Home-Style Cookies

Ashford University

BUS 644
Professor Michael Snell
August 29, 2011

Briefly describe the cookie production process.
Everything starts when management gets the orders from the distributors, which are then scheduled and put onto a list. The list for the day is then given at the beginning of the shift to the person in charge of mixing. The person then checks the master list for the ingredients needed for each type of cookie. The person in charge if mixing then puts the information into the computer and the computer figures out what is exactly needed according to the quantity and the type of cookies needed. The computer then sends the information it configures to the storage silos that are located outside of the plant where the main ingredients are located. All of the ingredients needed are automatically sent to the giant mixing machines where everything is mixed together into a batter. The batter is then put into cutting machines that cut the batter into individual diagonal cookies. The cut cookies are then put onto a conveyer belt that will send them through one of the two ovens. There are some cookies that have filling and those cookies are first filled and folded before they are sent into the oven. Once the cookies come out of the oven they are then sent onto spiral cooling racks 20 feet high and three feet wide. As the cookies are finished with the cooling process workers manually put the cookies into boxes and while they are doing this they remove any broken or deformed cookies. Also, a quality control inspector samples the cookies as they come off the line to make sure they meet satisfaction. Once the boxes are filled they are wrapped, sealed, and labeled automatically. After the boxes are ready they are loaded immediately onto trucks and shipped to distributors.

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 two ways that the company has increased productivity are increasing the length of the ovens by 25 feet and cutting the cookies diagonal instead of round. By cutting the cookies into diagonal instead of rounds they save space, which allows them to produce more cookies. Increasing the length of the ovens results in a faster output rate because they are able to fit more cookies onto the belt which allows them to produce more cookies at one time. Tangible output is what results from whatever is being done, something we can see or touch, and in this case it is cookies (Stevenson, 209). With more space inside the oven more cookies can be baked at a one time which means more output is produced at a faster rate.

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 the community? Is the size of the town a factor? Would it make a difference if the company was located in a larger city? Is the size of the company a factor? What if it was a much larger company?
I think that the company is making the right decision by not automating the packing of cookies for their company’s purposes. I think the company prides themselves in having a high quality product, which means having a product that is made correctly, and these workers that pack the cookies are able to make sure that every cookie that is packed is the right cookie. Having the workers there also shows their care for the community and their town. The company was not always as big as it is and actual people helped them get to where they are before they had the big machines they had people who helped them get their product made. Yes, over time they have had to evolve and bring in machines to keep up with demand but this job that they still have people doing is something that not only benefits the employees but the company as well. It does make a difference that the company is in a small town because jobs are so scarce in small towns and with such a big company there and them cutting jobs when they really do not need to would not be a good thing for them ort the town. Like it mentioned in the case study the workers are not costing them too much money and if it is not cutting into their pockets too much then they should leave it be for now. As long as these workers are working hard and are loyal and adding to the value of the company overall then they should keep them aboard. I think if the company was in a larger city it would make a difference because they would not feel such a sense of obligation or loyalty because of the larger community and more availability for jobs. Companies and people who live in a small town tend to know each other and have a stronger sense of community and loyalty.

What factors cause the company to carry minimal amounts of certain inventories? What benefits result from this policy?
Inventory is “a stock or store of goods” (Stevenson, 2009, p. 549). The factors that cause the company to have minimal amount of certain inventories is their shelf lie. The company does not use any additives or preservatives, which means that the product will not last as long. If the company produces more cookies then ordered they have to use those cookies relatively soon because they will go back quick and cannot really be boxed with cookies that have a further out expiration date than them. The benefits from this policy are that the company has fewer inventories just sitting around. They produce what they need when they need it. This means that the company is more liquid because they have actual money, as the asset instead of inventory that is sitting around that would need to be sold in order to get their money back.

As a consumer, what things do you consider in judging the quality of cookies you buy in a supermarket?
There are many things that I consider in judging the quality of cookies that I buy in the supermarket. A big thing is the ingredients of the cookies; I want something that is as healthy as possible for a cookie. I also look to see when the cookie was made and how fresh it is. I do not like those cookies that can sit on the shelves for months and still be ok because that just shows how many additives and preservatives it has and how unhealthy it really is. The fresher the product the better it is whether it be cookies or anything. Another big thing for me is whether the cookies are soft or hard cookie, I only like soft cookies so I will not even waste my time even looking at hard cookies.

What advantages and what limitations stem from the company’s not using preservatives in cookies?
The advantages that stem from the company not using preservatives in cookies are that they are part of a very small market. By offering products that are high quality and healthier they have been able to create a strong market niche for their cookies. They are able to be a part of a market where there is not too much competition. There are not a lot of companies that offer cookies without any preservatives. This allows the company to have higher sales and be able to create a price point for their product without having to worry about bigger firms chasing them out of the market. The limitations that stem from the company not using preservatives in cookies are the fact that the company cannot hold onto inventory. They basically have to make cookies as they are ordered because they have such short shelf life. Another limitation is that is can cause distributors to order less because of the fact that the product has such short shelf life and they want to make sure that tit gets sold and they do not have to throw any of it out which will cost them money. This may mean smaller order but maybe more frequent orders.

Briefly describe the company’s strategy.
Strategies are “plans for achieving organizational goals” and organizational strategies are “overall strategies that have to do with the entire organization”(Stevenson, 2009,p. 43). The baking company’s strategy is to sell high quality cookies with no additives or preservatives while continuously looks for new product ideas to expand their business and have more to offer their consumers. Also, for the company is to run as efficiently as possible by baking as many cookies as possible at a time in sequence with little to no waste.

References
Stevenson, W. (2009). Operations management (10th ed). New York : McGraw Hill/Irwin.