This case study analyzes the production processes and layouts for a bakery that produces custom cakes, pastries, and bread. It recommends:
1. A process layout for custom cakes, which are low volume and customized, requiring skilled labor and flexible equipment.
2. A product layout for pastries, which are higher volume and produced in batches of the same dough type.
3. A group layout for bread, which is a continuous, high volume process producing standardized loaves.
1. School of Management
Assignment on Case Study
This Assignment is submitted for the partial fulfillment of Internal
Assessment ( 2010 - 2012) for the Course Paper titled
Operations Management
Submitted to: Submitted by:
Prof. Ashita Agarwal Pratik Jain
MBA II Semester,
2. Section- A
Case Study
Introduction – This is the case of a multi product bakery King Soopers which is a division of
Kroger Company situated in Denever , Colorado. The company makes three types of baked
goods- customed decorated cakes, pastries & bread which are varying in volume &
customization.
Important Points –
1. The custom cake process is a low volume process, in which cakes of appropriate sizes
are prepared from a batch process as per the standard selected by the customer.
Process choice for Cakes - Job Process.
2. The pastry process is a higher volume process. In which pastries are prepared from
batch process comprising about 1000 units each batch before a change is made in
the pastry.
Process choice for pastry – Batch Process.
3. The Bread process is also higher volume process which makes 7000 loaves per hour.
It is a continuous process because production is not specific to customer orders.
Process choice for Bread – Line Process.
3. Principles of Layout- Ideal principles of layout are-
1. Principle of Minimum Travel - Men & materials should travel the shortest
distance between operations so as to avoid waste of labour & time and
minimise the cost of material handling.
2. Principle of Sequence- Machinery & operations should be arranged in a
sequence order. Product layout is the best example of sequencing.
3. Principle of Usage- Every available space should be effectively utilized, because
the land is very costly.
4. 4. Principle of Compactness- There should be relevant factors in the layout so it
looks well & compact.
5. Principle of Safety & Satisfaction- The layout should contain provisions of
safety for the workmen, their comfort & convenience so that they feel
satisfied.
6. Principle of Flexibility- The layout should be flexible that it can be changed at a
minimum cost.
7. Principle of Minimum Investment- The layout should result in savings. It can be
done by an intensive use of available facilities.
5. Extract-
1. For the first product Custom Decorated Cakes the Process Layout is most suitable
because –
It needs skilled labour for custom decorated cakes.
6. Product is highly customized.
Low volume process.
Special designs of cakes are prepared as per the standard selected by
customer.
Increases creativity among workers.
Process Layout is better because of following reasons –
Geared to produce customised work.
Flexible equipment & personnel.
Smaller investment in equipment.
Enhance job satisfaction.
Less chances from breakdown.
2. For the Pastry the Product Layout is more suitable because –
All types of pastries are made by the same dough.
Higher volume of process.
They are cut down in desired shapes after coming from the proofing room.
Change is not made before each batch of 1000 units.
Product Layout is better because of following reasons-
It highly utilize people & equipment.
It enjoys lower material handling cost.
Low cost of unskilled labour.
Less work in process inventory.
7. Simple production planning.
3. For the Bread the Group Layout is more suitable because –
It is the standardized product.
Production is not specific to customer orders.
Higher volume process 7000 loaves per hour.
It is the continuous process.
Group Layout is better because of following reasons-
It speeds up production.
Improves quality.
Reduces material handling cost.
Decrease the need for inventories.
Costing accuracy.
11. Conclusion-
Reason 1-
In my opinion the Process Layout is more suitable for the Custom Decorated
cakes because in process layout similar machines & services are located together. Job
process choice is better due to the variety of products manufactured and their low
production volumes.
Reason 2 –
For the Pastry Product Layout is suitable because Pastries are made in sequence
and production is also very high. Machines & services are also located according to the
sequence of production.
Reason 3 –
Group Layout is suitable for Bread because it is the standardized product & not
dependent on the customers order. It is the line process in which dough is prepared
regularly.