1. Create an Introduction/background (problem statement) for the following report below.

2. Provide Results, discussion, and recommendation (key findings, new insights, etc.) Conclusions (restate the project problem and provide a summary of the results)

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CANDLE MAKING BUSINESS

A Strategic Planning and Productivity

Mission: Our mission is to create high-quality, handcrafted candles that bring warmth, comfort, and relaxation to our customers' lives. We strive to use natural and sustainable materials, while providing exceptional customer service and creating a positive impact in our local community.

Vision: Our vision is to become a leading provider of premium, eco-friendly candles that are loved and trusted by customers worldwide. We aim to continuously improve our production processes and develop new and innovative products that meet the evolving needs of our customers. We also aspire to promote sustainability and inspire others to adopt more eco-friendly practices in their daily lives.

Competitive Advantage: Our competitive advantage is our ability to offer unique and high-quality candle products that are not easily replicated by competitors. This could be achieved through focusing on using high-quality materials, creating unique and visually appealing designs, and developing signature scents that customers cannot find elsewhere. Additionally, we differentiate ourself by offering eco-friendly and sustainable candles, which appeal to customers who are environmentally conscious. By providing exceptional customer service, engaging with customers through social media and other channels, and continuously innovating and improving our products, in this case our candles making business can maintain its competitive advantage and attract a loyal customer base.

Market Segment Strategies: The market segment strategy for a candle making business could include:

1) Geographic segmentation: Target specific geographic areas where there is a high demand for candles or where there is a lack of competition.

2) Demographic segmentation: Target specific age groups, genders, or income levels that are more likely to buy candles.

3) Psychographic segmentation: Target individuals who value relaxation, aromatherapy, and creating ambiance in their homes.

4) Behavioral segmentation: Target customers who frequently purchase candles for themselves or as gifts, or who are environmentally conscious and prefer eco-friendly candles.

Overall, we focus on identifying the specific needs and preferences of the target customer base, and tailoring the product offerings, marketing messages, and distribution channels to meet those needs. By doing so, the candle making business can differentiate itself from competitors and gain a competitive advantage in the market.

Products and Services:

A specific product for our candle making business is a line of natural soy candles with unique and enticing scents, such as lavender and eucalyptus, vanilla and cinnamon, or citrus and sage. We also offer customized candles for events or special occasions, allowing customers to choose the scent, color, and even packaging. Another service we offer is candle-making workshops or classes, allowing customers to learn the craft and create their own candles.Production ProcessThe production process for our candle making business are as follows:

Wax Melting: The first step in the production process is melting the wax. The wax is melted in a large melting pot, which is heated using a heat source such as a stove or a hot plate.

Adding Fragrance and Color: Once the wax is melted, fragrance and color are added to the wax. This is done by adding fragrance oils and candle dyes to the melted wax and stirring until the fragrance and color are evenly distributed throughout the wax.

Preparing the Molds: While the wax is melting and the fragrance and color are being added, the molds are prepared. The molds can be made of silicone, metal, or other materials. The wick is placed in the center of the mold and secured in place using a wick holder.

Pouring the Wax: Once the molds are prepared, the melted wax is poured into the molds. The wax is poured slowly to prevent air bubbles from forming. Cooling and Setting: The molds are left to cool and set for several hours, depending on the size of the candles.

Removing the Candles from the Molds: Once the candles have cooled and set, they are removed from the molds. The candles are carefully removed from the molds to prevent any damage.

Trimming the Wicks: The wicks are trimmed to the appropriate length using scissors or a wick trimmer.

Labeling and Packaging: The candles are labeled with the appropriate information such as fragrance, color, and size. The candles are then packaged in boxes or other containers for shipping or for display in retail locations.

As for our services, we offer customized candle-making services where customers can choose the fragrance, color, and size of their candles. We also offer candle-making workshops or classes where customers can learn how to make candles themselves. Additionally, we offer candle-making supplies such as wicks, fragrance oils, and candle dyes for customers who want to make candles at home.

Productivity

For a candle making business, all three types of productivity, i.e., labor productivity, machine productivity, and material productivity, would be relevant. Labor productivity would be relevant to measure the amount of output produced per unit of labor input, such as the number of candles produced per hour of labor. Machine productivity would be relevant to measure the amount of output produced per unit of machine input, such as the number of candles produced per hour of machine operation. Material productivity would be relevant to measure the amount of output produced per unit of material input, such as the number of candles produced per pound of wax or other raw materials used.

Machines

The type of machines used in a candle making business can vary depending on the scale of production and the specific processes involved. Here are some examples:

Melting tanks or kettles

Pouring machines

Wick-cutting machines

Labeling machines

Packaging machines

Overall, the specific machines used in a candle making business will depend on the scale of production, the processes involved, and the desired level of automation.

Labor

The labor requirements for a candle making business will depend on the scale of production and the specific tasks involved in the production process. Generally, the labor needed for a candle making business includes:

Production workers

Quality control inspectors

Sales and customer service representatives

Administrative staff

The specific skills and experience required for these roles will depend on the individual company's needs and the level of automation used in the production process.

Material Productivity

Material productivity is relevant for the candle making business. The efficiency with which materials are utilized in the production process can impact the overall productivity of the business. This can include factors such as minimizing waste and maximizing the use of raw materials in order to produce a greater quantity of candles with the same number of materials. Additionally, optimizing the procurement and inventory management of materials can also improve material productivity.

The material productivity of a candle making business can be measured by the number of candles produced per unit of raw materials used. This can include the amount of wax, fragrance oils, wicks, and any other materials used in the candle making process. To improve material productivity, the business can look into using more efficient processes, reducing waste, and finding ways to optimize the use of raw materials.

Raw Materials

The raw materials used in candle making can vary based on the type of candle being produced. However, some common raw materials include:

Wax

Wicks

Dyes or pigments

Additives

B Strategic Capacity Planning

Describe the strategic capacity planning for a new or existing product/service.

Strategic capacity planning for a candle making business involves determining the appropriate level of resources (e.g., labor, machines, and materials) necessary to meet current and future demands of the market. Here are some steps that can be taken:

Forecast demand: The first step is to estimate the future demand for candles. This can be done using various methods such as trend analysis, market research, and sales analysis.

Evaluate current capacity: Next, evaluate the current capacity of the business and determine whether it is sufficient to meet the forecasted demand. This involves analyzing the efficiency of the production process, assessing the availability of resources, and identifying any bottlenecks that may exist.

Determine required capacity: Based on the forecasted demand and the current capacity, determine the required capacity to meet the demand. This involves estimating the additional resources (e.g., labor, machines, and materials) required to meet the demand.

Develop a capacity plan: Once the required capacity has been determined, develop a capacity plan that outlines how the business will acquire and allocate the necessary resources to meet the demand. This may involve hiring additional staff, purchasing new equipment, or expanding the production facilities.

Implement and monitor: Finally, implement the capacity plan and monitor its effectiveness. This involves tracking production levels, identifying any issues that arise, and making adjustments to the plan as necessary.

By following these steps, our candle making business can ensure that it has the appropriate level of capacity to meet the demand of the market while minimizing costs and maximizing efficiency.

Calculate the capacity requirements

Therefore, the candle making business would need a capacity of approximately 4808 candles per hour to produce 1000 candles per month, given the assumptions of a 26-day month and an 8-hour shift per day.

Select one of the following: Find the Bottleneck process or Perform a Break-Even Analysis

Perform a Break-Even Analysis

Break-even analysis is a useful tool to evaluate the minimum level of production a business needs to cover all its costs, including fixed and variable costs. To perform a break-even analysis for the candle making business, we need to first identify the fixed and variable costs associated with production.

Fixed costs:

Rent and utilities for the production facility

Salaries and benefits for the production team

Equipment and machinery maintenance costs

Marketing and advertising expenses

Insurance costs

Variable costs:

Raw materials for candle production (wax, wicks, fragrances, etc.)

Packaging and labeling materials

Shipping and handling costs

Once we have identified the fixed and variable costs, we can use the following formula to calculate the break-even point:

Break-even point (in units) = Fixed costs (Price per unit - Variable costs per unit)

Assuming a price of $5 per candle and variable costs of $2 per candle, and fixed costs of $10,000 per month, the break-even point can be calculated as:

Break-even point (in units) = $10,000 ($5 - $2) = 3,333.33 candles per month

Therefore, the candle making business needs to produce and sell at least 3,333.33 candles per month to break even and cover all its costs. Any production volume above this level will generate profits, while any volume below this level will result in losses.

C Facility Layout

Describe the type of layout for the production process (e.g., product layout, functional layout) (layout drawing is not necessary)

The appropriate layout for the production process of a candle making business would be a hybrid layout, combining both process and product layouts.

The process layout is suitable for the initial stages of candle production, such as wax melting, adding fragrance and color, and preparing the molds. These tasks involve similar equipment and processes and can be grouped together in a functional layout.

The product layout is more appropriate for the latter stages of production, such as pouring the wax, removing the candles from the molds, trimming the wicks, and labeling and packaging. These tasks require a sequential flow of materials and products, and a product layout would ensure efficient movement of candles through the production process.

Therefore, a hybrid layout that combines process and product layouts would be the most effective for a candle making business.

Balance a line of a specific set of workstations in your process (e.g., define cycle time, define the precedence network, task times, and allocation of tasks to workstations)

To balance the line of candle making process, we need to follow the following steps:

Step 1: Define cycle time

The cycle time is the time required to complete one unit of the product or service.

Assuming we want to produce 1000 candles per month, 26 days a month, and an 8-hour shift per day, the cycle time can be calculated as follows

Step 2: Define the precedence network

The precedence network is the order in which tasks need to be performed to complete the product or service.

Based on the candle making process, the precedence network is as follows:

Wax melting

Adding fragrance and color

Preparing the molds

Pouring the wax

Removing the candles from the molds

Trimming the wicks

Labeling and packaging

Step 3: Determine task times

The task time is the time required to perform each task in the process.

The task times for the candle making process are as follows:

Wax melting: 2 minutes/candle

Adding fragrance and color: 1 minute/candle

Preparing the molds: 3 minutes/candle

Pouring the wax: 2 minutes/candle

Removing the candles from the molds: 1 minute/candle

Trimming the wicks: 1 minute/candle

Labeling and packaging: 2 minutes/candle

Step 4: Allocate tasks to workstations

The allocation of tasks to workstations is done in such a way that each workstation performs a series of tasks with a total time equal to or less than the cycle time.