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Submitted By adil1234

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Words 1084

Pages 5

You and your roommate are preparing to start Kristen’s Cookie Company in your on‐campus apartment. The company will provide fresh cookies to starving students late at night. You need to evaluate the preliminary design for the company’s production process to figure out many variables, including what prices to charge, whether you will be able to make profit and how many orders to accept.

Business Concept

Your idea is to bake fresh cookies to order, using any combination of ingredients that the buyer wants. The cookies will be ready for pickup at your apartment within an hour. Several factors will set you apart from competing products such as store‐bought cookies. First, your cookies will be completely fresh. You will not bake any cookies before receiving the order; therefore, the buyer will be getting cookies that are literally hot out of the oven. Second, you will have a variety of ingredients available to add to the basic dough, including chocolate chips, M&M’s, chopped health bars, coconut, walnuts and raisins. Buyer will telephone in their orders and specify which of these ingredients they want in their cookies. You gurantee completely fresh cookies. In short, you will have the freshest, most exotic cookies anywhere, available right on campus.

The production process

Baking cookies is simple: mix all the ingredients in a food processor; spoon out the cookie dough onto a tray; put the cookies into the oven; bake them; take the tray of cookies out of the oven and carefully pack them in a box. You and your roommate already own all the necessary capital equipment: one food processor, cookie trays, and spoons. Your apartment has a small oven that will hold one tray at a time. Your landlord pays for all the…...

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...Kristen's Cookie Company Kristen's Cookie Company is a good example where the success or failure of the company depends directly on the process planning adopted by the company, i.e., the company can maximize its productivity by utilizing its resources effectively. One major aspect of process analysis is to identify the major bottlenecks in the process and trying to mitigate their effects with least possible level of costs and resources. The following flowchart shows the overall process adopted by the company: (Exhibit 1) Filling a rush order: Process Resource(s) Process Time Cumulative Time Consumed Taking Order E-mail 0 minutes 0 minutes Washing and Mixing Self 6 minutes 6 minutes Filling Tray Self 2 minutes 8 minutes Preparing Oven Roommate 1 minute 9 minutes Baking Oven 9 minutes 18 minutes Removing the tray Roommate 0 minutes 18 minutes Cooling None 5 minutes 23 minutes Packaging & Collecting Money Roommate 3 minutes 26 minutes Thus, it requires minimum 26 minutes to fill a rush order. Production Capacity (4 hours): Since the resources required for the different processes are not common everywhere, there can be two orders (of one dozen each, for simplicity) being processed simultaneously. Thus, it would not require twice as much time for the second order (of one dozen) to be completed as it requires for the first one (of one dozen). This can be attributed to the fact that one can get the tray ready for the second order while the first one is in the oven...

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...Assignment 1 Operations Management I Kristen’s Cookie Company (A1) Total (50) Marks Weightage 10% Lead Questions for Assignment 1 1. How long will it take you to fill an order? (8) marks Operation | Time (mins) | Quunatiy (dozen) | Washing, Mixing etc | 6 | 3 | Spooning | 2 | 1 | Resetting & Baking | 10 | 1 | Cooling | 5 | 1 | Packing | 2 | 1 | Accepting Payment | 1 | - | For filling in a rush order Time taken = 6+2+10+5+2+1 = 26 mins 2. How many orders can you fill in a night, assuming you are open four hours each night? ( 7) marks Time for 1 dozen = 26 mins. Time for 2 dozen = 6+2+10+10+5+2+1 = 36 mins. Time for 3 dozen = 6+2+10+10+10+5+2+1 = 46 mins. Hence, eqn for time reqd = 16+10*n ; where n => no of dozen Therefore 4*60 = 16+10*n 224 = 10*n n = 22 dozen 3. How much of your own and your roommate’s valuable time will it take to fill each order? ( 5) marks My time spent = 6+2 = 8 mins. Roommate time spent = 1+3 = 4 mins. 4. Because your baking trays can hold exactly one dozen cookies, you will produce and sell cookies by the dozen. Should you give any discount for people who order two dozen cookies, three dozen cookies or more? If so, how much? Will it take you any longer to fill a two-dozen cookies order than one–dozen cookies order? ( 4) marks The two cost components in this business, that the team of Kristen and her roommate is...

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...Kristen’s Cookie Case Case Answers Global Operations Hult International Business School Module B, 2012-13 Suneel Udpa January 21, 2013 1. 26 minutes assuming that the system is completely empty. If we receive a call anytime at or after the Mix&Spoon stage, it'll take us 26 + additional 10 minutes. This includes 8 minutes at the Mix&Spoon stage and a 2 minute wait to finish baking the previous batch. Therefore, it would take us 36 minutes to fill a rush order. (Please refer to Table 1.0 on page 4 for details). 2. At a steady state we'd be able to produce 6 (process capacity) x 4 (hours) = 24 dozen per night. At a starting state, assuming that 1st dozen takes 26 minutes, and we move into a steady state of production, we have 4 hours or 214 minutes (out of 4 hours) left, enabling us to produce 22 dozen cookies total. 3. For each dozen, I would spend 8 minutes working on it, and my roommates would spend 4 minutes. Hence, I would spend 176 minutes per shift and my roommate would spend 88 minutes per shift (with 22 dozen at a starting state). At a starting steady state, I would spend 192 minutes and my roommate 96 minutes. 4. We can in fact offer discounts to our customers who order more than one dozen cookies due to the time we save in the Load&Bake stage of production. Since we are able to produce up to 3 batches in the Mix&Spoon stage, our calculations would be as follows: 6 minutes to Mix and an extra 2 minutes to spoon for each batch. 30% of our......

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...Kristen Cookie Company Concept: * Cookies will be supplied fresh * Make to order Production Process S.No. | Steps | Time taken (minutes) | Responsible | 1 | Take on order through e-mail | 1 | Roommate | 2 | Adding ingredients & mixing (max. 3 dozen) | 6 | You | 3 | Spooning the cookies onto the tray (max. 1 dozen) | 2 | You | 4 | Bake in oven (max. 1 dozen) | 10 | Roommate | 5 | Cool the cookies | 5 | Roommate | 6 | Packing the cookies | 2 | Roommate | 7 | Delivery & accept the payment | 1 | Roommate | Maximum number of orders per night: Open for four hour per night and one dozen cookies per order Total hours available per night = 240 mins. Time required to finish one order = 27 mins Assuming the order coming in continuously one after the other and the time for placing the cookies in the oven is negligible. Roommate can take total of 19 orders before he takes care of steps 5 to 7 for the first order. So the first order takes 27 mins to finish all the steps From the next order it takes 10 mins from the end time of previous order, so for second order the finish time is 27+ 10 = 37 mins from the work start time during that night ( from time zero) So for the first eight order the total time taken is 27min + (18*10) = 207 mins Then process repeats. The roommate now starts taking the order Now he can take maximum of 1 order. The total time required for this one order = 27 mins So the maximum time utilized = 207 + 27 = 234......

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...Case Study: Kristen’s Cookie Company Key questions to answer before you launch the business: 1) How long will it take you to fill a rush order? If we consider that one order is a dozen, the flow time is 26 minutes for the first order. 2) How many orders can you fill in a night, assuming you are open four hours each night? (4 hours = 240 minutes) If we consider that one order is a dozen, it will take me: * For the first order: 26 minutes * For the second order: 20 minutes (excluding backing and mixing because 6 min can be for 3 dozens) * For the third order: 20 minutes → So, it will take 66 minutes for 3 orders. → (240 / 66)* 3 = 10 orders/ night. 3) How much of your own and your roommate’s valuable time will it take to fill each order? If we assume that we will work 4 hours (240 minutes) each night, and it takes us on average 22 minutes (26+20+20 /3) to produce a dozen. (Considering that one order is a dozen.) 4) Because your baking trays can hold exactly one dozen cookies, you produce and sell cookies by the dozen. Should you give any discount for people who order two dozen cookies, three dozen cookies, or more? If so, how much? Will it take you any longer to fill a two-dozen cookie than a one-dozen cookie order? Because producing a second and a third dozen cookies will take less time than producing the first dozen cookies (excluding the washing and mixing steps), we can give a discount for people ordering two or three......

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...Problem 1 - Aunt Ethel's Fancy Cookie Company manufactures and sells three flavors of cookies: macaroon, sugar, and buttercream. The batch size for the cookies is limited to 1,000 cookies based on the size of the ovens and cookie molds owned by the company. Based on budgetary projections, the information listed below is available: Buttercream Macaroon Sugar Projected sales in units 500,000 800,000 600,000 PER UNIT data: Selling price $0.80 $0.75 $0.60 Direct materials $0.20 $0.15 $0.14 Direct labor $0.04 $0.02 $0.02 Hours per 1,000-unit batch: Direct labor hours 2 1 1 Oven hours 1 1 1 Packaging hours 0.5 0.5 0.5 Total overhead costs and activity levels for the year are estimated as follows: Activity Overhead costs Activity levels ......

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...Solution to Kristen's Cookie Company (A) Before answering specific questions, it is useful to make a diagram of the overall process: [pic] Note that in this diagram, activities are arranged in columns to indicate which resources are being used. Inside each activity symbol are written the capacity (in dozens of cookies) and the cycle time (in minutes). 1. How long will it take for you to fill a rush order? Assuming this order is for one dozen cookies, we will need to do the following: |Activity |Resource |Cycle Time |Start Time |Finish Time | |Order Entry |E-mail |0 minutes |00:00 |00:00 | |Wash Bowl, Mix |Self |6 minutes |00:00 |06:00 | |Fill Tray |Self |2 minutes |06:00 |08:00 | |Prepare Oven |Roommate |1 minute |08:00 |09:00 | |Bake |Oven |9 minutes |09:00 |18:00 | |Remove |Roommate |0 minutes |18:00 |18:00 | |Cool |None |5 minutes |18:00 |23:00 | |Pack, Collect Money |Roommate |3 minutes |23:00 ......

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...Kristen’s Cookie Company Submitted By: James Skinner Prepared for: Jeff Peterson Investments Spring 2 – 2010 Webster University 3/30/2010 CERTIFICATE OF AUTHORSHIP: I certify that I am the author. I have cited all sources from which I used data, ideas, or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. ------------------------------------------------- Signature Date Executive Summery Two roommates are offering cookies to the students studying late at night. The concept is simple bake cookies to order with a verity of ingredients have them ready for pick up in an hour and to only work four hours a night they hope to make the company a success. To help with this the production process will be evaluated to identify any bottlenecks and to eliminate any blocking. Also to review each step in the process to try to identify if more equipment will improve the pacing or just be more cogs in the wheel. Flow Units: Cookies Inputs: Basic Dough, Ingredients Output: Cookies packed in boxes Flow Units: Cookies Resources: Kristen and her roommate, Oven, Spoons, Trays, Food Processor Assumptions 1. An order is for a dozen cookies of any one type. 2. Kristen and her roommate work for 4 hours per day. Orders Ignorance Wash & Mix Work Process Dish up Finishing Packing Cooling ......

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...Kristen’s cookie company pre-case report DSC335 1. Draw a flow chart of the cookie-making process 2. How long will it take to fill a rush order of 1-dozen cookie? It will take 26 minutes to fill a rush order of 1-dozen cookie. (I revise my chart to 4 cycle orders) 3. What is the cycle time? How many orders can you fill in a night (4-hour period)? Does your answer depend on the size of the order, 1-dozen, 2-dozen, or 3-dozen? 1-dozen orders: The cycle time is 10 minutes. The first order of 1-dozen cookies will take 26 minutes, and each 10 minutes for another 1-dozen cookie order. (4*60-26)/10=21.4 plus the first order, we can make 22 orders of 1-dozen cookie fill in a night. 2-dozen orders: The cycle time is 20 minutes. The first order of 2-dozen cookies will take 36 minutes, and each 20 minutes for another 2-dozen cookie order. (4*60-36)/20=10.2 and plus the first order, we can make 11 orders of 2-dozen cookie fill in a night. 3-dozen orders: The cycle time is 30 minutes. The first order of 3-dozen cookies will take 46 minutes, and each 30 minutes for another 3-dozen cookie order. (4*60-46)/30=6.47 and plus the first order, we can make 7 orders of 3-dozen cookie fill in a night. 4. What is the difference in labor (both you and your roommate’s time) per dozen among 1-dozen, 2-dozen, and 3-dozen orders? 1-dozen orders: Me: Wash and Mixing 6 minutes + fill the tray 2 minutes = 8 minutes +my roommate: Setting timer and putting in the oven 1......

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...Case Report: Kristen's Cookie company 1. It takes 26 minutes to complete a rush order, that is, the addition of the time it takes to complete each step: 6 (wash and mix) + 2 (spoon) + 10 (load and bake) + 5 (unload and cool) + 2 (pack) + 1 (pay) = 26. Process flow diagram of the cookie-making process: Me Mixer Me Spoon and tray Roommate Oven and tray Oven and tray INPUT OUTPUT Roommate Oven and tray Tray Roommate Roommate Remarks: Since it does not consume any time, the first step, that is to take an order, is here ignored. Inventory is not kept at any time as the cookie dough is continuously being processed by the dozen to fit the bottleneck's capacity and only produce fresh cookies according to placed orders. 2. We assume the following: The minimum amount of cookies per order is one dozen cookies (the case states that the process produces “cookies by the dozen”). There are at least two trays and spoons, as the case mentions “cookie trays” and “spoons” Since the amount of time necessary to unload the oven is considered “negligeable”, it can be done during the same minute used to load the next batch. In this view, the first order takes 26 minutes but each following batch only requires an additional 10 minutes (see Gantt chart 1 attached). Capacity of resources (dozen cookies per hour): | Me | Roommate | Mixer (1) | Trays (2) | Spoons (2) | Oven (1) | Cycle time | 8mns/unit |......

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...Indivisual Assignment 1: Kristen’s Cookie I. Flow Diagram for fulfilling an order II. How long will it take to fill a rush order? Washing out mixer bowl and mixing ingredient + Spooning cookie on to tray + Putting cookie in oven & setting timer and baking + Leaving for cool + Packing in a box + Accepting payment 6 + 2 + 10 + 5 + 2 + 1 = 26 min III. How many orders can you fill in a night, assuming you are open four hours each night? Since the required resource for different stages are not all in common, Kristen and his roommate could process two orders simultaneously. However, before starting the second tray of cookie, we need to wait until Kristen is done with washing mixer bowl, mix ingredients and spooning cookie on to tray for the first tray, for which the time lag would be 6 + 2 = 8 min. After Kristen are done with washing mixer bowl, mix ingredients and spooning cookie on to tray for the second tray, they would realize the oven is still in use of baking the first tray of cookie; therefore, we need to wait another 2 minutes for the availability of oven. Thus, the total time lag between the first and the second would be 8 + 2 = 10 min. The expression of the number of minutes to produce n one-dozen batches is: 16+10n≤4*60 So we can get n≤22.4. The nearest integer is 22; therefore, we can fill 22 order in a night in maximum....

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...2 minutes to spoon the cookie dough onto a tray, a dozen per tray; 10 minutes to put the cookie into the one tray capacity oven, set the timer, and bake the cookies; 5 minutes to take the cookies out of the oven and let them cool; 2 minutes per dozen to take the cookies off the tray and carefully pack them into a box; and 1 minute to accept payment for the order. The overall process takes 19 minutes per dozen and a constant 8 minutes for every order under four dozen cookies because of each order under four dozen will always take 2 minutes to receive and accept payment for the order and 6 minutes to mix ingredients up three dozen cookies worth. So for a rush order of two dozen it will take 46 minutes and a rush order of three dozen will take 65 minutes. 2. How many orders can you fill in a night, assuming you are open four hours each night? Assuming all orders are only one dozen, we could fill 24 orders in a night because the bottleneck resource of the process, which determines the capacity of the whole process, is the baking in the oven. Baking takes 10 minutes giving it the lowest capacity of all the steps and the capacity of the whole process, 6 dozen cookies per hour thus 24 dozen cookies each four-hour night. The capacity for the other steps are 60 dozen per hour to receive, read, print, and send reply to the customer order; 10 dozen per hour to place all the ingredients of the order into a mixing bowl; 30 dozen per hour to spoon the cookie dough onto a tray; 12......

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...Case Report: Kristen’s Cookie Company Question 1 How long will it take to fulfill a rush order? | Gantt Chart for Kristen's Cookie Case | | | | | | | | | | | | | To fulfill the rush order it is still necessary to go through all parts of the process illustrated on the process flow diagram of the cookie-making process (it can be found on the last page). As there are no processes that can be done in a parallel way, every stage follows the other. Calculating the time needed for each step it can be concluded that the order can’t be prepared less than in 26 minutes. Question 2 How many orders can you fill in a night, assuming you are open 4 hours each night? We already know from the first question, the first dozen can be fulfilled in 26 minutes. Lets have a look, on the fastest possible way to prepare the second and all the following dozens. I can start preparing the 2nd order as soon as I start heating the oven (the chart visually demonstrates it): According to the chart it takes 26 minutes to fill the first order and 10 minutes more to fill each following order. From here we have: Operating time = 4*60 = 240 minutes The formula for counting the amount of orders that are able to be produced can be seen as: 16+10n <= 240 where n is the numbers of orders. From this equation we get, that n(max) = 22 dozen. So during 4 hours in a night one can prepare 22 dozen of cookies in 236 minutes. Question 3 How much of your own and your roommate’s......

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...Homework #1: Kristen’s Cookie Company Case 1 6+2+1+9+5+2+1 = 26 mins Resources Activities where needed Time required per unit of work Number of each resource Capacity Kristen Wash and Mix Dish up to trays 6 min 2 min 1 7.5 dozen/hr Bowl Wash and Mix 6 min 1 10 dozen/hr Trays Dish up to trays 2 min Infinite Infinite dozens/hr Roommate Load & Set Timer Packing Payment 1 min 2 min 1 min 1 15 dozen/hr Oven Load & Set Timer Baking 1 min 9 min 1 6 dozen/hr Empty space Cooling 5 min Infinite Infinite dozens/hr The oven is the bottleneck resource. Its capacity is 6 dozen cookies per hour. Because the process’s hourly capacity is 6 dozen, the process’s cycle time is 10 min. Therefore the maximum number of dozens that the process can produce can be given with the help of the following formula: 16 + 10x = 240 x = 22.4 The maximum number of dozens that the process can produce in four hours is 22. 16 + 10x = 60 x = 4.4 λ = 4.4 dozen/hr W = flow time = 26 min = 26/60 hr L = λ W = 1.91 Case 2 Resources Activities where needed Time required per unit of work Number of each resource Capacity Kristen Wash and Mix Dish up to trays 6 min 4 min 1 6 orders/hr Bowl Wash and Mix 6 min 1 10 orders/hr Trays Dish up to trays 4 min Infinite Infinite orders/hr Roommate Load & Set Timer Packing Payment 2 min 4 min 1 min 1 8.57 orders/hr Oven Load & Set Timer Baking 2 min 18 min 1 3 orders/hr Empty......

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...Kristen’s Cookie 1. How long does it take to fill a rush order [from mix and spoon, Load oven, bake, cool pack, and receive payment] ? (For orders of one dozen, and for orders of two dozens-same ingredients.) Answer: (a) for orders of one dozen 26 minutes (b) for orders of two dozens 36 minutes 2. For orders of one dozen, how many orders can you fill in a night? Assuming 4 hours per night - every order has a different recipe (so it does not add value to put pre-mixed ingredients ‘on stock’ during the night. - There are enough cookie trays (only the oven is a bottleneck) - The first step requires 6 minutes of attention, cleaning and loading the mixing equipment Capacity limited by throughput oven: o 4 hours = 240 minutes o Preparation before oven first batch - 8 minutes o Handling after last oven - 8 minutes (potentially one minute can be saved on the last 8 minutes, by preparing the invoice during the cooling time, but it has no impact on the total number of batches) - Remaining time for oven processes = 224 minutes Answer: 22 orders if me and my roommate stick to the described processes 3. (A) Given Kristen’s Cookie wants to maximize the revenue, do you need to employ your roommate if all orders are one-dozen orders(assuming orders do not have the same ingredient)? Answer: Need / No need Why? The takt time of the line is determined by the oven (bottleneck operation, excluding start up and......

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