Introduction to Business
Production Control – 33 points
The Keebler elves have asked for your help in reworking their production process. They have been
around a long time, and their production facility (the ‘plant’) hasn’t changed over the years. Instead,
they’ve simply changed as they needed to and took any extra space they had and reworked it. Here
are the problems they’ve asked you for help with.
1. The Keebler elves need a change. They’ve been selling the same things for years. Using the
ideas from chapter 8, identify two things that could be done to come up with a new product.
2. After the hard work from the first question, Ernie has a brilliant new idea for a new
product. He saw Elmer trying to dip a sandwich cookie into his milk and losing
part of it. So Ernie would like to create a new Dipping Delights sandwich cookie
that is perfect for dipping in milk because it is a firmer and longer cookie. There
are a number of things that need to be done before the cookie can be advertised and
sold. Using the steps of design planning listed in figure 8.3 on page 212; identify a task that
would be completed for each part of the design process from design planning to operational
planning. (This would include product line, required capacity, and technology issues.)
3. Ernie is concerned that the tree is now getting old.
a. If the elves were going to pick a new location, list at least five factors that would be
important to them. (You may want to research site selection factors for more ideas.)
b. If you were to pick a site in Wisconsin Rapids for the new cookie factory, where would you
locate it and why?
4. There are a number of problems with the production layout. (Refer to the diagram at the end of
the case for the current layout.) Right now, the dough rises too quickly because the ovens are
right beneath them. Also, the elves spend a lot of time with wheelbarrows carrying items around
the plant. And the lawyers are concerned about the liability of the slides between floors for
quick movement. (There is also a back elevator.) Redesign the routing of the production
process using one of the layouts on page 215. Draw out your new design.
5. Their supplier is Woodland Creatures Inc., (WCI) and they’ve been a supplier since the Keebler
Elves started in 1906. It has been a rocky relationship recently, as WCI does not offer credit
terms, has delays during winter hibernation months, and generally does not deliver a top-quality
product. (There tends to be a lot of fur involved.) Outline some of the important issues in
purchasing.
6. Last year there was a major problem with inventory. In the spring, there was a buildup of
cookies that ended up spoiling. Then an oven broke, so large amounts of dough went bad before
it could be cooked. Plus, there were delays in the elevator to bring down finished products, and
the elves ate many of the packages that were targeted for delivery to grocery stores. This caused
large delays in meeting orders. Ernie is concerned about having enough inventory to operate as
well as the cost. List two ideas that would help Ernie and the elves better manage their
inventory.
7. Recently Keebler has been getting complaints about cookie quality. There seem to be many
shipments returned for problems, and the elves who package the product seem concerned about
square cookies, lumps of flour in the cookies, and a general lack of that ‘elfin’ magic that makes
the cookies so uncommonly delicious. Ernie is convinced that they need a quality control
process.
a. Explain how quality programs could help Keebler.
b. If the elves wanted to try and win the Baldrige Award for quality, what criteria would be
measured? (More information can be found at http://www.nist.gov/baldrige/).
8. Ernie is feeling a bit out of date. The elves have Blackberries and iPods, but nothing is used in the
production process. Help the elves out with three ideas of how computers and robotics could be
applied to the production of cookies.
Current Product Layout
Outside the tree:
Inside the tree are four floors for production. The
four are described below:
Fourth Floor: cooling,
packaging, and storage of
final goods
Third Floor: Mixing dough, elf
lounge, and Ernie’s office
Second floor: ovens for baking
Ground Floor: Deliveries and
storage of raw materials