Have you ever thought about manufacturing a product? Well until this point in time the thought never crossed my mind, that being said, the purpose of this work is to come up with an item to manufacture, in this case oatmeal cookies, provide information on the manufacturing process from start to finish, determine the estimated budgets for the company, classify and organize fixed and selling and administrative costs, calculate the breakeven point, examine the competition and trends that exist within the industry, and finally attempt to come to a conclusion on how to improve the bottom line and increase production.
1. Manufacturing Process
The first step in the manufacturing process would be to have at least one employee in this case that will me. The second step is to have a place to manufacture the product such as a kitchen or bakery. Third equipment must be purchased including oven, electric mixer, mixing bowl, refrigerator, cookie sheets, utensils, and packaging. The fourth step in the process is the purchase supplies, such as, butter, white sugar, brown sugar, eggs, vanilla extract, flour, baking soda, salt, ground cinnamon, and quick cooking oats. Fifth is to go through the process of making the oatmeal cookies, measure and mix correct amount of ingredients into a bowl. Sixth is the prebaking process, this includes preheating the oven, spraying pam on a cookie sheet and rolling the cookie dough into golf ball size and shape and placing them accordingly on a cookie sheet. Next in the process is baking the oatmeal cookies. Finally when finished the cookies are ready to be packed and shipped or sold.
3.Variable Cost Or Fixed Cost?
The variable manufacturing costs in the process of baking oatmeal cookies are supplies and ma...
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...st in determining whether to buy an oven or not would be cost of electricity to run 2 ovens instead of one. Currently we are paying for electricity on one oven if we buy an additional one this cost will increase, but if we decide against the purchase this cost will remain the same.
References
Beekhuizen, S. (2008). Capitalize on Consumer Trends with Cookies. Retrieved from
www.dawnfoods.com/Public/Managed/indexedfiles/BakeryWhitePaper
May200810f4.pdf
Gorton, L., & Sutton, L. (2012). How Hostess Brands Manages Manufacturing to Improve the
Bottom Line. Retrieved from www.bakingbusiness.com/Features/Company%20Profiles
/Hostess%20Brands.aspx?cck=1
Merican, T. (n.d). Capital Budgeting and Investment Analysis. Retrieved from
www.msu.edu/course/prr/371/BUDGET%20READING/Capital%20Budgeting%20%
26%20Investment%20Analysis.htm
Explanation: For our first product, the Isolation, consisting of Fries and Drinks, expected demand for the month of August is 373 units. One unit of isolation needs potato fries, cooking oil, juice powder and water, cup and straw. Total quantity for the fries would be 46,563.30 grams (Fries 125 grams/serving); this would consume a total volume of 12,404.469ml of oil (Oil 33.3ml); for the juice 4,656.33grams of powdered juice along with 5,960.10 ounces of water (Juice powder 12.5g and Water 16oz/order); total cups and straws would then be 373 pieces. In order to meet this demand for the month of August, we must be able to sell at least 16 orders per day. For the month of September, our expected demand is 380 units of Isolation (Fries and Drinks).
(MAIN POINT 1) The very first step to making the most delicious, homemade chocolate chip cookies is gathering the necessary
Market research and information about the industry is very important to the organization because it will allow the organization to position itself well in terms of sourcing chocolate raw materials and in identifying the market for its products. For example, understanding that some chocolate product purchases are seasonal, e.g., at Christmas; around Mother’s Day; and, on Valentine’s Day, allows the organization to have more product on hand and to create displays, in store, that will increase purchases and attract more customers when existing customers tell their friends about the availability of high end products, at reasonable prices, in their store.
The Darby Company is re-evaluating its current production and distribution system in order to determine whether it is cost-effective or if a different approach should be considered. The company produces meters that measure the consumption of electrical power. Currently, they produce these meters are two locations – El Paso, Texas and San Bernardino, California. The San Bernardino plant is newer, and therefore the technology is more effective, meaning that their cost per unit is $10.00, while the El Paso plant produces at $10.50. However, the El Paso plant has a higher capacity at 30,000 to San Bernardino’s 20,000. Once manufactured, the meters are sent to one of three distribution centers – Ft. Worth, Texas, Santa Fe, New Mexico and Las Vegas. Due to the proximity of El Paso to Ft. Worth, they are only plant to ship to Ft. Worth. The costs associated with each shipment are described in detail in Appendix 2.2A. From these distribution centers, meters are shipped to one of nine customer zones. The Ft. Worth center services Dallas, San Antonio, Wichita and Kansas City, the Santa Fe center services Denver, Salt Lake City, and Phoenix, and the Las Vegas center ships to Los Angeles and San Diego.
Legos are the multi-colored blocks we used as children to build creations that were only limited by our imaginations. I remember adding to my multi-colored plastic sculptor, each block putting me one step closer to the final product. The process would always entail first setting up a strong foundation, and then creating structural support, while always having a plan in the back of my mind. The outcome of which, would tower above me; to think it all began with a single block. In many ways people are similar to Legos. We are the combination of our experiences, each adding to our personas, and shaping how we view the world. Also like Legos, to have a stable and functioning final product it must have a foundation, support and a plan. I was able to establish my foundation in high school.
The World Cocoa Foundation in its report Economic Profile of the U.S. Chocolate Industry, declares that in the United States market, there are more than 400 companies that produce almost 90% of the chocolate and confectionery products in the country, while other 250 companies serve as raw material ‘suppliers to those manufacturers. Furthermore, this industry is concentrated in the northeast of the country (Pennsylvania, New Jersey, New York, Virginia), and it employs more than 68,000 people.
The aim of this report is to present and critically estimate the market strategies of an international and a local chocolate manufacturer in Austria. The analysis is carried out in three stages – macro-environment (PEST analysis), micro-environment (Porter’s Five Forces Model) and company comparison (SWOT analysis). In the end, recommendations are given for the local brand Wiener Schokolade König.
A fraction-of-a-cent cost change can represent a large dollar change in overall profitability, when selling millions of units of product a month. Managers must carefully watch per unit costs on a daily basis through the production process, while at the same time dealing with materials and output in huge quantities” (From Academic
For example: with the increase of the number of products produced, the cost of operating a machine also increase. Second we have batch level costs which is associated with batches; producing a multiple units of the same product that are processed together is called a batch. The third type is product level costs which arise from any activity in order to support the production of products. The fourth and the last type is facility level costs, this costs cannot be determined with a particular unit, product or batch; this costs are fixed with respect to batches, products and number of units produced. A single measure of volume is used for allocating costs to each service or product in traditional method for example: direct material cost, machine hours, direct labor cost and direct labor hours. A cost driver is an activity that generate costs, it can be generated by two types of costs the first is a particular machine 's running costs where the costs is driven by production volume as machine hours; the second is quality inspection costs where the cost is driven by the number of times the relevant activity occurs as the number of
First of all, gathering fresh ingredients and the correct baking utensils will make a good outcome. You should check if you have all the tools and ingredients. If not, you must go to the nearest grocery store and buy the highest-quality products. The tools you need to make the dough for the cookies are a bowl, mixer, measuring cups, wooden spoon, and a spoon. You will also need a cookie sheet and an oven. Next, you need ¾ cups of granulated sugar for the sweetness of the cookie. You need 1 cup of butter that melts very
Throughout the cost control, I have realized importance of the waste controlling and using seasonal ingredients. When we decorate, it is nice to use colorful fruit, but it rises the cost if you use them when they are not in season. Then I realized that we use lots of fresh fruit for decoration, and never concerned too much about the cost. VCC sells the baked products in lower price than outside. So we need a critical thinking about the cost as well. Otherwise, there will be no profit.
Recently the company sales was hit with a growing demand for low-carb snack bars. Customer preference has changed towards the NRG-A and NRG-B bars and so they want a product with low-carbohydrates in it. Fitter Snacker decides to put a new low-carb bars into the market because of its plans to remain in competition even though it isn’t recording any lost in sales.
Now the ingredients you will need are cups of flour, granulated sugar, butter, milk, dark chocolate, chocolate milk and a teaspoon of baking powder, salt,
In today’s confectionary industry, chocolate makes up the largest amount of sales whopping in at around $22 billion annually which accounts for over 60 percent of all candy sales. Chocolate is one of the most widely consumed products in the world, with North America being its leading consumer and followed second by Europe. All though most people do not know the unique origins and tedious process required for producing the popular treat.
The second way is to achieve low direct and indirect operating costs is gained by offering high volumes of standard products and offering basic no-frills products. Production costs are kept low by using less parts and using standard components. Limiting the number of models produced to ensure larger producti...