit from a profitable organization, while shareholders enjoy the benefits of such organizations. Quality The quality of products in the market has an influence on the decision making for firms. The quality of products comes under scrutiny from authorities as well as from customers. A majority of firms in the global arena understand the importance of quality in marketing their products. The quality of a product affects consumer use and purchasing interest. It, is therefore, important for organization to consider customers’ complains as well as ideas. It will not be prudent to be ignorant of customers’ complaints since they bring revenue to the organization. Timeliness Speed is a very important aspect in the manufacturing process and service delivery for firms. Speed ensures that customers’ receive timely feedback on their queries. Fast response to customer needs assists keeping a customer base. Organizations may also charge higher in cases where service delivery is fast. In response to internal needs of an organization, speed saves on costs (Slack et al. 2010). Fast manufacturing techniques ensures that production units utilize resources fully. It is also vital to note that speed ensure faster transmission of information. Flexibility Flexibility is an important term in operation management. The term means diverse things to different people. However, one needs to understand that the terms relates to organizations being able to change its operations to meet certain needs. Flexibility assists organizations fit services and products to customers (Slack et al 2010). Such activities assist in the provision of a wide variety of products for customers to choose. To the organization, flexibility assists in time saving; speeding up processes and assists in maintaining dependency. Dependability As the function in operation management, management teams need to ensure that their production process meet the dependability tag. This aspect relates to the ability of an organization to meet customers’ requests consistently. Services need to be reaching its destination on time and according to the promise on delivery. Dependability ensures constant customer interaction; it determines whether suppliers retain contracts (Slack et al 2010). Further, dependability saves on cost of production thus allowing stability in organizations. Costs Adequate management of other factors in the production process yields to saving on the cost of operations. Faster consumer response will see the organization maintain customer base and limits costs of production. By ensuring timely delivery of products, organizations save on costs. On the other hand, production units that ensure production of quality products get more customers and eventually save on costs. Quality checks further limits the errors in production (Slack et al 2010). Flexibility in production ensures use of diverse knowledge areas. Bibliography Boud, D, Cressey, P and Docherty, P 2005, Productive reflection at work: Learning for changing organizations, Routledge, Abingdon Johnson, W., Clayton M. C, and Henning K.2008 "Reinventing your business model." Harvard business review, Vol. 86, No.12, pp. 57-68. De Jong, J. 2003 "Innovation in service firms explored: what, how and why." EIM Business Policy Research, Strategic Study B200205, accessed from http://www.ondernemerschap.nl/pdf-ez/B200205.pdf Hewell T, and Associates 2001, Sector Workforce Development Plan for Brtitish Dairy Sector, DTDC Sector Workforce Development plan 2001-2005, accessed from http://www.swslim.org.uk/Documents/labourmarket/workforce-devt-british-dairy-2001-05.pdf Bewley, J 2013, New Technlogies in Precision Dairy Management, WCDS Adavances in Dairy Technology. Vol.25, pp. 141-159. Accessed from http://www.wcds.ca/proc/2013/Manuscripts/p%20141%20-%20162%20Bewley.pdf Traill, B, and Eamonn P.1998, Competitiveness Food Industry. Blackie Academic & Professional, London Dawson, P.2003, Food Security and the UK Dairy Industry,The voices of the industry, Accessed from http://www.dairyuk.org/component/docman/doc_download/4141-food-security-policy-guide-21-nov International Dairy Federation(IDF) 2009, Enviromental/ Ecological Impact of the Dairy sector: Literature review on dairy products for an inventory of key issues. List of environmental initiatives and influences on the dairy sector, Bulletin of the international dairy federation, accessed from www.fil-idf.org/Public/Download.php?media=28664‎ Andersons C 2013. The Structure of the GB dairy farming industry- What drives change?. Summary report of dairyco. The University of Nottingham. Accessed http://www.dairyco.org.uk/non_umbraco/download.aspx?media=14129 Slack, N, Stuart C, and Johnston, R 2010, Operations management, Pearson Education, Harlow Read More