Operations Plan 1
La Boulangerie d'Antan: Operations Plan
Razvan Iliescu
MBA550 Business Operations
Peter Hostak
Operations Plan
February 18, 2013
Operations Plan 2
1. Executive Abstract
La Boulangerie d’Antan – Une Boulangerie Artisanale aims to keep alive the French
traditions of baking from the 19th century in our modern world. In a Romanian market
invaded by food industrialization and low quality, LBA sets an ambitious goal of producing
fresh organic food on a local basis and at affordable prices.
The business starts small with one or two production units and targets the expansion in
a chain of bakeries in the urban areas, offering alongside its range of products, and
extraordinary customer experience. Using a modular expansion model, LBA intends to open
its bakeries using a standard layout of location and equipment.
The production strategy of LBA focuses on a small range of French breads, produced
by their original recipes and methods. As a niche business, the company embraces the model
of high quality on a core product range.
Marketing studies on the Romanian market have shown little or no competition on the
French bakery segment, most of LBA’s competition being composed of scattered shops and
industrial food producers in the urban areas.
In order to maintain its standards, LBA will follow a specific product design (in our
case, recipes) based on official standards imported from the French market. A strict quality
management process will ensure that anyone entering the bakery will benefit by the original
French product and experience.
A strictly controlled baking process will make sure that only the best products will
reach the shelves, LBA targeting a high brand awareness in the urban areas, based on its
iconic product, “La Baguette”.
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2. Introduction and Environmental Background
La Boulangerie d’Antan - Une Boulangerie Artisanale (The Bakery of Long Ago - A
Traditional Bakery) aims to bring into the Romanian market the products and traditions of the
genuine French bakery. The business will focus on the production and sales of core traditional
French bakery products, targeting a scalable diversification of the product base. The business
model (small retail bakery) relies on decentralized production and retail points, targeting a
chain model. By definition, the model relies on individual store operations, having not more
than three personnel on board at any given time. The small retail bakery typically sells its
baked goods on-site, offering the potential to develop into a chain operation (Startupbizhub,
2012).
Though a basic food business, LBA targets a niche model with niche customers, with
the demographics of a typical customer ranging at: individuals age 15 to 60, urban resident,
average revenue, having medium to high level studies; corporate customers are projected in
the range of international chains of hotels and fine cuisine restaurants.
The suppliers divide into strategic suppliers delivering baking ingredients and baking
equipment (pans, baking supplies and machines) (FSW, 2013) and marginal suppliers
providing power, telecommunication, banking, automotive services and such. LBA will
establish itself as a full-fledged corporation, thus leading into contracting the full supply chain
of a food production corporation. The company will create its own distribution chain,
shipping the products using its own fleet of automotive units and drivers, in urban ranges, on
a local basis.
LBA will benefit by a low competition on the French bakery niche, most of the
domestic bakeries and bread industrial producers addressing the Romanian baking products
range and derivatives. No nation-wide French bakery producers were identified in the
country, the only competing businesses consisting of small bakeries, with no more than three
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production units in the urban areas.
3. Mission Statement and Strategy
The Mission of La Boulangerie d'Antan
We love to bake. Through baking, we connect with our community by continuing
traditions, creating great bread and pastries, developing relationships and practicing
responsibility to the environment.
LBA embraces specific strategies in order to conduct its production, sales, human
resources, quality assurance and chain expansion. On the production side, the company will
focus on a small range of top quality breads and pastries baked based on genuine French
recipes originating in the 19th century. The production will also deliver marginal products like
pastry, cakes and derivatives, adapted to the regional specific of the locations.
A standard strategy of sales for corporate customers will be employed, relying on sales
force automation, sales staff and procedures; the strategy targets a pool of stable contracts,
honored on a local basis. It is appropriate to mention that most of LBA’s sales will target
individual customers and will take place at the front-counters of LBA’s business units, the
bakeries.
The human resources strategy is outlined to draw talent on a local basis; specific
baking and customer service training will be provided before the staff enters the production
line. The bakeries will ideally employ a headcount of maximum three per business unit, in a
standard crew structure, which will be outlined in the next chapter of the plan. The
headquarters will employ the regular corporate office staff, ranging from management to
clerks, per department. The corporate departments will be outlined in chapter 4 of the current
document.
In order to continuously monitor the quality of its products, LBA will employ specific
control methods like visual inspection, weighing, measurement, consistency, smelling, tasting
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and listening comprised in a QA process, recorded and traced using quality assurance
methods (sampling, estimations, forecasting). The production process will be constantly
monitored and kept under control by continuously sampling and adjustment.
4. Operations Management Analysis
Ten Decision Areas Chapter(s) Significance * *Design of goods and services 5 high *Managing quality 6, Supplement 6 high *Process and capacity design 7, Supplement 7 high *Location strategy 8 high *Layout strategy 9 high Human resources and job design 10, Supplement 10 medium Supply chain management 11, Supplement 11 low Inventory management 12, 14, 16 low Scheduling 13, 15 NA Maintenance 17 NA
La Boulangerie d’Antan will produce the standard French bread types (Fig. 1) (Egullet, 2012)
according to their original 19th century recipes and process.
Fig. 1 – Standard French bread types
Operations Plan 6
Design of goods and services
The current OM plan will focus on the iconic French bread type, the so-called “La
Baguette”. The product represents a wheat type of bread, regulated by the French law, and
according to the jury of the reputable competition “Grand Prix de la Meilleure Baguette de
Paris“, measuring between 55 and 70cm, weighing between 240g and 310g and having no
more than 18g of salt per kg, or 4.5g per 250g (The Guardian, 2011).
The baguette represents a version of the Viennese bread of mid 19th century, times in
which steam ovens have been brought into use. Using steam while baking bread, enabled
bakers to produce crisp-crust loaves with white centers, similar to today’s baguettes. The
steam generated by the oven allowed the crust to expand before setting, which created a
lighter, more airy loaf. It also melted the dextrose on the bread's surface, giving a slightly
glazed effect. The introduction in 1920 of a special law that prevented bakers to work
between 10PM and 4AM made it impossible for the traditional bread to be delivered in time
for customers' breakfasts. The longer, thinner baguette produced by poolish method, solved
the problem because it could be prepared and baked much more rapidly (France this way,
2012).
The product design, according to the original recipe (Recette-dessert, n.d.), requires
(per unit) a total of 167g of T65 flour, 117g of water, 2g yeast, and 4g of salt and is based on
the poolish technique. The renowned technique of making bread called "on poolish", was
introduced in France by Marie Antoinette's bakers originating from Austria (Recette-dessert,
n.d.). The poolish is a mixture of equal parts flour and water with a little yeast that ferments in
the first stage of the bread production. This manufacturing technique brings the poolish bread
its specific aroma and dough strength (Recette-dessert, n.d.).
The difference between a traditional baguette and an industrial one is the traditional
loaf will smell much more strongly of bread, the crust will tend to be darker, the interior is
Operations Plan 7
cream color rather than white and the interior texture is much less consistent.
Managing Quality
All food producers, including the smallest companies, have the obligation to provide
customers with safe, wholesome foods. Safety is not an option, but it is a key part of the
planning, preparation and production of foods. Any lack of attention to safety can result in a
serious threat to public health. The European Union stipulates this by the law and serious
penalties exist for those who contravene hygiene and food safety legislation.
In the baking industry, there are dedicated routes of food contamination – surfaces, air,
water, people and pests. Various types of contamination may occur, ranging from physical
contamination (pieces of glass, wood, metal, plastic, film, hair and fingernails) to chemical
contamination (residues of cleaning and disinfection chemicals, machinery lubricants,
pesticides and biological contamination (bacteria, yeasts, and mycotoxins) (European
Commission, 2012).
In the LBA’s business, moulds, yeasts and bacteria cause the spoilage of most bakery
products. Most bakery products however are considered low-risk food because of baking at
high temperatures (180C-250C) and having reduced water activity (aw) and pH, this
preventing the growth of microorganisms. While potentially hazardous foods have a pH > 4.5,
sourdough bread (the baguette) has the pH in the range 4.2-4.6. Flour, on the other hand,
contains approximately 8000 mould spores per gram, the most common being Penicillum spp.
and Aspergillus spp. Both moulds can produce Ochratoxin A and Aflatoxin (mycotoxins),
which are very resistant, and can survive the heating process (European Commission, 2012).
LBA takes safety seriously and understands that food hygiene is vital throughout the
production chain, from raw material to transportation and delivery. There are standard food
safety management methods in the industry, and LBA will gradually apply the Good
Manufacturing Practices (GMP), the Good Hygiene Practices (GHP), Hazard Analysis and
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Critical Control Point (HACCP) and ISO 9001, 22000 quality management systems (FAO,
2009).
GMP represents a practice of production and testing that ensures product quality. The
basic principles of the method target the safeguarding the health of the consumer public, as
well as producing good quality foods (European Commission, 2012). Some basic guidelines
of GMP:
• The process of manufacture is clearly defined and controlled; process
validation is in place
• Production process changes are controlled and evaluated
• Production procedures and guidelines are written in a clear and explicit
language
• Procedures are documented and employees are trained in this respect
• During the production, records are made in order to determine all steps defined
by procedures have been taken and the quantity and the quality of the product
respects the standard
• Manufacturing and transportation records are kept in order to enable tracing of
a production lot
• The distribution minimizes the risk of quality diminution
• A lot recalling system is in place
The Good Hygiene Practices (GHP) in the production area relate to the sanitation of
the work environment as well as to the cleanliness of the production personnel
(European Commission, 2012). Few rules are outlined below:
• Hand hygiene: washing hands (running water, soap, drying) frequently
(immediately before working with food, after using toilets, handling waste,
smoking, coughing, eating, drinking, touching hair, scalp or mouth)
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• Changing gloves as often as washing hands
• Cover hair, beards, no jewelry, no mobile phones, clean protective clothing,
clean shoes
• Changing rooms, toilets and hand-washing facilities must be provided and kept
clean
• The management should develop documented directives, communicated to all
personnel, contractors and visitor
• Controlled access to the production areas
• Health control of food handlers
• Training and retraining
The process control represents another determinant step in ensuring product quality.
On a regular basis, microbiological samples from production air, water, equipment, crates and
hands of employees will be taken and recorded. It is estimated that more than 90% of bread
contamination occurs during cooling, slicing and wrapping (European Commission, 2012). At
the same time, product samples will be taken and SPC applied, in order to provide a proper
inspection of the production output (Heizer & Render, 2004, pp. 201-203).
In regard to the chosen product, the baguette, the inspection process will require the
visual inspection, weighing, measurement, consistency, smelling, tasting and listening, all the
parameters being recorded and statistically evaluated in order to maintain the production
process control.
Process and Capacity Design
Addressing a small range (variety) of products, organizing the production points
(bakeries) around the products, LBA’s process falls under the product focus process strategy
(Heizer & Render, 2004, p. 251). The bakeries will generate the forecasted volumes of
products having a high facility and equipment utilization, thus leading to higher fixed and
Operations Plan 10
lower variable costs.
There is more than one process to be taken into consideration, and the current chapter
will explain the most important of them: the production process, the baking process and the
product creation process.
A typical LBA bakery will follow the flow or raw material receival, storage, weighing,
mixing, dividing, molding, fermentation, baking, cooling, packaging and sale. The Fig. 2 flow
diagram depicts the bakery production flow applied on a production facility layout.
Fig. 2 – The process flow of a bakery
The baking process itself starts with the weighing of the raw ingredients, in the case of
the baguette, the flour, water, yeast and salt. The next step of the process represents the
mixing of the ingredients, resulting the dough. The division of the resulted mix ensures the
individualization of the baguette source dough, followed by the rounding and weighing of
each individual piece (at this stage, each dough piece weighs exactly 340g). The dough balls
are further molded in the traditional baguette shape, the product reaching its second
measurable status: the length. As stated previously, the accepted length varies between 55 and
70 centimeters. Next comes the proving (raising) of the dough, followed by the actual oven
Operations Plan 11
baking of the dough batons. Reaching the final stages of the production process, the now
ready baguettes are next stored for cooling, resulting in the final product ready for sale or
shipment. A final quality control check will weigh each individual baguette and inspect for
foreign materials. The graphic representation of the process is depicted in Fig. 3.
Fig. 3 – The baking process
The 12-step actual production process is explained in the table below:
STAGE ACTIVITY PRCOCESS CONTROL POINT Raw Materials Reception of flour, salt, water
and yeast. Inspection and testing of flour, salt and yeast.
1. Mixing 1 The ingredients are gently mixed to form the poolish. This involves the combination of a determined quantity of water, yeast and flour.
Type of ingredients, weight, temperature, weight and activity of yeast.
2. Fermentation 10-‐hour fermentation of the poolish at 23-‐26C.
Time of fermentation, room temperature.
3. Mixing 2 The ingredients are gently mixed with the poolish to form the dough. Mixing continues until the dough has a smooth appearance.
Type of ingredients, weight, temperature, weight temperature of the dough and activity of yeast.
Operations Plan 12
4. Proving 3-‐hour bulk fermentation of the dough.
Time of fermentation, dough temperature, room temperature.
5. Dividing Splits up the large gas bubbles formed during mixing, into smaller more numerous gas bubbles.
Gentle handling, time required.
6. Rounding Conversion of the rough dough pieces into a small ball. Gas is also expelled at this stage and smaller gas bubbles are formed.
Gentle handling, time required.
7. Weighing First step of process control, only the pieces of 340g will pass on further.
Gentle handling, time required.
8. Intermediate proving A short rest of 10-‐15 minutes to allow the dough to relax before further processing.
Time, temperature, relative humidity in the prover.
9. Molding The determination of the final shape of the baguette and the required bubble structure in the product; second step of the process control: only the batons having lengths between 55 and 70cm will pass on further.
For the French bread, the gentle molding is required to preserve the large bubbles.
10. Final proving 1-‐hour final proving. This involves the gentle inflation of the gas bubbles by yeast action. Yeast is activated slowly by warming to 37-‐40C. Drying out of the dough surface is prevented by high relative humidity (80-‐85%) in the proving room.
Temperature, relative humidity, proving time.
11. Baking This step converts the dough into bred. Yeast action is initially speeded up causing a massive burst of gas production to inflate the dough by 15-‐30%, known as "oven-‐spring". Baking time is normally 30-‐40 minutes at 235-‐240C. Moisture is driven off to form the dry crust.
Time, temperature, humidity in the oven.
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12. Cooling 30 minutes to one-‐hour rest for the final baguettes, before shelving or packaging/shipping.
Time, humidity in the cooling room.
The last important process check explained by the current document is the temperature
control. In the professional baking, the temperature control plays a vital role in time
management, product consistency, crust, crumb, flavor and shelf life of the baguette. The
temperature is to be controlled during the entire production process, in case of the French
bread, the required production temperature varying between 24-25C.
Base temperature calculation: the most critical temperature to control is the dough
temperature, because it is influenced by most numerous factors. The factors influencing the
dough temperature are the ambient temperature, the flour temperature, the water temperature,
the temperature of the poolish and the temperature resulting from the action of mixing. The
temperature of the first four factors is easy to be determined using thermometers, however
determining the temperature resulted from mixing, known as the friction factor, requires a
special method. The friction factor represents the amount of heat generated during the dough
mechanical mixing. Measured observations have determined that 15 minutes of mechanical
action raises the temperature of 1kg of mixing content (dough forming) by 4C. Of all the
factors influencing the dough temperature, the temperature of water if what the industry calls
“the controlling factor” in the regulation of the dough’s temperature. Having given the
temperatures of the influencing factors, the needed water temperature can be calculated (The
Artisan, 2012).
The calculation: working with four factors affecting the dough temperature, it is
necessary to multiply the desired temperature of the dough (industry standard 25C) by four;
next the calculation will add the four temperatures – room, flour, poolish and friction and
subtract from 4 x desired temperature. This is illustrated in the calculation below (all
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calculations in degrees Celsius) (The Artisan, 2012):
The desired dough temperature
𝐷! = 4 ∗ 25𝐶 = 100
Sum of the factors (room, flour, poolish, friction)
𝑅! + 𝐹! + 𝑃! + 𝐹𝑟! = 20+ 22+ 21+ 4 = 67C
The water temperature
𝑊! = 𝐷! - (𝑅! + 𝐹! + 𝑃! + 𝐹𝑟!) = 100 – 67
𝑊! = 33
Location Strategy and Layout
In order to obtain profit, the bakeries of LBA will be strategically situated to be close
to its target customers, namely close to markets or in neighborhoods counting more than
1,400 families. In order to “avoid conflict”, as much as possible, LBA will choose areas
where there is little or no competition. The sites will also have to be situated close to the
supply of raw materials and workforce, in clean areas with no waste or stagnant water nearby.
The bakeries will be situated on clear ground, away from sources of insects, rodents or smells,
benefitting by good supplies of potable water and electricity (FAO, 2012).
The buildings of LBA will respect all the legal requirements from the external
appearance to the internal layout. The bakeries will feature door-separated areas, water-
resistant painted and tiled walls and curved-up floors provided with drainage. 3-phase
equipment will be present, with special power points. Another essential aspect of the locations
will be ventilation and special equipment will be installed.
Targeting a chain expansion, LBA will rollout the same layout of bakery with standard
equipment and implementation. The typical layout of an LBA bakery is exemplified in Fig. 2.
Human Resources and Job Design
LBA will typically work with crews of three per bakery, the jobs covering mixes of
Operations Plan 15
functions:
• The artisan baker – a key position in the bakery, the baker is responsible for the
production and for recipe compliance. At the same time, the baker is responsible for
the quality control of the production.
• The baker assistant – assists the artisan baker in mixing, forming the dough, rounding,
proofing, and baking the baguettes.
• The storekeeper - is responsible for keeping stores and stock records. At the same
time, the storekeeper operates the front counter.
The headquarters will employ the standard management, operational and administrative
personnel, having the functions:
• General manager
• Assistant manager
• Production manager/ Night manager
• Quality assurance manager
• Quality assurance officer
• Product manager
• Purchase officer
• Chief accountant
• Secondary accountant
• Human resources manager
• Human resources officer
• Administrative manager
• Administrative clerk
• Car fleet manager
• Driver
Operations Plan 16
Supply Chain Management
La Boulangerie d’Antan aims to produce high quality foods, therefore it needs to rely
on reputable suppliers of top quality ingredients. By definition of its product output, LBA
necessary input of raw materials constitutes the flour, yeast, water and salt. In this respect
LBA targets bio and eco-friendly producers and suppliers of raw ingredients. Redundancy
management will be in place, making sure supplier backup will keep LBA’s business in full
production at all times.
LBA will benefit by all the standard products and service suppliers, ranging from
power, telecommunication, equipment, software and medical services to equipment
maintenance, banking, real estate, legal, automotive and public relations.
Inventory Management
Running a fresh food business model, LBA targets its output to have nearly no shelf
life (a shelf life counted in hours), the entire production being capacitated to be sold the same
day. This draws a fast moving output inventory and LBA will rely on the sales figures in
order to determine the number of sold units. Based on the same freshness concept, LBA will
store only the weekly necessary stock of raw materials at its bakeries.
Inventory management software and procedures will ensure the stock is being properly
handled and processed.
5. Summary
La Boulangerie d’Antan wants to bring a French twist to the Romanian market, for
those who appreciate the quality bread. Relying on original recipes, the bakery wants to make
a difference from the food industrialization, bringing the bread production to its basics and
closer to its customers.
In order to achieve the high standards imposed by the French baking industry, LBA
will rely on a day-in-day-out business model, with no production inventory. The baking will
Operations Plan 17
take place at its own bakeries, spread throughout the cities.
One of the challenges imposed by this business will be attracting talent in the form of
qualified personnel. The Romanian education model lacks the bakery classes at all levels and
LBA trainers will have to teach those passionate by bread making into the secrets of
professional baking.
Basically defined as a risk-free business (bread will always find its way to the
customers), La Boulangerie d’Antan will keep its bakeries open at all times in order to offer
the public its iconic “La Baguette” early fresh for breakfast, crisp and tasty at lunch, and
warm and welcoming after a day’s work.
Operations Plan 18
References
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/topic/ 27634-sourdough-bread/#entry1769486
European Commission. (2012). Guidelines on HACCP, GMP and GHP for ASEAN food
SMEs. Retrieved February 21st, 2013, http://ec.europa.eu /food/training_strategy
/gen_info/haccp_en.pdf
Food and Agriculture Organization of the United Nations (FAO). (2013). Good hygiene
practices and HACCP. Retrieved February 21st, 2013, http://www .fao.org/food/food-
safety-quality/capacity-development/haccp/en/
Food Service Warehouse. (2012). Bakery equipment & bakery supplies. Retrieved February
19th, 2013, http://www.foodservicewarehouse.com/bakery/c16209.aspx
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http://www.francethisway.com/frenchrecipes/frenchbread.php
Heizer, J., & Render, B. (2004). Operations Management. Upper Saddle River, NJ: Pearson
Education
Recette-dessert. (n.d). Baguette de pain de tradition française. Retrieved February 20th, 2013, http: //www.recette-dessert.com/baguette-pain-r827.htm
StartupBizHub. (2012). Starting a bakery business. Retrieved February 19th, 2013,
http://www.startupbizhub.com/Starting-a-Bakery-Business.htm
The Artisan. (2012). Temperature control – part I. Retrieved February 21st, 2013, http://www
.theartisan.net/temperature_control_baking_1.htm
The Guardian. (2011). Best in dough. Retrieved February 20th, 2013, http://www.guardian
.co.uk /world /2011/may/03/french-bakers-battle-best-baguette-bounty