Essays on Operation and Supply Chain Management Case Study

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The paper entitled "Operation and Supply Chain Management" Is a great example of a Management Case Study. According to Lubar (2012), operation and supply management involves designing and improving the systems responsible for the production and distribution of the primary goods and services of a company. Operations and supply management is a result of a relationship between three departments within a company. They include the production operations department which entails conversion of capital resources into final products or output. Capital resources include the physical capital, human resource, raw materials, and technology.

The department will be able to produce excellent results if the management team is equipped with knowledge on the production process and with managerial skills. The supply chain department is charged with the responsibility of distributing the final goods and services from the manufacturing firm to respective customers in different destinations. This process involves developing the appropriate supply designs, planning and executing them. The business process department, on the other hand, involves an analysis of the various business processes involved in operations and supply management. The business department sets out to define the processes involved, layout responsibilities of the process, process sponsorship, process measures, process alignment with the operations and supply, process awareness, the technology used as well as the methodology in the process (Blanchard, 2010). Summary Report from Mike Kamarck to Wendy Kouba briefing the Objectives at Hand Background Information In the third quarter of the financial year 2007 the Wyeth Pharmaceuticals Company, among other companies in the pharmaceutical industry, faced many challenges with regards to operating costs and these challenges caused decreases in profit margins, rampant consolidations drying up of product pipelines and need for increased investment in the pharmaceutical industry among other challenges.

The industry also lost its international patent protection because of not meeting the expected rate of profitability (Beede, 2009). Pharmaceutical companies make profits by introducing new drugs into the market. This is because they charge extreme prices for these new drugs and they can continue charging the extreme prices under the protection of international patents. Patents in the United States of America ran for as long as 20 years and during this period of time, the pharmaceutical companies under the umbrella of the patent holder are able to complete the development of the drug, perform the necessary conduct tests, acquire the required approvals from the FDA, increase the capacity in the production.

However, after the introduction of more strict regulations the patent period was reduced from 20 years to 12 and 14 years which will require more investments if the same things are still to be achieved and acquired in a shorter span of time (Tenant 2001). Before the challenges began pharmaceutical companies were given a two year weaning period after their patents had expired and in these two years the companies were able to make generic versions of the drugs and thus increase production capacity.

However, after the implementation of the strict rules and loss of patents in the United States of America the only facilities that could produce generics faster and have the approval to release the drugs into the international markets were India and China. According to Beede (2009), this is because the facilities in these areas had already been developed and the soft time lag does not exist there.

This has led to a reduction in the total production and supply of drugs in the international market for the company leading to reduced losses.


List of References

Beede, P., 2009, Wyeth Pharmaceuticals in 2009: Operational Transformation, pp. 1-22.

Tenant, G., 2001, Six Sigma: SPC and TQM in Manufacturing and Services, Farnham: Gower Publishing Ltd.

Lubar, S., 2012, Supply Chain and Operations Management, Retrieved on 15th May, 2014 from

Blanchard, D., 2010, Supply Chain Management Best Practices, John Wiley &Sons, New Jersey.

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