Kitchen Made Pies

1065 Words Aug 22nd, 2013 5 Pages
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
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Disadvantage: The bank is only offering a secured loan, incase Mr. Dubicki will have a mishandling of money and will suffer financial troubles in business, the bank will get his house as payment for his loan.

5. Kitchen made pies should utilize their manpower by cutting the number of their employees especially in the level of managerial positions and hiring only the incompetent and trusted individual.

Advantage of this is that the salary cost will be minimized; lesser expenses will be incurred and effective human resources.

Disadvantage of this is that the turn-over of the responsibilities will be take for granted or may not be effective and efficient in the operation.

IV. RECOMMENDATIONS

I recommend that Kitchen Made Pies should do the following in order to cope up with the financial crisis and will strengthen their products in the market:

1. Identify the best pies and top choices of the customers. Eliminate the product which is not saleable but accept special orders incase they change preference in the pies. Always update the clients to the new flavors available.

2. Kitchen Made Pies may purchase additional equipment but they should consider terminating other workers which are not useful in the operation.

3. Proper staffing and delegation of duties to his employees. Job rotation and staffs should not focus to