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Operations Management – MB 504
Assignment -2Instructions:
Please read the following case studies and answer the questions in your own words.
Case Study 1: Cadbury Schweppes Production Method
Cadbury Schweppes is a multinational soft drink (beverages) and confectionery business
that is based in the UK. The business is a public limited company. It is involved in the
manufacture, marketing and distribution of its many branded products. Cadbury Schweppes
now employs over 40000 people, and its products are available in almost 200 countries.
The company’s products can be divided into:
• Beverages (carbonated soft drinks and non-carbonated soft drinks (waters and
fruit juices)
• Confectionery (chocolate products, sugar products, chewing gum)
Much of Cadbury Schweppes’ manufacturing still takes place in the UK, Australia and
North Africa. However, in the 1990s, the company moved some of its production to Russia,
Poland, Argentina and China, countries with emerging economies.
To satisfy most of its shareholders, Cadbury Schweppes’ has set out a strategy to help
achieve its objective. This strategy consists of:
• Creating strong regional positions through organic growth, acquisitions and
disposals
• Developing strong brands through marketing
• Expanding its marketing share through innovation in products and packaging
• Regularly updating its product portfolio
Production
Despite manufacturing its goods in large quantities, Cadbury Schweppes uses batch rather
than flow production methods. The company must ensure the products are of high quality.
Not only are there strict lawsabout how food products are made, but also Cadbury Schweppes
would not want to damage its reputation by allowing inferior products to be sold.
Cadbury Schweppes undertakes extensive research and development (R&D) to develop
new products and to find ways of manufacturing existing brands more efficiently. Cadbury
Schweppes uses the services of a specialist R&D business based in Reading for its UK
confectionery business.
1
Based on the information provided, answer the following questions:
(a) Describe the differences between batch and flow production.
(2 marks)
(b) Critically evaluate the reasons why Cadbury Schweppes uses batch production when
making chocolate bars.
(2 marks)
(c) Critically discuss which of the following two quality control methods would be better for
Cadbury Schweppes:
(2 marks)
• checking samples of the products after they have been made
• making workers responsible for the quality of their own work
Case Study 2: The Culture of Quality at Arnold Palmer Hospital
Founded in 1989, Arnold Palmer Hospital is one of the largest hospitals for women and
children in the U.S., with 431 beds in two facilities totaling 676,000 square feet. Located in
downtown Orlando, Florida, and named after its famed golf benefactor, the hospital, with
more than 2,000 employees, serves an 18-county area in central Florida and is the only
Level 1 trauma center for children in that region. Arnold Palmer Hospital provides a wide
range of medical services including newborn and pediatric intensive care, pediatric
oncology and cardiology, care for high-risk pregnancies, and maternal intensive care.
Quality health care is a goal all hospitals claim, but Arnold Palmer Hospital has developed
thorough and scientific methods of asking customers to judge the quality of care they
receive. Participating in a national benchmark comparison against other hospitals, Arnold
Palmer Hospital regularly scores in the top 10% in overall patient satisfaction.
According to the hospital’s executive director, “Hospitals in this area will be distinguished
on the basis of their customer satisfaction. We must have accurate information about how
all patients and their families judge the quality of our care, so I follow the questionnaire
results daily. The in-depth survey helps me and others on my team to gain quick
knowledge from patient feedback.” Arnold Palmer hospital employees are allowed to
provide gifts in value up to $200 to patients who find reason to complain about any
hospital service such as food, courtesy, responsiveness, or cleanliness.
The hospital doesn’t just focus on customer surveys which are sent to patients one week
after discharge but also on a variety of internal measures. These measures usually start at
the grassroots level where the staff sees a problem and develops ways to track
performance. The hospital’s philosophy supports the concept that each patient is important
and respected as a person. That patient has the right to family centered health care provided
by an experienced physician directed team. Some of the measures the hospital monitors for
continuous improvement are death rates, infection rates, readmission rates, costs per case
and length of stays. The quality tools used daily include Pareto charts, flowcharts and
process charts, in addition to benchmarking against hospitals both nationally and locally.
All these efforts have resulted in a quality culture as shown in the hospital’s high ranking
in patient satisfaction and one of the highest survival rates of critically ill babies.
2
Based on the information provided, answer the following questions:
a) Describe the techniques practiced by Arnold Palmer Hospital in its drive for quality and
continuous improvement?
(2 marks)
b) Why is it important for Arnold Palmer Hospital to get a patient’s evaluation of health
care quality? Does the patient have the expertise to judge the health care she receives?
(2 marks)
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add more information to your answers. If you use external material, provide
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• Please fill and attach the cover page with your assignment.
Question
Assignment 2
Due Date: May 15, 2025
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