Regoris, Roderica A.

Home-Style Cookies Case

Summary:
The case is about the a baking company in New York State run by two brothers
with less than 200 people mainly blue-collar workers. The case discussed at the first
and second paragraph, the production of cookies with high quality and having a strong
market for the product and the target customers ages over 45 years old who prefer soft
and healthy cookies and young children. In third paragraph, it talks about the production
process of the cookies that uses batch processing system monitored only by the person
in-charge. The batch processing system can best be described as the execution of a
series of programs ("jobs") on a computer without human interaction. In fourth
paragraph, discussed the distribution of orders to distributors because mostly,the
production was based on the qantity ordered only and small percentage are only
temporarily stored. While on the fifth and sixth paragraph discussed the quality and the
scrap in production respectively. The quality are being monitored by the quality control
inspector to assure consistency and removes defective cookies. The use of X-ray
machine and other automatic equipments made the production easier to maintain
smooth processes and reduces the costs for ingredients and save on waste disposal
costs. The company welcomes the customers and employees’ ideas and observations
with competitors. They make sure to examine and conduct a thorough research and
marketing tests for every possible innovations into the products. Additionally, they value
their responsibility in the society by continuing to employ people despite of continuous
automation in production. Above all other good opportunities for improvements, the
owners gives importance mainly to the quality of the product.

1.Briefly describe the cookie production process.

The company uses batch processing system, wherein the process begins when
the management gets orders from its distributors and production schedule are then
made. At start of each shift, a list of cookies to be made on the same day are delivered
to person in-charge of mixing. As information about ingredients needed enters the
system all ingredients are then transferred to mixing machines then to cutting machine.
After that, cookies are dropped to conveyor belt and heated to ovens. Filled cookies
require additional steps. As the cookies come of the cooling racks, they are manually
packed. The boxes then wrapped, sealed and labeled automatically.

2. What are two ways that the company has increased productivity? Why did increasing
the length of the ovens result in faster output rate?

In order for the company to increase produtivity are: first, cutting cookies into a
diagonal rather than a round shape.It will take less space in the oven and more cookies
can fit into every batch. Second, increasing the length of oven to 25 feet. The bigger the
oven the more cookies can bake which means it can speed up the productivity or output
rate of the production of cookies.

3. Do you think 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
Regoris, Roderica A.

employees in a situation such as this? What obligation does it have to the community?
Is the size of the town a factor? Would it make a difference if the company was located
in a large city? Is the size of the company a factor? What if it was a much larger
company?

Automating the packaging is a quicker and efficient way of course but I think that
this baking company is making the right decision by employing local workers by this way
they were able to solve unemployment problem of local community specially woman
workers.All companies have a moral obligation toward their employees and community.
Being town-oriented business conveys a message that they do not only value gaining
high profit but also cares for its employees. Base on my understanding, the size of the
company and the town is a factor in penetrating the market or attract customers. If the
company is located in small town it would be easier to show or promote the product to
people because there is less competition unlike If the company is in lage cities wherein
the competition is quite challengin. The bigger the company the customer would
perceive that it is aleady trusted by manyand it would hire more people benefitting more
the community. However, bi or small business what matters is its value-added and
commitment towards workers of the community.

4. What factors cause the company to carry minimal amounts of certain inventories?
What benefits result from this policy?

Minimal amounts of inventories are caused by: firstly, is the quality of the
cookies. Since the company does not use preservatives in the cookies it must be
shipped immediately because of its limited shelf life. Secondly, since a small percentage
only are being stored it does not need for a larger storage space,minimal space is also
utilized. Lastly, since they based on the quantity ordered the freshness of the cookies
are guaranteed that satifies the customer’s expectations.

5. As a consumer, what things do you consider in judging the quality of cookies you buy
in a supermarket?
As a consumer everytime I buy cookies I prefer that the cookies are not broken.
Also those cookies with natural ingredients would be more enticing to try. The proper
labeling which has a description of ingredients, calories,fat and sugar counting,
expiration and manufacturing dates and the overall packaging is also a factor. Outer
appearance tells a lot about the product so if it catches the customers’ attention then it
is a good food.

6. What advantages and what limitations stem from the company’s not using
preservatives in cookies?

Not using preservatives, the product would appeal more to customers, as more
people now are health-conscious not only for older people but most especially to
parents who are likely to give healthy foods to their young children. It would also lessen
the costs of the company, since fewer ingredients are needed. On the other hand, by
Regoris, Roderica A.

not using preservatives limits the shelf life of the cookies th reason why mainly they
based on quantity of orders they received.

7. Briefly describe the company’s strategy.

Mainly, the company focuses on providing healthy and high quality cookies that
appeal to a particular market niche. The company also centers on its customers and
employees. They remain a town oriented business that keeps its employees on even at
the cost of improved production. Through this, the company earned the customer’s and
its employees trust to continuously support the business in the market.