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Home Style Cookies

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Home-Style Cookies Jane Smith BUS644: Operations Management Professor Ben-Gourion Mestman February 6, 2012
Home-Style Cookies Production Processes The batch processing system begins when orders are received from distributors. Production schedules are based on the orders received. Each day, a list of cookies to be made is given to the person in charge of mixing. The ingredients needed are activated through a master list containing all the ingredients to ensure accuracy. After all ingredients are mixed, the batter is then poured so the cookies can be baked. Once the cookies are finished baking, they are cooled and then placed in the boxes manually by staff who removes the broken or deformed cookies. The boxes are then wrapped, sealed, and labeled automatically. The company has increased productivity by cutting the non-filled individual cookies on a diagonal so more cookies can bake at a time. In addition, automating the ingredients helps cut back on human error when mixing the ingredients. Increasing the length of the ovens made it possible to bake more cookies at one time. This increase in addition with cutting the non-filled cookies on the diagonal, makes it possible to be more productive. When one uses the machine productivity measure, it is evident that the number of units of output divided by the dollar value of output per machine hour is higher increasing the length of the oven. The company is making the right decision by not automating the packaging of the cookies. One of the most important steps before the cookies are boxed is the removal of broken or deformed cookies. An automated process could not conduct this last and final yet critical step. It is critical that this step is performed as it aids to the image of the company of providing a good product. Home-Style cookies should resemble the human factor in its product. When broken or deformed cookies are removed, it creates an even greater value for the customer and they have a full box of cookies that are edible. Though a company can use methods that increase its profitability, which may include downsizing labor, it depends on the corporate structure of the company. If the company has built a structure on including employees and helping those employees stay gainfully employed by helping its overall brand, the company should honor that commitment to its employees. A local company that is committed to its workforce, no matter how small, sends a message to the community that this company cares and is dedicated to the employees they employ. Local residents would be prouder to support such a company with a commitment. If this cookie company is located in a small town, that commitment is felt by its residents even more as the community benefits overall by the economic stability of those citizens. There may not be many companies hiring locally and the company that does hire keeps a town economically viable. If the company were larger, it would not matter as the city still benefits from locally and gainfully employed citizens as that money is spent in the communities where the citizens live and work. If the company can afford to become larger, then larger companies are great for hiring more people. It would be better however to focus on efficiency and productivity rather than hiring lots of people who may duplicate job functions, which could cause layoffs down the road. Efficiency ensures the workforce stays solid. The company is set on providing a product that is high quality and does not use additives or preservatives. This is a selling point to those health conscious individuals and it is a great business niche. The benefit becomes a high quality cookie. The ALT Hotel chain also is a niche business focusing on customer service. The co-president, Christiane Germaine, says the strategy of ALT Hotels is to focus on the quality. Though they offer limited service, the services offered are first rate (Macgregor, 2011, p. B3). It is important as a consumer that the product matches up to its selling point. If it is sold as a great cookie, not too sweet, preservative and additive free, the product should be that in everyway. If the cookies expire, one year from now, the claim of preservative and additive free is a hoax. Thereby, it may discourage consumers from ever purchasing the product. However, selling a product that is a health conscious cookie free of preservatives and additives means there is a big turnover of ingredients and the transportation costs and costs for materials (ingredients) increases as the company must purchase in smaller quantities to ensure freshness. When in a competitive field, one should focus its strategy on the customer to yield the best results. “Across the Country, we are seeing the most successful independent agents approach this market as an opportunity, aggressively developing focused plans to escape the price wars and to be more distinctive…The best agents deliberately choose a strategy to differentiate themselves by focusing on creating value for their customers” (Zuraitis, M.., 2011, p. 38). The company’s strategy overall is to bake and sell a high quality cookie that is natural while being dedicated to the small, yet efficient workforce it has to bring this high quality cookie to market.

References

Macgregor, A.. (2011, December 9). ALT Hotel chain gets $80-million investment; Family-owned group expands; Firm finds a niche by providing top service at moderate prices, co-president says. The Gazette, B.3. Retrieved February 6, 2012, from ProQuest Newsstand. (Document ID: 2533511591).
Zuraitis, M.. (2011, June). Sell value. American Agent & Broker, 83(6), 38-40. Retrieved February 6, 2012, from ABI/INFORM Global. (Document ID: 2373117831).
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