Smitheford Pharmaceuticals was founded by a former officer in the Civil War,
General Robert Smitheford, in 1878. He moved his family to Colorado Springs to
aid in his wife’s tuberculosis condition. At the time, it was believed that the
sunshine and high altitude had curative effects.
The company quickly grew and expanded. To improve the economies of several
growing towns in Colorado, General Smitheford built additional manufacturing
facilities in Pueblo, Grand Junction, Fort Collins, and Durango, Colorado.
Smitheford was an excellent leader, as demonstrated by his rapid rise in the
Union Army. He used management incentives and was an early follower of
Frederick Taylor on methods improvement and employee satisfaction. The company
has since adopted total quality management (TQM) philosophies but has done a
poor job of implementing these principles in manufacturing.
By the 1950s, Smitheford Pharmaceuticals grew to become the 6th-largest
pharmaceutical firm in the United States. Expansion in manufacturing occurred
in the 1970s and 1980s with operations in Canada, Puerto Rico, France, Japan,
Mexico, and Brazil.
Many challenges are facing the industry today. NAFTA impacted some advantages
that Canadian manufacturing might have had. Stricter FDA guidelines have made
transportation of partially manufactured products more complicated; drug
interactions, especially for the elderly, can seriously affect whether or not
to release a new product, and manufacturing equipment has become more
sophisticated, and with the advanced technology comes increase fixed costs.
You are a midlevel manager of production operations at Smitheford. You will
need to look at several methods to improve efficiency and effectiveness for its
area of responsibility. You will use quantitative and qualitative methods to
make recommendations for the improvements.
Length: 750-1000 words
Government regulations have impacted the site planning and
capacity planning at Smitheford Pharmaceuticals. NAFTA has had an impact on the
advantages of the ownership of manufacturing facilities in Canada.
In preparation for a meeting with leadership, review and discuss
Operations mgmt scenario.docx
What advantages did Smitheford Pharmaceuticals have by owning
manufacturing facilities in Canada prior to NAFTA?
With the passage of NAFTA, what advantages remain by having
manufacturing facilities still in Canada according to your research and your