COLLEGE OF BUSINESS AND ACCOUNTANCY

OPERATIONS MANAGEMENT

CASE ANALYSIS: HOME STYLE COOKIES

SUBMITTED BY:

CARPIO, MICAH ALEXA M.

BSMA 2-2

SUBMITTED TO:

MRS. MA. LEONORA ALUSEN

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QUESTIONS WITH ANSWERS:

1. Briefly describe the cookie production process.
➢ The company uses batch processing system, wherein the
process begins when the management gets or received a certain
quantity of orders from its distributors. This process necessitates
the company so that appropriate amount of ingredients can be
calculated for mixing process. Then Production Schedules are
made which will be based on the orders received. In the
beginning of every shift, a list of the cookies to be made that day
is delivered to the person in charge of mixing. The ingredients
needed are activated through a master list containing all the
ingredients to ensure its accuracy. Then it will be transferred to
the mixers up to the cutting machine. After that, the cookies are
sent into huge ovens then will be moved to a cooling rack.
Finally, the cookies will be packed in by the employees
manually.

2. What are the two ways that the company has increased
productivity? Why did increasing the length of the ovens result in
a faster output rate?
➢ First, the company has increased productivity by cutting the
cookies diagonally to have more space. And second, increasing
the length of each oven by 25 feet.
➢ Increasing the length of the ovens result in a faster output rate,
since it enables more cookies to be baked at once, which saves
the time, cost and energy.

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? 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?
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➢ In my perspective, the company is making a right decision by not

automating the packing of the cookies. It should resemble the
human factor in its product, as an automated process would not
be able to remove the broken or deformed cookies, which is one
of the most important steps to ensure its quality. The machine
would have put all the cookies in the box regardless of the size
or condition.
➢ All companies have a moral obligation towards their employees.
Since they would not be that successful if it was not the efforts
and hard works made by their employees. A company that is
committed to its workforce sends a message to the community
that it cares and is dedicated to its employees. People of a
community would be more proud to look out and support such
company with integrity and commitment.
➢ As the company is situated at the small town of New York City,
the size does matter. People in small town have less job
opportunities so this why if automated machine was installed it
would hamper the town badly, economically.
➢ It would definitely make a difference when the company is
located in a large city, specifically on the external threats or
factors. Since locating in a large company, also means more
competitors which will be hard for the company to reach its
quota and earn much profit.
➢ The size of the company is also a factor. The bigger the
company is, the easier for them to hook customers, as the
customers would perceive that is already established and
trusted. Aside from more customers, more workers would also
be needed, which means it will also benefit economically.

4. What factors cause the company to carry minimal amounts of

certain inventories? What benefits result from this policy?
➢ As the cookies are daily consumable product, its life span is
short. The cookies are not meant to be healthy if they were held
for longer time. Since the company is set on providing a product
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that is high quality and does not use preservatives or additives.

The policy to maintain lower inventory would save the holding
cost. As well as the need for larger storage space is not
necessary, since there is minimal inventories used, minimal
space is also utilized. Also, the chances of expiry and damage
would be avoided.

5. As a consumer what things do you consider in judging the quality

of cookies you buy in a supermarket?
➢ As a consumer, the things I consider in judging the quality of the
cookies is by its freshness. Since fresh quality cookies means it
was newly made or manufactured, which would catch more
customers. Second, the ingredients, it would be more attracting
to buy cookies if natural ingredients are used. Lastly, the
packaging, its outer appearance tells a lot about a product.

6. What advantages and what limitations stem from the company’s

not using preservatives in cookies?
➢ The advantages of not using preservatives is that the product
would appeal more to customers, as more people now are
health-conscious and was really checking upon the ingredients
used in the product. It would also lessen the costs of the
company, since fewer ingredients are used. On the contrary, not
using preservatives limits the shelf life of the cookies.

7. Briefly describes the company’s strategy.

➢ Mainly, the company focuses on providing high quality cookies
that appeal to a particular market group or sector, which is the
young and old aged group. They know what should be produced
for them. Old age people prefer less sugar as they are more
prone to diabetes and other diseases. So by not adding colors or
extra preservatives, they are focusing and caring about the
health of their target groups. The company also centers on its
customers and employees. Through this, it gives a positive effect
on its community and gains the support of the people.