Operations Plan 1

La Boulangerie d'Antan: Operations Plan

Razvan Iliescu

razvan.iliescu@cityu.edu

MBA550 Business Operations

Peter Hostak

Operations Plan

February 18, 2013

 Operations Plan 2

1. Executive Abstract

La Boulangerie d’Antan – Une Boulangerie Artisanale aims to keep alive the French

traditions of baking from the 19th century in our modern world. In a Romanian market

invaded by food industrialization and low quality, LBA sets an ambitious goal of producing

fresh organic food on a local basis and at affordable prices.

The business starts small with one or two production units and targets the expansion in

a chain of bakeries in the urban areas, offering alongside its range of products, and

extraordinary customer experience. Using a modular expansion model, LBA intends to open

its bakeries using a standard layout of location and equipment.

The production strategy of LBA focuses on a small range of French breads, produced

by their original recipes and methods. As a niche business, the company embraces the model

of high quality on a core product range.

Marketing studies on the Romanian market have shown little or no competition on the

French bakery segment, most of LBA’s competition being composed of scattered shops and

industrial food producers in the urban areas.

In order to maintain its standards, LBA will follow a specific product design (in our

case, recipes) based on official standards imported from the French market. A strict quality

management process will ensure that anyone entering the bakery will benefit by the original

French product and experience.

A strictly controlled baking process will make sure that only the best products will

reach the shelves, LBA targeting a high brand awareness in the urban areas, based on its

iconic product, “La Baguette”.

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2. Introduction and Environmental Background

La Boulangerie d’Antan - Une Boulangerie Artisanale (The Bakery of Long Ago - A

Traditional Bakery) aims to bring into the Romanian market the products and traditions of the

genuine French bakery. The business will focus on the production and sales of core traditional

French bakery products, targeting a scalable diversification of the product base. The business

model (small retail bakery) relies on decentralized production and retail points, targeting a

chain model. By definition, the model relies on individual store operations, having not more

than three personnel on board at any given time. The small retail bakery typically sells its

baked goods on-site, offering the potential to develop into a chain operation (Startupbizhub,

2012).

Though a basic food business, LBA targets a niche model with niche customers, with

the demographics of a typical customer ranging at: individuals age 15 to 60, urban resident,

average revenue, having medium to high level studies; corporate customers are projected in

the range of international chains of hotels and fine cuisine restaurants.

The suppliers divide into strategic suppliers delivering baking ingredients and baking

equipment (pans, baking supplies and machines) (FSW, 2013) and marginal suppliers

providing power, telecommunication, banking, automotive services and such. LBA will

establish itself as a full-fledged corporation, thus leading into contracting the full supply chain

of a food production corporation. The company will create its own distribution chain,

shipping the products using its own fleet of automotive units and drivers, in urban ranges, on

a local basis.

LBA will benefit by a low competition on the French bakery niche, most of the

domestic bakeries and bread industrial producers addressing the Romanian baking products

range and derivatives. No nation-wide French bakery producers were identified in the

country, the only competing businesses consisting of small bakeries, with no more than three
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production units in the urban areas.

3. Mission Statement and Strategy

The Mission of La Boulangerie d'Antan

We love to bake. Through baking, we connect with our community by continuing

traditions, creating great bread and pastries, developing relationships and practicing

responsibility to the environment.

LBA embraces specific strategies in order to conduct its production, sales, human

resources, quality assurance and chain expansion. On the production side, the company will

focus on a small range of top quality breads and pastries baked based on genuine French

recipes originating in the 19th century. The production will also deliver marginal products like

pastry, cakes and derivatives, adapted to the regional specific of the locations.

A standard strategy of sales for corporate customers will be employed, relying on sales

force automation, sales staff and procedures; the strategy targets a pool of stable contracts,

honored on a local basis. It is appropriate to mention that most of LBA’s sales will target

individual customers and will take place at the front-counters of LBA’s business units, the

bakeries.

The human resources strategy is outlined to draw talent on a local basis; specific

baking and customer service training will be provided before the staff enters the production

line. The bakeries will ideally employ a headcount of maximum three per business unit, in a

standard crew structure, which will be outlined in the next chapter of the plan. The

headquarters will employ the regular corporate office staff, ranging from management to

clerks, per department. The corporate departments will be outlined in chapter 4 of the current

document.

In order to continuously monitor the quality of its products, LBA will employ specific

control methods like visual inspection, weighing, measurement, consistency, smelling, tasting
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and listening comprised in a QA process, recorded and traced using quality assurance

methods (sampling, estimations, forecasting). The production process will be constantly

monitored and kept under control by continuously sampling and adjustment.

4. Operations Management Analysis

Ten  Decision  Areas   Chapter(s)   Significance  *  

*Design  of  goods  and  services   5   high  
*Managing  quality   6,  Supplement  6   high  
*Process  and  capacity  design   7,  Supplement  7   high  
*Location  strategy   8   high  
*Layout  strategy   9   high  
Human  resources  and  job  design   10,  Supplement  10   medium  
Supply  chain  management   11,  Supplement  11   low  
Inventory  management   12,  14,  16   low  
Scheduling   13,  15   NA  
Maintenance   17   NA  

La Boulangerie d’Antan will produce the standard French bread types (Fig. 1) (Egullet, 2012)

according to their original 19th century recipes and process.

Fig. 1 – Standard French bread types

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Design of goods and services

The current OM plan will focus on the iconic French bread type, the so-called “La

Baguette”. The product represents a wheat type of bread, regulated by the French law, and

according to the jury of the reputable competition “Grand Prix de la Meilleure Baguette de

Paris“, measuring between 55 and 70cm, weighing between 240g and 310g and having no

more than 18g of salt per kg, or 4.5g per 250g (The Guardian, 2011).

The baguette represents a version of the Viennese bread of mid 19th century, times in

which steam ovens have been brought into use. Using steam while baking bread, enabled

bakers to produce crisp-crust loaves with white centers, similar to today’s baguettes. The

steam generated by the oven allowed the crust to expand before setting, which created a

lighter, more airy loaf. It also melted the dextrose on the bread's surface, giving a slightly

glazed effect. The introduction in 1920 of a special law that prevented bakers to work

between 10PM and 4AM made it impossible for the traditional bread to be delivered in time

for customers' breakfasts. The longer, thinner baguette produced by poolish method, solved

the problem because it could be prepared and baked much more rapidly (France this way,

2012).

The product design, according to the original recipe (Recette-dessert, n.d.), requires

(per unit) a total of 167g of T65 flour, 117g of water, 2g yeast, and 4g of salt and is based on

the poolish technique. The renowned technique of making bread called "on poolish", was

introduced in France by Marie Antoinette's bakers originating from Austria (Recette-dessert,

n.d.). The poolish is a mixture of equal parts flour and water with a little yeast that ferments in

the first stage of the bread production. This manufacturing technique brings the poolish bread

its specific aroma and dough strength (Recette-dessert, n.d.).

The difference between a traditional baguette and an industrial one is the traditional

loaf will smell much more strongly of bread, the crust will tend to be darker, the interior is
 Operations Plan 7

cream color rather than white and the interior texture is much less consistent.

Managing Quality

All food producers, including the smallest companies, have the obligation to provide

customers with safe, wholesome foods. Safety is not an option, but it is a key part of the

planning, preparation and production of foods. Any lack of attention to safety can result in a

serious threat to public health. The European Union stipulates this by the law and serious

penalties exist for those who contravene hygiene and food safety legislation.

In the baking industry, there are dedicated routes of food contamination – surfaces, air,

water, people and pests. Various types of contamination may occur, ranging from physical

contamination (pieces of glass, wood, metal, plastic, film, hair and fingernails) to chemical

contamination (residues of cleaning and disinfection chemicals, machinery lubricants,

pesticides and biological contamination (bacteria, yeasts, and mycotoxins) (European

Commission, 2012).

In the LBA’s business, moulds, yeasts and bacteria cause the spoilage of most bakery

products. Most bakery products however are considered low-risk food because of baking at

high temperatures (180C-250C) and having reduced water activity (aw) and pH, this

preventing the growth of microorganisms. While potentially hazardous foods have a pH > 4.5,

sourdough bread (the baguette) has the pH in the range 4.2-4.6. Flour, on the other hand,

contains approximately 8000 mould spores per gram, the most common being Penicillum spp.

and Aspergillus spp. Both moulds can produce Ochratoxin A and Aflatoxin (mycotoxins),

which are very resistant, and can survive the heating process (European Commission, 2012).

LBA takes safety seriously and understands that food hygiene is vital throughout the

production chain, from raw material to transportation and delivery. There are standard food

safety management methods in the industry, and LBA will gradually apply the Good

Manufacturing Practices (GMP), the Good Hygiene Practices (GHP), Hazard Analysis and
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Critical Control Point (HACCP) and ISO 9001, 22000 quality management systems (FAO,

2009).

GMP represents a practice of production and testing that ensures product quality. The

basic principles of the method target the safeguarding the health of the consumer public, as

well as producing good quality foods (European Commission, 2012). Some basic guidelines

of GMP:

• The process of manufacture is clearly defined and controlled; process

validation is in place

• Production process changes are controlled and evaluated

• Production procedures and guidelines are written in a clear and explicit

language

• Procedures are documented and employees are trained in this respect

• During the production, records are made in order to determine all steps defined

by procedures have been taken and the quantity and the quality of the product

respects the standard

• Manufacturing and transportation records are kept in order to enable tracing of

a production lot

• The distribution minimizes the risk of quality diminution

• A lot recalling system is in place

The Good Hygiene Practices (GHP) in the production area relate to the sanitation of

the work environment as well as to the cleanliness of the production personnel

(European Commission, 2012). Few rules are outlined below:

• Hand hygiene: washing hands (running water, soap, drying) frequently

(immediately before working with food, after using toilets, handling waste,

smoking, coughing, eating, drinking, touching hair, scalp or mouth)

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• Changing gloves as often as washing hands

• Cover hair, beards, no jewelry, no mobile phones, clean protective clothing,

clean shoes

• Changing rooms, toilets and hand-washing facilities must be provided and kept

clean

• The management should develop documented directives, communicated to all

personnel, contractors and visitor

• Controlled access to the production areas

• Health control of food handlers

• Training and retraining

The process control represents another determinant step in ensuring product quality.

On a regular basis, microbiological samples from production air, water, equipment, crates and

hands of employees will be taken and recorded. It is estimated that more than 90% of bread

contamination occurs during cooling, slicing and wrapping (European Commission, 2012). At

the same time, product samples will be taken and SPC applied, in order to provide a proper

inspection of the production output (Heizer & Render, 2004, pp. 201-203).

In regard to the chosen product, the baguette, the inspection process will require the

visual inspection, weighing, measurement, consistency, smelling, tasting and listening, all the

parameters being recorded and statistically evaluated in order to maintain the production

process control.

Process and Capacity Design

Addressing a small range (variety) of products, organizing the production points

(bakeries) around the products, LBA’s process falls under the product focus process strategy

(Heizer & Render, 2004, p. 251). The bakeries will generate the forecasted volumes of

products having a high facility and equipment utilization, thus leading to higher fixed and
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lower variable costs.

There is more than one process to be taken into consideration, and the current chapter

will explain the most important of them: the production process, the baking process and the

product creation process.

A typical LBA bakery will follow the flow or raw material receival, storage, weighing,

mixing, dividing, molding, fermentation, baking, cooling, packaging and sale. The Fig. 2 flow

diagram depicts the bakery production flow applied on a production facility layout.

Fig. 2 – The process flow of a bakery

The baking process itself starts with the weighing of the raw ingredients, in the case of

the baguette, the flour, water, yeast and salt. The next step of the process represents the

mixing of the ingredients, resulting the dough. The division of the resulted mix ensures the

individualization of the baguette source dough, followed by the rounding and weighing of

each individual piece (at this stage, each dough piece weighs exactly 340g). The dough balls

are further molded in the traditional baguette shape, the product reaching its second

measurable status: the length. As stated previously, the accepted length varies between 55 and

70 centimeters. Next comes the proving (raising) of the dough, followed by the actual oven
 Operations Plan 11

baking of the dough batons. Reaching the final stages of the production process, the now

ready baguettes are next stored for cooling, resulting in the final product ready for sale or

shipment. A final quality control check will weigh each individual baguette and inspect for

foreign materials. The graphic representation of the process is depicted in Fig. 3.

Fig. 3 – The baking process

The 12-step actual production process is explained in the table below:

STAGE   ACTIVITY   PRCOCESS  CONTROL  POINT  

Raw  Materials   Reception  of  flour,  salt,  water   Inspection  and  testing  of  flour,  
and  yeast.   salt  and  yeast.  
1.  Mixing  1   The  ingredients  are  gently   Type  of  ingredients,  weight,  
mixed  to  form  the  poolish.   temperature,  weight  and  
This  involves  the  combination   activity  of  yeast.  
of  a  determined  quantity  of  
water,  yeast  and  flour.  
2.  Fermentation   10-­‐hour  fermentation  of  the   Time  of  fermentation,  room  
poolish  at  23-­‐26C.   temperature.  
3.  Mixing  2   The  ingredients  are  gently   Type  of  ingredients,  weight,  
mixed  with  the  poolish  to   temperature,  weight  
form  the  dough.  Mixing   temperature  of  the  dough  and  
continues  until  the  dough  has   activity  of  yeast.  
a  smooth  appearance.  
 Operations Plan 12

4.  Proving   3-­‐hour  bulk  fermentation  of   Time  of  fermentation,  dough  

the  dough.   temperature,  room  
temperature.  
5.  Dividing   Splits  up  the  large  gas  bubbles   Gentle  handling,  time  
formed  during  mixing,  into   required.  
smaller  more  numerous  gas  
bubbles.  
6.  Rounding   Conversion  of  the  rough   Gentle  handling,  time  
dough  pieces  into  a  small  ball.   required.  
Gas  is  also  expelled  at  this  
stage  and  smaller  gas  bubbles  
are  formed.  
7.  Weighing   First  step  of  process  control,   Gentle  handling,  time  
only  the  pieces  of  340g  will   required.  
pass  on  further.  
8.  Intermediate  proving   A  short  rest  of  10-­‐15  minutes   Time,  temperature,  relative  
to  allow  the  dough  to  relax   humidity  in  the  prover.  
before  further  processing.  
9.  Molding   The  determination  of  the  final   For  the  French  bread,  the  
shape  of  the  baguette  and  the   gentle  molding  is  required  to  
required  bubble  structure  in   preserve  the  large  bubbles.  
the  product;  second  step  of  
the  process  control:  only  the  
batons  having  lengths  
between  55  and  70cm  will  
pass  on  further.  
10.  Final  proving   1-­‐hour  final  proving.  This   Temperature,  relative  
involves  the  gentle  inflation  of   humidity,  proving  time.  
the  gas  bubbles  by  yeast  
action.  Yeast  is  activated  
slowly  by  warming  to  37-­‐40C.  
Drying  out  of  the  dough  
surface  is  prevented  by  high  
relative  humidity  (80-­‐85%)  in  
the  proving  room.  
11.  Baking   This  step  converts  the  dough   Time,  temperature,  humidity  
into  bred.  Yeast  action  is   in  the  oven.  
initially  speeded  up  causing  a  
massive  burst  of  gas  
production  to  inflate  the  
dough  by  15-­‐30%,  known  as  
"oven-­‐spring".  Baking  time  is  
normally  30-­‐40  minutes  at  
235-­‐240C.  Moisture  is  driven  
off  to  form  the  dry  crust.  
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12.  Cooling   30  minutes  to  one-­‐hour  rest   Time,  humidity  in  the  cooling  
for  the  final  baguettes,  before   room.  
shelving  or  
packaging/shipping.  

The last important process check explained by the current document is the temperature

control. In the professional baking, the temperature control plays a vital role in time

management, product consistency, crust, crumb, flavor and shelf life of the baguette. The

temperature is to be controlled during the entire production process, in case of the French

bread, the required production temperature varying between 24-25C.

Base temperature calculation: the most critical temperature to control is the dough

temperature, because it is influenced by most numerous factors. The factors influencing the

dough temperature are the ambient temperature, the flour temperature, the water temperature,

the temperature of the poolish and the temperature resulting from the action of mixing. The

temperature of the first four factors is easy to be determined using thermometers, however

determining the temperature resulted from mixing, known as the friction factor, requires a

special method. The friction factor represents the amount of heat generated during the dough

mechanical mixing. Measured observations have determined that 15 minutes of mechanical

action raises the temperature of 1kg of mixing content (dough forming) by 4C. Of all the

factors influencing the dough temperature, the temperature of water if what the industry calls

“the controlling factor” in the regulation of the dough’s temperature. Having given the

temperatures of the influencing factors, the needed water temperature can be calculated (The

Artisan, 2012).

The calculation: working with four factors affecting the dough temperature, it is

necessary to multiply the desired temperature of the dough (industry standard 25C) by four;

next the calculation will add the four temperatures – room, flour, poolish and friction and

subtract from 4 x desired temperature. This is illustrated in the calculation below (all
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calculations in degrees Celsius) (The Artisan, 2012):

The desired dough temperature

𝐷! = 4 ∗ 25𝐶 = 100

Sum of the factors (room, flour, poolish, friction)

𝑅! +   𝐹! +   𝑃! +   𝐹𝑟! = 20 + 22 + 21 + 4 = 67C

The water temperature

𝑊! = 𝐷! - (𝑅! +   𝐹! +   𝑃! +   𝐹𝑟! ) = 100 – 67

𝑊! = 33

Location Strategy and Layout

In order to obtain profit, the bakeries of LBA will be strategically situated to be close

to its target customers, namely close to markets or in neighborhoods counting more than

1,400 families. In order to “avoid conflict”, as much as possible, LBA will choose areas

where there is little or no competition. The sites will also have to be situated close to the

supply of raw materials and workforce, in clean areas with no waste or stagnant water nearby.

The bakeries will be situated on clear ground, away from sources of insects, rodents or smells,

benefitting by good supplies of potable water and electricity (FAO, 2012).

The buildings of LBA will respect all the legal requirements from the external

appearance to the internal layout. The bakeries will feature door-separated areas, water-

resistant painted and tiled walls and curved-up floors provided with drainage. 3-phase

equipment will be present, with special power points. Another essential aspect of the locations

will be ventilation and special equipment will be installed.

Targeting a chain expansion, LBA will rollout the same layout of bakery with standard

equipment and implementation. The typical layout of an LBA bakery is exemplified in Fig. 2.

Human Resources and Job Design

LBA will typically work with crews of three per bakery, the jobs covering mixes of
 Operations Plan 15

functions:

• The artisan baker – a key position in the bakery, the baker is responsible for the

production and for recipe compliance. At the same time, the baker is responsible for

the quality control of the production.

• The baker assistant – assists the artisan baker in mixing, forming the dough, rounding,

proofing, and baking the baguettes.

• The storekeeper - is responsible for keeping stores and stock records. At the same

time, the storekeeper operates the front counter.

The headquarters will employ the standard management, operational and administrative

personnel, having the functions:

• General manager

• Assistant manager

• Production manager/ Night manager

• Quality assurance manager

• Quality assurance officer

• Product manager

• Purchase officer

• Chief accountant

• Secondary accountant

• Human resources manager

• Human resources officer

• Administrative manager

• Administrative clerk

• Car fleet manager

• Driver
 Operations Plan 16

Supply Chain Management

La Boulangerie d’Antan aims to produce high quality foods, therefore it needs to rely

on reputable suppliers of top quality ingredients. By definition of its product output, LBA

necessary input of raw materials constitutes the flour, yeast, water and salt. In this respect

LBA targets bio and eco-friendly producers and suppliers of raw ingredients. Redundancy

management will be in place, making sure supplier backup will keep LBA’s business in full

production at all times.

LBA will benefit by all the standard products and service suppliers, ranging from

power, telecommunication, equipment, software and medical services to equipment

maintenance, banking, real estate, legal, automotive and public relations.

Inventory Management

Running a fresh food business model, LBA targets its output to have nearly no shelf

life (a shelf life counted in hours), the entire production being capacitated to be sold the same

day. This draws a fast moving output inventory and LBA will rely on the sales figures in

order to determine the number of sold units. Based on the same freshness concept, LBA will

store only the weekly necessary stock of raw materials at its bakeries.

Inventory management software and procedures will ensure the stock is being properly

handled and processed.

5. Summary

La Boulangerie d’Antan wants to bring a French twist to the Romanian market, for

those who appreciate the quality bread. Relying on original recipes, the bakery wants to make

a difference from the food industrialization, bringing the bread production to its basics and

closer to its customers.

In order to achieve the high standards imposed by the French baking industry, LBA

will rely on a day-in-day-out business model, with no production inventory. The baking will
 Operations Plan 17

take place at its own bakeries, spread throughout the cities.

One of the challenges imposed by this business will be attracting talent in the form of

qualified personnel. The Romanian education model lacks the bakery classes at all levels and

LBA trainers will have to teach those passionate by bread making into the secrets of

professional baking.

Basically defined as a risk-free business (bread will always find its way to the

customers), La Boulangerie d’Antan will keep its bakeries open at all times in order to offer

the public its iconic “La Baguette” early fresh for breakfast, crisp and tasty at lunch, and

warm and welcoming after a day’s work.

 Operations Plan 18

References

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/topic/ 27634-sourdough-bread/#entry1769486

European Commission. (2012). Guidelines on HACCP, GMP and GHP for ASEAN food

SMEs. Retrieved February 21st, 2013, http://ec.europa.eu /food/training_strategy

/gen_info/haccp_en.pdf

Food and Agriculture Organization of the United Nations (FAO). (2013). Good hygiene

practices and HACCP. Retrieved February 21st, 2013, http://www .fao.org/food/food-

safety-quality/capacity-development/haccp/en/

Food Service Warehouse. (2012). Bakery equipment & bakery supplies. Retrieved February

19th, 2013, http://www.foodservicewarehouse.com/bakery/c16209.aspx

France This Way. (2013). French bread and French baguette. Retrieved February 20th, 2013,

http://www.francethisway.com/frenchrecipes/frenchbread.php

Heizer, J., & Render, B. (2004). Operations Management. Upper Saddle River, NJ: Pearson

Education

Recette-dessert. (n.d). Baguette de pain de tradition française. Retrieved February 20th, 2013,
http: //www.recette-dessert.com/baguette-pain-r827.htm

StartupBizHub. (2012). Starting a bakery business. Retrieved February 19th, 2013,

http://www.startupbizhub.com/Starting-a-Bakery-Business.htm

The Artisan. (2012). Temperature control – part I. Retrieved February 21st, 2013, http://www

.theartisan.net/temperature_control_baking_1.htm

The Guardian. (2011). Best in dough. Retrieved February 20th, 2013, http://www.guardian

.co.uk /world /2011/may/03/french-bakers-battle-best-baguette-bounty