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Abstract:
From 2001 to 2003, Alpha Medical Manufacturers (AMM), a family business involved in manufacturing single use disposable syringes in the pharmaceutical industry in Nairobi, Kenya, faced major business challenges characterised by stiff competition from cheap imported syringes and low productivity due to frequent machine breakdowns. Early February 2003, was a major turning point for AMM. The frequent breakdown of the blister packaging machine and other production equipment had affected the efficiency and effectiveness of the company. Consequently, Dr Patel thought that he needed to make a major business decision to improve the productivity of the company. He wondered whether it was time to: (1) invest in a new blister packaging machine; (2) upgrade the single use disposable syringes line; or (3) abandon the manufacturing of single use disposable syringes and change to manufacturing auto-disable syringes instead.
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