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Case Study – Bakery Ltd.
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Business Process Management

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Case Study – Bakery Ltd.
Bakery Ltd. is a large bread manufacturing business with its wide network spread in whole UK.
Bakery produces products with its own name as well as private brand names. Currently compsny
is facing challenges in production, distribution and invoicing because company is lacking control
over business process and automation of data. This case study analyzes the bottlenecks of the
company and suggestion on use of technology to smooth the business process.

Bottlenecks for Bakery Ltd.

Bottleneck is a situation in operations management when you have more order but fewer
resources to fulfill the order. It is type of constraint which usually happens in production or
supply chain management where company gets too many orders to produce or deliver and
there are not enough resources for timely production and delivery (Zhou 2015). Bottleneck is
not a drawback rather it is an opportunity and challenge for management to analyze the process
and work for its betterment. Bakery Ltd. has many bottlenecks in production and distribution
department where lack of proper system is causing problems for the company.

Major bottleneck or constraint in making of bakery item is excessive work load in a specific day
that is Saturday. Company has such procedure where company is getting order on Thursday and
producing them on Saturday. This practice is disturbing the production line of the company
when workload is excessive in one or two days and production is almost idle or minimal in rest
of the week (Zhou 2015). There is lack of proper order base from customers as process is going
manually without any automation and innovation. Production is based on assumptions and past
record which is another big constraint in production.

Delivering the product to customers also has different bottlenecks specially where there is no
store management and inventory control. Delivery system is relying on drivers who are not
professionally trained to track the inventory and handling of official correspondence. No control
over inventory and stock could lead to fraudulent activities and negligence by the workers which
occurs loss to the company (Zhou 2015). Similarly invoicing to customer is also causing lower
return to the company as there is no proper record system.

Use of Technologies to Improve Operations Process

Current practice of operations by Bakery Ltd. is lacking proper control and record of the business
process which lead to increase cost and lower profits. Company needs to automate its
operations and maintain records in professional way as it need of the hour. There are different
technologies that company can use to overcome the challenges it is facing now (Cunha 2013).
Communication Technology: it is most crucial technology which can help the company to
improve its operation. Currently there is no official communication with customers about their
demand of items and inter departmental communication is almost zero. A better
communication with customers would result in producing the items as per requirement as
wastage of expired items will be reduced. Similarly using communication technology, production
department and distribution department can collaborate about items delivered and produced.
Distribution department could correspond with accounts department about delivery details for
accurate invoicing (Cunha 2013).

Data Collection Technology: it is another important technology to adopt in order to maintain

data in a professional way. Using this technology, production data will be available to
distribution department and delivery data will be available to accounts department. It can be
done by using a pattern of forms with three copies so every department can get a copy of form
and update in the system. It is advisable that company use business software so that all
departments are linked to it.

Software Technology: By software technology, it means that professional business software be

used which can automate the entire process from production to invoices. It is recommended to
use QuickBooks software which has the feature of inter-linking the department so all the data
input in the system will be immediately available to all concern departments. It will save a lot of
time and data will be process with accuracy (Cunha 2013).

Business Case for Integrated ERP System

Enterprise Resource Planning (ERP) is complete business process software packages which
replaces the current process and automate the whole company’s way of doing business. ERP
links all departments of the company like purchase, productions, distribution, human resource,
finance and customer service (Panayiotou 2015). Bakery Ltd. is currently facing data control
challenge because of low collaboration between its divisions and lack of control over process. So
it can be said that inefficient business process and obsolete systems are concerns for the
company which need to be solved by implementing a proper system (Ammar 2017).

Benefits of ERP System

Cloud base ERP System is most suitable solution of current challenges face by Bakery Ltd. It is
recommended to use ERP System which has the feature of inter-linking the department so all
the data input in the system will be immediately available to all concern departments. Major
benefit of implementing ERP System is accuracy of data and real time linking of all departments
(Panayiotou 2015). Other benefits of Cloud base ERP System are:

 Fast process of transactions, entries and data entry in real time.

  Improve efficiency of the company because it enables to automate the system and
integration is developed.
 Cloud base ERP System is relatively cheaper than on-premise ERP Solutions as company
do not need full fledge ERP System in current environment.
 Fewer IT tools are required to implement the system and getting support
 Auto update features make it current software and can benefit all the changes.
 Better functions and security features as compare to other software packages.
 It is helpful in decision making as different reports can be generated which are
guidelines to make important decisions (Ammar 2017).

Cost of ERP System

Based upon current requirements of Bakery Ltd. a customized package of Cloud ERP package is
available which has different cost factors. Acquisition or implementation cost of the system is
moderate as it is online package so there is data on main server so all users are accessing the
data online. Cost also includes training of the users because it needs special training to operate
the ERP system. Online and in-class training will be provided to users. As customized package is
suggested for the company which is according to the requirement, so customization cost is also
included (Ammar 2017). One special ERP System Engineer will be hired who will do the
troubleshooting and other ERP related problems faced by users; his salary is also included in the
cost. Annual cost of implementing ERP System is around £500,000 to £600,000.

Functionalities of ERP System

Proposed ERP System will perform on number of functionalities for efficiency and accuracy of
business process. Production functions of ERP will involve the production manager who will
lead all the production department. Raw Material list will updated as well as number of ready
items which will help distribution department to check about delivery. Finance function is crucial
as all departments are linked to finance so finance staff will generate report about cost of items
and delivery to customers so that they will issue invoices and maintain their accounting record.
Inventory management is another function of ERP System where all the information about ready
items will be available on the system with its expiry date. Another function is human resource
which is linked to the ERP System that will automate the record of all employees, their
performance, increments as well as warnings (Ammar 2017).
References:

Zhou, B., Yu, J., Shao, J. and Trentesaux, D. (2015), "Bottleneck-based

opportunistic maintenance model for series production systems", Journal of
Quality in Maintenance Engineering, Vol. 21 No. 1, pp. 70-88.

Cunha, J. (2013), "A distributed model of the structuration of information

technology in organizations", Management Research, Vol. 11 No. 3, pp. 330-351.

Panayiotou, N., Gayialis, S., Evangelopoulos, N. and Katimertzoglou, P. (2015),

"A business process modeling-enabled requirements engineering framework for
ERP implementation", Business Process Management Journal, Vol. 21 No. 3, pp.
628-664.

Ammar, S. (2017), "Enterprise systems, business process management and UK-

management accounting practices", Qualitative Research in Accounting &
Management, Vol. 14 No. 3, pp. 230-281