Amore Case

In: Business and Management

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Macaroni and Cheese Production

* Tom Jenkins thought it’s time to return the fill target for Amore’s eight-ounce frozen macaroni and cheese pie to 8.22 ounces * Amore had been filling each aluminum tin to an uncharacteristic high target of 8.44 ounces. * He is expending extra 0.22 ounce of macaroni and cheese in each pie. * Cortland facility produced 60,000 dozen eight-ounce frozen macaroni and cheese pies each month on a line staffed with 25 workers, each whom made about $6 an hour. * The line operated at a speed of 1,000 dozen pies every 20 minutes. * Pies sold at a wholesale price of $4.50 per dozen, $1.50 above the $3 standard cost per dozen.
Fill Targets * Fill targets were always set above the amount stated on the package. * Industry practice was to set targets at one standard deviation above the package amount so that about 85% of all packages would be in compliance. * During energy crisis, the effect on frozen macaroni and cheese was to cause a softening of the product and a subsequent weight loss due to dehydration. * Inspectors from the Bureau of Weights and Measures of New York City levied fines of up $15 for each eight-ounce package of frozen macaroni and cheese found to be substantially underweight. * Amore quickly raised the target to 8.44 ounces, a full two standard deviations above the package weight.
Weight-Control System * For Amore’s macaroni and cheese pie, the FDA had approved a weight-control system that required a sample of five pies be taken every 20 minutes. * The technician cost the company close to $12 an hour with benefits. * The piece were taken from the line after being cartooned and just prior to being cased and frozen * Light samples were reported immediately to the line supervisor for corrective actions * The FDA-approved system required formal action only if the…...

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