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Transcript of Biddy's Bakery
Biddys Bakery founded in 1984 by Elizabeth McDoogle
Home-style bakery producing variety of baked goods sold to general public and local resturants
Growing business forced operation to purchase adjacent building
Sales expectations were not met resulting in unused space
Business students suggested the baker focus on production of McDoogle pie to be sold in large volumes at local grocery
Steven, Ron, Alex and Eric
First it took Elizabeth a while just to break even before she could make any revenue from her baking business.
Elizabeth overestimated the capacity of growth and revenue she could collect from the bakery business before taking the decision to purchase a larger facility.
If there is no careful planning, there may not be enough output capability to meet customer demands or that there could be too much capacity sitting idle.
The vision of Biddy’s Bakery was to make a number of traditionally baked goodies including a range of cakes and pies.
The chief aim was to produce and sell these baked products to local restaurants and customers.
The team of students asked to do away with all other traditional goodies and concentrate only on making McDoodle pies.
The proposal changes the initial aim and mission.
Operations management including strategy formulation should be conducted keeping in mind the vision and mission of the firm.
A strategy should be formulated and a structure should be aligned to meet up with the expectations of the formulated plan.
What would you advise Elizabeth?
Elizabeth senses that the business would be different if she accepts the proposal but does not know how and why.
Biddys Bakery has operated a home-style bakery with variety of baked goods.
Under the proposal, the bakery would shift focus to large production of McDoogle pie
Business would lose most capacity to produce other pies
Less creativity would be offered
Biddy's Bakery currently has an Intermittent operation.
To meet the proposal Biddy's Bakery would have to start using a repetitive operation.
A repetitive operation produces one or few standard products in a large volume. A intermittent operation are used to produce a wide range of products in small quantity
- stick to what she wants to do
-she needs to figure out what she wants to do. small or large
- and how she wants to handle production
What is wrong with the proposal?Why?
Type of operation