Coffee Roasters Case
1. Because Ohari’s produces more of a variety of coffee in a smaller volume, they would most likely use a batch process system. A batch process system is classified under an intermittent process, meaning it has a lower volume but produces more products (in small lot sizes).
Folgers would use line-flow process system, such as an assembly line or continuous process. This kind of process is used for higher volume production with more standardized products, such as what Folgers produces.
2. Ohari’s produces lower quantity of each small lot, with more customization and uniqueness between each batch. The batch process would support them best because it highlights this competitive priority of quality and customization while offering customers a multitude of options to choose from.
A line-flow process supports Folgers’ large scale production and standardization while cutting costs. This is the most cost-effective method because it is based on the large scale output while not requiring much focus on customization of each product.
3. Folgers has a larger system operation than Ohari’s due to the larger size of the company in general. Therefore, more of an assembly line would be used for Folgers, focusing on the standardization of their products. Ohari’s smaller production would require more of a complex operation, yet within a smaller operational facility. More complex because they are focusing on customized products and therefore each must have its own unique operation, but smaller due to the smaller quantities of output.
4. Folgers would need to focus more on higher quality products with more distinction between them, such as Ohari’s does. However, this would increase their costs and require a change in their operations. While they are a large company and therefore have a competitive advantage, the uniqueness and customization of Ohari’s would be what Folgers would have to focus on to gain more competitive advantage.
Folgers would use line-flow process system, such as an assembly line or continuous process. This kind of process is used for higher volume production with more standardized products, such as what Folgers produces.
2. Ohari’s produces lower quantity of each small lot, with more customization and uniqueness between each batch. The batch process would support them best because it highlights this competitive priority of quality and customization while offering customers a multitude of options to choose from.
A line-flow process supports Folgers’ large scale production and standardization while cutting costs. This is the most cost-effective method because it is based on the large scale output while not requiring much focus on customization of each product.
3. Folgers has a larger system operation than Ohari’s due to the larger size of the company in general. Therefore, more of an assembly line would be used for Folgers, focusing on the standardization of their products. Ohari’s smaller production would require more of a complex operation, yet within a smaller operational facility. More complex because they are focusing on customized products and therefore each must have its own unique operation, but smaller due to the smaller quantities of output.
4. Folgers would need to focus more on higher quality products with more distinction between them, such as Ohari’s does. However, this would increase their costs and require a change in their operations. While they are a large company and therefore have a competitive advantage, the uniqueness and customization of Ohari’s would be what Folgers would have to focus on to gain more competitive advantage.