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Learning Outcomes:
Instructions PLEASE READ THEM CAREFULLY
The Assignment must be submitted on Blackboard (WORD format only) via the
allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling in your information on the cover
page.
Students must mention question numbers clearly in their answers.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students
or other resources without proper referencing will result in ZERO marks. No
exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced)
font. No pictures containing text will be accepted and will be considered
plagiarism).
Submissions without this cover page will NOT be accepted
Understand the concept of the Batch Production Process.
To manage the level of Inventory.
To decide New Product Development.
How to reduce waste in the Production Process.
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Case Study
The Company
The Lew-Mark Baking Company is located in a small town in western New York State.
The bakery is run by two brothers. Lew and Mark, who formed the company after they
purchased an Archway Cookie franchise. With exclusive rights in New York and New Jersey,
it is the largest Archway franchise. 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. Archway 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
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The cookies are sold in convenience stores and supermarkets throughout New York and
New Jersey. Archway markets its cookies as “good food” with 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 continuous band ovens that it uses to bake cookies. The production
process is called a batch processing system. It begins as soon 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 that
information into the computer. The computer then determines the amount of each ingredient
needed, according to the number of cookies ordered, and relays that information to storage silos
located 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 proper amounts of eggs, water, and flavorings. After the ingredients have been mixed, the
batter is poured into a cutting machine where it is cut into individual cookies. The cookies are
then dropped onto a conveyor belt and transported through one of two ovens. Filled cookies,
such as apple, date, and raspberry, require an additional step for filling and folding.
The unfilled cookies are cut on a diagonal rather than round. The diagonal-cut cookies
require less space than straight-cut cookies, and the result is a higher level of productivity. In
addition, the company recently increased the length of each oven by 25 feet, which also
increased the rate of production.
As the cookies emerge from the ovens, they are fed onto spiral cooling racks 20 feet high
and 3 feet wide. As the cookies come off the cooling racks, workers place the cookies into boxes
manually, removing any broken or deformed cookies in the process. The boxes are then
wrapped, sealed, and labeled automatically.
Inventory
Most cookies are loaded immediately onto trucks and shipped to distributors. A small
percentage is stored temporarily in the company’s warehouse, but they must be shipped shortly
because of their limited shelf life. Other inventory includes individual cookie boxes, shipping
boxes, labels, and cellophane for wrapping. Labels are reordered frequently, in small batches,
because FDA label requirements are subject to change, and the company does not want to get
stuck with labels it can’t use. The bulk silos are refilled two or three times a week, depending
on how quickly supplies are used.
Cookies are baked in a sequence that minimizes downtime for cleaning. For instance, light-
colored cookies (e.g., chocolate chip) are baked before dark-colored cookies (e.g., fudge), and
oatmeal cookies are baked before oatmeal raisin cookies. This permits the company to avoid
having to clean the processing equipment every time a different type of cookie is produced.
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Quality
The bakery prides itself on the quality of its cookies. A quality control inspector samples
cookies randomly as they come off the line to assure that their taste and consistency are
satisfactory and that they have been baked to the proper degree. Also, workers on the line are
responsible for removing defective cookies when they spot them.
Scrap
The bakery is run very efficiently and has minimal amounts of scrap. For example, if a
batch is mixed improperly; it is sold for dog food. Broken cookies are used in the oatmeal
cookies. These practices reduce the cost of ingredients and save on waste disposal costs. The
company also uses heat reclamation: The heat that escapes from the two ovens is captured
and used to boil the water that supplies the heat to the building. Also, the use of automation
in the mixing process has resulted in a waste reduction compared with the manual methods
used previously.
New Products
Ideas for new products come from customers, employees, and observations of competitors’
products. New ideas are first examined to determine whether the cookies can be made with
existing equipment. If so, a sample run is made to determine the cost and time requirements. If
the results are satisfactory, marketing tests are conducted to see if there is a demand for the
product.
Potential Improvements
There are several areas of potential improvement at the bakery. One possibility would
he automate packing the cookies into boxes. Although labor costs are not high, automating the
process might save some money and increase efficiency. So far, the owners have resisted
making this change because they feel an obligation to the community to employ the 30 women
who now do the boxing manually? Another possible improvement would be to use suppliers who
are located closer to the plant. That would reduce delivery lead times and transportation costs,
but the owners are not convinced that local suppliers could provide the same good quality. Other
opportunities have been proposed in recent years, but the owner rejected them because they
feared that the quality of the product might suffer.
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Questions
1. Briefly describe the cookie production process. (1 Mark) 150 words
2. What are two ways that the company has increased productivity? Why did increasing the
length of the ovens results in a faster output? (1 Mark) 150 words
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? (2 Marks) 200 Words
4. What factors cause Lew-mark to carry minimal amounts of certain inventories? What
benefits result from this policy? (1 Marks) 100 words
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Answer 1:
The Lew-Mark Baking Company uses a method of batch processing and the procedure starts when
the organization accepts preparations from its particular suppliers. These production orders are
generated and these orders depend on the orders of customers. The production of the cookies is
one of the crucial parts of a company when they need to make some products on order. The list of
those products is handed to a person who is in charge of that place and the charge ship varies in
different shifts means that every shift has a different person who is in charge (Kaçar, Erinç, & Sivri
Özay, 2018). To ensure that every product will be made perfectly there is a master list that consists
of all of the constituents with required components. The ingredients are brought which are needed
in making cookies after that those ingredients are subsequently transferred to mixers and cut with
help of a machine. After that the cookies are baked and then at last they are packed and sealed.
Answer 2:
Initially, the Lew-Mark Baking Company has advanced the effectiveness by separating the cookies
without filling. This will allow Lew-Mark Baking Company to make more cookies to be baked at
every moment. Secondly, the computerization of the ingredients of cookies helps the company in
lessening the wastage of these ingredients and it aids in reducing the mistakes of humans while
mixing the ingredients (Trojanowska, Kolinski, Galusik, Varela, & Machado, 2018). If the length
of the oven has been increased it will result in faster production of cookies. For instance, if an oven
plate can bake 25 cookies at a time. But if the cookies are broken into two pieces there will be 50
cookies made and thus the production of cookies will be faster. This is how the production of
cookies will start to increase thus this increase in production will also help the organization. Thus
it can be said the bigger oven the more cookies will be baked and they will consequence in faster
production.
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Answer 3:
According to my thought, the Lew-Mark Baking Company is making a correct decision by not
automating packages of cookies. The consequences will mirror the components of humans. The
reduction of the cookies that are broken or not made perfectly is one of the main important periods
before the packing of the cookies (Olsson, Larsson, & Quttineh, 2020). This stage is one of the
most difficult stages of the production of cookies as with good production of cookies, the
reputation of the company also increases. The reputation is increased because perfect cookies
portray a great image of the company in producing great products. Each industry has an ethical
obligation to its personnel. If the Lew-Mark Baking Company has advanced a framework to succor
individuals in residual gainfully working, the company should retain its initiate to its workforces.
Lew-Mark Baking Company is dedicated to its employees they care about their values and morals.
Individuals will be pleased to support and buy things from a company that is honest and also an
enthusiastic organization.
Answer 4:
Many factors are contributing to fewer stages of inventory. The first consideration of having a
small inventory of Lew-Mark Baking Company is by seeing the quality of cookies. For that reason,
the Lew-Mark Baking Company has committed that the product that they will provide will be of
high quality, which means that their products will not consist of any chemical or numerous
preservation (Smirnova & Lukyanova, 2018). That is why Lew-Mark Baking Company keeps their
production low so that the products that they create will be kept fresh and the prevention of the
wastage of resources will be less. Secondly, the decrease in inventory expenses will result in less
inventory space and lower the costs of products. For that reason, inventory is retained to a minutest,
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storage planetary is similarly kept to a minutest. The less production of cookies and the freshness
of these cookies is helping the Lew-Mark Baking Company to give happiness to its customers.
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References
Kaçar, D., Erinç, H., & Sivri Özay, D. (2018). Development of fats based on olive oil by chemical
interesterification and its utilization in cookie production. Acta Alimentaria, 154-161.
Retrieved from https://akjournals.com/view/journals/066/47/2/article-p154.xml
Olsson, J., Larsson, T., & Quttineh, N. H. (2020). automating the planning of container loading
for Atlas Copco: Coping with real-life stacking and stability constraints. European Journal
of Operational Research, 1018-1034. Retrieved from
https://www.sciencedirect.com/science/article/pii/S0377221719306368
Smirnova, E., & Lukyanova, A. E. (2018). Financial contagion indicator in the company's
inventories management adaptation to the digital economy. In GSOM EMERGING
MARKETS CONFERENCE 2018, 328-330. Retrieved from
https://elibrary.ru/item.asp?id=41192669
Trojanowska, J., Kolinski, A., Galusik, D., Varela, M. L., & Machado, J. (2018). A methodology
of improvement of manufacturing productivity through increased operational efficiency of
the production process. In Advances in Manufacturing Springer, Cham., 23-32. Retrieved
from https://link.springer.com/chapter/10.1007/978-3-319-68619-6_3

Unformatted Attachment Preview

Instructions – PLEASE READ THEM CAREFULLY • The Assignment must be submitted on Blackboard (WORD format only) via the allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling in your information on the cover page. • Students must mention question numbers clearly in their answers. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). Submissions without this cover page will NOT be accepted Learning Outcomes: • Understand the concept of the Batch Production Process. • To manage the level of Inventory. • To decide New Product Development. • How to reduce waste in the Production Process. Case Study The Company The Lew-Mark Baking Company is located in a small town in western New York State. The bakery is run by two brothers. Lew and Mark, who formed the company after they purchased an Archway Cookie franchise. With exclusive rights in New York and New Jersey, it is the largest Archway franchise. The company employs fewer than 200 people, mainly bluecollar 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. Archway 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 and New Jersey. Archway markets its cookies as “good food” with 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 continuous band ovens that it uses to bake cookies. The production process is called a batch processing system. It begins as soon 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 that information into the computer. The computer then determines the amount of each ingredient needed, according to the number of cookies ordered, and relays that information to storage silos located 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 proper amounts of eggs, water, and flavorings. After the ingredients have been mixed, the batter is poured into a cutting machine where it is cut into individual cookies. The cookies are then dropped onto a conveyor belt and transported through one of two ovens. Filled cookies, such as apple, date, and raspberry, require an additional step for filling and folding. The unfilled cookies are cut on a diagonal rather than round. The diagonal-cut cookies require less space than straight-cut cookies, and the result is a higher level of productivity. In addition, the company recently increased the length of each oven by 25 feet, which also increased the rate of production. As the cookies emerge from the ovens, they are fed onto spiral cooling racks 20 feet high and 3 feet wide. As the cookies come off the cooling racks, workers place the cookies into boxes manually, removing any broken or deformed cookies in the process. The boxes are then wrapped, sealed, and labeled automatically. Inventory Most cookies are loaded immediately onto trucks and shipped to distributors. A small percentage is stored temporarily in the company’s warehouse, but they must be shipped shortly because of their limited shelf life. Other inventory includes individual cookie boxes, shipping boxes, labels, and cellophane for wrapping. Labels are reordered frequently, in small batches, because FDA label requirements are subject to change, and the company does not want to get stuck with labels it can’t use. The bulk silos are refilled two or three times a week, depending on how quickly supplies are used. Cookies are baked in a sequence that minimizes downtime for cleaning. For instance, lightcolored cookies (e.g., chocolate chip) are baked before dark-colored cookies (e.g., fudge), and oatmeal cookies are baked before oatmeal raisin cookies. This permits the company to avoid having to clean the processing equipment every time a different type of cookie is produced. Quality The bakery prides itself on the quality of its cookies. A quality control inspector samples cookies randomly as they come off the line to assure that their taste and consistency are satisfactory and that they have been baked to the proper degree. Also, workers on the line are responsible for removing defective cookies when they spot them. Scrap The bakery is run very efficiently and has minimal amounts of scrap. For example, if a batch is mixed improperly; it is sold for dog food. Broken cookies are used in the oatmeal cookies. These practices reduce the cost of ingredients and save on waste disposal costs. The company also uses heat reclamation: The heat that escapes from the two ovens is captured and used to boil the water that supplies the heat to the building. Also, the use of automation in the mixing process has resulted in a waste reduction compared with the manual methods used previously. New Products Ideas for new products come from customers, employees, and observations of competitors’ products. New ideas are first examined to determine whether the cookies can be made with existing equipment. If so, a sample run is made to determine the cost and time requirements. If the results are satisfactory, marketing tests are conducted to see if there is a demand for the product. Potential Improvements There are several areas of potential improvement at the bakery. One possibility would he automate packing the cookies into boxes. Although labor costs are not high, automating the process might save some money and increase efficiency. So far, the owners have resisted making this change because they feel an obligation to the community to employ the 30 women who now do the boxing manually? Another possible improvement would be to use suppliers who are located closer to the plant. That would reduce delivery lead times and transportation costs, but the owners are not convinced that local suppliers could provide the same good quality. Other opportunities have been proposed in recent years, but the owner rejected them because they feared that the quality of the product might suffer. Questions 1. Briefly describe the cookie production process. (1 Mark) 150 words 2. What are two ways that the company has increased productivity? Why did increasing the length of the ovens results in a faster output? (1 Mark) 150 words 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? (2 Marks) 200 Words 4. What factors cause Lew-mark to carry minimal amounts of certain inventories? What benefits result from this policy? (1 Marks) 100 words Answer 1: The Lew-Mark Baking Company uses a method of batch processing and the procedure starts when the organization accepts preparations from its particular suppliers. These production orders are generated and these orders depend on the orders of customers. The production of the cookies is one of the crucial parts of a company when they need to make some products on order. The list of those products is handed to a person who is in charge of that place and the charge ship varies in different shifts means that every shift has a different person who is in charge (Kaçar, Erinç, & Sivri Özay, 2018). To ensure that every product will be made perfectly there is a master list that consists of all of the constituents with required components. The ingredients are brought which are needed in making cookies after that those ingredients are subsequently transferred to mixers and cut with help of a machine. After that the cookies are baked and then at last they are packed and sealed. Answer 2: Initially, the Lew-Mark Baking Company has advanced the effectiveness by separating the cookies without filling. This will allow Lew-Mark Baking Company to make more cookies to be baked at every moment. Secondly, the computerization of the ingredients of cookies helps the company in lessening the wastage of these ingredients and it aids in reducing the mistakes of humans while mixing the ingredients (Trojanowska, Kolinski, Galusik, Varela, & Machado, 2018). If the length of the oven has been increased it will result in faster production of cookies. For instance, if an oven plate can bake 25 cookies at a time. But if the cookies are broken into two pieces there will be 50 cookies made and thus the production of cookies will be faster. This is how the production of cookies will start to increase thus this increase in production will also help the organization. Thus it can be said the bigger oven the more cookies will be baked and they will consequence in faster production. Answer 3: According to my thought, the Lew-Mark Baking Company is making a correct decision by not automating packages of cookies. The consequences will mirror the components of humans. The reduction of the cookies that are broken or not made perfectly is one of the main important periods before the packing of the cookies (Olsson, Larsson, & Quttineh, 2020). This stage is one of the most difficult stages of the production of cookies as with good production of cookies, the reputation of the company also increases. The reputation is increased because perfect cookies portray a great image of the company in producing great products. Each industry has an ethical obligation to its personnel. If the Lew-Mark Baking Company has advanced a framework to succor individuals in residual gainfully working, the company should retain its initiate to its workforces. Lew-Mark Baking Company is dedicated to its employees they care about their values and morals. Individuals will be pleased to support and buy things from a company that is honest and also an enthusiastic organization. Answer 4: Many factors are contributing to fewer stages of inventory. The first consideration of having a small inventory of Lew-Mark Baking Company is by seeing the quality of cookies. For that reason, the Lew-Mark Baking Company has committed that the product that they will provide will be of high quality, which means that their products will not consist of any chemical or numerous preservation (Smirnova & Lukyanova, 2018). That is why Lew-Mark Baking Company keeps their production low so that the products that they create will be kept fresh and the prevention of the wastage of resources will be less. Secondly, the decrease in inventory expenses will result in less inventory space and lower the costs of products. For that reason, inventory is retained to a minutest, storage planetary is similarly kept to a minutest. The less production of cookies and the freshness of these cookies is helping the Lew-Mark Baking Company to give happiness to its customers. References Kaçar, D., Erinç, H., & Sivri Özay, D. (2018). Development of fats based on olive oil by chemical interesterification and its utilization in cookie production. Acta Alimentaria, 154-161. Retrieved from https://akjournals.com/view/journals/066/47/2/article-p154.xml Olsson, J., Larsson, T., & Quttineh, N. H. (2020). automating the planning of container loading for Atlas Copco: Coping with real-life stacking and stability constraints. European Journal of Operational Research, 1018-1034. Retrieved from https://www.sciencedirect.com/science/article/pii/S0377221719306368 Smirnova, E., & Lukyanova, A. E. (2018). Financial contagion indicator in the company's inventories management adaptation to the digital economy. In GSOM EMERGING MARKETS CONFERENCE 2018, 328-330. Retrieved from https://elibrary.ru/item.asp?id=41192669 Trojanowska, J., Kolinski, A., Galusik, D., Varela, M. L., & Machado, J. (2018). A methodology of improvement of manufacturing productivity through increased operational efficiency of the production process. In Advances in Manufacturing Springer, Cham., 23-32. Retrieved from https://link.springer.com/chapter/10.1007/978-3-319-68619-6_3 Name: Description: ...
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