process and design capacity

If Time Heals Wounds, Why Do We Still Use a 93-Year Old Band-aid?

Posted on by spr1332gfleytlikh

Band-Aids; we have all used them, from minor scrapes to cuts and even bug bites. We see them at the doctor’s office, the hospital, and the pharmacy. Generally, Band-Aids are the same: a piece of gauze surrounded by an adhesive strip. Though they do come in all shapes and sizes, we usually see and experience them looking like this:

That’s right! They were invented in 1920, which in turn makes the Band-Aid 93 years-old. They were created by Earle Dickinson and manufactured by Johnson & Johnson. What is interesting to look at is the innovation of the Band-Aid over its long life span. We have Band-Aids that are for large wounds, ones that wrap around, others with built in antiseptic on the gauze pad, and even little circle ones for small cuts. The product itself has undergone changes, but understandably, the process remains the same, attaching a gauze pad to a piece of tape (later a vinyl adhesive) and covering it in crinoline to keep it sterile. This process is done regardless of shape and size, and for the antiseptic ones, there is one extra step in the manufacturing process to add the disinfectant.

Enter Tsai Cheng-Yu and Hsu Hao-Ming. They have created the new Band-Aid, the AmoeBand. It claims to be more comfortable thanks to it being adjustable with perforated edges as well as a pH sensitive gauze pad which will tell the consumer whether or not the wound is infected. This design is a drastic change from the original that is mass produced. How could a company compete with this product, if it’s popular with consumers, if they have to change their whole process design of manufacturing?

AmoeBAND

Think of how much money would have to be spent either creating new manufacturing facilities or altering current ones. Even further, this process would have to be planned, designed, tested, and eventually perfected. The AmoeBAND adds the necessity to purchase pH sensitive gauze and add a manufacturing step to ensure the perforations. It is easy to understand from labs in class that a process is never perfect and differs. While each AmoeBand manufacturer may believe they have the fastest process, another may have a cheaper process. There are a lot of factors that will go into actual implementation of this product, if it were to become popular amongst consumers.

However, before all that, there will be the need to convince upper management of companies that this is the product of the future, a product that will reap larger reward, and could be easier to manufacture. That will take research, development, and sturdy planning. Band-Aids have not changed much since the 1920’s, so this could revolutionize the industry and push forward innovation.

Do you think a product like this could be produced by companies to net a positive gain? Would the AmoeBand even catch on with consumers?

 

Sources:

Mary Bellis: http://inventors.about.com/od/bstartinventions/a/bandaid.htm

Article:

Cristina Lindblad: http://www.businessweek.com/articles/2013-03-14/reinventions-band-aid

A Craft Beer Pioneer Begins Again

Posted on by spr1311vguidilouviere

As I was browsing through last week’s edition of Bloomsberg Businessweek magazine, I stumbled upon an interesting article entitled “A Craft Beer Pioneer Gets a Second Chance,” detailing the rebirth of one of the original American craft beers.

During the 1970s, Jack McAuliffe, a former submarine electrical technician in the U.S. Navy, began his own brewery. Jack tasted flavorful beers in Scotland while serving and was no longer satisfied with the selection offered in America. McAuliffe began New Albion Ale in 1976, using dairy equipment and Pepsi-Cola syrup drums. While in business, the brewery offered pale ale, porter, stout and draft ale, all of which sold quickly. The problem was that Jack McAuliffe had not planned for such success, which forced him to spend the brewery’s cash on an expansion plan. To his demise, no investor would finance such an outlandish concept. The craft brewery, New Albion, filed for bankruptcy in 1982 and left McAuliffe searching for stability. Could bankruptcy have been avoided if Jack McAuliffe had created a better business plan, strategy or operational structure?

The first microbrewer in America turned away from the beer industry after filing bankruptcy. For years, he designed control systems for sewage treatment facilities and manufacturing factories.  Although his brewery failed, he served as motivation, courage, hope to the founders of the 2,360 U.S. microbreweries in business today. Because McAuliffe failed, Jim Koch, founder of Boston Beer, “realized he needed to quickly produce a lot more beer if his company was to survive and prosper.” He also produced Samuel Adams beer in his facility before beginning his own brew, so that he would have plenty of financial resources once he began his own line.

Koch recently contacted McAuliffe, informing him that Boston Beer had purchased the New Albion trademark and wanted to assist McAuliffe in restarting the beer production. Koch felt as though he owed his success to McAuliffe and planned to offer him all profit from the New Albion beer. Sadly, McAuliffe’s spirits were crushed by the beer industry when his original brewery failed, so it took persistence for McAuliffe to agree to Koch’s proposal. In January, McAuliffe and Boston Beer produced and shipped 6,000 barrels of New Albion Ale, more than was ever produced by the original brewery. Jack McAuliffe is now leaving the brewery in the hands of his daughter. It is her turn to learn from her father’s original mistakes.

I believe that Jack McAuliffe made an incredible impact on the American microbrew industry, bankruptcy or not. He stepped out as an entrepreneur, and created something on which our country is still building. If he had initially focused on items like facility location and size, inventory management and process and capacity design, New Albion would have been successful. If he had started with more knowledge of operations management, New Albion would not need a second chance. What hurt McAuliffe’s brewery most significantly? Would a stronger knowledge of operations management have kept the brewery alive? Should he have entered into the industry again after failing in the past?

Leonard, Devin. “A Craft Beer Pioneer Gets a Second Chance.” Bloomsberg Businessweek April 8-April 14, 2013: 17-18. Print.