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Island Beverage Co. Ltd: Operations Management Case Study

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Updated: May 22nd, 2021

The problem at Island Beverage Co. Ltd

At Island Beverage Co. Ltd. Operations in the production plant seems inefficient based on how they are carried out and the safety of employees. As shown in the film, one major problem is the manual system of cleaning, loading, and moving bottles of water in the plant. The root cause of inefficiency at the plant is a lack of coordination and automation of processes. In addition, employees are not provided with protective clothes to safeguard them from injuries. Moreover, containers are placed on the trolley in a horizontal position rather than facing up, creating a risk of rolling and possibly injuring the workers. The manual system in the production plant is likely to increase costs and waste a lot of labor hours, thus affecting production efficiency. In addition, employees seem to be overworked, thus creating a possibility of low productivity.

Operation Inefficiency at National Drilling Company

Operational problem

Safety performance in environmental drilling is usually influenced by the presence of right field conditions, effective planning, and practice safe work measures. Generally, environmental professionals and drillers clearly understand that it is very hard to understand and eliminate all safety problems that they can face while working in the field (Environmental Remediation Drilling Safety Guideline, 2005). At National Drilling Company, the main problem is employee safety, which has been affecting workers and the outcome of work. The company has failed to initiate corrective measures and legal practices that prevent harm on employees and this has led to many injuries, permanent disability, or other dangerous illnesses. Employees are usually allowed to work without protective gear even though the equipment used is heavy and dangerous. In addition, employees work beyond the recommended time, thus they become prone to injuries due to exhaustion, while at the same time they drink water at the site that is not hygienically stored.

the Root cause of the problem

The major cause of risks to employees at National Drilling Company is drinking water that is contaminated via blowouts, spills, naturally occurring fissures, radioactive contamination, and others. Employee safety has also not been taken into account when drilling project takes place. In addition, companies lack to provide necessary gear and equipment during drilling projects, thus endangering their employees’ lives (Health Risks from the Fracking of Gas Wells., 2014).

Impact of the problem

These risks that employees are exposed to come as a result of a company’s ignorance and lack of concern for employees, which tends to have a significant effect on their productivity. Contaminated water has also been affecting the health of employees causing them to skip work due to illnesses, thus affecting general operations in the company. In addition, lack of protective gear results in numerous injuries caused by drilling machines.

Potential Solution

proposed solution

To provide and sustain employee safety, the drilling companies need to develop and improve constructive behavior that would be generally based on safety culture by every member of the company, encouraging personnel to observe safety as a means of life and not just as an employment condition.

As a solution number one, National Drilling Company (NDC) intends to install the belief that all employee safety incidences will be prevented and a great effort will be directed towards the discovery of hazards, creating awareness to the employees about the hazards and controlling risks involved in employee security hazards. As it is clearly stated in the manual of the company, safety is a responsibility shared by every employee, and it is possible that concerted efforts would greatly help to create a culture that enhances safety in the working environment for all.

The second solution is for the company to play a big part in influencing the safety of employees in any drilling project. NDC will be required to come up with employee legislated rights such as the right to knowledge on hazards that they may face during their work, the right to refuse or say no to any unsafe work, and the right to take part in their health and safety. The safety and health representatives and the management of the company will also have to comply with the company’s safety manual as well as with the Employee Compensation Act and its laws and regulations. Since NDC is well recognized for providing quality services, this should be carried out in a process that enhances a safe and healthy place of work for workers, thus reducing the potential effect on the environment. The Company has decided to carry out its operations by complying with all important legislation on the environment, including environmental conservation and prevention of pollution in all its operations.

National Drilling Company will carry out certain environmental strategies to solve employee safety issues. Some of these measures include the integration of the environmental apprehensions and effects to all its activities. The company would also be involved in decision-making, training, giving information, and educating its employees on issues of the environment that can lead to a negative impact on their work. Other environment strategies will involve promoting awareness about the environment among the company’s employees and encouraging them to carry out work in an environmentally responsible manner, promote the use of renewable resources such as electricity and water, reduce wastage, cut unnecessary use of materials and products that are hazardous, and work towards continually improving the performance of the environment and reduce social effect and harm of their actions through evaluation of environmental strategies (Lyons & Plisga, 2011).

How solution increases efficiency

A well-trained employee on safety measures will enhance the efficient running of work. Proper solutions will improve efficiency by saving time and reducing costs, as employees will be aware of environmental risks and operations and thus they will be able to carry out their work carefully while avoiding any risks or dangers. Moreover, work would be completed fast, saving time and reducing the cost of production, since there would be no accidents reported that would otherwise cost employees more time and added costs. The above-mentioned solutions will be effective through safety and health exposure analysis and recognition at the drilling operational areas. This will reduce the number of risks and thus enable work to be carried out effectively in the drilling fields without any accidents. Less time will be used in each work done and the company will be able to increase revenue since more added work will be done. The solutions will also help in controlling measures of reducing dangers to employees. Moreover, the solutions will be effective in stating the policies of the company clearly and enhancing the management’s commitment. Thorough involvement of the management in solving these issues will lead to high productivity in the company (Smith & Comeskey, 2010).

How Solution increases the effectiveness

If the management puts stern concern on the safety of employees and ensures that all policies are followed, and there will be no doubt that effectiveness would be realized. A company that has effective and efficient leadership is always successful. The solutions will also influence effectiveness in the investigation of accidents, planning of emergency response, program administration, a program of inspection, and employee training and inspection. Training is an effective feature since it will give employees knowledge on areas of their safety and means of achieving solutions to issues of safety as well as probable hazards. Provision of positive, secure, and progressive surroundings for workers enhances a culture within NDC that will endorse a nonstop development through risk diminution and alertness.

References

Environmental Remediation Drilling Safety Guideline. (2005). Web.

Health Risks from the Fracking of Gas Wells. (2014). Web.

Lyons, W. C., & Plisga, G. J. (2011). Standard Handbook of Petroleum and Natural Gas Engineering. MA, USA: Gulf Professional.

Smith, S., & Comeskey, S. (2010). Sustainable Wells: Maintenance, Problem Prevention, and Rehabilitation. FL, USA: CRC Press.

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IvyPanda. 2021. "Island Beverage Co. Ltd: Operations Management." May 22, 2021. https://ivypanda.com/essays/island-beverage-co-ltd-operations-management/.

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IvyPanda. (2021) 'Island Beverage Co. Ltd: Operations Management'. 22 May.

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