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Capacity Management at James Bakery

CASELET, OPERATIONS MANAGEMENT
ET Cases, 3 pages

Case Preview

Capacity Management at James Bakery

 

Zan Albert (Zan) and Angela Joveri (Angela), a married couple, had always wanted to work together. Based on Zan’s skills and experience in baking, the couple  planned to set up a small specialty business (bakery). They had a little capital to invest and borrowed the remaining from their family, relatives and friends.

Though traditional baking and confectionery business involved long and continuous working hours, high complexity and risk, Zan planned to do the business on a small scale that would involve only normal hours of work, for both himself and his wife. They intended to operate the business on their own, i.e., not having any employees. Zan and Angela decided to specialize in decorated fruitcakes, as Zan had gained proficiency and appreciation for his high-quality fruitcakes. However, Zan always consulted his uncle for recipes and the process. The couple worked hard to bake the samples and packaging the same. They took these samples to nearby retail outlets in the area. Though initially, there was a hint of denial in accepting the samples, the retail outlets received positive customer feedback for the cakes.......................

Teaching Note Preview

Capacity Management at James Bakery

 

Prerequisite Conceptual Understanding

  • • Jay Heizer, et al., “Supplement 6: Capacity Planning”, Operations Management, 9th Edition, Pearson Education, 2008

 

Synopsis

This caselet helps to discuss the concept of Capacity management in Operations Management. The caselet is set in the backdrop of the dilemma faced by a married couple Zan Albert (Zan) and Angela Joveri (Angela) with their bakery business venture. As, both of them wanted to work together and Zan had an experience of baking cakes the couple had set up a small specialty business, which was receiving huge orders. However, the couple was wondering how to cope up with the demand in their small facility.

Expected Learning Outcomes

  • • Basics of Capacity
  • • Capacity Management
  • • Capacity Planning

 

Teaching Plan

The Teaching Note follows a specific Teaching Plan as shown in Annexure (TN)-I given on the last page of the Teaching Note.

Assignment Questions

  • I. With the current method of working, what is the monthly and annual capacity of the business? Is the total weight (kg) of product a useful aggregate measure of capacity for this business? How does capacity compare with demand in 2014 and forecast demand in 2015?
  • II. Why did Zan have to sell stock at reduced prices in 2014? In which months do you think that happened, and explain clearly the reasons? Justify your answer with simple calculations.
  • III. Angela believes that they should try to get more business from craft shops and tourist centres. What advantages/disadvantages would this market have compared with the existing retail outlets?
  • IV. .....................

Case Analysis and Discussion

The discussion started with a brief explanation on capacity and capacity planning. Then the students were asked to do the calculations of capacity and answer the assignment questions......................

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Abstract


This caselet helps to discuss the concept of Capacity management in Operations Management. The caselet is set in the backdrop of the dilemma faced by a married couple Zan Albert (Zan) and Angela Joveri (Angela) with their bakery business venture. As, both of them wanted to work together and Zan had an experience of baking cakes the couple had set up a small specialty business, which was receiving huge orders. However, the couple was wondering how to cope up with the demand in their small facility.



Pedagogical Objectives

  • To understand and discuss the basics of Capacity
  • To debate on Capacity Management
  • To understand and analyze Capacity Planning



This Case Pack Includes:
 - Abstract
- Caselet
- Teaching Note (**ONLY for Academicians)
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