Kane Sir's project Final

EXECUTIVE SUMMARY:

The bakery industry is a mature and strong industry. Small,privately owned bakeries have been around for centuries, and theydon’t appear to be going anywhere soon. Sure, you can buy a loafof bread or a chocolate cake at your local big box chainsupermarket, but nothing compares to the quality and taste ofthese goodies when they come fresh from the neighborhood bakery.

Like many industries, retail bakeries see rising costs infuel, health care, and other expenditures cut into their bottomline and increase the cost of doing business. However, there hasbeen an uptick in demand, including trends such as cupcake storesand gluten-free baked goods.

Despite economic worries, the industry is expanding itscustomer base while other food service sectors continue tosuffer. Consumers are now willing to spend moderately and demandhigh quality for their dollar; an equation for which retailbakeries are a solution. The most promising sector for the retailbaking is cakes. Cakes in particular are gaining ground as theeconomy rebounds.

The challenges would be category-specific. The biscuitscategory has seen rapid growth in the last few years.Implementation of packaging standardization norms appears to bethe big challenge. Volatility in input costs is expected toremain and this would add to the woes. In bread, profitabilityhas remained the focal point for some time. Players have beenlooking to increase share of value-added products while focusingon operational efficiencies linked to daily distribution. Thechallenge for cakes would be to expand the consumption ofpackaged cakes. In fact, this challenge is also a significantopportunity for this particular segment.

OBJECTIVES:

1.To understand the operation process behind running a bakery.2.To gain insight into the Inventory Planning and Operations

of Emporio.3.To study the inter-dependency between the different

operations carried out at a bakery.

CHAPTER 1: INTRODUCTION

Emporio Patisserie is a premium bakery with an ambience thatresembles international paradigms. The onset of this businessstarted in June 2012 with a sole focus to outperform and createnew standards in the F&B industry by simply exceeding FDArequirements.

Emporio Patisserie is owned and operated by Mr. NirajChinoy, a man with an immaculate and immense experience of 23years in the field of F&B (Food & Beverage). He has a knack forthis industry and thus, successfully owned and operated leadingF&B brands like Nestle Toll House Cafe, Gloria Jeans Café andGreat Wraps in the United States.

The Head Chef of Emporio Patisserie is a veteran in thefield and has a well-rounded experience of 28 years. She hasmanaged production that involves high volume setups and has sharpbusiness acumens that makes her well versed with the needs anddemands of the Indian market.

Emporio Patisserie is strategically located in Bombay Co-OpIndustrial Estate, Ghatkopar (West), which is a midpoint ofMumbai's heart, BKC and Phoenix City Mall. It's situated in avery sophisticated locality with leading pharmaceutical companiesas their neighbors and the reputed Mahindra Residential Parkbeing in its backyard.

Core Purpose:

Owners of Emporio Patisserie visualized an immense potentialin the F&B market of India and thus, they strategized to create abrand that would cater to the needs of the elite masses. With aprime focus to attain excellence, Emporio Patisserie established

state of the art kitchen and a robust distribution network, whichwould open up new avenues for leading foreign manufacturers tojoin as Partners or Master Distributors.

Emporio Patisserie will be a distinguished player in themarket because of its foresight and vision. Emporio Patisserie isin its advanced stage to launch its first brand retail store intop notch commercial towers which will eventually enhance theimage of the brand.

CHAPTER 2: DETAILS OF OPERATIONS2.1 COMPANY PROFILE

Type Private

Industry Food and Beverage

Founded Mumbai, India

Founder(s) Mr. Niraj Shinoy

Headquarters Mumbai, India

Area served All over India and International Markets

2.2 OPERATIONS PLANNING:

Operational planning is the process of linking strategicplans and objectives to tactical goals and objectives. Itdescribes milestones, conditions for success and explains how, orwhat portion of, a strategic plan will be put into operationduring a given operational period.

Operational plan for Emporio Patisserie would contain

1. MATERIAL REQUIREMENT PLANNING2. INVENTORY PLANNING3. PRODUCTION 4. PROCESS PLANNING5. PACKAGING6. DISPATCHING 7. OTHER ASPECTS

1. Material Requirement Planning:

In case of Emporio Patisserie they have separate room tostock their inventory. A special manager is assigned to have adaily check on the inventory who maintains a log sheet on dailybasis.

They have fixed suppliers anddistributors to whom they place theirorders. In case of shortage of rawmaterials they make an immediate cashpurchase and make sure that their demandis not affected. They make sure that theytake products which have a minimum of 6months validity. If any product which hasa shorter life they shall not accept thesame and return it back to the supplier.

To name a few products that they keep intheir store room as inventory:

Samrat Atta Sweetos tastener Coconut filing Orange filing Everest Kitchen King Masala

2. Inventory planning: Inventory Control is the supervision of supply, storage and

accessibility of items in order to ensure an adequate supply

Room to stockinventory

without excessive oversupply. It can also be referred as internalcontrol - an accounting procedure or system designed to promoteefficiency or assure the implementation of a policy or safeguardassets or avoid fraud and error etc.

3. Production Planning:The Emporio Bakery prepares all baked goods from scratch.

Because they use all ingredients and no preservatives, andbecause all items are sold fresh, everything is preparedaccording to a “just-in-time” schedule. The Bakery Productionmanager creates the daily production schedule based on projectedretail sales and wholesale orders. The daily production schedule,posted in the kitchen, shows what needs to be done that day andin what time-frame: number of mixes to be prepared, number of piecrusts to be sheeted, number of cookies to be baked, etc. Thedaily production schedule assigns staff and trainees to different“stations”: mixing, prepping and baking, and packaging. The dailyproduction schedule also shows which items are allocated for theBakery Café and which items are to be assembled into wholesaleorders for delivery. Emporio prepares baked goods for wholesaleat the same time they bake for the retail, taking advantage ofefficiencies of scale.

4.Process planning:

AGGREGATEPLANNING

MATERIALREQUIREMENTPLANNING

PRODUCTIONSHOP FLOORSCHEDULINGAND CONTROL

SALES AND ORDER ENTRY

DEMANDFORECASTING

CUSTOMER ANDVENDOR

Demand Forecasting:

The bakery has a one major client HUL which places an orderwith the confectionary as and when they are in need of theproducts. This order is placed 2 days prior to the expectedtime of delivery. Raw materials are already stocked. So thisis how their demand is forecasted for major clients as well assmall orders.

Aggregate Planning:

The bakery has its operation plan laid out to meet thecustomer as well as the retail outlets demands. A workforce ofabout 10 people manage the kitchen and the end products to besupplied and transported to the customers and clients. Thereis one production manager who has been responsible to makedeliveries to the customers.

INVENTORYMANAGEMENT

INVENTORY

5. Packaging:The packaging is done keeping in mind that the product is

perishable in nature and hence it has to be free from any kind ofdirt, dust or infection attack. Therefore dual packaging isfollowed and air tight packaging is done to ensure that theproduct remains fresh and taste is maintained. Also they usecalcium powder for their dry products while packaging as itincreases the shelf life of the product. The equipment used forpackaging produces more than 100 packages in less than fractionof a second per product piece. It ensures that the highestqualities of standards are maintained throughout its journey.

6. Transportation:The bakery uses its on transportation vehicle that is it

owns trucks for the purpose of transportation. This enables themto make sure that the quality and the temperature of the productis maintained. It doesn’t outsource the transportation to anothercompany to transport the products. The truck is always present atthe bakery to deliver the products as per the delivery schedule.Thus in case of breakdown, the bakery its self responsible toensure that it provides another truck to ensure that the productsreach the destination on time, without any delay. As the bakeryhas its own means of transportation, the problem of carrying theproducts with several other products of different companies isavoided. Hence, the quantum of goods getting damaged anddestroyed products is low. The truck waits till all the productsare properly loaded on the vehicle.

Baked products such as Cakes and Pizza's require carefulhandling when they are being transported. If bakery products getdamaged in transit, there is no opportunity to return the productto the supplier for re-pack & re-supply. The customer loses outthrough lack of product availability.

They have their own means of transport which serves variousfunctions, including:

matching the requirements of individual consumers to theoutputs of various producers

standardization to improve the efficiency of the system holding inventory to increase market response and lower

transportation costs Physical distribution of products to ensure that they

are available for customers to purchase on demand.

All bakery products and their ingredients are stored,handled, transported, and kept in such manner that they areprotect them from spoilage, vermin, contamination, disease.

7. Other aspects:

Equipment:

Emporio Bakery operation being an ongoingprocess, there is automation. There is amajor equipment for their currentlocation and the machine is checked everymonth for service. There is one DeckOven, which has 2 parts, 1 Rack Oventrolley ( 10-14 trays) and 1 flourmachine. There is 1 fridge where all thefrozen items are kept and the workforce personally check thetemperature of the fridge to make sure everything is ok.

Advertising and Marketing:

Deck Oven

Flour Machine Rack Oven Trolley

Emporio does not believe in advertising itself aggressivelythrough banners, hoardings and other means of promotions. Theonly way they use to market their products is word of mouth andfree samples because they believe that their quality will speakfor itself.

Quality Control:

Quality is an extremely important part of Emporio PatisserieBakery’s business and they take it very seriously. It has anumber of quality assurance procedures in place to protect thequality of their products.

Their quality assuranceprogram begins at the frontdoor and continues untiltheir customers use theirproducts. All employees atEmporio Patisserie Bakery aretrained on Good ManufacturingPractices and are requiredannually to take a refreshercourse. Their qualityassurance department isresponsible for implementing and monitoring their receivingguidelines, which record raw materials and review the material’smode of transportation, ensuring that the ingredients they usemeet their quality standards. Their production teams track allingredient lot numbers so that if an ingredient recall shouldoccur, they have the ability to notify their customers withinminutes. In addition to implementing food safety programs, theQuality Assurance Manager checks the temperatures of theircoolers, freezers and ovens throughout the day. The manager alsochecks the condition and shelf life of all of their perishableingredients in inventory to ensure quality. Ingredients are alsochecked for temperature while being used in the processing area.

Emporio Patisserie Bakery has a program, implemented bytheir Quality Control Department, to ensure that their productsmeet all of their specifications including size, the weight,color and texture. The quality control manager and their

production supervisors walk the processing areas constantly toensure that all product specifications are met. It is importantto us that their customers get the high quality product they wantdelivered to them when they want it.

Controlling quality may be achieved by: Inspection of raw materials to ensure that no poor quality

ingredients are used. Carrying out checks on the process to ensure that the

ingredients and temperature and time of baking are correct.Inspecting the final product to ensure that no poor qualityproducts are sent to the consumer.

Good staff is important for quality assurance:

It is important torecognize that peopleoperate any system. It ispeople who manufacture afood product and ensure thatit has the right quality.People working togetherensure that the information,materials and equipment areall correct to allow theproduction of a product.People also store theproduct and deliver it ontime. All therefore need thenecessary training andskills to complete theirtasks correctly. They needto know what their ownresponsibilities are in thisquality chain and where theyfit into the overall system.Business owners must notregard communication as a

Analyzing food processes to improve quality using hazard analysis:

All food companies, including the smallest manufacturers,have a responsibility to provide consumers with safe, wholesomefoods. Safety is not an option but it is an essential part of theplanning, preparation and production of foods. Any lack ofconsideration of safety can result in a serious threat to publichealth. The law in most countries recognizes this and seriouspenalties exist for those who contravene hygiene and food safetylegislation. At present in many countries, enforcement staff isnot always sufficiently restricted to be fully effective, butthis situation is changing as consumers become more concernedabout food safety.

Some of the Products of Emporio Bakery:

Double baked, oblong - shaped Italianbiscuits made dry & crunchy in pure

The original Macaroons, “a small - sweetcake consisting largely of groundalmonds".

Brownies, made with melted purechocolates & cocoa for the most intense

2.3 PRODUCT AND PRODUCT DEVELOPMENT

New product offerings are constantly developed at theEmporio bakery by chatting with the customers about the kinds ofbaked goods they enjoy and through a continuous innovationprocess by the chefs. People at the Emporio bakery are notspecialists but generalists baking up a little bit of everythingfor their grateful customers.

Emporio initially started with Italian biscotti and macaroons andthen as the chef started innovating, they came up with more andmore products. Below mentioned are the product offerings of theEmporio:

1. Pre packaged retail items: Chocolate Dipped / AlmondBiscotti., Chocolate Dipped / Almond Biscotti, Brownies andcookies.

2. Baked products: Baked egg puff, Baked samosa, Baked wada pav,Baked veg patty etc.

3. Croissants: Chocolate chip muffin, multigrain croissant etc.

4. Savories / rolls: Panini, bagel sandwich, Mexican wrap, whiteegg mayo.

5. Puffs: Chicken tikka, paneer bhurji, kholapuri etc.

6. Pound cakes: Double chocolate, vanilla, lemon etc.

7. Pizza.

8. Mousse and cheese cake: triple chocolate mousse, opera cake.

9. Cakes: & layer cake, strawberry cake, dutch truffle, darkchocolate etc.

Out of the above products mentioned, pound cakes, mousse andcheese cakes are customized and made on order.

CHAPTER 3: OPERATION CONTROL

Operational control includes control over hownormal business processes are executed, but does not includecontrol over the strategic business targets or high-levelbusiness priorities.

Persons who work in bakery operations should be instructed inhow to avoid or prevent potential hazards and be properly trainedto follow recommended safe work practices.

1. Hygiene Practices At Emporio:Hygiene has been the utmost priority at Emporio. Their main

technical aspect is cleanliness.

They make sure that nobody enters their kitchen withoutpermission and they have safety warnings written at the mainentrance of the kitchen which states

Please keep shoes outside Eating prohibited Wear uniform before entering

Every person within the kitchen premises wears their uniformprovided by Emporio. A separate pair of shoes is provided toeach worker which can be worn only while working in the kitchen.A special care is taken that every worker has head cap and handgloves while entering the kitchen. At Emporio they immediatelyclean up spills and post warning signs when floors are wet orslippery. Slip-resistant floor coverings and shoe soles areprovided which prevent slips and falls.

Bakery equipment such as moving blades, mixing arms, andconveyors on dough brakes, pie and tart machines, mixers,rollers and dividers pose cutting and caught/crush hazards. Theymaintain equipment in good condition and keep equipmentclearances to avoid accidentally bumping into moving parts.

They use safety devices such as power interlocks, two-handedcontrols, and emergency-stop bars and place warning signs onequipment with moving equipment dangers.

They use heat-resistant gloves or mitts for handling hottrays and pots. And workers don’t carry hot liquids around thework area and avoid splashes when pouring them.

2. Quality Checks:

Bakery keeps the stock of dairy and perishable products. Theyhave a person personally attending and checking the products witha lazor thermometer.

Example:

0-5 degree maximumtemperature of fridge(normal product)

Below 0 degree to -18 degreefor frozen items likechicken, green peas etc.

5-60 degree (danger zone temperature where worms and virusesmultiply.)

Twice the temperature of the fridge is checked to make surethat the preserved items are proper.

Chef using Laser Thermometerto check the temperature offrozen & perishable items.

CHAPTER 4: MANAGEMENT PLAN

A management team is made up of an 5 Executive Chefs, BakeryDirector, and other workforce who will lead the Bakery. Theexecutive chefs are responsible for new and innovative productsand they oversee the operations. The director looks after thefinancial management and business management including marketingand sales. He also makes the many decisions necessary in runningthe day to day operations.

The Executive Chef was responsible for managing the kitchen.His responsibilities include running the bakery, and servingcustomers every day during the start-up phase; productdevelopment, setting up and monitoring production processes;ensuring the safety and cleanliness of the kitchen and staff; andimplementing the Training Program, including lesson andcurriculum development. He is also responsible for managingkitchen staff.

The Bakery Director was responsible for developing thebusiness and for the administration of the training program. Hisresponsibilities included sales and marketing; financialmanagement including book-keeping, accounts payable andreceivable, and payroll, and preparing monthly, quarterly, andyearly reports.

Business Expertise

The Bakery Café’s management team represents a strong mix of bothrestaurant and businessskills, as both are equally important in running a successfulBakery Café.

Staff Members

The Bakery also benefits from an experienced staff with manyyears of working together as ateam to produce quality baked goods and teach baking and jobskills to men and women.

4.1 Recipe ChartA proper recipe chart of

each and every product isdisplayed in the room inwhich the product is beingmade.

It is the duty of chefto ensure that the samerecipe with the exact samequantity is being used. AtEmporio they have differentsections for veg and non-veg food in each room.

In the sandwich room vegand non-veg recipes aredisplayed at the twodifferent sections. Everysandwich after beingprepared is weighed and thechef takes care that nosandwich weighs more than200gms.

In the chocolate/cakeroom different recipe chartare displayed.

The height and width ofevery cake is mentioned on

CHAPTER 5: LIMITATIONS

1. This project was carried out on a small scale hence theanalysis and findings may not be on a larger proportion.

2. Company has been only for 1 and half year hence not multipleproduction units are in existence.

3. The scale of operation is small here and hence not much

information could be extracted.

CHAPTER 6: ANALYSIS AND FINDINGS

1. The analysis and findings help us to understand that abakery has to adhere to various pre-planning processesand operations strategies to run a business.

2. The Bakery has to maintain a high quality standard interms of the hygiene and cleanliness as they are into theF&B sector.

3. There is a huge scope of expansion into the internationalmarkets for further growth and brand enhancement.

CHAPTER 7: CONCLUSION

Emporio Bakery gave us an opportunity to understand theintricacies of the F&B industry. This industry demands 24*7quality checks on the products and its uninterrupted processes.Since the company has been in existence since only a year andhalf, there is a huge potential to tap the domestic as well asexpand into the international markets.

We also learnt that, it was important to adhere to the missionand vision in order to retain the loyalty of the customer.

CHAPTER 8: ANNEXURE

Kane Sir's project Final

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