The cookie production process is a fairly straightforward process. The process is initiated once the company receives an order from one of its distributers. The order is inputted into a computer which determines the correct amount of ingredients needed to produce the order. The ingredients are transferred into the mixers then to a cutting machine. The cookies are then transferred to an oven then to a cooling rack. After the cookies are cooked then they are manually packed. Lastly the packaged cookies are labeled and sealed.
2. What are two ways that the company has increased productivity? Why did increasing the length of the ovens result in a faster output rate?
The company has incorporated two new ways to increase productivity. The company has increased productivity by increasing the length of its ovens by twenty five feet and by cutting the cookies diagonally. The diagonally cut cookies save space, thus resulting in a higher level of productivity because more cookies can be made. The additional length of the oven also increase productivity. Now a greater number of cookies can be accommodated within the system. More cookies can be baked at one time.
3. Do you think that the company is making the right decision by not automating the packing of cookies? Explain your reasoning. What obligation does a company have to its employees in a situation such as this? What obligation does it have to the community? Is the size of the town a factor? Would it make a difference if the company was located in a large city? Is the size of the company a factor? What if it was a much larger company?
From a profit maximization point of view I do not believe that the company is making the right decision by not automating the packing of cookies. The automation may be costly initially but will offer major cost savings in the long run. The machines do not require lunch breaks, can work for multiple hours on end, don’t...