Lesson 1 Home Style Cookies
Iuliia Samoilova
International American University
MGT 620: Operation Management & Supply Chain
Stephan Young
September 7th 2014
Home Style Cookies
In this case study presented analyses of the Lew Mark baking company that located in a small town in western New York. The case study reveal information about organizational structure of the company including production process, product description and inventory, quality guidelines of products and potential improvements of the company. In this paper I will present answers about operation for this company.
The cookie production process
In production process the company uses two continuous band ovens, which bakes cookies without human interaction. This cookie production process is called a batch processing system. Such a system helps determine quantity according to demand.
Production starts when the management get orders from distributors , then list of the cookies to be made given at the start of the shift to the person in charge of mixing who enters the information into the computer to calculate the amount of ingredients needed. Then computer sends the ingredients to giant mixing machines. All mixed ingredients poured into cutting machines where cookies being cut on an angle, which saves space so that productivity is increased. Once they are cut they dropped into conveyor belt and transported to ovens for baking. Afterwards, when the cookies emerge and cool down, workers manually put the cookies into boxes, wrap and label them.
Methods that increased productivity of the company
First method, which was used to increase the productivity, is to cut each cookie in diagonal shape. This way helps create a product which requires less packing space. Another method of increasing productivity caused by purchase longer ovens. These new ovens were longer by 25 feet, which led to increased cooking capacity.
Automating the packing.
I think company made right decision of employing 30 workers to do the packing manually, rather than automating the system. Although the company could save more money on a labor cost and increase efficiency by automating the packing, they didn’t do that, because the company have obligation to the community. In this case company shows loyalty to the community and their employees. Also the company stimulates local economy by employing just locals and not those people from other cites. In that case if company would located in a larger city, I believe it would make sense to automate the system, as the company wouldn’t experience to be the part of the community and wouldn’t feel obligated to hire local workers to prosper community. Another reason for automating the packing is that in larger city the company would have more demand on cookies and thereafter it would be more cost efficient to use the automating packing system rather than employee more workers.
Policy of the company
The factors causes the company to carry minimal amounts of certain inventories are that cookies have short shelf life due to the fact of not adding preservatives . That makes cookies fresh , tasty and healthy as the company goal to reach healthy oriented segment of the market. This way the company also has a unique image among the competitors. As for caring limited quantities of labels , the company has its good reasons too. FDA often changes
