BA5FE37E/BA50037E

Managing Business Operations

Data Analysis Case Study

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Table of Contents
Introduction...........................................................................................................2
Deconstructing the Bakery Process: An Analysis of Operation Management
Techniques............................................................................................................3
Evaluating the Operations Management of the Bakery: A Critique from the Five
Performance Objectives Perspective....................................................................4
Exploring Production Approaches in the Bakery: A Comparison of Product
Range and Process Structure................................................................................5
Lean Thinking in the Vineyard Hotel Bakery: Optimizing Operations through
Efficiency and Continuous Improvement.............................................................7
Evaluating Choices for Improving Bakery Operations at the Vineyard Hotel: A
Comprehensive Analysis of Possible Solutions...................................................8
Conclusion..........................................................................................................10
References...........................................................................................................11
Introduction
The Vineyard Hotel is a small operation that includes a bakery in its kitchen. The bakery
faces several challenges, including delays in getting breakfast out on time, waste, and a lack
of consistency in the production of items. The Executive Chef, Van Rooyen, is tasked with
finding a solution to these issues to improve the bakery’s performance. To address these
issues, Van Rooyen has several options, including hiring another baker, implementing a
demand tracking and scheduling system, and applying lean thinking tools. Each option has its
own set of pros and cons, and it is essential for Van Rooyen to carefully evaluate each choice
in terms of its potential impact on the bakery's performance and its feasibility in the context
of the Vineyard Hotel. An in-depth examination of the current situation in the bakery, the
options available to Van Rooyen, and the potential outcomes of each choice will be
undertaken in this case study. Ultimately, the goal is to identify the most effective solution
for the Vineyard Hotel's specific needs and constraints.
Deconstructing the Bakery Process: An Analysis of Operation
Management Techniques
The bakery process at the Vineyard Hotel is a prime example of how effective operation
management can improve the efficiency and effectiveness of a business. The bakery is
separated from the rest of the kitchen by a low wall and is accessible from only one side, with
workstations, equipment, and cooling racks lining all four sides. The layout and equipment of
the bakery are designed to maximise productivity and minimise waste (Stevenson et al.,
2014).

The bakery has three workstations: Station 1 is a long stainless steel table with two storage
shelves below the work surface, used to store a range of different bread tins, and is where all
the bread and rolls are prepared. Station 2 is similar in size to station 1 but includes a built-in
refrigeration unit, typically used to prepare pastries and sweets. Station 3 is smaller and is
used for many smaller jobs, such as decorating pastries, preparing muffins, or cutting biscotti.
 Figure 1: Operation Management used in the Bakery Process (Hamdulay & Kellas,
2017)

The bakery also has several equipments that help streamline the production process. Mixers
are used to knead bread and pastries, while the smaller mixer is used for the muffin mix,
biscuits, and cakes. The mixers are typically switched on and left to mix for between two and
twenty minutes, depending on what is being made. The bakery also has a dough divider and a
dough sheeter, which are used to create bread rolls and laminate Danish and puff pastries.
The oven is a deck oven with three decks, one on top of the other, and three large baking
trays can be placed in an oven at a time (Hamdulay & Kellas, 2017). Each compartment is set
to a slightly different temperature, with the top set at the highest (210°C) and the bottom at
the lowest temperature (190°C). The bakery's cooling racks are where items are removed
from the oven and placed to cool down. The bakery has an official list of 50 items but
produces a wider variety of items. The bakery receives product orders from different sources,
such as hotel occupancy, walk-ins, and functions. The bakers have an intuitive understanding
of how much is needed for breakfast, but the orders for functions come from a function sheet
made available to the bakers on the preceding Friday (Leona et al., 2022).

Evaluating the Operations Management of the Bakery: A

Critique from the Five Performance Objectives Perspective
Operations management is managing and overseeing the production of goods and services in
an organisation. In the context of the Vineyard Hotel bakery, the performance objectives of
operations management include efficiency, quality, speed, dependability, and flexibility.

Efficiency refers to the use of resources in the most efficient manner possible. In the case of
the Vineyard Hotel bakery, it is clear that there are some inefficiencies in the use of
resources. For example, bakers often have to work overtime to keep up with the demand for
baked goods, which results in increased labour costs.

Quality refers to the level of excellence of goods and services produced. The Vineyard Hotel
bakery prides itself on the quality of its baked goods, and the bakers are highly skilled and
experienced. However, some things could be improved with consistency in the quality of the
baked goods, especially during busy periods (Ferdows & De Meyer, 2011).

Speed refers to producing goods and services quickly and on time. The Vineyard Hotel
bakery can produce a wide variety of baked goods quickly and on time. Still, some things
could be improved when fulfilling last-minute or unexpected orders. This can lead to delays
in getting the goods to the customers.

Figure 2: Performance Objectives in Operation Management (Ferdows & De Meyer,

2011)

Dependability refers to the ability to produce goods and services on time consistently. The
Vineyard Hotel bakery can consistently produce goods on time, but there can be challenges in
meeting last-minute or unexpected orders. Additionally, walk-in customers often have long
wait times during busy periods.

Flexibility refers to the ability to adapt to changing circumstances and customer demands.
The Vineyard Hotel bakery can adapt to changing customer demands, but there are
challenges when fulfilling last-minute or unexpected orders (Vokurka & Fliedner, 2016).

Comprehensively, the operations management of the Vineyard Hotel bakery has some areas
for improvement, particularly regarding efficiency, consistency, and flexibility. The bakery
could benefit from better demand forecasting, scheduling, and inventory management to
reduce food waste and improve customer satisfaction. Additionally, investing in technology
such as a demand tracking and scheduling system could help the bakery to manage resources
better, improve efficiency, and meet customer demands.
Exploring Production Approaches in the Bakery: A Comparison
of Product Range and Process Structure
The bakery in the Vineyard Hotel operates with a mix of product ranges and process structure
production approaches. On the one hand, the bakery has a set product range of 50 different
items, as seen in Exhibit 5. These items are made regularly, and the, re is a clear
understanding of how much of each item is needed daily. However, the bakery also allows
for flexibility in its product range, as seen in the examples of the "cake of the day" and the
ability for bakers to create something unique for a "something sweet" order.

Regarding process structure, the bakery operates with batch and flow production. Batch
production is used for items made less frequently or in smaller quantities, such as the "cake of
the day" or special orders for functions. These items are made in separate batches, with all the
ingredients and steps for one specific item being completed before moving on to the next.

Batch production is an approach that focuses on producing small quantities of a variety of

products. The use of flexible machinery and a high degree of customisation characterises this
approach. In the case of the Vineyard Hotel bakery, this approach could be applied to items
that are not consistently in high demand, such as cakes, pastries, and sweets (Duray et al.,
2013).

In terms of the process structure, mass production typically follows a linear flow process, in
which raw materials are transformed into finished products in a single continuous flow. This
approach would suit the bakery's high-volume items, such as croissants, bread rolls, and
muffins. For batch production, a job-shop process would be more suitable, in which raw
materials are transformed into finished products in a flexible and adaptable manner to cater to
the order's specific requirements.

On the other hand, flow production is used for daily items, such as breakfast buffet items.
These items are produced continuously, with ingredients and steps for multiple items being
completed simultaneously. For example, while croissants are being proofed, the bakers will
begin mixing ingredients for muffins and preparing dough for mini scones.

Both of these production approaches have their advantages and disadvantages. The set
product range allows for predictability and efficiency in daily operations but can also lead to
waste if demand for certain items fluctuates. The flexibility in the product range allows for
creativity and the ability to cater to unique requests. Still, it can also lead to increased
complexity and uncertainty in production (Porter, Peck & Rollins, 2015).

However, it is also important to note that the bakery's operations management differs from its
challenges. For example, the bakery needs help predicting demand for walk-ins and balancing
the needs of hotel guests and non-resident customers. Additionally, the bakery faces waste
due to overproduction and last-minute changes in orders. The bakery could benefit from
implementing more advanced forecasting techniques and demand planning methods to
predict better and manage demand and implementing a more advanced inventory
management system to minimise waste. Furthermore, the bakery should review the process
structure and equipment layout to improve the flow of materials and information and increase
the operations' flexibility.

Lean Thinking in the Vineyard Hotel Bakery: Optimizing

Operations through Efficiency and Continuous Improvement
The Vineyard Hotel's bakery faces several operational challenges, including waste,
inefficiency, and lack of coordination among the bakers. One potential solution to these
issues is the implementation of lean thinking tools. Lean thinking is a management
philosophy that emphasises the elimination of waste and the continuous improvement of
processes. It is based on the idea that by identifying and eliminating non-value-adding
activities, businesses can increase efficiency, reduce costs, and improve customer
satisfaction. One essential tool in lean thinking is value stream mapping (VSM). This process
maps out the entire flow of materials and information required to create a product or service.
By identifying bottlenecks and areas of inefficiency in the process, VSM can help businesses
identify opportunities for improvement (Hines & Rich, 2016).

In the case of the Vineyard Hotel's bakery, VSM could be used to identify the non-value-
adding activities that are causing waste and inefficiency. For example, the bakery may need
to produce more items that are not being used, or they may need to use more resources to
prepare certain items. By identifying these issues, the bakery can focus on eliminating them
and streamlining the process. Another critical tool in lean thinking is the 5S methodology.
This system organises and maintains a clean, safe, and efficient work environment. The five
S's stand for Sort, Set in order, Shine, Standardize and Sustain. By applying this
methodology, the bakery can improve how it organises and maintains its equipment, tools
and materials, which can help reduce waste and improve efficiency. By continuously
monitoring and measuring the performance of the bakery and making minor adjustments to
the process, the bakery can improve its overall performance. This approach can help the
bakery identify minor issues before they become more significant problems, which can help
reduce the risk of downtime and improve customer satisfaction (Rother & Shook, 2013).

Another tool that could be applied in this scenario is the concept of flow. In lean thinking,
flow refers to the smooth and uninterrupted movement of materials, information, and people
through the process. Identifying bottlenecks and delays in the process makes it possible to
reduce lead time and improve overall efficiency. For example, the bakery staff could apply
the concept of flow by implementing a pull system where orders are only produced when
there is a demand. This can help to reduce the waste of overproduction and improve the speed
and responsiveness of the bakery.

Standardisation is another tool from lean thinking that can be applied in this scenario.
Standardising procedures and processes make identifying and correcting errors and training
new employees easier. For example, the bakery staff could standardise the procedures for
preparing and baking different types of bread and pastries; this will help them to produce a
consistent product every time and reduce the chances of errors (Brunsson, Rasche & Seidl,
2012).

The Vineyard Hotel's bakery can benefit significantly by applying lean thinking tools. By
using value stream mapping, 5S methodology and continuous improvement, the bakery can
eliminate waste, improve efficiency and streamline the process, leading to better customer
service and increasing sales and revenue in the long run.

Evaluating Choices for Improving Bakery Operations at the

Vineyard Hotel: A Comprehensive Analysis of Possible Solutions
As the Vineyard Hotel's executive chef, Van Rooyen faces several challenges in the bakery
operation. The bakery needs help with waste, delays in getting breakfast out on time, and
more consistency in the production of items. To address these issues, Van Rooyen has several
options available to him. In this analysis, we will evaluate each choice in terms of its
potential impact on the bakery's performance and its feasibility in the context of the Vineyard
Hotel. Firstly, Van Rooyen could consider hiring another baker to take on some of the
responsibilities of the current bakers. This would reduce the workload and pressure on the
current bakers, allowing them to focus more on getting breakfast out on time. Additionally,
having an additional baker would also help to increase the consistency of the items produced
in the bakery. However, this option has its drawbacks. Hiring another baker would require a
significant investment in terms of salary and training (Hamdulay & Kellas, 2017).
Additionally, it may be challenging to find a qualified and experienced baker willing to work
in the early hours of the morning. Secondly, Van Rooyen could consider implementing a
demand tracking and scheduling system. Such a system would help ensure that the bakery
produces the right items at the right time. This could reduce waste and increase efficiency in
the bakery. However, this option also comes with its own set of challenges. Implementing
such a system would require a significant investment in money and time. Additionally,
finding a cost-effective and tailored system to the Vineyard Hotel's specific needs may take
time and effort. Thirdly, Van Rooyen could explore the possibility of applying lean thinking
tools to the bakery operation. Lean thinking is a methodology that focuses on reducing waste
and increasing efficiency in manufacturing operations. Van Rooyen could identify areas of
waste and inefficiency in the bakery and develop strategies to address them. This could
include implementing a pull system to ensure that the bakery is only producing what is
needed or using visual management techniques to make it easier for bakers to identify and
address problems (Stevenson et al., 2013). Another possibility is to use Total Productive
Maintenance (TPM) to increase the efficiency and productivity of the bakery machines. To
improve the operations management of the Vineyard Hotel's bakery, Van Rooyen should
consider implementing several strategies. First and foremost, he must address the issue of
waste in the bakery. This can be done by implementing a lean thinking approach, which
focuses on eliminating waste and maximising efficiency in the production process.

One essential tool Van Rooyen can use in this regard is the 5S method, which involves
sorting, simplifying, sweeping, standardising, and sustaining the workplace. This can reduce
clutter and improve organisation in the bakery, making it easier for the bakers to find the
tools and equipment they need quickly. Additionally, implementing a visual management
system, such as a Kanban board, can help clarify which items need to be produced and in
what quantities. Another critical step Van Rooyen should take is improving communication
and coordination within the bakery. This can be achieved by implementing a clear and
consistent system for receiving and processing orders, such as using a function sheet to plan
production (Ginsberg & Bayat, 2012). Additionally, implementing a cross-training program
for the bakers can ensure that everyone is familiar with all aspects of the production process,
reducing the risk of delays or mistakes. Another strategy Van Rooyen should consider is
improving the process structure for items produced in the bakery. One way to do this is to
implement a process flow analysis, which involves mapping out the entire production process
and identifying bottlenecks or inefficiencies. This can help identify areas where
improvements can be made, such as streamlining the proofing and baking process or
implementing more automated equipment. Each option available to Van Rooyen has its pros
and cons. Hiring another baker would help to reduce the workload and improve consistency,
but it would be expensive. Implementing a demand tracking and scheduling system would
help to reduce waste and improve efficiency, but it would also be costly (Schroeder et al.,
2014). Applying lean thinking tools would help address waste and inefficiency issues but
require a significant investment in time and resources. Ultimately, the best approach will
depend on the specific circumstances and resources of the Vineyard Hotel. Van Rooyen must
weigh the pros and cons of each option carefully and consider how they can be implemented
in the specific context of the hotel before making a decision.

Conclusion
The Vineyard Hotel bakery demonstrates several challenges facing the operation
management of the bakery. The main issues faced by the bakery include waste, delays in
getting breakfast out on time, and a need for more consistency in the production of items.
Regarding production approaches, the bakery could benefit from adopting a more flexible,
modular production process. Additionally, applying lean thinking tools such as value stream
mapping, continuous improvement, and standardisation help reduce waste and improve
efficiency in the bakery. A combination of approaches will likely be required for the
Vineyard Hotel bakery to improve its operational management and performance. Van Rooyen
will have to weigh the costs and benefits of each option and make a decision that best suits
the specific needs and constraints of the hotel.
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