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Selection of the appropriate process is a crucial step in the establishment of any organization planning to offer goods to potential customers. Different types of processes, including continuous, assembly line, batch, job shop, and project, are applicable for specific products and the volume required by the market (Schroeder, 2020). It can be argued that the process of producing goods and services, or the operation function, is the core function of any company, as with no offering to the target market, a company cannot exist. This discussion post will consider the batch flow process, its application in the chain of bakeries Greggs, and how it relates to other functions of the organization.
Batch flow is a type of product flow in manufacturing. In particular, product flow describes the movement of materials in the process of creating specific products (Schroeder, 2020). Batch flow can be defined as the production of goods in batches, with a great variety of products but a low to moderate volume (Schroeder, 2020). However, it should be noted that batch production is characterized by jumbled flow and reduced efficiency due to the focus on variety rather than quantity (Schroeder, 2020). The operation function of any company is supported by the input of other functions of the organization, including marketing, finance, and human resources, among others (Wolniak, 2020). Furthermore, for any company to succeed, its functional areas need to complement each other to ensure smooth movement of materials from supplier to the company and produced products from the company to the customers.
The bakery chain Greggs is an example of a company that relies on batch production as it presents a variety of fresh baked goods to buyers. The Greggs’ menu is extensive, with breakfast bakes, sweet pasties, vegan and non-vegan options, sandwiches, and drinks being offered (Greggs PLC, 2021). The marketing function supports the operations function by determining the wants and needs of the customers and communicating them to other functional areas of the company to adjust accordingly (Wolniak, 2020). Greggs’ marketing activities are based on the reports from the organization’s locations and inform the stakeholders of the shoppers’ preferred items and desired new services. For example, the 2021 annual report indicates the customer needs for the evening and hot food, healthier options, and coffee variety (Greggs PLC, 2021). These customer needs are accounted for by the operations function responsible for producing the goods. Thus, the decisions of the company based on the marketing activity and customer needs are directly reflected in the operations function and the production of new products or the removal of unwanted goods.
Furthermore, finance and accounting are closely interconnected with the operations function. Specifically, this function area is responsible for allocating resources throughout the organization (Wolniak, 2020). Thus, the batch production of goods is possible due to financial investment from revenue. It should be noted that Gregg’s operating costs do not exceed gross profit, with a total of £153.2 million of operating profit (Greggs PLC, 2021). In addition, such functions as human resources, information systems, and engineering contribute to the support of batch flow production by investing in procedures and personnel. Reuter (2013) notes that the operating strategy of any company is based on the technology available to it, manufacturing, marketing, and logistics. Overall, it can be argued that the operations function of Greggs is interconnected with finance and marketing functions, with the company efficiently applying batch production to satisfy customers’ needs.
In summary, the batch flow process is utilized by the bakery chain Greggs, specializing in baked goods to-go. The company applies the process as it corresponds to its needs of providing a moderate amount of a variety of products to its clients. Other functional areas of the organization are correlated with the operations function and support it through financial or personnel investment. Thus, the batch flow process suits the company and allows it to respond efficiently to the needs of the customers.
References
Greggs PLC. (2021). Greggs PLC annual report and accounts, 2021.
Reuter, M. B. (2013). Optimizing the DoD Supply Chain for the Future Joint Force. National Defense University.
Schroeder, R. G. (2020). Operations management in the supply chain: Decisions and cases (8th ed.). McGraw-Hill.
Wolniak, R. (2020). Main functions of operation management. Production Engineering Archives, 26(1), 11–14.
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