CEMBA 557 OPERATIONS MANAGEMENT
CASE 1 Home- Style Cookies The Company
The baking company is located in a small town of York State. The bakery is run by two brothers. The company employs fewer than 200 people, mainly blue-collar workers and the atmosphere is informal. The Product
The company’s only product is soft cookies, of which it makes over 50 varieties. Larger companies, such as Nabisco, Sunshine, and Keebler, have traditionally produced biscuit cookies, in which most of the water has been baked out, resulting in crisp cookies. The cookies have no additives or preservatives. The high quality of the cookies has enabled the company to develop a strong market niche for its product. The Customers
The cookies are sold in convenience stores and supermarkets throughout New York, Connecticut, and New Jersey. The company markets its cookies as "good food"_ no additives or preservatives. __ and this appeals to a health-conscious segment of the market. Many customers are over 45 years of age, and prefer a cookie that is soft and not too sweet. Parents with young children also buy the cookies.
The Production Process
The company has two and ovens that it uses to bake the cookies. The production process is called a batch processing system. It begins as management gets orders from distributors. These orders are used to schedule production. At the start of each shift, a list of the cookies to be made that day is delivered to the person in charge of mixing. That person checks a master list, which indicates the ingredients needed for each type of cookie, and enters the information into the computer. The computer then determines the amount of each ingredient needed, according to the quantity of cookies ordered, and relays that information to storage silos outside the plant where the main ingredients (flour, sugar, and cake flour) are stored. The ingredients are automatically sent to giant mixing machines where the ingredients are combined with...
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