Question

In: Operations Management

1. Identify an organization (SABIC SAUDI COMPANY) (manufacturing/service). 2. What does it manufacture (or what kind...

1. Identify an organization (SABIC SAUDI COMPANY) (manufacturing/service).

2. What does it manufacture (or what kind of service it provides)?

3. What is its production (or service) capacity and what it does to manage its lean systems?

Solutions

Expert Solution

SABIC Healthcare:

Saudi Arabia basic Industry Association (SABIC) is a group of industries serving the country across various domains. It is present in various segments/industries like building and construction, healthcare, agriculture, automotive, consumer, electronics etc.

Let's pick up SABIC Healthcare and work it out:

SABIC healthcare segment manufactures a whole range of medical and healthcare-related products. It continuously innovates pharmaceuticals, new materials and medical processing techniques. SABIC healthcare works across:

  • Healthcare materials portfolio of polyolefins, high-performance plastics, resins and specialty compounds.
  • Healthcare Product Policies
  • New technologies and advanced materials across equipment, medical supplies etc.

The surgical segment manufactures surgical devices and a variety of medical trays like those of dental, microscopy, waste trays etc. along with device handles and accessories.

The pharmaceutical segment works on pharmaceutical manufacturing, packaging and drug delivery

The patient testing segment covers various applications flasks, vials, equipments like the CT and MRI scanners. The segment covers laboratory and diagnostics and imaging techniques both.

The fluid and blood handling segment deals with developing applications to handle fluids like blood, buffer solutions etc. It includes devising medical fluid delivery and renal and blood handling sections.  

Another segment is sleep and respiratory therapy segment which deals with developing applications to treat sleep disorders and respiratory diseases.

A very critical segment of SABIC healthcare deals with medical facility infrastructure. This is the basic requirement for any medical facility. Beds, stretchers, wheelchairs, hospital chairs, wall cladding etc.

What SABIC Healthcare does to manage its lean systems and gives it an edge are:

  • SABIC has set its performance on a global benchmark of assets along with a strong focus on being an ace producer.
  • Product range and diversification, value chain integration and continuously keeping track of the competition.
  • With a vast presence in major demand centers, close proximity to growing markets, SABIC has set a culture of partnership in manufacturing and R&D activities.
  • The company works not just in middle east but across many countries encompassing around 33000+ employees in various domains and areas.
  • Strong financials and profits back up its R&D and value chain thereby creating quality services.

The company has a wholistic figure to quote on annual sales, EBIDTA but not furnished it as segment-wise. Therefore commenting on production capacity exclusively for healthcare is not possible. However the overall production capacity for the year 2018 as per company's annual report is 75.3 mn tons while total sales have been reported as $45 bn.


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