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Sample Essay on Statement of Work

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Sample Essay on Statement of Work

The objectives that Banner Health’s plan intends to meet are the reduction of operating costs and increasing the production capacity of both the TPN and IV bags. To achieve this, Banner Health aims at centralizing its production facilities at a single place. Increase in production capacity means that the production facility has the ability to produce a large number of drug units efficiently and effectively. The facility aims at incorporating effective management approaches known as the lean management approach in the management of its materials as well as production. Lean management techniques, such as six sigma or the Kaizen approach have proven effective in eliminating wastage of resources during the production of goods and services, thus ensuring the products reach the consumers in time.


There are various requirements that have to be put in place to translate this report into reality. First, data should be collected on the processing time that is required for the development of the products, that is, TPN and IV bags medication. Secondly, the data should be critically analyzed to compare the time spent between processing time of the medication in a centralized facility and with the current facility. The inefficiencies along the production process as well as the supply chain should be identified and addressed. These inefficiencies lead to the wastage of resources within the organization, thus increasing the production and the operating costs of churning out the medication.



There were various assumptions that were arrived at in the production of the medication. The first assumption was that at least some percentage of the respondents in the research set at ninety per cent should and must be willing to provide assistance on the ethical issues by producing information and procedures that are reliable, accurate, and up to date. The second assumption was that the production facilities should not provide proprietary information and material regarding the production methodologies and procedures of producing the TPN and VPN medication bags. The third assumption was that during visits to the production facilities, all the procedures involved in the production process would continue operating in the same capacity or in same way as they have done in the past. This should enable and facilitate the project team in the collection of information that is correct and up to date on the processes and procedures involved in the production of the drugs.


Various constraints in the production process of the drugs may limit maximum and optimum production capacity. Excess inventory may work against Banner Health since it may tie up the working capital of the firm leading to cash crunch as well minimal returns for the shareholders. Banner Health is considering coming up with a plan, which will give the customers an avenue of ordering the drugs a few days before they are manufactured that will reduce the production costs as well as improving the working capital management.


There are various outcomes expected with the implementation of this plan. They include increase in the production capacity, elimination of waste resources along the supply chain, and improved turnover of Banner’s Health revenue and profit margins. Elimination of wastes will ensure that the production facilities churn out the drugs efficiently and effectively. This will avail them to the consumers at lower or reduced costs, thus making them more affordable. Optimum production may lead us to diversify in export markets with a focus on Asian countries, such as China and Asia.


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