Flowers Foods Company Overview: Flowers Foods (NYSE: FLO) is a leading producer

Question

Flowers Foods

Company Overview: Flowers Foods (NYSE: FLO) is a leading producer and marketer of packaged bakery foods in the United States.

Managerial Accounting Topic: Capital budgeting decisions

Web Site: www.flowersfoods.com Opens in a new window. Plain text: http://www.flowersfoods.com

Go to the Flowers Foods website and click on Tour a Bakery. Take the tour and learn about the process used to make the company’s breads. After taking the tour, answer the following questions:

What capital investments has the company made in its bakery?

Which parts of the production process have been automated?

Explanation / Answer

A 1 ) The company Flower Foods has been staying in the power because of its huge capital investments in ensuring the quality of the services and their products. A maximum capital investment is done on the bakeries that utilize automated machinery equipment. Almost 90 % of the baking process is run by an automated machinery at various stages of producing the bread. Major Investments are made in bakeries, products , brand advertising, technology , distribution systems and Team . Investing in quality bread making process, high end technology systems and distribution systems has made Flower Foods enjoy a cost structure organization which allows low cost production of bread at utmost quality in bakery foods.

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A 2 ) The automation process begins in the ingredient area.A full automated ingredient handling system, which accurately measures all the dry ingredients . The main core advantage this reduces manual costs, by eliminating manual work if hired costs a series of employees down the lane. This automated machines also maintain consistent quality. Second major automated equipment is the mixer. All the accurately measured ingredients are automated pumped into a mixer. This automation increases efficiency by reducing the time if done manually. Once the dough is mixed, its travels through a metal detector to ensure utmost quality in the dough. After the metal detector, the dough is automatically weighed, rounded, cut into pieces , dusted with flour and placed into their pans. Conveyor belts take these pan into oven. An automated equipment removes the buns from the pans. Flower Foods has completely automated system to store and retrieve bun pans. Automated baggers bag the buns which are cooled and cut into accurate pieces. These bagged pieces are placed on trays and are ready for shipping.

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