exercise 8
Although Allen Flavors does not typically have large projects in regard to the daily function of the company, you can consider the development to manufacturing process a project. A number of steps are taken to go from initial idea to final product. The process begins with the customer’s ideas and meeting with the sales team and developers. It then continues from there into ‘sample projects’. At this time a retainer fee is given to Allen Flavors for the lab work done to develop the final product. This is when the lab gets to work and sends samples to the customer. The customer then approves the sample and gets a purchase order in to the sales department and production. Batches are pulled from the system and the items are set into the production schedule. If ingredients are missing, the purchasing agent will source the material. When the items are complete, the product is paid for and then shipped to the customer’s bottler. In the mean time, they coordinate bottles, labels, FDA approval, production at the bottlers, etc. The initial order is a long process and there are a number of tasks that take place to achieve it. Allen Flavors does not use Gantt charts. Because the main part of the business is produced in batches, which is one process, it is not necessary. I actually would not recommend an adjustment to the process. The customers seem to be happy with the way the initial orders are handled and I am not sure changing the process would be helpful.
Friday, August 7, 2009
Tuesday, August 4, 2009
exercise 7 supply chain management
Allen Flavors usually acts as the second tier supplier. The company, specifically the purchasing agent, source raw materials such as vitamins, teas, fruit concentrates, and chemicals from other suppliers and growers. These are used in manufacturing and blending at Allen Flavors’ plant. Allen Flavors’ circumstances are unique as its path to the final customer may vary with each of their customers. Some customers are distributors or wholesale suppliers. Some customers sell directly to the consumer such as a number of coffee flavor customers. This would mean, the material is going from the supplier to the retail facility where it is added into their product and sold to the consumer. In most cases, the blended vitamins and flavors leave Allen Flavors and ship to the co-packer’s warehouse. From there they usually go directly to the retail facility or a warehouse waiting to be ordered.
The performance of Allen Flavors as far as quickly getting material out to their customers also varies. Some items are make to stock, although there are probably only about 300 items out of thousands that are make to stock. The standard lead time from Allen Flavors to bottling warehouses is 14 days plus shipping. This may also vary depending on the availability of raw materials, but for the most part this lead time is feasible. Regarding ‘delivery’, Allen Flavors is probably on time 95% of the time. As mentioned the lead time is 14 days plus shipping. Many customers do not allow for the full lead time when they are in a rush for product. Their requests are always considered, but not always possible. Flexibility once the order is placed is not always possible. Once the product has been run, it is usually not possible to increase or decrease the order. The production schedule is set a week in advance and must be adjusted to squeeze in an extra batch when an order is increased. Allen Flavors always tries to accommodate these requests however. Again time management, especially regarding the shelf life on inventory is carefully monitored by the inventory control manager. Cost is also carefully monitored by the purchasing agent and vice president of technical services.
Allen Flavors would probably benefit from process simplification. As it has grown, many customers have different paths followed regarding the supply chain. There are probably a number of ways this process can by simplified.
The performance of Allen Flavors as far as quickly getting material out to their customers also varies. Some items are make to stock, although there are probably only about 300 items out of thousands that are make to stock. The standard lead time from Allen Flavors to bottling warehouses is 14 days plus shipping. This may also vary depending on the availability of raw materials, but for the most part this lead time is feasible. Regarding ‘delivery’, Allen Flavors is probably on time 95% of the time. As mentioned the lead time is 14 days plus shipping. Many customers do not allow for the full lead time when they are in a rush for product. Their requests are always considered, but not always possible. Flexibility once the order is placed is not always possible. Once the product has been run, it is usually not possible to increase or decrease the order. The production schedule is set a week in advance and must be adjusted to squeeze in an extra batch when an order is increased. Allen Flavors always tries to accommodate these requests however. Again time management, especially regarding the shelf life on inventory is carefully monitored by the inventory control manager. Cost is also carefully monitored by the purchasing agent and vice president of technical services.
Allen Flavors would probably benefit from process simplification. As it has grown, many customers have different paths followed regarding the supply chain. There are probably a number of ways this process can by simplified.
Thursday, July 23, 2009
Class Exercise for Managing Quality and Class Exercise for Quality Control
Class Exercise for Managing Quality
For the company your team has selected, identify how the 4 dimensions of quality apply to their product or service. What quality systems do they currently have in place? Recommend some new ideas they should consider. Post your answers on your team blog.
A great quality about the nature of the industry Allen Flavors is that the customer is responsible for most of the quality of design. They are the people investing the money so often they have already done the extensive industry research and design concept. This dimension of quality, the quality of design, is handled outside the company. Although Allen Flavors develops the actual drink, they are creating it based on the customer’s specific requests. The customer then tastes different samples to see which is closest to their vision. The research and development done at Allen Flavors is someone else’s original concept.
The next dimension is extremely important to the company. Most products are made-to-order based on the customer’s specific choices. The products must be made each time to meet the customer’s specifications. Allen Flavors displays a high quality of conformance.
The availability of products is based on a number of circumstances. For the most part, Allen Flavors is able to stick to it’s two week lead time. If they have trouble sourcing the raw materials on a new product, it can take longer. The reliability of a food product can be limited. This information is always clearly listed on the specification sheets. The customer is always given this information about their products. Again, with the food industry maintainability can also be a problem. If the juice in a product goes bad and the product has ‘failed’ as the book states, there is almost never a way to still utilize the material.
Field Service is different in the food and beverage industry than some other industries. If a product in another industry is sold and then needs to be replaced, that may be easier when not dealing with high volumes of perishable items. Allen Flavors will send someone to the plant to be sure that the product is being run correctly. They have been known to reimburse a customer for a bad run at a co-packer if they feel the problem is their responsibility.
At this point in time, Allen Flavor’s control systems are well managed and maintained. As mentioned, quality is very important to the company, so meeting requirements and full filling customer needs is very important to them. They are meticulous about proper testing and documentation. I would recommend that the company try to focus on quality in other department, rather than just on R&D and production. Customer care may also be a good place to focus their attention when it comes to quality. There doesn’t seem to be a good system in place.
Class Exercise for Quality Control
Reputation and quality are important for a product so that consumers will repeat buy the product and tell others (friends, family, etc) to buy the product. The better the product, the better the reputation will be and the more repeat sales and new sales you will get.If the reputation is bad, the exact opposite happens. Customers will tell others that the product is bad and not to buy it. Not only are you losing you original customer, but they are telling potentially new customers not to buy the product either. This will end in loss of money and lower profits.Quality is similar but a little different. You will still sell products if quality is not as good as your competitors but you will not be able to sell them at top price. People do buy lower quality products because they typically cost less but if you have a high quality product; your product can be sold at a higher price which will make you more a profit. Plus, back to the reputation, you reputation will grow because you have a higher quality product.
To maintain a high level of quality Allen Flavor's takes many steps to show their customers that their facility can produce high volumes of quality product. They take quality very seriously. In order to keep it's large customers, Allen Flavors must comply to a number of outside audits of the plant. This past year, Allen Flavors hired one of the most respected 3rd party auditors in the industry to inspect their plant. Because this audit was very important to the companies integrity and reputation as a manufacturing facility, the vice president of technical services and a number of staff members spent 3 months preparing for this audit. They passed with flying colors. Customers will also send their own inspectors to the facility to ensure that the plant conditions are acceptable to industry standards. As an example, Coca cola Bottling sent an inspector last year for their own records and quality documentation.
In addition to sparatic audits, Allen Flavors has a quality control department testing all raw materials and finished products coming in and out of the facility. The Quality Assurance Manager and three of his staff members must be in the plant while production is running to make sure no batch is missed. They test the acidity of the product, and correctness. When products are not passed they are put on 'QC Hold'. They are also responsible for all paperwork certifying the quality of the material. Because of this, all raw materials must be supplied with the proper documentation so they can provide the documentation to their customers as well. Industry standard documentation includes Material Safety Data Sheets, Specification sheets, Certificate of Analysis, etc. The amount of paperwork that goes along with one product is incredible. Allen Flavors is also a Kosher facility and must also maintain acceptable conditions to fullfill the requirements of the 'OU' or Orthodox Union.
Allen Flavors is very commited to their customers and the quality of the material used in production. They take pride in their production facilities and the customers are aware of it. I believe this is certainly a key aspect to Allen Flavors success and growth.
For the company your team has selected, identify how the 4 dimensions of quality apply to their product or service. What quality systems do they currently have in place? Recommend some new ideas they should consider. Post your answers on your team blog.
A great quality about the nature of the industry Allen Flavors is that the customer is responsible for most of the quality of design. They are the people investing the money so often they have already done the extensive industry research and design concept. This dimension of quality, the quality of design, is handled outside the company. Although Allen Flavors develops the actual drink, they are creating it based on the customer’s specific requests. The customer then tastes different samples to see which is closest to their vision. The research and development done at Allen Flavors is someone else’s original concept.
The next dimension is extremely important to the company. Most products are made-to-order based on the customer’s specific choices. The products must be made each time to meet the customer’s specifications. Allen Flavors displays a high quality of conformance.
The availability of products is based on a number of circumstances. For the most part, Allen Flavors is able to stick to it’s two week lead time. If they have trouble sourcing the raw materials on a new product, it can take longer. The reliability of a food product can be limited. This information is always clearly listed on the specification sheets. The customer is always given this information about their products. Again, with the food industry maintainability can also be a problem. If the juice in a product goes bad and the product has ‘failed’ as the book states, there is almost never a way to still utilize the material.
Field Service is different in the food and beverage industry than some other industries. If a product in another industry is sold and then needs to be replaced, that may be easier when not dealing with high volumes of perishable items. Allen Flavors will send someone to the plant to be sure that the product is being run correctly. They have been known to reimburse a customer for a bad run at a co-packer if they feel the problem is their responsibility.
At this point in time, Allen Flavor’s control systems are well managed and maintained. As mentioned, quality is very important to the company, so meeting requirements and full filling customer needs is very important to them. They are meticulous about proper testing and documentation. I would recommend that the company try to focus on quality in other department, rather than just on R&D and production. Customer care may also be a good place to focus their attention when it comes to quality. There doesn’t seem to be a good system in place.
Class Exercise for Quality Control
Reputation and quality are important for a product so that consumers will repeat buy the product and tell others (friends, family, etc) to buy the product. The better the product, the better the reputation will be and the more repeat sales and new sales you will get.If the reputation is bad, the exact opposite happens. Customers will tell others that the product is bad and not to buy it. Not only are you losing you original customer, but they are telling potentially new customers not to buy the product either. This will end in loss of money and lower profits.Quality is similar but a little different. You will still sell products if quality is not as good as your competitors but you will not be able to sell them at top price. People do buy lower quality products because they typically cost less but if you have a high quality product; your product can be sold at a higher price which will make you more a profit. Plus, back to the reputation, you reputation will grow because you have a higher quality product.
To maintain a high level of quality Allen Flavor's takes many steps to show their customers that their facility can produce high volumes of quality product. They take quality very seriously. In order to keep it's large customers, Allen Flavors must comply to a number of outside audits of the plant. This past year, Allen Flavors hired one of the most respected 3rd party auditors in the industry to inspect their plant. Because this audit was very important to the companies integrity and reputation as a manufacturing facility, the vice president of technical services and a number of staff members spent 3 months preparing for this audit. They passed with flying colors. Customers will also send their own inspectors to the facility to ensure that the plant conditions are acceptable to industry standards. As an example, Coca cola Bottling sent an inspector last year for their own records and quality documentation.
In addition to sparatic audits, Allen Flavors has a quality control department testing all raw materials and finished products coming in and out of the facility. The Quality Assurance Manager and three of his staff members must be in the plant while production is running to make sure no batch is missed. They test the acidity of the product, and correctness. When products are not passed they are put on 'QC Hold'. They are also responsible for all paperwork certifying the quality of the material. Because of this, all raw materials must be supplied with the proper documentation so they can provide the documentation to their customers as well. Industry standard documentation includes Material Safety Data Sheets, Specification sheets, Certificate of Analysis, etc. The amount of paperwork that goes along with one product is incredible. Allen Flavors is also a Kosher facility and must also maintain acceptable conditions to fullfill the requirements of the 'OU' or Orthodox Union.
Allen Flavors is very commited to their customers and the quality of the material used in production. They take pride in their production facilities and the customers are aware of it. I believe this is certainly a key aspect to Allen Flavors success and growth.
Allen Flavors seems to be pretty focused on quality. Some new ideas they may want to consider are quality checks that are easy to implement and follow up, the most commonly used and well-known quality process is the plan/do/check/act (PDCA) cycle. Other processes are a takeoff of this method, much in the way that computers today are takeoffs of the original IBM system. The PDCA cycle promotes continuous improvement and should thus be visualized as a spiral instead of a closed circle.
Another popular quality improvement process is the six-step PROFIT model in which the acronym stands for:
P = Problem definition.
R = Root cause identification and analysis.
O = Optimal solution based on root cause(s).
F = Finalize how the corrective action will be implemented.
I = Implement the plan.
T = Track the effectiveness of the implementation and verify that the desired results are met.
If the desired results are not met, the cycle is repeated. Both the PDCA and the PROFIT models can be used for problem solving as well as for continuous quality improvement. In companies that follow total quality principles, whichever model is chosen should be used consistently in every department or function in which quality improvement teams are working.
Thursday, July 16, 2009
EXERCISE 4
Team 3 Joy Merkel, Donald Stralkus, Teresita Rojas, Donte Whitehead, Zanyang chen
1,The three elements of the service bundle for Allen Flavors are
Tangible Service- The actual process of the customer introducing a concept to the formulation of a specific product
Psychological Benefits- working with proffesionals who provide a secure feeling of experience and knowledge base
Pysical Goods- The actual product or flavoring. Edison, New Jersey
• Executive Administrative and Operations Offices
• Preproduction and Support Offices
• 40,000 sq ft Manufacturing Center
• Flavor Laboratory
• Research and Development Laboratory
• Analytical Laboratory
• Quality Assurance Operations
• Technical Support Office
South Plainfield, New Jersey
• Executive Sales Offices
• State of the Art Quality Assurance Laboratory
• Analytical Laboratory
• QA Laboratory
• QC Laboratory
• 85, 000 sq ft Manufacturing Center
• Nestle Distribution Center
• Allen Flavors, Inc. Distribution Center
2 On the Service Matrix, Allen Flavors falls into the customer routed cell. Allen Flavors is dedicated to the customer's needs and trys to satisfy those needs. The business processes revolve around the customer, and products are not exactly the same.
3 and 4,
Allen Flavors works under a permeable system with some customer contact. Many customers, especially ones ordering make-to-stock items, send their purchase orders in via fax or email, and do not typically meet directly with staff. Customers with ‘custom made’ beverages and flavors are encouraged to visit the facility, tour the lab, and meet the staff. The face-to-face interaction with staff may also be at the customer’s facility as our sales staff visit customer’s plants and offices as well as trade shows. Many times a representative from Allen Flavors is sent to a ‘bottling run’ for first time products. This is often a member of the laboratory staff and office staff. Members of the quality assurance department head out to bottling plants to test products as they are completed for bottling.
Regarding technology in customer care, Allen Flavors is still ‘old fashioned’ in many ways. It is not a large enough facility that you are talking to a different person each time you call in. Most employees know that they are going to speak to the same person each time that is familiar with their product and their requests. As the company grows, it is increasingly difficult for one person to manage this service; however, it does lend itself to achieving customer satisfaction. This is not a company where a customer comes in once and spends a small amount of money; Allen Flavors is a company with loyal customers that are spending a hefty penny on their product and require personal attention. In 1991 when the company began, a husband and wife team handled all aspects of the company. As it has grown to the size it is today, the same husband and wife team oversee company function. They like the idea of having a small company mentality in that sense.
Internally, the company does have focused operations. They continue to focus on customization, and this seems to be very appealing to customers as there is a high satisfaction rate with products made there.
Allen Flavors employees show great pride in their work and the products produced in the facility. One human resource manager helps to welcome employees and begin to train them on the specifics of the job. The manager then instills the importance of customer care in a facility such as this. The company offers excellent benefits and creates a comfortable work environment to keep employees happy. Allen Flavors has had customers stay with them from the beginning and customer loyalty is very important. It is easy for someone to take their finished product to another developer and have them create something very close to the original. Allen Flavors customers very rarely do that, and part of the reason is the treatment of customers by the employees.
Customers coming to Allen Flavors spend a lot of money on their raw materials blended there. They not only have to pay for that material, but also further blending and bottling. If Allen Flavors does not come through on their end, it could cost the customers even more money and aggravation. Allen Flavors takes each service recovery situation seriously and has always been able to keep customers that may not have a less than stellar experience. They guarantee products with testing by quality control employees, but if something slips through the cracks, they always take personal care to correct the problem and financially take care of the problems as well.
1,The three elements of the service bundle for Allen Flavors are
Tangible Service- The actual process of the customer introducing a concept to the formulation of a specific product
Psychological Benefits- working with proffesionals who provide a secure feeling of experience and knowledge base
Pysical Goods- The actual product or flavoring. Edison, New Jersey
• Executive Administrative and Operations Offices
• Preproduction and Support Offices
• 40,000 sq ft Manufacturing Center
• Flavor Laboratory
• Research and Development Laboratory
• Analytical Laboratory
• Quality Assurance Operations
• Technical Support Office
South Plainfield, New Jersey
• Executive Sales Offices
• State of the Art Quality Assurance Laboratory
• Analytical Laboratory
• QA Laboratory
• QC Laboratory
• 85, 000 sq ft Manufacturing Center
• Nestle Distribution Center
• Allen Flavors, Inc. Distribution Center
2 On the Service Matrix, Allen Flavors falls into the customer routed cell. Allen Flavors is dedicated to the customer's needs and trys to satisfy those needs. The business processes revolve around the customer, and products are not exactly the same.
3 and 4,
Allen Flavors works under a permeable system with some customer contact. Many customers, especially ones ordering make-to-stock items, send their purchase orders in via fax or email, and do not typically meet directly with staff. Customers with ‘custom made’ beverages and flavors are encouraged to visit the facility, tour the lab, and meet the staff. The face-to-face interaction with staff may also be at the customer’s facility as our sales staff visit customer’s plants and offices as well as trade shows. Many times a representative from Allen Flavors is sent to a ‘bottling run’ for first time products. This is often a member of the laboratory staff and office staff. Members of the quality assurance department head out to bottling plants to test products as they are completed for bottling.
Regarding technology in customer care, Allen Flavors is still ‘old fashioned’ in many ways. It is not a large enough facility that you are talking to a different person each time you call in. Most employees know that they are going to speak to the same person each time that is familiar with their product and their requests. As the company grows, it is increasingly difficult for one person to manage this service; however, it does lend itself to achieving customer satisfaction. This is not a company where a customer comes in once and spends a small amount of money; Allen Flavors is a company with loyal customers that are spending a hefty penny on their product and require personal attention. In 1991 when the company began, a husband and wife team handled all aspects of the company. As it has grown to the size it is today, the same husband and wife team oversee company function. They like the idea of having a small company mentality in that sense.
Internally, the company does have focused operations. They continue to focus on customization, and this seems to be very appealing to customers as there is a high satisfaction rate with products made there.
Allen Flavors employees show great pride in their work and the products produced in the facility. One human resource manager helps to welcome employees and begin to train them on the specifics of the job. The manager then instills the importance of customer care in a facility such as this. The company offers excellent benefits and creates a comfortable work environment to keep employees happy. Allen Flavors has had customers stay with them from the beginning and customer loyalty is very important. It is easy for someone to take their finished product to another developer and have them create something very close to the original. Allen Flavors customers very rarely do that, and part of the reason is the treatment of customers by the employees.
Customers coming to Allen Flavors spend a lot of money on their raw materials blended there. They not only have to pay for that material, but also further blending and bottling. If Allen Flavors does not come through on their end, it could cost the customers even more money and aggravation. Allen Flavors takes each service recovery situation seriously and has always been able to keep customers that may not have a less than stellar experience. They guarantee products with testing by quality control employees, but if something slips through the cracks, they always take personal care to correct the problem and financially take care of the problems as well.
Wednesday, July 15, 2009
2. Consumer Vigilantes
The article is about a select few individuals and the lengths they go through to voice complaints. The ease to voice a complaint has risen in direct correlation with the available technologies. As the way in which we get our information grows, so does the platform for people to voice their frustrations. I have used various technologies to complain when I felt unsatisfied with a product or service, as most people in today’s age have. I can empathize with the two people mentioned and their personal sagas about their dissatisfaction as we have all been in similar situations. I can also understand the importance of today’s manager to keep this in the forefront of their minds. In today’s rapid word of mouth environment, one bad transaction can spread like wild fire. Instead of a lemon sign on the lawn of generation past, today’s complaint can reach thousands in mere minutes. The rising popularity of social networking sites like Myspace and Facebook make today’s companies even more vulnerable to complaints.
As a former customer service manager with a national homebuilder subjected to J.D. Power & Associates, I can tell you I read this article with a biased opinion. Based on my experience and my former company’s stance on customer satisfaction, there are roughly 5% of the population that will not be satisfied through no fault of your efforts. It is becoming increasingly difficult to keep that small percentage of people quiet. A trend has emerged throughout corporations to cater to such acts, as mentioned in the article as Apple replacing the laptop. Most corporations believe the negative press is not worth the price, but it seems to fuel the fire as the squeaky wheels get the oil. This leads people to believe that the louder your complaint, the better. This also forces the customer service departments to focus a majority of attention on a minority of people. When the people not yelling do not get service, they tend to become annoyed, and they get rushed to the front of the line. I do not believe that ignoring dissatisfied customers is a good business practice, but I do believe companies overestimate such videos power to sway mass amounts of consumers. If anything, I believe it encourages others to make a video of their Apple laptop when it goes bad since Mr. Whitford was rewarded for defaming the company’s product.
The article is about a select few individuals and the lengths they go through to voice complaints. The ease to voice a complaint has risen in direct correlation with the available technologies. As the way in which we get our information grows, so does the platform for people to voice their frustrations. I have used various technologies to complain when I felt unsatisfied with a product or service, as most people in today’s age have. I can empathize with the two people mentioned and their personal sagas about their dissatisfaction as we have all been in similar situations. I can also understand the importance of today’s manager to keep this in the forefront of their minds. In today’s rapid word of mouth environment, one bad transaction can spread like wild fire. Instead of a lemon sign on the lawn of generation past, today’s complaint can reach thousands in mere minutes. The rising popularity of social networking sites like Myspace and Facebook make today’s companies even more vulnerable to complaints.
As a former customer service manager with a national homebuilder subjected to J.D. Power & Associates, I can tell you I read this article with a biased opinion. Based on my experience and my former company’s stance on customer satisfaction, there are roughly 5% of the population that will not be satisfied through no fault of your efforts. It is becoming increasingly difficult to keep that small percentage of people quiet. A trend has emerged throughout corporations to cater to such acts, as mentioned in the article as Apple replacing the laptop. Most corporations believe the negative press is not worth the price, but it seems to fuel the fire as the squeaky wheels get the oil. This leads people to believe that the louder your complaint, the better. This also forces the customer service departments to focus a majority of attention on a minority of people. When the people not yelling do not get service, they tend to become annoyed, and they get rushed to the front of the line. I do not believe that ignoring dissatisfied customers is a good business practice, but I do believe companies overestimate such videos power to sway mass amounts of consumers. If anything, I believe it encourages others to make a video of their Apple laptop when it goes bad since Mr. Whitford was rewarded for defaming the company’s product.
Monday, July 13, 2009
Assignment 2- team 3
Team 3 Joy Merkel, Donald Stralkus, Teresita Rojas, Donte Whitehead, Zanyang chen
What type of product flow does Allen Flavors use?
The manufacturing plant at Allen Flavors uses batch flow production in it’s plant. The plant uses lot numbers to track the material and production in the facility. This is important in the food industry. The company’s quality assurance department tests a sample from each batch before it is shipped to the bottler to assure it’s quality. If a product is recalled or there is a problem with a batch it is easier to track where the product has shipped.
The machinery used, large industrial mixers, are used for different products. Similar steps are used in each batch, but the variety may come from the actual products and amount going into each product. The company has two different kinds of customers; customers that have had a product developed and custom made for them, and customers who order from stock flavors and teas. Both are produced similarly, in batches with specific lot numbers assigned.
What type of customer order does Allen Flavors process?
Some of Allen Flavors customers are MTO, make-to-order and some are MTS, make-to-stock. About Eighty percent of their customers are make-to-order. These customers are ones that have gone through the lab to develop their specific product, and order for production runs at their co-packers and bottlers. These products are specific to their brand and are custom made for them. Other customers, such as coffee flavor customers, order from a set list of products kept in stock.
Which cell do they fall into in the process characteristics matrix?
On the Process Characteristics Matrix, Allen Flavors lands in two categories as mentioned. They fall in the Batch, Make-to-Stock and Batch, Make-to-Order category.
What are some of the factors influencing their process selection?
There are many factors that influence the process selection at a beverage manufacturer. Large amounts of products are being made and shipped every day. Lot numbers must be assigned to each batch to keep track of all. Continuous production and assembly line production would not work for Allen Flavors as much of the production is made to suit a specific need at one time. Project production would not work for the company either. These products may be manufactured once every month or every other month and are not on that large a scale, which is necessary for project production.
Can they adopt any of the mass customization methods discussed?
It would be very difficult for Allen Flavors to adopt a method such as mass customization. When a customer comes to Allen Flavors to develop a product, they are usually very particular on what they would like in their product. These products are not going in to one person’s home as some other mass customization products may be. Beverage customers have had products created specific to their requests. The amounts used in each product are very specific. As an example, a batch may ask for 115.87 lbs of Phenylalanine. With amounts as specific as this, it would be hard to utilize the mass customization process.
What type of product flow does Allen Flavors use?
The manufacturing plant at Allen Flavors uses batch flow production in it’s plant. The plant uses lot numbers to track the material and production in the facility. This is important in the food industry. The company’s quality assurance department tests a sample from each batch before it is shipped to the bottler to assure it’s quality. If a product is recalled or there is a problem with a batch it is easier to track where the product has shipped.
The machinery used, large industrial mixers, are used for different products. Similar steps are used in each batch, but the variety may come from the actual products and amount going into each product. The company has two different kinds of customers; customers that have had a product developed and custom made for them, and customers who order from stock flavors and teas. Both are produced similarly, in batches with specific lot numbers assigned.
What type of customer order does Allen Flavors process?
Some of Allen Flavors customers are MTO, make-to-order and some are MTS, make-to-stock. About Eighty percent of their customers are make-to-order. These customers are ones that have gone through the lab to develop their specific product, and order for production runs at their co-packers and bottlers. These products are specific to their brand and are custom made for them. Other customers, such as coffee flavor customers, order from a set list of products kept in stock.
Which cell do they fall into in the process characteristics matrix?
On the Process Characteristics Matrix, Allen Flavors lands in two categories as mentioned. They fall in the Batch, Make-to-Stock and Batch, Make-to-Order category.
What are some of the factors influencing their process selection?
There are many factors that influence the process selection at a beverage manufacturer. Large amounts of products are being made and shipped every day. Lot numbers must be assigned to each batch to keep track of all. Continuous production and assembly line production would not work for Allen Flavors as much of the production is made to suit a specific need at one time. Project production would not work for the company either. These products may be manufactured once every month or every other month and are not on that large a scale, which is necessary for project production.
Can they adopt any of the mass customization methods discussed?
It would be very difficult for Allen Flavors to adopt a method such as mass customization. When a customer comes to Allen Flavors to develop a product, they are usually very particular on what they would like in their product. These products are not going in to one person’s home as some other mass customization products may be. Beverage customers have had products created specific to their requests. The amounts used in each product are very specific. As an example, a batch may ask for 115.87 lbs of Phenylalanine. With amounts as specific as this, it would be hard to utilize the mass customization process.
Team 3
Apple Computer article questions
a) Deep collaboration means that the development stages for products are intertwined among the different departments for what the article labels "concurrent engineering". By designing and building products this way, different departments can get a gauge on other department's limitations and abilities. Collaboration can also be seen in the way apple developed the new iphone, Steve Jobs had the employees of Apple noodle around with touch screen technology as sort of a brain storming idea to see what they could come up with all while collaborationg with engineering to see what could be made. Another factor that has proven itself in the development of their products is that Apple does its own hardware, software, and design. This adds a synergy to the company. All ideas can be handled within the company rather than sending it out to a third party.
b) Our group found most interesting the product vision of Steve Jobs, as well as his very strict control over the company. He is mentioned in both articles as somewhat of a hands on type of manager, yet he is the CEO. He is able to see the ground level of employees while making the top manager decisions. His vision for the company is an original one. It seems Apple controls all aspects of developing their products. Most companies seem to concentrate on one thing. The traditional approach would be to let other companies develop different parts of their products. Apple has taken a bold approach and is handling everything internally. What remains to be seen, is how long will Apple continue to operate successfully, with this exclusive business model that is looked upon by traditionalists to be all wrong.
c) The iphone is special because it integrates all the existing technology into one seamless device. While the technology like texting and playing music are not new, Apple combines them in one platform that is above all, user friendly. The design of the phone is just great; we really like the big vivid screen. The idea that the hardware has been replaced by the software is great. By this we mean the touch screen. It is not fixed or rigid. The touch OS moves fluidly. Another great feature is the vertical and horizontal display. The iphone supports three different technologies as well. Clearly it's more than just a phone, becoming a super small computer that has applications developed almost daily.
Apple Computer article questions
a) Deep collaboration means that the development stages for products are intertwined among the different departments for what the article labels "concurrent engineering". By designing and building products this way, different departments can get a gauge on other department's limitations and abilities. Collaboration can also be seen in the way apple developed the new iphone, Steve Jobs had the employees of Apple noodle around with touch screen technology as sort of a brain storming idea to see what they could come up with all while collaborationg with engineering to see what could be made. Another factor that has proven itself in the development of their products is that Apple does its own hardware, software, and design. This adds a synergy to the company. All ideas can be handled within the company rather than sending it out to a third party.
b) Our group found most interesting the product vision of Steve Jobs, as well as his very strict control over the company. He is mentioned in both articles as somewhat of a hands on type of manager, yet he is the CEO. He is able to see the ground level of employees while making the top manager decisions. His vision for the company is an original one. It seems Apple controls all aspects of developing their products. Most companies seem to concentrate on one thing. The traditional approach would be to let other companies develop different parts of their products. Apple has taken a bold approach and is handling everything internally. What remains to be seen, is how long will Apple continue to operate successfully, with this exclusive business model that is looked upon by traditionalists to be all wrong.
c) The iphone is special because it integrates all the existing technology into one seamless device. While the technology like texting and playing music are not new, Apple combines them in one platform that is above all, user friendly. The design of the phone is just great; we really like the big vivid screen. The idea that the hardware has been replaced by the software is great. By this we mean the touch screen. It is not fixed or rigid. The touch OS moves fluidly. Another great feature is the vertical and horizontal display. The iphone supports three different technologies as well. Clearly it's more than just a phone, becoming a super small computer that has applications developed almost daily.
Thursday, July 9, 2009
Team 3 Joy Merkel, Donald Stralkus, Teresita Rojas, Donte Whitehead, Zanyang chen
July 9, 2009
Exercise 2- Inventory Control, Allen Flavors, Inc.
Allen Flavors, Inc. is a beverage developer and manufacturer in Edison, New Jersey. It houses production sites in four buildings where teas, energy drinks, coffee flavors and other flavors are blended for bottling and packaging. Many of these products are mainstream drinks and seen every day at the local convenience store and supermarket.
The areas maintained by the operations departments are separated into two main areas, laboratory operation and plant operation. Lab production and development and their inventory are managed separately from the plant production. Inventory of incoming and outgoing material in the plant is more closely monitored since it is on a much larger scale than the lab. Truckloads of material are constantly being delivered, used in production and picked up.
Allen Flavors uses the program Batch Masters to help manage inventory control. Batch Masters is used by the lab, production, purchasing department and inventory control to keep a better grasp on the raw material flow. The lab enters an item number for the product developed. As the ‘batches’ are pulled when orders come in, the materials is automatically deducted from the program. The purchasing agent pulls a critical report from batch masters each day to determine the new material that needs to be ordered to fulfill the outgoing orders. In the meantime, inventory control managers are adding and deducting raw materials and finished goods from the program. The company has hit a few snags along the way, but this format has generally been successful. It takes a lot of work for the plant to run smoothly on a daily basis and inventory managers in each building to monitor materials.
Allen Flavors continues to grow at a steady pace; although much of the market has suffered due to the failing economy. One of the largest beverage companies that Allen Flavors provides drinks for is expanding to the European market before the end of the year. The company’s inventory control and production have had to adjust many times to expand with the increase in size, and it will continue to grow with the changing market.
July 9, 2009
Exercise 2- Inventory Control, Allen Flavors, Inc.
Allen Flavors, Inc. is a beverage developer and manufacturer in Edison, New Jersey. It houses production sites in four buildings where teas, energy drinks, coffee flavors and other flavors are blended for bottling and packaging. Many of these products are mainstream drinks and seen every day at the local convenience store and supermarket.
The areas maintained by the operations departments are separated into two main areas, laboratory operation and plant operation. Lab production and development and their inventory are managed separately from the plant production. Inventory of incoming and outgoing material in the plant is more closely monitored since it is on a much larger scale than the lab. Truckloads of material are constantly being delivered, used in production and picked up.
Allen Flavors uses the program Batch Masters to help manage inventory control. Batch Masters is used by the lab, production, purchasing department and inventory control to keep a better grasp on the raw material flow. The lab enters an item number for the product developed. As the ‘batches’ are pulled when orders come in, the materials is automatically deducted from the program. The purchasing agent pulls a critical report from batch masters each day to determine the new material that needs to be ordered to fulfill the outgoing orders. In the meantime, inventory control managers are adding and deducting raw materials and finished goods from the program. The company has hit a few snags along the way, but this format has generally been successful. It takes a lot of work for the plant to run smoothly on a daily basis and inventory managers in each building to monitor materials.
Allen Flavors continues to grow at a steady pace; although much of the market has suffered due to the failing economy. One of the largest beverage companies that Allen Flavors provides drinks for is expanding to the European market before the end of the year. The company’s inventory control and production have had to adjust many times to expand with the increase in size, and it will continue to grow with the changing market.
Wednesday, July 8, 2009
Inventory Control, Allen Flavors, Inc.
Allen Flavors, Inc. is a beverage developer and manufacturer in Edison, New Jersey. It houses production sites in four buildings where teas, energy drinks, coffee flavors and other flavors are blended for bottling and packaging. Many of these products are mainstream drinks and seen every day at the local convenience store and supermarket.
The areas maintained by the operations departments are separated into two main areas, laboratory operation and plant operation. Lab production and development and their inventory are managed separately from the plant production. Inventory of incoming and outgoing material in the plant is more closely monitored since it is on a much larger scale than the lab. Truckloads of material are constantly being delivered, used in production and picked up.
Allen Flavors uses the program Batch Masters to help manage inventory control. Batch Masters is used by the lab, production, purchasing department and inventory control to keep a better grasp on the raw material flow. The lab enters an item number for the product developed. As the ‘batches’ are pulled when orders come in, the materials is automatically deducted from the program. The purchasing agent pulls a critical report from batch masters each day to determine the new material that needs to be ordered to fulfill the outgoing orders. In the meantime, inventory control managers are adding and deducting raw materials and finished goods from the program. The company has hit a few snags along the way, but this format has generally been successful. It takes a lot of work for the plant to run smoothly on a daily basis and inventory managers in each building to monitor materials.
Allen Flavors continues to grow at a steady pace; although much of the market has suffered due to the failing economy. One of the largest beverage companies that Allen Flavors provides drinks for is expanding to the European market before the end of the year. The company’s inventory control and production have had to adjust many times to expand with the increase in size, and it will continue to grow with the changing market.
The areas maintained by the operations departments are separated into two main areas, laboratory operation and plant operation. Lab production and development and their inventory are managed separately from the plant production. Inventory of incoming and outgoing material in the plant is more closely monitored since it is on a much larger scale than the lab. Truckloads of material are constantly being delivered, used in production and picked up.
Allen Flavors uses the program Batch Masters to help manage inventory control. Batch Masters is used by the lab, production, purchasing department and inventory control to keep a better grasp on the raw material flow. The lab enters an item number for the product developed. As the ‘batches’ are pulled when orders come in, the materials is automatically deducted from the program. The purchasing agent pulls a critical report from batch masters each day to determine the new material that needs to be ordered to fulfill the outgoing orders. In the meantime, inventory control managers are adding and deducting raw materials and finished goods from the program. The company has hit a few snags along the way, but this format has generally been successful. It takes a lot of work for the plant to run smoothly on a daily basis and inventory managers in each building to monitor materials.
Allen Flavors continues to grow at a steady pace; although much of the market has suffered due to the failing economy. One of the largest beverage companies that Allen Flavors provides drinks for is expanding to the European market before the end of the year. The company’s inventory control and production have had to adjust many times to expand with the increase in size, and it will continue to grow with the changing market.
Subscribe to:
Posts (Atom)