Capacity Management Issues in Peas Processing Factory

This case study analyzes the capacity management issues and limitations in a peas processing factory. It discusses the objectives and constraints of the production process, as well as the critical analysis of capacity management issues. The study also highlights the importance of quality and hygiene requirements, transportation system, and lack of space, handling equipment, manpower, and reliable supply in capacity management.

Individual Case Study
Analysis

Table of Contents
INTRODUCTION...........................................................................................................................3
Part A...............................................................................................................................................3
Introduction............................................................................................................................3
Objectives and constraints of production process in context of organization........................3
Critically analysis a capacity management issues and also explains the capacity limitations in
the peas processing factory.....................................................................................................7
Conclusion..............................................................................................................................9
Part B...............................................................................................................................................9
Introduction............................................................................................................................9
Conducting a situational analysis on the basis of case study which includes PESTLE analysis.
Key essential points which have both positive and negative influence on the business entity.
................................................................................................................................................9
Key factors having positive and negative response.............................................................11
Recommendations on the basis of situational analysis.........................................................12
Conclusion............................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Operation and marketing in a business entity plays very essential in order to attain
organizational goals and objectives in an effective manner. It is necessary for a business entity to
adopt effective operating strategies as well as marketing policies so that they will be able to gain
best and most desirable results. In the present report two main sections are going to be covered
which is based on two different case studies. These case studies are Peas and Red Bull. In this
report, both the sections includes different questions which are going to be covered on the basis
of the given case study. Both these sections help in understanding different topic which will
leads towards the growth of the company by implementing them within their workplace in a well
defined manner.
Part A
Introduction
The given case study is about a company that is dealing in frozen vegetables
especially in peas. They are continuously engage to making improvements in production process
and to enhance product quality. They are providing products to major retailers in UK such as
Sainsbury, Asda, Tesco and many more. They are in the function such as marketing, production,
cold storage and transportation. In the following case study the main objectives for which
company undertakes production process are discussed. Along with this it also consists constrains
that are faced by organization during overall production process. in the following study it also
stated that how company is maximizing its potential and output through capacity management.
Apart from this, the issues as well as constrains encountered by the management of business
entity in managing the overall capacity are also a part of study. Hence, the case study is all about
to maximizing productivity, outcomes and minimizing the defected in overall process. For this
different questions are going to be covered and discussed in this project which assist in
developing the overall knowledge and understanding related to the process of production.
Objectives and constraints of production process in context of organization
Production process can be understand as a method that is undertake by a company in
order to receive predefined outcomes with the help of various tools and equipment’s. The
process should be efficient so that managers get maximum outputs with the help of available
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resources. In the above stated case study the company is carrying out production process in an
efficient manner to produce final goods. John Lincoln who posses good experience of the
manufacturing is using a lot of tools so that they get maximum potential output. The crucial
objectives of production process of company are outline below:
 To enhance efficiency of supply chain system: It is the main objective of production
procedure. It helps organization to provide goods as well services to target segment at
right time without any delay. Large number of distributors and suppliers enhance the
efficiency of supply chain management. In the above case study, it has been analyzed that
company the organization focuses on improvement of its transportation system to meet
with customers requirements. They have collaboration with some group of farmers who
deliver them crops at right time. They make a harvesting plan for each year with those
groups. They have frozen facilities to maintain quality of product deliver to end users. At
the end with the help of distributors they distribute end products to potential buyers.
Hence they are able to meet the needs as well as requirements of potential buyers.
 To enhance productivity: The important aim of production process is to maximize the
productivity as well deliver quality products to end users. To increase in number of
consumers and get an edge over the other competitors it is essential for an organization to
enhance manufacturing capacity. As in the above case study there are various retailers
such as Sainsbury, Asda to whom they are providing raw materials. They are working to
enhance production capacity so that they can provide goods to potential buyer at lower
price. It is important for them to provide quality goods at relatively less price in order to
sustain at competitive market place for a longer period of time.
To improve Quality of products: It is also a crucial objective of production process of a
company. In current trend, it is crucial for mangers to focus on quality rather than price and other
factors. It will help them to grab the attention of consumers and to earn potential profit. In given
case study, it has been examined that there are focusing to provide quality goods to customers.
Due to this they have a predefined system to check the standers of products they are offering to
buyers (Alencar, Priori and Alencar, 2017). There are three stage processes to ensure the good
and predefined quality of goods as well as services. They are using freezers as well as cold
storages in order to maintain set benchmarks for the goods.
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 To enhance market share: This is also an essential goal of having efficient production
process. It will helps to produce wide range of products that will help in increasing
number of potential buyers of company. Enhancement of market share will lead an
organization towards higher profits and growth. In relation to case study, company is
trying to expand its area by getting more number of buyers. In order increase in revenue
and profit margins it is crucial to diversify and enhance the market area. They are making
strategies to increase number of potential buyers and earn higher profit margins so that
they can survive at competitive market place for a longer period of time.
 To increase in operations efficiency: Increase in production efficiency such as
conversion of raw material into finish products is the crucial objective of production
process. It helps to reduce down wastages and defects in overall process and to provide
quality goods to end users. In the above case study, it has monitor that organization has
good control over the whole process. They have cooperation among different functions
such as production, marketing supply and many more. That assists them to minimize the
defects as well as cost and enhance revenue and profitability of company.
There are numerous objectives of production process that has been formulated to increase the
overall efficiency of company (Kersting, Hüttel and Odening, 2016). Along with this, there are
some constraints also that put an adverse impact on operation and function. In the selected case
study, there are also some problems that minimize the overall production capacity of
organization. Some of the issues related to objectives are going to be discussed as follows which
help in understanding the main aim of the company and the issues which affect their overall
performance in a negative manner are discussed as follows:
 Change in climate: It is a constrain, that encounter by most of the companies in
production process. They need to make alteration in overall process as per change in
weather. In the above case study, there is particular weather for procuring good quality
and they need to be careful at the time of production. As the company is dealing in
vegetables especially in peas(Romero-Silva, Hurtado and Santos, 2016). Summer is not
consider good as crop become messy but dry season is better for harvesting of peas( Du,
Wang and Pan, 2017). So, they need to maintain appropriate frozen facilities in order to
meet with predefined quality requirements Apart, from this they also need to take care
about crop rotation, soil condition and many more at the time of manufacturing process.
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They need proper frozen facilities with proper temperature to keep peas fresh and to
maintain the quality.
 Shortage of raw material: It is the biggest constrains in the overall process of
production. Various resources such as employees, funds, equipments are necessary to
acquire in order to manufacture a product or service. To deliver quality goods and
products to the end users, it is essential to have sufficient storage of raw material. If the
company does not own the required stock of raw material, they will be not able to meet
with the requirements of buyers ( Eleiwi, and Laleg-Kirati, 2018). In context of given
case study, it has been analyzed that they are depended on the farmers for crop.
Sometime they are not able to deliver raw material on time that delays the whole
production process of company. And, put a negative impact on its existing brand value.
They don’t have any proper transportation factory to receive raw materials from supplier
(farmers). It delays to supply the processes goods to retailers.
 Scarcity of required resources: To produce predetermined goods and products, it is
important to have sufficient number of resources (human as well as
machines).Organization require a lot of resources to complete production process and to
deliver goods as well services to target segment as per their preference. In case of non-
availability or lack of Resources Company will not be able to fulfill demand of
customers. In relation of selected case study, it has been motnitored that they are lacking
in some resources. It is dealing on peas and vegetables that need proper inventory
management such as frozen facilities ( Shimizu and et. al., 2019). They need to have a
good supply chain management system & storage facility in order to fulfill demand arises
at market place by various retailers. Company do not have the required number of
equipments due to this they face difficulties to maintain quality and hygiene standers of
product.
 Breakdowns and mechanical downtime: It is a common problem of production
process. At the time of manufacturing unplanned mechanical breakdowns may arise. It
may happen due to any electrical as well as technical problems. In manufacturing a lot of
equipments as well as tools are used that should be checked by the authorities to avoid
future constrains. It requires time for further maintenance that may delay the overall
process. In case study, this is the biggest constrain for company to delay with uncertain
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breakdowns. It reduces down operation efficiency of organization and also enhances
manufacturing cost. It is essential for company to keep machines, tools as well
equipments in good condition with timely maintenance and repair to cope up with
contingent conditions during production process.
Critically analysis a capacity management issues and also explains the capacity limitations in the
peas processing factory.
Capacity management refers to the two approaches first one is adjust the capacity and
second one is manipulated demand. Generally firm will match the capacity and demand using
both the approaches. It affects all the areas of operations. Capacity management is analysis on
the basis of two criteria: Capacity measures which is help to determine operations rate can
transforms inputs into outputs. Capacity refers to the quantity of products or services that can be
made within a given period of time.
When planning capacity there are always on the two bases – firstly there is the demand and
the amount of the goods and services that might be required and secondly there is the provision
of goods and services. It includes products and services must be evaluated on the basis of cost
and the trade off between satisfying customers and the cost of productions. However,
underutilized the capacity is a waste of resources which outcomes becomes in higher rates. There
is a various capacity management issue which is faces operation manger at a time of production:
 Lack of space-: There face a problem when space is not sufficient so resources are not
fully utilized and cost also increases so that other resources also stuck. It leads to not
satisfy the customer demand and it all over the impact directly on the processing of
product. Therefore, lack of space consider as the biggest issue faced by business entities
while doing capacity management.
 Lack of handling equipment’s-: It is one of the biggest issues which are face by
operation manger. Incapable and insufficient manpower which is not fully trained so they
properly not handling the machines. It is said that capacity management is all about
managing the overall capacity of the enterprise in an effective and appropriate manner.
Due to lack of handling equipment to the workers as they are less trained which affect
their overall functioning in an adverse way.
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 Lack of manpower-: In factory or processing system must be requirement a skilled
work force which is easily handling the production system and also trained to handle the
machinery and tool. It has been identified that due to lack of workforce and well trained
staff members, capacity management highly get influenced and get negative impact on
the overall performance.
 Lack of reliable supply-: In the supply chain system need to be smooth which is easily
movement of goods from one place to another place. It includes must be in the effective
and efficient way in term of cost also. Because of ineffective equipment’s and supply
process, it has been identified that this create lack of reliable supply of products and
services which reduces the overall functionality and performance of the company in an
adverse manner.
 Quality and hygiene requirement-: In this production process in the factory outlet so
must be maintain a hygiene because in today’s era there are so much bacteria are affected
are goods so proper packaging must be required. In addition to this, it is very essential
for the higher authorities to maintain quality and hygiene level at the workplace.
 Transportation system-: There are proper transportation system required which is
easily movement from control room to factory. With the help of this, company can easily
transport their raw materials and finished goods within less time period. In addition to
this, it has also been analysed that
There are various limitations faced by management team while doing capacity management
at the business entity. These limitations are going to be discussed as follows in a detail manner.
In addition to this, it is said that there are many other challenges or issues associated to storage
management are effectively analysed by the highly authorities. These are the challenges which
include the following factors:
■ Many of the organizations need to experience huge growth and success of the storage
requirements from around 60 to 100 percent per year. It has been said that in the rise in e-
business, e-mail, e-commerce typically results within the management of various terabytes of
data. It is said that higher authorities of the company need to regularly examine their capacity
management in a well defined and systematic manner.
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■ Mission-critical data need to be continuously available at the workplace so that they can
effectively examine and access the data and information in a well defined manner. In addition to
this, it has been said that users need to have instant access in order to mission-critical data when
required, which as a result have more data in order to store and examine by the users.
■ Organizations must require to comply with latest regulatory requirements. New and innovative
regulatory legislation needs to have long-term archiving as well as security of various sort of
data, which as a result in the necessities for additional storage.
■ It is said that number of storage-intensive applications within the market has been increased. It
has been analysed that huge number of business applications needs to be access in an adequate
amount of storage space
All these are the issues and challenges faced by higher authority of Peas organisation which
affect their overall performance in an adverse manner. It is required by the top management team
of the company that they must adopt all the effective responsibility and legislation in a positive
manner. This will assist them to conclude the whole process in a well defined and systematic
manner. Apart from this, it has also been identified that the management of capacity in a
workplace is quite essential and beneficial in order to get success and long term growth at the
competitive marketplace.
Conclusion
With the assistance of above discussion it has been identified that for every company it is
necessary to have some objectives which aid them in order to enhance their functionality in an
effective and efficient way. In addition to this, capacity management plays very essential role in
the attainment of organizational goals and objectives in a positive manner. Capacity management
is all about fulfilling the current and future requirements of the business entity in an effective
manner and within cost effective way. This will assist in gathering necessary resources which
help in developing high quality products and services
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Part B
Introduction
The second part of this report is based on a case study which is on Red Bull. This is a n
organization usually provide energy drink to their customers which are in different flavours as
per the need and demand of the company. PESTLE analysis is going to be conducted in this
section for Red Bull which help in understanding the market situation in an effective manner. On
the basis of situational analysis various recommendations are given to the management team so
that they can modify their strategies and policies accordingly.
Conducting a situational analysis on the basis of case study which includes PESTLE analysis.
Key essential points which have both positive and negative influence on the business
entity.
For each and every business entities it is very essential for the higher authorities to conduct
situational analysis so that they will be able to develop or modify their policies as per the
changing situation and environment. It has been identified that PESTLE analysis is one of the
most effective framework considered as an imperative for business organisation like Red Bull, as
it will assist them in order to understand the market dynamics as well as improve the business
functions on a continuous basis. In reference to Red Bull organisation, higher authorities of the
company conduct PESTLE analysis which are going to be discussed as follows:
Political factor: There are different sort of factors which highly affect the overall
performance of Red Bull Politically, it has been identified that some of these factors are the
method in which government stabilizes, corruption level of the markets included, restrictions of
government on the usage of energy drinks, press freedom and many more. These are the factors
which can highly affect the imports as well as exports of the drink, which influences the overall
sales of the products offered by Red Bull. In addition to this, government policies might
influence the ease of both imports as well as exports of Red Bull, which is considered as an
opportunity for an organisation. On the other hand, it has also been said that threat for the
country consist of various health policies which affect the overall sales in an adverse manner.
Economic factor: It has been said that the economic condition of country will highly
affect the production as well as sales of Red Bull in both positive and negative manner. It has
been said that at the time of inflation rate is high it is concluded that organisation needs to pay
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high cost for the raw materials, which as a result increases the overall selling price of the
product. If talking about Red Bull, it is a premium brand which says that any kind of economic
crises highly influences the overall sales. It has also been identified that the opportunity for the
organisation Red Bull usually comes from a well developed country whereas threat are mostly
witnessed by them when a country is facing economic slowdown.
Social factors: It has been said that the lifestyle of population, status, youth within a
country, income level of the generation are usually included in the social factors. It is said that
the modern culture is highly inclined towards usage of energy drinks, which is considered as one
of the biggest opportunity for organisation like Red Bull. Due to the hectic lifestyle of the new
generation, each and every person need energy drinks which is the opportunity for companies
like Red Bull. Apart from this threat for company is people become more health conscious which
will bring down the demand of such energy drinks at the marketplace.
Technological factor: For all the organisation deals in food and beverages businesses, it is
said that research and development is considered as one of the most effective opportunity. For
organisation like Ref Bull, adoption and use of the internet is the most important opportunity.
Most of organisation selling energy drink such as Red Bull adopt advertising strategies which
are modern and using internet. This as a result help in connecting with customers in two way
which is considered as the cheapest and most powerful method. Therefore it is considered that
technologies plays very essential role in the growth and success of an organisation at the
competitive market place which also attract large number of customers by adopting unique
techniques and tools in order to promote their offerings.
Legal factors: For a business entity deals in energy drink such as Red Bull, it has been
analysed that there are different sort of laws as well as regulations which is related to food and
regulation laws required to be followed by each and every organisation. For maintaining the
position of the company at competitive marketplace, it is said that managers of the company
need to implement every legal requirements in an effective manner. Along with this, all the
safety criteria needs to be followed by the organisation so that there workers get safe and secure
environment in order to produce high quality products. Furthermore, it is said that these are the
legal requirements which might restrict the organisation from its expansion in different
countries.
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Environmental factors: Waste disposal refers to the biggest issues faced by usually each
and every company. It is said to for maintaining sustainability of the companies in their long
run, requires emphasis on the development of the environment. If talking about Red Bull it is
said that company faces ample number of challenges and issues in relation to environmental
factors, as a result this highly affect the overall brand name of the company which creates
negative influence on the sales and profitability. Therefore, manager of the company Red Bull
need to adopt environment law and legislation in order to enhance the overall environment and
reducing wastage in an effective manner.
Key factors having positive and negative response
It has been identified that there are various factors which have their positive and negative
impact on the growth and development of the company at the competitive market place. One of
the most essential element is the changing need and requirements of customer. Regular
modifications in the requirement of customers highly affect the overall functionality of the
company in an adverse manner which demand continuous modifications in their product. On the
other hand, adopting all the health and safety measures framed by government of the country
help in maintaining long term sustainability of the organisation at the competitive market place.
In addition to this, it has been said that the most essential factor is considered by the business
organisation is their workforce. With the help of trained as well as well qualified staff members
organisation like Red Bull will be able to accomplish their goals and objectives in an effective
and we’ll defined manner. Skilled employees of the organisation provide positive outcome to the
company but attaining their targets but on the other hand, if the employees are not well trained
than they will create negative impact on the company and reduce their sales and performance.
These are the essential factors which plays both positive and negative impact on the overall
functionality of the company which can aid them to grab opportunities whereas also leads to
reduce the sales of organisation at the competitive market place. Another key factor that has both
negative and positive impact is Technology, it is determined that technology is changing rapidly
that change the taste and preferences of customer. Adoption of innovative and new technology
will help company to provide an effective and quality service to customer and strengthen its
market performance. On the other side, it occur high cost to company and also take long time to
process that has negative impact on profitability and revenue level of respective organisation.
These are the factors which have both positive and negative influence on the overall performance
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and functionality of a business entity which needs to be analysed by higher authorities in a well
defined manner. By effectively measuring and considering these factors a business entity can get
more positive outcomes which influence their performance and help them in order to gain huge
profitability.
Recommendations on the basis of situational analysis.
After conducting the PESTLE analysis in a detail manner of the company Red Bull,
various recommendations are going to be given to the higher authorities of the organization.
With the help of this, managers can enhance their performance and effectiveness at the
competitive marketplace in a well defined and effective manner. On the basis of above
discussion, some of the recommendations is given to the higher authorities of Red Bull is given
below:
 It is recommended to the managers of respective organisation to conduct market research
as it will help in gaining knowledge about requirements of customer and market trends by
which company can develop effective strategies and fulfil the needs of customer in an
appropriate manner. Moreover, it also help in retaining customer for longer time period
that has positive impact on its performance and productivity level.
 In addition to this, it is suggested to top level authorities of Red Bull to provide training
and development session to employees as it will help in offering quality and on time
service to customer that develop positive mind set of customers towards the brand. Along
with this, it also assist staff members to deal with customer queries in a proper manner
that enhance the number of loyal customer towards brand. This will help respective
organisation to strengthen its market and financial performance effectively.
 Another suggestion to company is to ensure that its employees feel safe and healthy at
workplace as it help in making staff members work with full potential for attaining
objectives in an appropriate way. Providing a healthy working culture to employees will
decline their level of mental pressure due to which they work with full potential in
attaining objectives within stipulated time period.
 Moreover, the managers and human resource department of organisation should focus on
adopting an effective recruitment and selection technique so that they can hire skilled and
talented candidate who has the potential to reach company towards higher growth and
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success. Skilled and talented employees of the organisation provide positive outcome to
the company but meeting their targets and attaining objectives within given time period.
 In order to improve its customer base level and fulfil the requirements of customer, the
respective organisation can take feedback from its customer after purchasing and
consuming of products to them. This will assist company to gain knowledge about the
requirements of customer and make them feel valued by choosing brand. This help in
increasing number of loyal customer and raise the productivity and profitability of Red
Bull.
 At last, it is recommended to higher authorities of Red Bull to evaluate and monitor
performance of staff members with the set expectations as it will help in making
improvements on time and attaining objectives in an effective and timely manner.
Furthermore, it also increase the efficiency of staff members that directly leads to raise in
profitability and revenue level of Red Bull.
Conclusion
It can be concluded that situational analysis plays very essential role in the attainment of
organizational goals and objectives in an effective manner. With the help of doing examination
of new marketplace before conducting their functions, company will be able to gain positive
outcomes in an appropriate way. Furthermore, recommendations are also to the higher authorities
of Red Bull so that they can raise their performance and effectiveness at the competitive
marketplace. It has also been analysed that by adopting all these factors and recommendations in
an effective manner, top management team of the company will be able to get opportunities at
the competitive and new marketplace.
CONCLUSION
With the assistance of examining the overall report, it can easily be understood that both
marketing as well as operation are the key aspects for each and every business entity. By
adopting all the marketing functions in a systematic manner, an organization can easily gain
support from customers. Apart from understanding the effectiveness of production process it is
also required to conduct situational analysis of the market in an effective manner so that they can
formulate their strategies as per the needs and requirements of the customers. It has been
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identified that the process of manufacturing and production is quite essential within a business
entity which needs to be systematic and well defined. This as a result will help them in order to
modifying their revenue and sales in a positive manner and maintain long term sustainability at
the marketplace.
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