CASE STUDY

BRUEGGER’S BAGEL BAKERY

Presented by – Shashi Kant Singh(pb1336) Ramakrishna gudi(pb13) Mittai sreelekha(pb13) Shravya (pb13)

Introduction of case

Analysis of the case

Recommended solution for the question

Use of tools and techniques for the solution

Conclusion

CONTENTS

The case deals with the “BRUEGGER’S BAGEL BAKERY” This company sells a large variety of the bagels. The bagel business is worth ₹3 billion. The bruegger’s bagel bakery is a chain bakery store having 450 stores. Most of which are having a turnover of ₹8,00,000. The company carries out the initial processing step at its plant location

while the final step of processing is done at respective stores. While the other companies in the industry are suffering from deflation in

revenue due to poor management BRUEGGER’S BAGEL BAKERY is doing well because of efficient management and its delivering quality products and high quality service.

INTRODUCTION

The BRUEGGER’S BAGEL BAKERY produces bagels of different shape, size and taste(flavour).

While the manufacturing cost of single bagel is only 10 and selling price ₹is up to 50.₹

Thus having a high profit margin. The organisation maintains high quality product by regulating the process

of manufacturing of bagel carefully at each step. It operates at minimal inventory. The company has hired skilled labour force. The company provides training for employees. Minimal wastage of resources.

Analysis Of The Case

Solutions to the problems

1Q) Bruegger’s maintains relatively little inventory at either its plants or its retail stores. List the benefits and risks of this policy.

BENEFITS RISKS

1.Least investment 1.Inability to meet high demand.

2.Minimal storage facility. 2.High cost of production.

3.Easier organisation of resources. 3.Unstanderdization of products increase the capital.

4.Minimum wastage. 4.High transportation cost.

5.Fresh products can be delivered to the customers.

5.Breakage in supply chain can lead to unavailability of the stock.

Q2: Quality is very important to Bruegger’s. a) What features of bagels do customer look at to judge their quality of bagels?

Ans: Customers judge the quality by the following factors:

a) Appearances Shape Size

Shine

b) Taste

c) Consistency

d) Service

b) At what point in the production process do worker check bagel quality?

Ans: a) Choosing suppliers for the ingredients . b) Monitoring the process at each step. c) Keeping equipment's in good working conditions. d) Watch for deformed bagels and remove them if any.

Basic ingredients are mixed together •Proper ratio of ingredients•Good quality of ingredients

Dough are transferred to machines •Cleanliness of machines•Shape of bagel should be maintained

Shipping to stores •Packing should be done properly•Temperature should be maintained while transportation

Temporarily storage •Proper handling

Boiling and baking of bagel •Temperature maintenance•Time

3) Which inventory model could be used for ordering the ingredients for bagels? which model do you think would be most appropriate for deciding how many bagels to make in a given batch.

Ans: The inventory model used can be:

a) Economic order quantity (EOQ)

b) replenishment model

1. Safety calculation

2. Reorder point

4) Bruegger’s has bagel making machine at its plants. Another possibility would be to have a bagel making machine at each store, what advantage does each alternative have?

Ans: (a) Advantage of having machine at main plant

a) less investment

b) Proper utilization of manpower

c) Less tools required

d) Recipe secret can be maintained

e) Quality, shape & size can be maintained

f) Inventory maintainance at single point/location

(b) Advantage of having machines at every retail stores:

a) Time saving.

b) Transportation cost goes down.

c) Reduced wastage and damages.

e) Can meet any demand of customer at short notice.

1) Just in time

2) Quality control

3) Inventory management

4) waste management(minimizing muda)

5) Economic order quantity

6) Replenishment model

Reorder point and

Safety calculation

Tools and techniques used

Maintaining high quality product.

Less inventory should be maintained.

Customer oriented.

Proper training to employees

Regular maintenance of machines .

Inspection should be done from time to time at every step of

the process to reduce muda.

Forecasting the demand.

Conclusion