Bakery Business Analysis

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Finale's reputation for providing high quality desserts and maintaining above average customer service motivated members of our team to observe and analyze the bakery's operational process. Its outstanding performance was recognized when the restaurant was chosen as the Best of Boston 2000 in the dessert category and was featured on the Food Network. All team members participated in the observation and data collection process. The task time and efficiency analysis was assigned to three team members while the other two members analyzed ways to improve the process and developed the appropriate recommendations. Between Monday, March 19 and Saturday, March 24, 2001, we went to Finale on Columbus Avenue at Park Plaza. In our two visits, we observed the process for a period of one hour. During this period we timed and analyzed the efficiency of the following tasks: customer waiting (before placing the order), customer placing order, box preparation, obtaining desired dessert, wrapping and placing dessert in the box, tying the box, and payment. We also spoke to the manager, employees, and customers in order to obtain different perspectives regarding the process. Our observations were conducted at two different times, one during the bakery's peak hours (Saturday afternoon), and one during off-peak hours (Monday late-afternoon). The order taking/filling process that we observed is the last, and one of the most important processes that take place at Finale. Since it consists of providing the customer with the output of a series of processes that include ingredient selection, dessert preparation, dessert decoration and dessert presentation to the customer, it is the ultimate test regarding service and quality. This operational process seeks to provide customers with a high quality, specialty desserts of their choice in a timely manner. Finale attempts to maximize customer satisfaction. Their continuous dedication to provide customers with timely service and high quality products in a warm atmosphere gives Finale a 1. Customer waiting period 2. Customer places order 3. Preparation of box/packaging 4. Obtaining the product 5. Wrapping/ placing product in box 6. Tying box 7. Payment The process begins with the customer placing the order. Once the order is placed, employees use their skill along with materials, such as boxes, ribbon, and wax paper, to produce a finalized output with added value. The value is added to the provided materials in the following manner. The employee gets the necessary box in which the dessert will be packaged. Then, the employee's skill is used to assemble the box. The employee obtains the requested dessert(s), wraps them and places the products in the box. Again, employee skill and material (ribbon) is used to tie the box. The employee proceeds to ring up the customer's purchase. Once the process is finished, the completed output consists of a properly wrapped dessert that meets customer satisfaction. Our observation and analysis of the tasks involved in the process accounts for differences in average time per task depending on the size of the order and whether the process takes place during peak or non-peak hours. Peak time includes the hours 11am to 9pm on Friday, Saturday, and Sunday and 4pm to 7pm other weekdays for a total of 42 peak hours per week. The remaining 32 hours of operation are considered non-peak hours due to the lower volume of customers. The average task times are as follows: Peak Non-Peak 1. Customer waiting period 240 sec 60 sec 2. Customer places order 13 sec 18 sec 3. Preparation of box/packaging 3 sec 3 sec 4. Obtaining the product 15 sec 10 sec 5. Wrapping/ placing product in box 13 sec 13 sec 6. Tying box 10 sec 10 sec 7. Payment 15 sec 10 sec Based on the task times the process' throughput time during non-peak hours is 2 min. per customer and 5 min 45 sec during peak hours. The cycle time for the process is 59 sec during non-peak hours and 74 sec during peak hours. The capacity available during non-peak time is 61 customers per hour and 48 customers per hour during peak time per employee at work. There is an average of 5 employees at peak hours and 2 employees at non-peak hours. (total customers) The direct costs involved in the process include labor (average $9/hour) and cost of materials ($.25) per order). These two costs are minimized because boxes and ribbon are ordered in bulk and because of the high yield per unit of labor (worker). Including the costs mentioned the estimated unit cost is $1.07 (without product costs). The overall quality of the pr

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