OPERATION MANAGEMENT IN BIG APPLE DONUTS & COFFEE PDF

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MGT 345 OPERATION MANAGEMENT TITLE: OPERATION MANAGEMENT IN BIG APPLE DONUTS & COFFEE

SUBMITTED TO: MADAM ZALEHA BINTI HASSAN

PREPARED BY: SITI ANISYAH BINTI ZAHARI 2018297164

BA111 4H

ACKNOWLEDGEMENT

First of all, I would like to thank ALLAH S.W.T and HIS messenger, Prophet Muhammad S.A.W. It is because of HIS blessing it is possible for me to finish this individual assignment. I had finally managed to finish up this individual assignment with great enthusiasm and determination. All the time spent to search and discuss ideas as well as justifying the oretical clues to drive the output were worth our effort and time, Insya-Allah.

Therefore, I would like to acknowledge with thanks, the individuals who had guided in making this assignment. Firstly, I would like to thanks to our Operation Management’s lecturer, Madam Zaleha. She had guided on how to complete this assignment. Every week in class, she always reminds and gives guideline on how to search information about this assignment. Then, I would like to thanks to all my friends who helped and shared ideas with me. They also gave me supports and advices. Lastly, I also want to thanks to my parents who always prayed well for me and giving their time to hear our problem. Thanks also to all units in UiTM Machang.

I hope my individual assignment is complete and will be receive. I had used our effort and acknowledgement to search information and ideas. Hoped my effort was worth it.

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TABLE OF CONTENT

NO.

SECTION

1.0

ABSTARCT

2.0

INTRODUCTION/COMPANY OF BACKGROUND

3.0

COMPANY ANALYSIS

PAGE 5 6-7 8-24

3.1 Product Analysis 3.1.1 History of product & idea generation 3.1.2 Types of product & price 3.1.3 Product development & PLC 3.1.4 Packaging 3.1.5 Supplier 3.2 Process Analysis 3.2.1 Process of product 3.2.2 Types of machinery & technology used 3.2.3 Types of process 3.2.4 Improvement of process 3.2.5 Cost involving machinery & raw material 3.3 Layout Analysis 3.3.1 Types of layout 3.3.2 Picture of layout with explain 3.3.3 Factors that influence layout of this organization 3.3.4 Advantages of this layout & disadvantages of this layout 3.4 Quality Analysis 3.4.1 Process of quality inspection 3.4.2 Quality improvement 3.4.3 Tool of quality benchmarking 3.4.4 Quality benchmarking 4.0

3.4.5 Practice for resolving customer complaints CONCLUSION

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3

5.0

RECOMMENDATION

26

6.0

REFERENCES

27

7.0

APPENDIX

28

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1.0 ABSTRACT

This report is an overview of BIG APPLE DONUTS & COFFEE company analysis. It is to aims to evaluate the management of resources and activities that produce and deliver goods and services. Efficient and effective operation can provide an organization with major competitive advantages since the ability to respond to customer and market requirements quickly, at low cost and with high quality, is vital to attaining profitability and growth through increased market share. Big Apple Donuts uses variety business strategy to maintain their product in the market and known by all people in the world. They also managed their workers to work harder to meet their goals. Objectives of this report are to determine Big Apple Donuts product analysis, process analysis, layout analysis and quality analysis.

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2.0 INTRODUCTION/BACKGROUND OF COMPANY

For the purpose of this report, I have chosen to analyse the operations of Big Apple Donuts & Coffee. Big Apple Donuts & Coffee’s group of companies is a subsidiary of DUSKIN CO. LTD., a Japan-based company listed on the Tokyo Stock Exchange. It was established in 1963 and is today headquartered in Osaka, Japan. The company operates its core business in 3 primary segments: 1. The Food Group segment is engaged in the sale of doughnuts, tea, cafe food and drinks, among others. 2. The Clean Care Group segment is engaged primarily in the leasing of cleaning materials and machines, cabinet towels, industrial waste cloth, water purifiers and air purification systems; the sale of daily products, cosmetics and toiletries; the provision of services including house cleaning, pest control and facility management; the leasing and sale of travel gears, baby products, leisure products, health and nursing equipment; the leasing of uniforms, as well as the sale of office coffee. 3. Another more diverse segment is engaged in the leasing of commercial equipment and automobiles, the management of hospitals, as well as the provision of insurance agency services, among others.

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The Big Apple Donuts & Coffee brand was established in Malaysia in May 2007 and later acquired in 2017 by Duskin Co. Ltd., a public listed company in Japan. Big Apple Donuts & Coffee established itself in Malaysia with the opening of its first stores at the Curve, One Utama. The Big Apple Donuts & Coffee specializes in offering ranges of donuts and beverages to people who want something different from the NORM. Current branches is about 79 store locator in whole region of Malaysia. Big Apple Donuts & Coffee company’s vision is to be a world class brand offering premium quality donuts, and to deliver a unique customer experience. BIG APPLE donuts & coffee company’s mission is to maintaining high proficiency standards in management, production and creativity, to deliver consumer experience that is unique to the brand, uncompromising approach to procuring the freshest and finest ingredients available, growing with our customers by listening to them, providing exceptional customer care and service and building a unique corporate family structure to enhance team development and productivity. BIG APPLE Donuts & Coffee offers a wide selection of premium donuts, with a range of tantalizing coffees and a charming variety of tea creations. Its exceptional donut qualities come from a unique premix formula with a carefully selected blend of over 20 imported ingredients, producing donuts known for their hallmark freshness and fluffy soft texture. Big Apple Donuts & Coffee began as a simple idea for people to come together and share their passion for donuts, and it slowly evolved into a thriving successful business built upon trust, commitment and innovation. Every day, the people at Big Apple Donuts & Coffee strive with the same passion to deliver not just great tasting donuts but a unique customer experience that encapsulates the qualities of the brand. The brand has earned numerous coveted awards namely for quality, global growth, reliable business system, top leadership and management, and for the best donut brand in the country. It is today one of the fastest growing brands in South East Asia.

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3.0 COMPANY ANALYSIS

3.1. PRODUCT ANALYSIS

3.1.1 History of product and idea generation Big Apple Donuts & Coffee was a type of private business and in the food and beverage industries. It was established in 2007 with Mike Chan as the founder of this Big Apple Donuts & Coffee. Originally, It was started when a group of young entrepreneurs which is Mike Chan and his friends dwelled on the idea of a unique food concept in Malaysia – the simple kind to have at any place and time, yet provide the ultimate sweet tooth experience. Coincidentally, they also shared a common passion for doughnuts. By the mid of 2008, Big Apple Donuts & Coffee was acknowledged as one of the fastest growing food chains in the history of the nation with already 23 stores operating nationwide, just over a year after its birth. it was indirectly turn that donut as core business for Big Apple Donut & Coffee and is one of the leading and fastest growing retail chain of premium quality doughnuts in Asia. It fell nothing short of a success phenomenon. With the customers’ waiting line spilling beyond the sidewalk, a new world experience for doughnut lovers began emerging. Today, at an average growth rate of one new store a month, Big Apple Donuts & Coffee is going global. With a tag-line of Every Piece is a Masterpiece”, Big Apple Donuts & Coffee always aims to offer something new and exciting to all doughnut lovers in Malaysia and around the world. They had open a stores in Malaysia and now days it was around 56, Thailand, Indonesia, China and Cambodia. The entrepreneur also aimed to change the local perception that the donut was just a doughnut. With their collective experiences in the food and beverage industry, they developed a unique dough mix and a delightful range of doughnuts at the lowest calorie scale possible. At the same time without compromising the quality and flavour that doughnuts fans would expect. Big Apple Donuts & Coffee specializes in offering a wide range of doughnuts and beverages to people who want something different from the norm. Because they strive to be different, their doughnuts are not the same as other brands of donuts in the market. Far from being a new concept in some parts of the world where the wheel had already been reinvented, the idea of warm and freshly baked doughnuts coupled with entertainment value (production theatre) was still a novelty in Malaysia

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3.1.2 Types of product and price What is product? Product can be determined as a tangible thing that we can see, can touch. Products offered to the market for attention, acquisition, use or consumption that can satisfy consumer’s needs or wants. When there is a mixture of services, events, persons, places, organizations, ideas we can call it as products too. Producer usually produces products to earn profits. Big Apple specializes in offering a wide range of donuts and beverages to people who want something different from norm and best of all, Big Apple donuts can be enjoyed by all cultures. There are 3 examples for those popular donuts in Big Apple. These three donuts are chosen to be the “hall of fame” in Big Apple’s website. On average, each Big Apple store churns out ¼ million donuts a month. And yet, Big Apple’s uses low-sweet dark chocolate, non-fat milk and 100% vegetable oil shortening to produce their donuts regarding to the flavors. Besides, Big Apple donuts have the lowest calories and sweetness level. They are much more concerning on the healthy problems of the consumers. And so on, their donuts are always served fresh, warm and fluffy soft. Even if you preferring to take away their donuts to enjoy at home, these donuts keep fresh for three days. Just need to microwave them for only 8 seconds, and you have fresh donuts again. This will be the one of the reasons why most of the people are prefer Big Apple. In addition, Big Apple’s ingredients and products are imported and of the highest quality, operation and hygiene practices strictly adhere to international standards and procedures. Besides, Big Apple Donuts & Coffee is a store that is selling donut, mini donuts and beverages. It has 36 donut flavours, 9 mini donuts and 22 types of beverages. Big Apple also offers some beverages like Coffee, Tea, Ice Blended, Icy special and others. The top 3 favourites of the donut was THE ALIEN and PINK TWISTER and it is recommended for the customer that are still wondering what’s for first tries. The company set the prices that match the competitors’ price which is RM2.50 per piece. When we are buying six piece of donut, the original price of six pieces donut should be RM15 but Big Apple has offered the price with RM13.50 for six pieces of the donut, which have help the customer to save up to RM1.50. When we are buying twelve piece of donut, we will be able to save RM3 compare to buy it piece per piece. This is due to practicing the fairly competition in the donut industry to meet its customers. Besides that, Big Apple Donut & Coffee Company will be able to survive although there are many strong competitors

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among them. This is due to the cost of the production. Big Apple Donut & Coffee Company offers this price in term to cover the fixed and variable costs of the business. Furthermore, Big Apple Donut & Coffee Company set the price to help the growth of the company. It offers this price for the donut in order to maximize its profits over the short period on the total output. With generating enough profit, company will be able expand its business and open more outlets in the world and position the Big Apple Donut & Coffee Company which are the most popular outlet that sell donut in the mind of consumers. In conclusion, the prices objective of Big Apple Donut & Coffee Company are match the competitors, survival and maximize the profit for company growth and price set are based on the cost, demand and the competitors. Types of product:

DONUTS

Al Moon

Almond Ring

Banana Twist

Brunelle

Candy Bop

Caramello

Co co jo

Cranberry Crown

Berry Nuts

Creamo cheese

Classic

D-Rex

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Dark King

Donutella

Dough Vinci

Hunky Chunk

Koko Kruncho

Megabite

Misu Choco

Ono Oreo

Pandan Bear

Ruby Strawberry

Snowy

Her Majesty

Mocha Delight

Pink Twister

Fling Flang

Stella Nutella

Sunny Side Up Super Cluster Sweet Dreams Sweet Spot

Swiss Robinson

The Alien

Tireomisu

White Queen

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Mini Donut

Beverages

3.1.3 Product development & PLC Just as operations managers must be prepared to develop new products, they must also be prepared to develop strategies for new and existing product. A firm, therefore should identifies products or families of products and their position in the life cycle in determining the strategy for each product. Big Apple, has four stages of its product life cycle which is introduction, growth, maturity and decline. The introduction stage is the point when the donut is being brought to the market for the first time. When the sales go up and the product is being consumed at higher rate and this can be termed as the growth stage. Maturity stage refers to a point when publicity has been increased and all people who are potential buyers have known about the product. The last stage is the decline. Here, the product starts to lose its customers. Next, Big Apple is in the maturity stage. A good number of consumers have known the product. Intensive marketing strategies have been applied and advertisements have been heightened internationally. This has so far achieved recommendable results which have put the product life cycle of Big Apple at the point of maturity in the graph. Consumers also respond in price changes of products. The falling economy also impacts on the consumption. Using these observations, Big Apple have their own competitors such as krispy creme, and dunkin donut, j.co donut. Big Apple have make a reasonable price and special offers and slight consumer prices changed the behaviour of the product life cycle graph.

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In general, for Big Apple to be able to market its products, it has to be aware of the product life cycle. It should be noted that the standard product life cycle of any product takes five phases which are development, introduction, growth, maturity and decline. The current state of Big Apple is in the maturity stage after the company put all efforts and resources in marketing and advertisements. It has achieved success due to its strong branding

3.1.4 Packaging Packaging can be say as a container or the ‘dressing’ of the products. Product can have several types of packages like bottles, can or a box. Packaging plays the most important roles to attract customers. Some of the consumers will actually buy the products just because of the packaging. At the same time, consumers will recognize their products by recognizing their packaging. So, Big Apple was using an interesting packaging just to attract their customers. They divided the packaging into 3 types, 12 pieces a box, 6 pieces a box and 3 pieces a box. Besides, labelling also play big role in packaging. Labelling refers to the tags that shown on every packaging. Producers can label any related information about its products on their packaging like nutrition facts, their pages, email, reward and others. With Big Apple’s packaging, they label up their logos, web pages, email and also every outlet of their company.

3.1.5 Supplier Suppliers form the important link within the company as every supply chain is beginning with the firms or supplier that creates value and deliver the goods and services to the end of the customer. This is because without the supplier, no one will provide them the resources needed to produce the donut. Thus, the Big Apple needed to make a good relationship with their supplier. Assume there have no supplier supply flour for the Big Apple; Big Apple would not be able to use that resource to make the donut and carry out the routine activity. If there is no donut for sale, company will lost the sales and the customers as the results. Thus, the customer will have a bad impression about the Big Apple’s company and the goodwill of the company will influenced. Furthermore, customer will switch to competitors and reduce the frequency of the visit on our company.

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3.2 PROCESS ANALYSIS

3.2.1 Process of product Big Apple sells freshly baked doughnuts and freshly brewed coffee in each franchise they conduct this process in an open kitchen where customers could see the baking and brewing processes through glass walls. This process will describe the manufacture of doughnuts in a mechanized doughnut that makes only yeast-raised doughnuts. Because yeast requires time for kneading, time to rest and additional time to rise or proof, it takes at least an hour to take dry pre-packaged mix to completed product. First, acquiring the ingredients. Big Apple that do a brisk business (making hundreds of dozens in a day) acquire mixes in bags, often as large as 50 lb (22.7 kg). Chains have the ingredients shipped to them from company warehouses within the region and the mixes are stored on the premises and used as needed. The company must shop for large quantities of perishable fresh ingredients such as eggs and milk and keep them refrigerated. Second, measuring the ingredients. A batch is referred to by weight of dry ingredients put into the mixture. The weight of the batch varies with doughnut type and amount to be made. The pre-packaged mix is poured from a bag onto a scale and the precise amount measured. Third, mixing and kneading. The flour mixture is then poured into a large mixing bowl put onto an industrial mixer and the appropriate amount of wet ingredients are added depending on weight of the batch and type of doughnut in production. The wet yeast slurry (for leavening) is mixed separately and carefully added to the flour-water mixture at this time. The dough mixer then begins its work; a large dough hook first mixes and then simulates the human kneading process, pulling and stretching, as it homogenizes the ingredients and develops the dough by forming the gluten into elongated and interlace fibers that form the basic structure of the doughnut. The mix runs on an automatic timer and the entire mixture, including the softened yeast, is kneaded together for approximately 13 minutes.

Fourth, resting the yeast. It is essential that yeast dough "rests" or simply sits for about 10 minutes after it is mechanically kneaded. As the yeast grows, it converts its food into carbon dioxide (this is called fermentation) and causes the yeast dough to rise. As the dough sits, it allows the gas to develop and the dough starts to rise, indicating the fermentation process of the yeast reacting to sugar in the mix is beginning. If this does not happen, the do...