Case on Home-Style Cookies

Questions and Answers

Que 1: Briefly describe the cookies production process?

Ans 1: The production process of bake cookies are as follows:
1. It begins with as soon as management gets orders from distributors.
2. These orders are used to schedule the production.
3. Each shift a list of the cookies to be made that day is delivered to the person in
charge of mixing.
4. That person checks the master list which indicates the ingredients needed for each
type of cookies.
5. That information is entered into the computer. Then computer determines the
amount of each ingredient needed according to the quantity of cookies ordered.
6. The ingredient are automatically sent giant mixing machine where the ingredients
are combine with proper amounts egg, water, and flavorings.
7. The ingredients have been mixed; the batter is poured into cutting machines
where it is cut into individual cookies.
8. The cookies are then dropped onto a conveyor belt and transported through one of
two ovens.
9. Filled cookies such as apple, date, and raspberry, require an additional step for
filling and folding.
10. The non-filled cookies are cut on a diagonal rather then round.
11. As the cookies emerges from the oven then are fed on to spiral cooling racks 20
feet high and 3 feet wide.
12. The cookies come off the cooling racks, workers place the cookies into boxes
manually, removing any broken or deform cookies in the process.

Que. 2 what are two ways that the company has increased productivity? Why did
increasing the length of the oven result in a faster output rate?
Ans: The two ways are as follows:
1. The diagonal cut cookies required less space than straight cut cookies and the
result is higher level of productivity.
2. The company recently increased the length of each oven by 25 feet, which also
increased the rate of production.

The increasing the length of the oven result in faster output rate because it will
increase the number of quantity of baked cookies which directly leads to the higher
production.

Que 3: What factor causes the company to carry minimal amount of certain inventories?
What benefits result from this policy?
Ans: Following are the factors that help to minimal amount of inventory:
1. A small percentage is stored temporary in the company warehouse but they must
be shipped shortly because of their limited shelf life.
 2. Labels are reordered frequently in small batches because FDA label requirement
are subject to change and the company want to get stuck with labels it can’t use.
3. The bulk silos are refilled two or three time a week, depending on how quickly
supplies are used.

Benefits are as follows of this policy:

1. Cookies are baked in a sequence that minimizes downtime for cleaning.
2. This permits the company to avoid having to clean the processing equipment
every time a different type of cookies is produced.
3. The short or temporary inventory stock will minimize the cost of handling.

Que 4: As a consumer, what things do you consider in judging the quality of cookies you
buy in a supermarket?
Ans: There are following things that we are considering while judging the quality of
cookies in supermarket:
1. The taste and consistency are satisfactory.
2. They baked the cookies in proper degree.
3. Workers are responsible for removing defective cookies when they spot them.
4. X-ray machine on the line that can detect small bits of metal filling that may have
gotten into cookies during the production process.

Que 5: What advantages and what limitations stem from the companies not using
preservatives in cookies?
Ans: The advantages are as follows:
1. It helps to restore handling cost.
2. No need to require extra workforce.
3. It helps to produce concentrate their daily requirement with full efficiency.

The disadvantages are as follows:

1. Cookies will lose their freshness.
2. It results the waste of cookies.
3. It carries costly affairs.
Que 6: Briefly describe the company’s strategies?
Ans: There are following strategies company follows:
1. The company’s only product is soft cookies of which it makes over 50 verities.
2. The cookies have no additives and preservatives- this appeal to a health
conscious segment of the market.
3. The high quality of the cookies has enabled the company to developed strong
market niche for its product.
4. They concentrate on minimal amount of scrap.

Que 7: Do you think that the company is making the right decision by not automating the
packing of cookies? Explain your reasoning. What obligations does a company have to its
employees in a situation such as this? What obligation does it have the community? Is the
town is a factor? Would it make a difference if the company was located in a large city?
Is the size of the company is factor? What if it was a larger company?
Ans: No, the company do not take the right the decision by not automating the packing of
the cookies because the automatic technique for packing the cookies save the time and
cost of production during operation.

If the companies adopt the automatic techniques for packing the cookies they have to
provide training program to operate those machines for the employees which will
increase the efficiency of production.

In this situation company reduce its workforce for efficient working of operation which
directly affects the cost of production because the machines replace the manpower of the
company.

The communities have the obligation related to the termination of employees in the
company which affect their life or source of income.

Yes, the town is a factor because its size matter the labour cost. If it is much then the
labour cost is high. If it is less then the labour cost is low.

Yes, the size of the company also matters because if it is in large production scale then it
requires more workforces for their operations.

Pragati Joshi
PGDM III Trimester
Group A