Production & Operation Management: Assignment# 02

Production & Operation Management
Assignment# 02
Submitted by:
Sabahat Fatima (FA18-BBA-011)
Maryam Khan (FA18-BBA-017)
Submitted to:
Dr. Imran Malik
Date of Submission:
13-04-2021
COMSATS UNIVERSITY ISLAMABAD, ATTOCK CAMPUS
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CADBURY SCHWEPPES PRODUCTION METHOD
SUMMARY
Cadbury Schweppes Production Method Cadbury Schweppes is a multinational soft drinks

(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. 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.
Cadbury Schweppes undertakes extensive research and development (R&D) to develop new
products and to find ways of manufacturing existing brands more efficiently.
QUESTION & ANSWER
Q1: Describe the differences between batch and flow production?
• Flow Production requires specialist machinery. Because of the high capital investment
requirement, it is essential to achieve high level of utilization. This requires a high level
of sales of a fairly standardized product made for stock.
• Flow production links up with a strategy of undifferentiated marketing whereas batch

production suggests that the product is tailored to suit the needs of particular customers or
segments.
• The manpower required is specialist, but low in skills and performing repetitive task as
compared to batch production where the levels of skills required are comparatively high.
• The great advantage of line production is that with long production runs unit costs will be
very low as compared to batch production.
Examples:
 Batch production is most common in bakeries and in the manufacture of sports shoes.
 Flow production i.e. Cars, Phones and Television.
Q2. Critically evaluate the reasons why Cadbury Schweppes uses batch
production when making chocolate bars?
There are several advantages of batch production, and these advantages may be the reason:
 Cadbury Schweppes has choose batch production in their chocolate bar production; it
can reduce initial capital outlay (the cost of setting up the machines) because a single
production line can be used to produce several products. Like the production of
thousands of chocolate bars. If a retailer buys a batch chocolates then demand go down
then Cadbury Schweppes can cease production without having to sustain huge losses.
 The other advantages to batch production, including reduced initial costs and operating
costs. One of the major advantages is the reduction of time required to produce a single
product, because multiple products are pushed through the same process at the same
time.
 Initial costs are often reduced because related machinery can be less expensive than
many different kinds of production machines. Batch production is common in many
settings, because the time reduction often translates into a smaller financial outlay. Initial
and operating costs are further reduced when such production systems are designed with
interchangeable elements. Rather than needing to replace an entire production line, a
single process among many can be altered based on production needs. Example; instead
of entirely stopping the production of white chocolate bars, Cadbury Schweppes can just
add coco to the production process of the white chocolates and get normal brown
chocolate bars.
 Operation costs all the way up to the final stages also can be reduced using this type of
production. Many systems are meant to be run at irregular intervals, so the cost of
downtime is often reduced. For instance, Cadbury Schweppes can use batch process to
produce all the chocolate bars required as per the day order and then shut down
production. Unlike with continuous production, batch production often can be designed
to account for downtime without significant financial impact. This characteristic applies
to changes in production methods or product design. Like instead for chocolate bar they
produce chocolate balls or ester bunny shaped chocolate.
 Batch production lines are often more easily altered than other methods. This is
especially advantageous when new products, changes to old products or upgrades are
required. Production of unsuccessful items also can stop without the need to replace all
of the associated machinery and processes.
 This flexibility is considered a major advantage in many situations. There is such a wide
range of goods and production scales possible that one system is often sufficient for a
range of products and specific designs.
 Aside from the unique benefits of batch production, many of the benefits of industrial
and commercial production also apply. For instance, producing large quantities of a
product often is more cost effective. Reductions in time and cost per product are
amplified by the flexibility of batch system. Labor requirements also are potentially
reduced because a smaller number of workers can produce batches of products.
Q3: Identify and explain any two operations competitive strategies that
Cadbury Schweppes can implement?
• Differentiation
A differentiation strategy seeks to develop a competitive advantage through supplying
and marketing a product that is in some way different to what the competition is doing,
Cadbury Schweppes can have for milk n coco in there chocolate to improve the quality
taste. If developed successfully this strategy can potentially reduce price sensitivity and
improve brand loyalty from customers.
• Focus strategy
This strategy recognizes that marketing to a homogenous customer group may not be that
effective a strategy for the products Schweppes is selling. Instead the Cadbury
Schweppes should focuses its marketing efforts on a different selected market segments.
That is, identify the needs, wants and interests of the particular market segments and
customize marketing techniques to reflect those characteristics.
• Quality and dependability

 Producing a product which meets (or exceeds) customer expectations
 Consistent quality
• Flexibility
 The ability to respond to rapid changes in customer demand and requirements for
existing products or services.
 Product flexibility - quickly introduce new products or ability to make rapid
design changes to existing products
• Delivery
 The ability to meet requested and promised delivery schedules.

 Short lead time or fast delivery-speed
 On-time delivery-reliability
 Speed in developing and introducing new products or services
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Production & Operation Management

Sabahat Fatima (FA18-BBA-011)

Maryam Khan (FA18-BBA-017)

Dr. Imran Malik

COMSATS UNIVERSITY ISLAMABAD, ATTOCK CAMPUS

Cadbury Schweppes Production Method Cadbury Schweppes is a multinational soft drinks

Q1: Describe the differences between batch and flow production?

• Flow production links up with a strategy of undifferentiated marketing whereas batch

• Quality and dependability

 The ability to meet requested and promised delivery schedules.

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