beothic_fish.doc - Improving Production At Beothic Fish...

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Improving Production At Beothic Fish Processors Ltd. "The Pelagic processing area at the plant in Valleyfield, Newfoundland, has not worked out as well as we had hoped for processing capelin," identified the General Manager of Beothic Fish Processors Ltd. "Although the company continues to be very successful, if we are to offer competitive prices and still earn a profit we must keep our production costs as low as possible, and given that production costs are a function of production efficiency, it is imperative that we improve our present production system. It appears to me that we must look carefully at our existing plant layout to accomplish this." Company Background Beothic Fish Processors Ltd. (Beothic) was one of the largest processors of pelagic (capelin, mackerel and herring) fish species in Newfoundland and Labrador, with capelin being, by far, the primary species. Although the company began in 1967, it was not until 1979, when a modern cold storage facility was constructed at Valleyfield, and new blast freezers were installed, that the company was able to handle capelin. By 1989, capelin was a major contributor to Beothic's overall profitability. By Newfoundland standards, capelin processing was a relatively new fishery, having been developed about thirty years ago. Originally, capelin were sorted by hand, however, it proved impossible to handle the enormous quantities demanded by the This case was adapted from a case prepared by Professors Wayne King and Donna Stapleton as a basis for classroom discussion, and is not meant to illustrate either effective or ineffective management. Copyright © 1993, the Atlantic Entrepreneurial Institute. Reproduction of this case is allowed without permission for educational purposes, but all such reproduction must acknowledge the copyright. This permission does not include publication. market in this manner. The industry soon turned to the use of mechanical sorters which, although not perfect, were able to process large quantities quickly and at relatively low cost.

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