University | Singapore Institute of Technology (SIT) |
Subject | Pharmaceutical Engineering |
Assignment Details:
Amcan is a pharmaceutical manufacturing company established in 2010 to manufacture pharmaceutical products in injectable forms. The company was established with a project management of a Chinese company that used sub-standard work quality to establish the facility . Before operating the company new owners bought the whole facility with the Chinese equipment installed . The new owners started to hire staff for the company, but due to lack of experience of the owners in pharmaceuticals manufacturing and due to insufficient quality of the facility and equipment which led to low productivity , and also due to lack of proper recruitment of qualified staff the company struggled to survive and until today it has never been a profitable project to the owners.
In the year 2013, the owners established another state of the art pharmaceutical manufacturing facility in solid dosage forms (Adisal) , and hired a full team to manage the facility. Again the choice of recruitment and the new management team were not able to lead the company to anywhere , no products were developed and until today still the company is not registered by the regulatory bodies to manufacture pharmaceutical products. Both companies cost the owners around 30M US$ to be established, which is a high investment.
The owners had to pay salaries for the staff hired at both companies for three years with low productivity of Amcan and no production of Adisal , which lead the owners to put the new management of each company under pressure of that both companies must start working to launch products to the market. The management team estimated a high amount still need to be paid, of approximately 10M US$ .
When the owners received that budget request, they decided to stop all activities in both companies, reduced the salaries of the junior staff to 2/3 their salaries and started to discuss with the senior managers on how to close down the business.
Staff were coming to both factories with no work to do, and for two years everyday the management were feeding the staff with negative inputs of the potential of both companies and were reminding the staff the business will be closing soon.
Staff lost discipline, dedication and there were a lot of rumors going around the future of the companies. Good staff left , leaving demotivated , untrained staff in place.
As a last resort , the owners convinced a third investor to buy 55% shares of the company. This new investor took over the management of both companies.
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