Facer’s is affiliated with the Numark pharmacy chain as one of its franchises. “Numark is the largest ‘virtual chain’ of independent pharmacists in the UK with more than 1720 outlets across England, Wales, Scotland and Northern Ireland. It is one of the most nationally recognised pharmacy brands amongst consumers with a trusted range of own brand products.” (www.numarkltd.com)
This franchise arrangement means that there are certain products that Facer’s is obliged to stock and services that it is required to offer. Such services include blood pressure monitoring, cholesterol monitoring, family planning and emergency contraception advice. Every month Numark has several special offer promotions. The franchised pharmacies are all expected to stock such items for that particular month and this includes Facer’s. For example, in February promotions included:
- Numark Sensitive Baby Wipes Twin Pack was on offer for £2.19.
- Numark Maximum Strength Ibuprofen Tablets 400mg were on offer for £2.79 which was a saving of 30 pence.
- Numark Fast Acting Denture Cleaning Tablets were reduced to 75 pence.
- Numark Aciclovir Cream 5% was on offer at £3.99.
(www.numarkinternational.com)
Facer’s tries to stock as many product lines as it can, however, it would be inefficient and unrealistic to expect every single product line to be kept. Therefore, if any products are put on promotion that are not normally stocked they are ordered in especially for the offer period on a sale or return basis. An example of such is the ibuprofen that was on promotion during February. Facer’s always stocks all varieties of Nurofen tablets and the generic brand Cuprofen, therefore there is little requirement for a third variety, however, the exception to this was in February. Numark’s own ibuprofen had to be ordered in especially and then at the end of the month, the remaining stock, if in fact there was any, was returned to the supplier for the same price at which it was bought.
2.0 Inputs, Outputs and the Transformations Involved
All businesses have inputs and outputs which are determined by the transformation processes that are carried out upon them. This is the case whether the business be offering customers goods or services. In fact, “most companies offer customers a combination of both goods and services”. (Lecture notes)
2.1 Inputs
Inputs into any operation’s process can either be described as the transformed resources or the transforming resources. “Transformed resources are the resources that are treated, transformed or converted in the process. They are usually a mixture of . . . materials, information and customers. Often one of these is dominant in an operation.” (Slack, N et al, 2004). “Transforming resources are the resources which act upon the transformed resources. There are two types which form the ‘building blocks’ of all operations:
- Facilities – the buildings, equipment, plant and process technology of the operation;
- Staff – the people who operate, maintain, plan and manage the operation.” (Slack, N et al, 2004)
2.2 Transformation Processes
These inputs, whatever they may been are then transformed using some process. The specific process used depends greatly upon the specific input that is being transformed. There are three main types of processing. These are:
- Materials processing.
- “Operations which process materials could do so to transform their physical properties. Most manufacturing operations are like this. Other operations process their materials to change their location. Some, like retail operations, do so to change the possession of the materials. Finally some operations store materials, such as warehouses.” (Slack, N et al, 2004).
- Information processing
- “Operations which process information could do so to transform their informational properties…Some change the possession of the information, for example market research companies sell information. Some store the information, for example archives and libraries. Finally, some operations, such as telecommunication companies change the location of the information.” (Slack, N et al, 2004).
- Customer processing
- “Operations which process their customers might change their physical properties in a similar way to materials processors. Some store customers…airlines, mass rapid transport systems and bus companies transform the location of their customers, while hospitals transform their physiological state. Finally, some customer-processing operations are concerned with transforming their physiological state.” (Slack, N et al, 2004).
2.3 Outputs
Once the transformation process, whichever one it may be, has occurred on an input an output has been formed. This will either be a product or service. “Products are usually tangible: for example you can physically touch a television set or a newspaper. Services are usually intangible. You cannot touch consultancy advice or a haircut. Also, services may have a shorter stored life. Products can usually be stored for a time….Some operations produce just goods and others just services, but most operations produce a mixture of the two. … Increasingly the distinction between services and products is both difficult to define and not particularly useful. Information and communications technologies are even overcoming some of the consequences of the intangibility of services.” (Slack, N et al 2004).
3.0 Inputs, Outputs and the Transformations Involved at A. S. Facer
3.1 Inputs at A. S. Facer (Longton) Ltd
Facer’s inputs can be looked at in terms of those associated with the shop as well as those associated with the dispensary. Both areas however are affected by the inputs of the actual building within which the pharmacy is located and the people that are employed. These being four pharmacists, of which there are at least two working every weekday and at least one every Saturday and the rest of the supporting staff who are split between the shop and the dispensary. There are three full time and four part time shop workers, four full time and three part time dispensary workers and then an additional employee who aids with the financial running of the company.
The most obvious and most frequent input is the actual prescriptions. On average approximately 1000 items are processed every day. Some of these are new items to the customer but the majority are repeat items.
3.2 Transformation processes at A. S. Facer (Longton) Ltd
The most apparent transformation process which occurs at Facer’s is that of materials processing. In the shop products are bought in their complete form and then sold on to the customers, thus changing the possession of the materials. The dispensary uses a combination of this form of processing alongside information processing. When a prescription is received from the customer, more often than not it is for an item which has been bought in its complete form. In this case the transformation is via materials processing. The possession of the item has changed. Simultaneously however, information processing is occurring. When prescriptions are being completed information often has to be communicated. Details of the items that are being given to the customer have to be kept on both the customer’s records as well as the pharmacy records
- Materials processing.
- “Operations which process materials could do so to transform their physical properties. Most manufacturing operations are like this. Other operations process their materials to change their location. Some, like retail operations, do so to change the possession of the materials. Finally some operations store materials, such as warehouses.” (Slack, N et al, 2004).
- Information processing
- “Operations which process information could do so to transform their informational properties…Some change the possession of the information, for example market research companies sell information. Some store the information, for example archives and libraries. Finally, some operations, such as telecommunication companies change the location of the information.” (Slack, N et al, 2004).
3.3 Outputs at A. S. Facer (Longton) Ltd
Capacity Management
Examples of capacity management decisions are “What physical capacity should each part of the network owned by the company have at any point in time? How large should the homeware factory be? If it expands, should it do so in large capacity steps or small ones? Should it make sure that it always has more capacity than anticipated demand or less?” (Slack, N et al, 2004).
Stock Control at Facer’s
As with any other business it is extremely important to Facer’s to ensure that supply of the products and services that the company has can meet demand. However, this is sometimes not the case, especially where prescription items and specific medicines are concerned. There is not the storage room available to keep every single medicine that is available; therefore good links with suppliers have been created. The dispensary receives two deliveries per day Monday to Friday from the main suppliers, Unichem
Bibliography
Texts:
Core text
Journals:
Websites:
http://www.numarkltd.com/
src=gendocs&link=Products&category=Main
Other:
Lecture notes, J. Harris and D. J. Petty, Manchester Metropolitan University 2005
