APP assignment6 - Assignment Example

Describe the Hersheys’ process using terms like process vs. assembly and continuous vs. intermittent. Hershey’s employs the batch process to produce chocolate products in successive, consecutive phases. The phases are coordinated, but are divided for processing at various workstations or terminals. The process generates a ‘batch’. Hershey’s chocolate making process involve various batches. The factory design guarantees that batch process terminals are clustered in the same part of a factory.

Facilities that produce chocolates generally employ batch process to produce different variations of chocolates (e.g. milk chocolate, with almonds). How Hershey’s uses the batch process is shown in the division between the processing of cocoa beans, roasting the beans, making the chocolate liquor, and so on. In a way, Hershey’s also uses the assembly method because it employs mechanized fixed production arrangements to produce the same goods. The special hulling machine that takes out the nib or the inside of the bean from the shell is one example of automation used by Hershey’s in its production.

Automation regulates the speed of different related activities that are carried out in step (Wilson & Hill 23)—roasting the beans, producing chocolate liquor, mixing milk-sugar and chocolate liquor, mixing cocoa butter with chocolate crumb, conching, cooling the chocolate, then packaging. Hershey’s chocolate making is continuous, not intermittent. Continuous refers to a form of production that operates continually with no irregularities or repeated pauses. In the continuous production method, products are generated continually according to demand estimate (Wilson & Hill 37).

Hershey’s mass produce chocolates or manufacture chocolates on a massive scale for selling and supplying. The company does not produce in accordance to customer’s orders. The production method of a chocolate industry is largely determined by the demand projection. The features of a continuous production method that are demonstrated by the Hershey’s chocolate making system are as follows: process production is continuous; mass production; the products are generated on fixed quality criteria; and the products are generated in forecast of demand. (2) If Hershey’s wanted to open a new manufacturing facility in the U.S. Midwest, describe the factors that would be most important in determining the best location.

If Hershey’s wants to open a new manufacturing facility in the U.S. Midwest it has to consider several factors. First is the availability or accessibility of resources or raw materials. The company should make sure that its facilities are near to a source of cacao. If these facilities are not located near to such sources, then the cost of transportation and sourcing will cut down the company’s profit margin (De Toni 68). Second factor to consider is the economic system or policy of U.S. Midwest.

It would be vital for the company to know if the region prefers capitalism, socialism, etc. Other aspects to take into account are taxes, exchange rates, and government’s policy (Netessine & Tang 83). The third factor to consider is the region’s demographics. The customers’ status in the region will significantly determine the success of the company. And lastly, it would be good for the company to take into consideration a distributive channel. The more the company makes it simpler for its distributors to reach its products, the more profitable for the company (De Toni 105).

It is important to mention here that the accessibility of a product is strongly dependent on the business’s location. Works CitedDe Toni, Alberto. International Operations Management: Lessons in Global Business. New York: Gower Publishing, Ltd., 2012. Print.Netessine, Serguei & Christopher Tang. Consumer-Driven Demand and Operations Management Models. New York: Springer Science & Business Media, 2009. Print.Wilson, Randal & Arthur Hill. The Operations Management Complete Toolbox. New York: FT Press, 2013. Print.