This consultative report Below focuses on a number of subjects which can be split into two parts namely Part 1 and Part 2. Where Part 1 will investigate the following aspects;
- The input-transformation output model of Exquisite Handmade Cakes which will then be used to contextualise performance dimensions of the firm
- A map of the process for order fulfillment including the manufacture of the ‘individually wrapped tray-bake’ cake
- A Construction of an upstream and downstream supply network diagram for EHC.
Part B will shed light on the following aspects of EHC;
- Developing a capacity and demand model (with sensitivity analysis)
- Construction of Value stream of the firms’ tray bake product and also evaluation of how lean principle could be applied to improve the firm’s productivity.
- Development of an improved strategy for the firm’s operational performance.
The input-transformation output model of Exquisite Handmade Cakes which will then be used to contextualise performance dimensions of the firm
CONTEXTUALISATION OF PERFOMANCE DIMENSIONS OF EHC
EHC is fairly flexible since they sell a variety of products, both portioned (mini-loaves) and non-portioned (cupcakes), it also has delivery vehicles which are regularly checked this indicates that the firm has an easy transportation system.
The firm also has storage facilities like fridges to freeze products for customers interested in such products. About stock the company holds ingredients and all products are made on an order basis.
The firm does festive products and supplies them to the Event-Caterer-CGS Ltd
In terms of speed EHC offers less than 7 day lead this is an indication that there production processes are relatively fast. Besides, there is efficiency in flow in service delivery.
About cost of operations the company is devoted to ensuring production of quality productions and since of it enjoys scaling of economy the cost of operations must be relatively low.
The company doesn’t compromise on quality since communication between suppliers is made to ensure delivery of quality inputs and also on the other hand quality standards are met since the company is a certified by the relevant authority in its operations (salsa) besides the employees are skilled.
On quality the company has done so well since its products fit needs of because of their long shelf-life, To increase life span and preserve quality mold inhibitor technologies are also used.Food industry are made from the firm is certified by salsa.
Fridges, freezers, baking equipment, delivery vehicles are regularly checked before packages are sent for delivery
The company besides producing a copy of other companies’ products, they also innovate new products by creating from scratch.
The company also has embraced a hand hygiene policy through swab tests.
The company is responsive through dispensation of good services to customers
Its website shows a list of products it handles, besides the company also keeps records of ingredients used in each production process.
Finally, the firm keeps records of checks.
A MAP OF THE PROCESS FOR ORDER FULFILMENT INCLUDING MANUFACTURE OF THE ‘INDIVIDUALLY WRAPPED TRAY BAKE’ CAKE PRODUCT
DOWNSTREAM SUPPLY NETWORK
VALUE STREAM MAPPING
CASE OF BATCH 12
TRAY BATCH 12
|Clock time/Wait time||11||X||6||19||44||180||X||X||3||X||2||2||2||28:52:00|
From the table above its clear that pressing has the highest waiting time while the processes melting, baking, cooling, set up had negligible waiting times.
TRAY BATCH 13
|Clock time/Wait time||7||X||7||4||X||X||48||1476||X||X||4||7||8||25.59.00|
The table above is a summary of the two tables disregarding the batch size, it’s clear that clearing has the highest waiting time while the processes melting, pressing, topping and set up had negligible waiting times.
|Clock time/Wait time||18||X||13||23||44||180||48||1476||3||X||2||9||10|
From the table above its clear that coloring had the highest waiting time while the processes melting, and set up had negligible waiting times.
Lean principle basically entails of proven tools and techniques which focus on minimizing wasteful activities and adding value to the end product so as to meet customer demands.
As far as our value stream model is concerned, it’s clear that the following activities hamper the quality provision of services and goods;
- Waiting-There is a lot of time wasted between subsequent processes, for instance, between kitting-melting-mixing-decanting, cool-topping and spreading-pressing between these stages a lot of time is wasted and this can be attributed to excessive approvals of employees from management, cross departmental resource commitments or too much dependency on others to complete a task
To address this drawback the firm should minimize unnecessary bureaucracy, conduct adequate training to employees to reduce over dependency on one employee in a task.
- Overproduction-It may also be possible is producing more than is required by the customers and thereby leading to the employees being overworked and hence fatigue resulting into delays in production.
To address this challenge the company should produce what the customers are willing and able to purchase
- Under-utilization of People-The delays between stages can be attributed also to inadequate tools in the firm e.g. machines, facilities and raw materials, people handling positions not trained for or lack of technical know-how of workers .
To address this challenge the firm should provide adequate training to employees, ensure workers have more skills so that they can be more resource
- Motion-Delays between production processes might be due to unnecessary movements due to constant review of manuals, misplaced working equipment’s or commonly used tools not within reach.
The management should ensure crucial and tools on high demand are readily available at all times to avoid inconveniences.
PART2: SECTION C
Develop an improvement strategy for EHC’s operational performance
Identify and justify the competitive priorities for improving two
Of the performance dimensions for EHC.
The competitive priorities for improving performance dimensions for EHC are;
Justification of the competing priorities for improving the performance dimensions for EHC
The company should reach out to clients directly to as opposed to using middlemen this strategy will go a long way in reducing the final selling price of the products and hence this shall attract more sales.
The company should try to add onto its own products and avoid development of other companies’ products through copying; This will boost their reputation and image, thereby attract more loyal and confidence of clients in their own products, This strategy might finally boost volume of sales for the firm in the long run.
Specify how your recommendations from section B impact the
Two chosen performance dimensions, and how you would
Measure any improvements?
How recommendation in PART 1 impact flexibility
One of the recommendations in part 1 was to reduce the number of middle men, to reduce middlemen the company will have to make maximum use of its resources such as labor and vehicles to reach out to the clients and this will see the company enjoying low costs of operation.
Measurement of Improvement
Improvement will be measured through sales turnover on a periodic basis.
Cost of operation assessment on a periodic basis.
How recommendation in PART 1 impact Dependability
The company can provide technical training to their staff so that they can have enough skills to develop the company’s products’ as opposed to the production of other company’s products.
Which might result into the poaching of employees of rival firms.
Measurement of Improvement
Improvement can be measured by level of job satisfaction
Production level assessment on a periodic basis.
WHEN DEMAND INCREASES
As demand increases capacity decreases, but a very small rate.
WHEN CAPACITY AND PRODUCTIVITY INCREASE
When productivity and capacity increase the demand declines sharply as shown above.
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