Operations Management the Cookie Production

Operations Management

The cookie production process is sequential in nature, adding each ingredient in precisely the correct amount to achieve the best mix of cookie dough before the cookies are baked. The uniformity of baking temperatures and process also ensures consistently high quality. This consistency also gives Home Style Cookies greater control over their production process as well. After the cookies are baked they travel across a cooling rack and then on to packaging. To ensure a high level of quality products are delivered to customers each cookie is inspected to ensure the highest quality is in the box.

By automating the mixing of ingredients to the specific quantities required the company was able to gain production efficiencies by not having to manually measure them, thereby saving significant time. Lengthening the ovens also led to the benefit of being able to cook more cookies at the same time, making the entire production process more efficient as well. The cooking process takes an inordinate amount of time in the process, so extending the size of the ovens equates to getting more cooked in the same amount of time.

The company is making the right decision to continually have the cookies individually packed by hand. Given their unique packaging approach, the company would spend an inordinate amount of money to replicate the process. Yet more fundamental than that is the need for quality management and quality assurance of each cookie. The company prides itself on delivering quality products so therefore keeping the workers on makes sense. The company does not however have a specific social obligation to the workers given the size of the community or its location. It does however have the ethical responsibility to be as transparent as possible with these employees given their commitment to the success of the company and the pivotal role they play. These are in fact the "face" of the company by the quality assurance they complete with each box of cookies packaged. To interrupt the morale of this group is to risk sending out inferior products, so while the company has not legal obligations, they do have an ethical one to be as honest and open with all employees as possible.

The need for being demand driven (Barrett, 2007) is what forces the company to carry as minimal a level of inventories as possible. This also supports their strategy of focusing on maximizing inventory turns as well, hence the decision to move their suppliers closer to them. All of these strategies are focused on becoming more demand-driven, creating a Demand Driven Supply Network (DDSN) (Barrett, 2007) as a result.

The most important aspects of cookies purchased are their taste, freshness and being completely packed and in one piece.

The advantages of not using preservatives is the reduction in cost structures due to not having to purchase this raw material, a more simplified production process, and the creation of a unique taste. The disadvantages are that their inventory management and distribution management strategies must focus on making deliveries as rapidly as possible in order to retain the freshness of the cookies once they get into the stores.