Improving Production, Cost, And Product Quality For London Pastry

Problem Statement

Discuss about the essential issues that are pertinent to the current activities of London Pastry and thereby give out advices that can be implemented and thereby improve the level of production, cost and the product quality.

The production schedule of London Pastry has been constructed in such a manner that there would be mitigation of delays in the product delivery. The shop has been looking to minimize their level of maintenance cost or the cost that has been unwanted cost so that the money can be invested and saved within the business in order to enhance the level of production by installing additional ovens in order to increase the production with respect to the demand of the muffins that is available in the market.    

The report would look to create a strategy with the help of which the level of production can be increased and the production cost can be minimized and the product quality of the product can be developed. The demand for chocolate chip muffins has increased and therefore extensive strategies needs to be created with the help of which production of the chocolate chip muffins can be enhanced and accordingly profit of the bakery shop can be enhanced.       

There are certain other issues as well and they are:

• It is essential to concentrate on the level of efficiency of the manufacturing activities prior to developing the business in order to construct a production schedule in the production office and in the retail shop as well.
• There is not enough space in the retail shop as well and therefore there has been issues with the customers sitting in the shop and having the pastry.
• It is essential to schedule all the production related machines that are available in the bakery shop so that all the machines can functioning in an effective manner.
• Recognition of the potential suppliers.

London party has been manufacturing several kinds of products in the line of pastry, cakes, desserts and muffins and the key issue that is existent with the bakery shop has been related to increasing the level of productivity, cost that is related to production and the benefits that would be received from these products. All the three elements have been taken into consideration when the end result for the company is constructed.

One of the basic issues that is pertinent to the bakery shop is the product and the maintenance cost and it is essential for the shop to go ahead with the general and the basic costs and reduce the level of costs that are miscellaneous. The repetitive costs needs to be reduced and thereby keeping in mind the ultimate objective of the shop. The shop requires additional capital ventures with the help of which the shop can meet the demands that is existent for the muffins and the other products that are offered by the shops.

The shop requires to make extensive amount of profit in order to stay alive in the business and in order to make expansion in their business line and in the product line as well, it is essential that higher level of returns are created by the shop. The profit can be generated by maintaining an effective relationship among the benefits and the costs.

Other Issues

The last objective of the company has been to increase their level of production for the muffins with respect to the demand that is available in the market. It is seen that muffin production can be increased with the help of the various new and innovative strategies. The bakery shop is in the idea of assessing the market and the rival companies in order to have an understanding of the changes that could be incorporated in order to enhance their level of operations and productivity.

In accordance to the current scenario, it is seen that the bakery shop looks to increase their level of production and profit and one of the essential ways in which this process can be initiated by making changes in the employee schedule in order to reduce the use of time and money. The money that would be saved out of it would be used for the purpose of the business and thereby increase the size of the shop so that more customers can be accommodated and thereby the extent of sales can be increased.    

The product that is chosen for the report that is related to London Pastry has been Muffins. This product has been selected because of the fact that there have been a rise in the level of demand for this product and muffins are accepted largely all over the country by all the age groups. Muffins are largely accepted by any consumers and therefore the aim of the report is to create a plan with the help of which muffin production can be increased by maintaining a reasonable cost and even maintaining quality of the muffin as well.

The bakery shop is located in London and muffins are available in the store in most of the time depending on the demand in the market.

It is necessary for an organization to undertake an assessment of the quality in a routine basis on the products that are manufactured and thereby ensuring that the products that are supplied to the customers of effective qualities. The measures that have been taken are explained as follows:

• There needs to be a certification of the products the kitchens where production is undertaken
• The material that are provided by the suppliers needs to be of effective and higher quality
• The machines that are utilized for the purpose of production needs to be certified, upgraded and must be safe and environment friendly
• Safe and secured plans and policies needs to be incorporated for the product that is being manufactured

There exists an extensive issue with respect to environment because of the fact that the machines that are used for the purpose of production may emit pollutants that may have an impact on the environment. Therefore, one of the essential objective has been to maintain a clean and safe environment and therefore various technologies like the recyclers are used by the company in order to reduce the level of waste and thereby sustain clean environment.      

Analysis

The bakery shop concentrates extensively on the cultural aspects because of the fact that the demand for muffins increases during the time of holidays and even during the time of weekends and therefore production during this time is increased. This is how the company is able to increase their level of profit.

One of the key elements with regards to the production of muffins has been the extensive use of machines and innovative technologies with the help of which level of production can be increased and thereby reducing the working time of the employees. The use of these technologies will be useful in the deliverance of quality products at a lower cost and thereby would be helpful in challenging the other bakeries who are unable to make use of these technologies and thereby reducing their sales and increasing the sales of London Pastry.      

Strength

• Proper location and the availability of demand for muffins
• The products that are manufactured are safe and have high quality
• The employees are well trained
• The products are made from natural ingredients and are healthy
• Customized product in accordance to the demand from the customers

Weakness

• Certification expenses
• The company has lower level of capital and therefore is need of loan from the banks and other financial organizations
• The tastes and the preferences of the customers may alter

Opportunities

• The shop provides a free home delivery services to their customers within 5kms of the shop.
• The shop is located within the market area and therefore has plenty of opportunities for sales and development of business

Threats

• Availability of increased level of competition in the market
• There are changes in the demands for the products from the perspective of the customers each and every month
• The alterations in the regulations and policies can have an impact on the business  
• Requires time to settle in the market because the shop is new

SL.NO.	INGREDIENTS	UNITS	PRICE
1	Flour	3/4 cup	$0.08
2	Milk	1 cup	$0.41
3	Eggs	1	$0.21
4	Frosting - Vanilla	1 tbsp	$0.03
5	Bananas	2 nos.	$0.34
				6	Unsweetened Peanut Butter	1/2 tbsp	$0.10
7	Unsweetened Cocoa	3 tbsp	$1.20
				8	Chocolate Chips	3 tbsp	$1.30

Therefore, it is seen that the cost of the overall raw materials that is required to produce 20 muffins in a batch is $ 2.94.

• Prepare the oven and the pan by arranging a rack in the oven and heat to 375° line the muffin pan with the paper coat and thereafter spray the cooking spray
• All the dry ingredients that are required in the muffin are mixed together in a bowl like the flour, baking powder, sugar and salt.
• In the same manner all the wet ingredients are mixed together like oil, egg, milk etc together  
• All the wet ingredients are poured in the dry mixture with the help of wooden spoon or a spatula that is made of rubber until it is combined
• All the additional ingredients like the chocolate chips, nuts and fruits that are required needs to be mixed in the overall mixture
• Fill the pan with the mixture and thereafter bake the ingredient till the muffin becomes golden brown  

Ingredients	Price
Flour	$0.80 per kgs.
Milk	$1.75 per ltr.
Eggs	$2.50 per dozen
Frosting - Vanilla	$0.90 per pound
Bananas	$2.04 per dozen
		Unsweetened Peanut Butter	$4.10 per kg.
Unsweetened Cocoa	$28.56 per kg.
		Chocolate Chips	$28.00 per kg.
Baking Powder	$2.50 per kg.
		Sugar	$1.30 per kg.

Inventory Master Record

Equipment 

RACK OVENS - Hobart Model No. OV500

• Cost of the oven is $33,000
• Advanced Programmable Controls
• Stainless Design

SPIRAL DOUGH MIXER - Hobart Canada Model No. HSL220?1

• Cost- $21, 619.20
• 220?pound capacity  
• High end motor

Work Tables

• It helps in the kitchen in order to create best and clean products
• Cost for one stainless steel table and its size - 30" x 48" = 200.00

Weekly Schedule
Employee Details	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday	Sunday
Production:
Employee 2	9.00 am - 1.00 pm.	9.00 am - 1.00 pm.	9.00 am - 1.00 pm.	9.00 am - 1.00 pm.	9.00 am - 1.00 pm.	9.00 am - 1.00 pm.	OFF
Employee 3	9.00 am - 1.00 pm.	9.00 am - 1.00 pm.	9.00 am - 1.00 pm.	9.00 am - 1.00 pm.	9.00 am - 1.00 pm.	9.00 am - 1.00 pm.	OFF
Retail:
Employer 6	7.00 am - 5.00 pm	7.00 am - 5.00 pm	7.00 am - 5.00 pm	7.00 am - 5.00 pm	7.00 am - 5.00 pm	7.00 am - 5.00 pm	OFF
Employer 7	7.00 am - 5.00 pm	7.00 am - 5.00 pm	7.00 am - 5.00 pm	7.00 am - 5.00 pm	7.00 am - 5.00 pm	7.00 am - 5.00 pm	OFF

	PRODUCTION			RETAIL
	Employee 2	Employee 3	Employee 5	Employee 6	Employee 7
Day 1	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 2	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	LEAVE
Day 3	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 4	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 5	LEAVE	9.00am - 1.00pm	9.00am - 1.00pm	7.00am - 5.00pm	7.00am - 5.00pm
Day 6	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 7	WEEK OFF	WEEK OFF		WEEK OFF	WEEK OFF
Day 8	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 9	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 10	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 11	9.00am - 1.00pm	LEAVE	9.00am - 1.00pm	7.00am - 5.00pm	7.00am - 5.00pm
Day 12	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 13	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	LEAVE
Day 14	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 15	WEEK OFF	WEEK OFF		WEEK OFF	WEEK OFF
Day 16	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 17	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 18	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 19	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 20	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 21	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 22	WEEK OFF	WEEK OFF		WEEK OFF	WEEK OFF
Day 23	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 24	9.00am - 1.00pm	9.00am - 1.00pm		LEAVE	7.00am - 5.00pm
Day 25	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 26	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 27	LEAVE	9.00am - 1.00pm	9.00am - 1.00pm	7.00am - 5.00pm	7.00am - 5.00pm
Day 28	9.00am - 1.00pm	9.00am - 1.00pm		7.00am - 5.00pm	7.00am - 5.00pm
Day 29	WEEK OFF	WEEK OFF		WEEK OFF	WEEK OFF
Day 30	9.00am - 1.00pm	LEAVE	9.00am - 1.00pm	7.00am - 5.00pm	7.00am - 5.00pm

DUTIES	FIRST SHIFT
Ingredients Measurement	7 am-7:10 am
Dough Preparation	7:10 am-7:40 am (Iterative)
Quality Inspection of Dough	7:40 am-7:55 am
Pre-Heat the Ovens	7:55 am-8:05 am
Start of the Production line	8:05 am- 12 noon
Monitoring of end products	12 noon-2 pm
Packaging and store	As per Production
Dispatch	As per Orders
Cleaning and Receiving of Ingredients	All over the day

IMPLEMENTATION TIMELINE
No.	Description	Date
1	An extensive research on London pastry business	10th Feb 2018
2	Estimating the demand for the product	15th Feb2018
3	Appointing new employees via interview	19th Feb2018
4	Discovering the location for London pastry	5th March 2018
5	Evaluating the target location	8th March2018
6	Selection of the final site	17th March2018
7	Approval	19th March2018
8	Interacting with the distributors	3rd April 2018
9	Communicating with the best franchise in the location	5th April 2018
10	Acquiring the equipment for the bakery	11th April 2018
12	Store Insurance	13th April 2018
13	Undertaking market research	14th April 2018
14	Advertising the shop with the help of free samples	17th April 2018
15	Customer Feedback	18th April 2018
16	Store Opening	20th April 2018

PARTICULARS	Wholesale	Retail
Ingredient Cost per Batch	$200.16	$200.16
Labor Cost for 2 employees	$15.00	$15.00
Overhead Cost	$2.25	$2.25
TOTAL PRODUCTION COST	$217.41	$217.41
Salary to Retail Employees		$4.50
TOTAL COST PER BATCH	$217.41	$221.91
COST PER UNIT	$4.35	$4.44
Add: Profit Margin	$0.75	$1.20
SELLING PRICE PER UNIT	$5.10	$5.64

There are several recommendations that can be given to London Pastry with respect to the production of muffin and each one of them are explained as follows:

• London Pastry is a new shop and has been producing various kinds of products that are related pastry and desserts and therefore the shop should concentrate on increasing their existing sales with the help of which the company can expand. The money that is saved by the company by making use of innovative technologies and by reducing cost can be used for the purpose of founding another bakery in some other region. There are several pros and cons that are associated with this line of business and the pros include investing of the money that is saved in order to make developments within the organization and the cons that is associated to the business includes the fact that as the demand for their product increases the company may not be able to increase their product as the company may not receive loan from the bank.
• It is even even recommended that the company reduces the working hours of the employees with the incorporation of new and innovative manufacturing products with the help of which the product quality can be increased and accordingly the company is able to save sufficient amount of money.
• It is recommended that the company assesses their machines from time to time and accordingly undertake maintenance of the machines with the help of which the amount of production and the quality of the product can be enhanced. The disadvantage that is related to this suggestion is that a cost may be incurred in order to train their employees and thereby the initial production of the shop will be reduced.
• The company needs to increase their overall assets in order to increase their variety of products and accordingly the goal of the company can be attained and accordingly advertisements and promotional activities can be undertaken.
• The company needs to look at the wastes that are produced on a daily basis and undertake recycling process with the help of which the environment can be secured.
• The company needs to expand their size of their shops in order to accommodate more customers in their shops and thereby increase sales and satisfy their customers. This will be useful in increasing the rivalry in the market. The expansion can be undertaken with the help of the money that is saved out of the operational activities.
• The company needs to make use of the natural and healthy ingredients with the help of which they can offer quality products and satisfy their customers. This would be effective for the company to do their business in the competitive market.
• Lastly, it is important for the company to gain the loan that is essential for them with the help of which the company would be able to produce new and innovative products and accordingly bring in new and attractive indoor activities so that the business of London Pastry can be developed.

The incorporation of these ideas and suggestions would be helpful for London Pastry to increase their level of sales with regards to the production of muffins and thereby increase their sales and revenue. In this manner the company would be able to create competitive edge and accordingly create a market share for the organization. 

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