operations group 1 identify a viable production process to produce 12
1) Identify a viable production process to produce 12 million vita bars including mapping the
production process and baking equipment needed to achieve volume and quality targets. Bar
manufacturing process, equipment and co-packing options are listed in Appendices A and B.
2) Determine the cost of setting up Vita Bar's own production facility versus using a co-packer. A
list of equipment needed (can be new or used) along with production capacity and cost should be
included. Teams should also identify leading operational constraints that will affect production
volume. Coordinating production needs with the ingredients team is essential.
3) The team should articulate labor needed to operate their production system along with
identifying production capacity and costs by shift. The team should also identify how many hours
of production and shifts they will require to meet 182K, 1M and 12M bar production levels.
4) The operations team should determine warehousing and logistics needs and costs to ramp up
Vita Bar distribution across the United States for 12 million bars. Production and/or warehousing
will be in one location within the continental United States. Specifically, teams should search on-
line for local warehouse purchase versus lease options that would best suit their production
decisions. A minimum of 10,000 square feet facility, with office space is needed, if the team elects
to produce their own product. A minimum of 2500 square foot warehouse with office space would
be needed, if the team selects a copacking option.
5) The team should identify the amount of capital needed for establishing Vita Bar's first
production facility and justify their decisions.
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