Kristen Cookie Company Term Paper Example | Topics and Well Written Essays - 2750 words

Kristen Cookie Company - Term Paper ExampleComputation of the participations optimum capacity compared to its break-even point also revealed that the present mathematical product system cannot make the company viable because optimum capacity is almost equal to break-even point. Having identified the weaknesses in Kirsten Cookie Company, recommendations were do on how to eliminate the hinder in production and how to make the company more viable and competetive in general. I. Introduction Background information Kristens Cookie Company is a company that I co-own with my roommate. We operate in an on-campus apartment with the university students and personnel as our primary market. The initial idea of the company is to bake fresh cookies to redact, using any confederacy of ingredients that the customer wants. The cookies that were ordered volition be available for pick up within an hour. Thesis of the case study This study will investigate whether the chosen production process wh ich is the made to order is the most profitable mode of production considering the kind of market that we have and the facility and opportunity available to us. During the line of achievement of its investigation, it is important to note that the composition is a start-up company and is operated and manned by its owners (me and my roommate) and as such, this limitation should be considered in the assessment of the organization to arrive at an accurate findings where reliableistic recommendations can be made where it is appropriate. II. Methodology SWOT Analysis SWOT provides an organization the environmental assessment of which it operates and thus provides the framework to con the appropriateness of Kristen Cookie Companys production process. It includes both the internal and external factors of an organizations environment. The internal factors involve the internal capability of an organization as expressed by the strength and weakness of SWOT. The external environment of an o rganization is expressed in the opportunities and threats of the SWOT (Beagrie, 2004). SWOT provides a reality microchip in determining the appropriateness of the elected production process in the initial phase of Kirsten Cookie Company. Strength Making cookies through made to order has a marketing appeal of having a product that is freshly baked right from the oven cookies. Compared to the make to stocked cookies, they are fresher and relatively tastes better. Producing cookies through made to order minimizes risk because the company keeps no inventory of its finished products that has the potential of incurring loss due to spoilage and waste when it is not sold originally its expiration date. Weakness The make to order production of cookies limits the production capacity of the business according to the number of orders which are done in almost real time (one hour before the customer can pick up their cookies). It also does not optimize production capacity and makes the facility vulnerable to loafing during off season. It is also vulnerable to opportunity cost because the companys commitment to sell freshly baked cookies which the customers can pick up afterwards an hour of ordering implies opportunity lost with demands foregone during the day (the business only operates at night and has a commitment that customers can pick up their cookies after an hour of ordering). Given the capacity of its facility, the make to order production system also has a bottleneck in the baking stage where it will compile buffers as it takes longer to bake (10 mins) before the next batch will arrive (6 mins for the 3 trays to complete).