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.

8. Flowcharts-

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.