NECCO (THE NEW ENGLAND CONFECTIONERY COMPANY) is the oldest multiline candy manufacturer in the United States,...
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NECCO (THE NEW ENGLAND CONFECTIONERY COMPANY) is the oldest multiline candy manufacturer in the United States, best known for its popular "conversational" line of candy hearts. In recent years, the company has closed its venerable Boston facility and consolidated three other facilities into a state-of-the-art manufacturing and distribution center in Revere, Massachusetts. The move enabled the company to reassess every step of its production process, including workflow and staffing, to develop a new layout design that moved candy more quickly from the factory floor to the customer. The new 820,000-square- foot facility is home to 586,000 square feet of production area, 200,000 square feet of warehouse space, and 30,000 square feet of office space. The facility has over 30 different process lines capable of manufacturing over 70 million pounds of candy per year. The building has two stories, with processing operations on the second-floor feeding packaging operations on the first floor. A key to cutting cycle times was eliminating the extremely long assembly lines that snaked through the old building and establishing more efficient work cells with smaller assembly lines where workers have access to everything they need. By consolidating three facilities into one, NECCO's delivery time to the customer improved significantly. The company puts each of its top candy lines into one of three categories, based on ABC analysis (see Chapter 13). Customer orders for A items can be delivered in 5 days, B items in 10 days, and C items in 15 days. The new facility also has allergen rooms for panning chocolate to isolate products with nuts from those without, an important requirement for many of today's consumers. Visitors agree that the new plant is clean, well- organized, and high-tech. The process of designing the new facility allowed NECCO to meet regulations better, reduce operating costs, expand capacity, improve customer service, and grow its business. Effective facility design can have immeasurable benefits for a company. Source: David Weldon, "Sweet Surroundings," Food and Drink Digital, Q1-a: Explain the reasons for the company to carry out the new layout design. (3 marks). Page 2 of 7 NECCO (THE NEW ENGLAND CONFECTIONERY COMPANY) is the oldest multiline candy manufacturer in the United States, best known for its popular "conversational" line of candy hearts. In recent years, the company has closed its venerable Boston facility and consolidated three other facilities into a state-of-the-art manufacturing and distribution center in Revere, Massachusetts. The move enabled the company to reassess every step of its production process, including workflow and staffing, to develop a new layout design that moved candy more quickly from the factory floor to the customer. The new 820,000-square- foot facility is home to 586,000 square feet of production area, 200,000 square feet of warehouse space, and 30,000 square feet of office space. The facility has over 30 different process lines capable of manufacturing over 70 million pounds of candy per year. The building has two stories, with processing operations on the second-floor feeding packaging operations on the first floor. A key to cutting cycle times was eliminating the extremely long assembly lines that snaked through the old building and establishing more efficient work cells with smaller assembly lines where workers have access to everything they need. By consolidating three facilities into one, NECCO's delivery time to the customer improved significantly. The company puts each of its top candy lines into one of three categories, based on ABC analysis (see Chapter 13). Customer orders for A items can be delivered in 5 days, B items in 10 days, and C items in 15 days. The new facility also has allergen rooms for panning chocolate to isolate products with nuts from those without, an important requirement for many of today's consumers. Visitors agree that the new plant is clean, well- organized, and high-tech. The process of designing the new facility allowed NECCO to meet regulations better, reduce operating costs, expand capacity, improve customer service, and grow its business. Effective facility design can have immeasurable benefits for a company. Source: David Weldon, "Sweet Surroundings," Food and Drink Digital, Q1-a: Explain the reasons for the company to carry out the new layout design. (3 marks). Page 2 of 7
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The company NECCO carried out the new layout design for several reasons 1 Improved Workflow and Effi... View the full answer
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