Another way that I live quality and value are achieved is through the strict guidelines followed to assure product freshness. Customers find exceptional value In The Brownie Baker's products not only for the amount of product they receive for their dollar, but also the consistency of a delicious fresh product. The Brownie Baker company has consistently made changes over the years to drive down costs while maintaining product quality. From changes to its production processes to the establishment of third-party business partnerships, The Brownie Baker has strives for efficiency to promote a sustainable and profitable business. Referring to the list of operations strategies in the Powering booklet, which does The Brownie Baker use? Please cite examples from the case to support each strategy that you mention. There are a multitude of operational decisions that a business must utilize Its operational management strategy. The Brownie Baker clearly uses the low-cost leadership business format in its day to day business processes. For example, The Brownie Baker has been very decisive with the distribution points for its products.
The company has identified its target markets and the consumer types for effective reduce placement that have proven successful. The company Initially defined Its Because The Brownie Baker has maintained its value and quality over the years, management has realized further market potential to expand its reach into the super market industry. To accomplish this task the company has had to also maintain cost production to keep pricing competitive. The Brownie Baker has partnered with a multitude of third-party resources to ensure efficiency, product development and maintenance of external costs.
Another way that The Brownie Baker has practiced the low-cost leadership strategy is n the internal production of its products. The company has found a number of methods to refine the production process and lower overhead expenditures with inventory control. For instance, the company used to produce food products for future sales but now has shifted too production by order process. This strategy has lowered production costs through better inventory management and reduced the likelihood of overproduction and waste. . Referring to the Powering slide which shows various patterns that can be found in historical demand, which can be observed at the Brownie Baker? How can you tell? The Brownie Baker has experienced steady growth volume in sales over the years by paying close attention to commodity price fluctuations and adapting its business strategies appropriately. Historically the company has embraced a steady stream of demand from the consumer market with only a slight deviation normally seen in the month of January.
Management has come to see this slight differentiation of the norm possibly due to lack of consumer expendable income and dieting after the holidays. This pattern in the normal trend of demand behavior would be considered an irregular variation. 4. What changes have been made in production scheduling and inventory management? Why have these changes been important? The Brownie Baker has taken advantage of several new technologies and techniques to enhance product consistency and productivity over the recent years.
Some of the most critical strategies the company has revamped are in production scheduling and inventory management. The company began this restructure in scheduling by increasing employees and modifying work hours to optimize production output and cleaning maintenance. Another significant change the company took was to reduce the overproduction of its rodents. Since The Brownie Baker's food products have a 21-day shelf life they had to remain frozen in storage until shipment. The company was lumping orders together and baking goods for future distribution; this was keeping money tied up while products waited to be shipped.
Instead, the company now prepares its shipments and freeing assets frozen in inventory and storage costs. Finally, I believe another important change to The Brownie Baker's production process was the implementation of cross-training its employees in product production. At one point the company had 10 to 20 workers that were trained to reduce one type of product. Having this new strategy in place has increased the flexibility needed for shorter production runs and increased overall efficiency. 5.
How are changes made to deal with increasing commodity prices also related to sustainability issues? (Cite three examples of changes AND how each change is related to sustainability. ) There are several measures The Brownie Baker has taken through use of low-cost leadership operational decisions to sustain itself successfully over the years. In an ever-changing external environment with some changes that are predictable and there unforeseen, a company has to consistently forecast, prepare, innovate and refine its processes.
One way that The Brownie Baker has found sustainability in the volatility of commodity prices was the establishment of Third-party partnerships with other companies to offset transportation costs due to the increase in fuel prices. The Brownie Baker has also implemented newer technologies, utilizing newer servers, computer hardware and financial software to provide them vital reports on costs. To have this current computer technology at dispose is crucial in today's business market and environment. These systems provide management the tools accessory to monitor and optimize purchases for necessary commodities in real time.
Having the ability to research cost data provides sustainability through purchase cost savings potential. Current technology and powerful software offers the company better flexibility, efficiency and purchasing effectiveness. Lastly, I believe a key element that The Brownie Baker has carefully managed is the accuracy and timeliness of its product pricing. The company has been able to sustain itself by properly adjusting its product pricing to remain not only competitive but also offset increases in commodity costs and other economic factors.