Kitchen Made Pies
CASE ANALYSIS REPORT
OPERATIONS MANAGEMENT
KITCHEN MADE PIES
I. PROBLEM STATEMENT
• How will the company cope up with the stagnant sales of Kitchen Made Pies?
• How will the company reduce the production cost of Kitchen Made Pies and still maintain the quality of its products?
• Does purchasing new equipment really necessary for the operation and how will it be financed? Does borrowings in the bank beneficial for the company?
• Should Kitchen Made Pies limit the numbers of different types of pies made?
II. AREAS OF CONSIDERATION
1. Production Cost
-Kitchen Made Pies should cut down their production cost; they should find ways to look for alternative ingredients/mixtures without sacrificing the high quality of their products.
2. Equipment
-Equipment is really necessary in the operation. But purchasing of it will signify additional expense of the company.
3. Sales
-Increasing the sales by identifying the best pies produce and boosting it to the market through marketing strategies.
4. Funds/Budget/Cash Flow
-Kitchen Made Pies is suffering from financial problem. Having account payables to the banks and suffering from uncollectible debts to the consumers.
5. Manpower
-Utilize the people by means of job rotation. Hiring positions which is not needed in the operation.
III. ALTERNATIVE COURSE OF ACTIONS
1. To lower the production cost by means of identifying the best seller pies in the market and eliminating the pies which does not contribute higher sales, revenue and profit.
ADVANTAGE: It will lower the production cost; expenses incurred will be lessen since Kitchen Made Pies will only produce pies which are saleable and marketable in the industry. Customers may also request for the availability of the pies.
DISADVANTAGE: Limited choices
OPERATIONS MANAGEMENT
KITCHEN MADE PIES
I. PROBLEM STATEMENT
• How will the company cope up with the stagnant sales of Kitchen Made Pies?
• How will the company reduce the production cost of Kitchen Made Pies and still maintain the quality of its products?
• Does purchasing new equipment really necessary for the operation and how will it be financed? Does borrowings in the bank beneficial for the company?
• Should Kitchen Made Pies limit the numbers of different types of pies made?
II. AREAS OF CONSIDERATION
1. Production Cost
-Kitchen Made Pies should cut down their production cost; they should find ways to look for alternative ingredients/mixtures without sacrificing the high quality of their products.
2. Equipment
-Equipment is really necessary in the operation. But purchasing of it will signify additional expense of the company.
3. Sales
-Increasing the sales by identifying the best pies produce and boosting it to the market through marketing strategies.
4. Funds/Budget/Cash Flow
-Kitchen Made Pies is suffering from financial problem. Having account payables to the banks and suffering from uncollectible debts to the consumers.
5. Manpower
-Utilize the people by means of job rotation. Hiring positions which is not needed in the operation.
III. ALTERNATIVE COURSE OF ACTIONS
1. To lower the production cost by means of identifying the best seller pies in the market and eliminating the pies which does not contribute higher sales, revenue and profit.
ADVANTAGE: It will lower the production cost; expenses incurred will be lessen since Kitchen Made Pies will only produce pies which are saleable and marketable in the industry. Customers may also request for the availability of the pies.
DISADVANTAGE: Limited choices