Briefly describe the cookie production process.
2. What are two ways that the company has increased productivity? Why did increasing the length of the ovens result in a faster output?
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?
4. What factors cause Lew-mark to carry minimal amounts of certain inventories? What benefits results from this policy?
5. As a consumer, what things do you consider in judging the quality of cookies you buy in a supermarket?
6. What advantages and what limitations stem from Lew-Mark's not using preservatives in cookies?
7. Briefly describe the company's strategy.
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Answers to the case study
1. The cookie production process typically involves several steps. First, the ingredients such as flour, sugar, butter, eggs, and flavorings are mixed together to form a dough. The dough is then shaped into individual cookies through processes like rolling, cutting, or molding. Once the cookies are shaped, they are baked in ovens at a specific temperature and for a certain duration. After baking, the cookies are cooled and may be decorated or packaged before being shipped out for distribution or sale.
2. Two ways that the company has increased productivity are by implementing longer ovens and optimizing the packaging process. Increasing the length of the ovens resulted in a faster output because it allowed more cookies to be baked simultaneously. By increasing the oven size, more cookies could be placed in each batch and baked together, reducing the overall baking time and increasing production efficiency. Optimizing the packaging process, such as improving the automation or streamlining the packing procedures, also contributed to increased productivity by reducing the time and effort required to package the cookies.
3. Whether the company is making the right decision by not automating the packing of cookies depends on various factors. One important consideration is the type of cookies being produced. If the cookies require delicate handling or intricate packaging, manual packing might be the better option to ensure the product quality. Additionally, if the company values the craftsmanship or personal touch associated with hand-packing, it may choose to prioritize the human element over full automation.
In terms of obligations, a company has a responsibility to its employees to provide job security and fair compensation. Automating the packing process may result in job losses for some employees, so the company should carefully consider the impact on its workforce and explore alternative employment opportunities or retraining options. It also has an obligation to the community, which may differ based on the size of the town. In a smaller town, the company may have a greater responsibility to contribute to local employment and socioeconomic development. In a larger city, the impact might be less significant, but the company should still consider its role in supporting the community.
The size of the company can also be a factor. Larger companies generally have more resources and may bear a larger responsibility to invest in automation to increase efficiency and competitiveness. However, they should still consider the impact on employees and their obligations to the community.
4. Lew-mark carries minimal amounts of certain inventories due to factors like shelf life, demand fluctuations, and inventory turnover considerations. For perishable items like cookies that do not contain preservatives, their shelf life is limited, and carrying excessive inventory could lead to product wastage or obsolescence. Additionally, demand for cookies may vary depending on seasonal factors or market trends, so carrying minimal inventory allows the company to quickly adapt to changing customer demands. This approach also helps minimize the costs associated with storing and holding inventory.
The benefit of carrying minimal inventory is increased efficiency and cost savings. By reducing the amount of inventory held, the company can free up capital that would otherwise be tied up in stock. It also reduces the risk of excess or obsolete inventory, minimizing potential losses and waste.
5. As a consumer, several factors can be considered in judging the quality of cookies purchased from a supermarket. These may include:
- Taste: The flavor and texture of the cookies play a vital role in their quality. They should have a delicious taste, a pleasing texture (e.g., soft or crunchy, depending on the type of cookie), and a balanced combination of ingredients.
- Freshness: Freshness is crucial to ensure the cookies are of high quality. They should have a long shelf life and not exhibit signs of staleness, such as a rancid smell or a dry, crumbly texture.
- Ingredients: Consumers may consider the quality of the ingredients used, preferring cookies made with natural or premium ingredients rather than artificial additives or preservatives.
- Appearance: The visual appeal of the cookies can also impact perceived quality. They should be well-formed, evenly baked, and aesthetically pleasing.
- Brand reputation: Consumers may also consider the reputation of the brand or the manufacturer, as a trusted brand can often signify a commitment to quality and consistency.
6. The decision of Lew-Mark to not use preservatives in cookies carries both advantages and limitations. Some advantages include:
- Health benefits: By not using preservatives, the company may appeal to health-conscious consumers who prefer natural and unprocessed food. This can be a competitive advantage in the market.
- Freshness: Cookies without preservatives are more likely to taste fresh and have a shorter shelf life. This can be perceived as a positive attribute by consumers who value freshness and are willing to consume cookies that are free from artificial additives.
However, there are also limitations to not using preservatives:
- Shelf life: Cookies without preservatives have a shorter shelf life, which may reduce their availability and convenience.
- Distribution and storage: Not using preservatives may require special handling, storage, or transportation conditions to maintain freshness. This could increase logistical complexities and costs.
7. Lew-Mark's strategy could be described as focusing on producing high-quality, natural cookies with a personal touch. The company emphasizes using premium ingredients, avoiding preservatives, and employing traditional production methods to create cookies that stand out in terms of taste and consumer appeal. They also prioritize product freshness and strive to meet customer demands through efficient production processes and inventory management. Additionally, the company values its employees and their skills, potentially choosing to emphasize manual packing to maintain a certain level of craftsmanship and customization in their packaging process.