Free Essay

Kristen's Cookies Case

In: Business and Management

Submitted By tmurdock84
Words 472
Pages 2
Kristen’s Cookies

1. How long would it take to process a rush order of one dozen? Two dozen? Three dozen?

Based on the diagram below it would take 26 min to make 1 batch of cookies. Considering it takes 10 total minutes to bake a dozen, each additional dozen cookies would add 10 minutes to the total time. Therefore, to produce 2 dozen (assuming they are the same ingredients) would take 36 minutes. Three dozen would take 46 minutes and so on.

Activity | Resource used | Time for activity (minutes) | Total Time (minutes) | Order Entry | Email | 0 | 0 | Wash from last batch - Mix new batch | Kristen | 6 | 6 | Spoon onto cookie tray | Kristen | 2 | 8 | Place cookies in oven / Set thermostat | Roommate | 1 | 9 | Cookie bake time | In oven | 9 | 18 | Remove Cookies | Roommate | 0 | 18 | Cool cookies | Roommate | 5 | 23 | Pack | Roommate | 2 | 25 | Collect $$ | Roommate | 1 | 26 |

2. What is the maximum capacity of the process for orders of one-dozen cookies only? Two-dozen only? Three dozen only?

The maximum capacity refers to the bottleneck in the process. Because regardless of how much can be produced in the other steps, your efficiency will be determined by your slowest step, or, the bottleneck. In Kristen’s cookies, the bottleneck is the baking time which is equal to 10 minutes. That cannot be sped up unless there are more ovens to bake.

Baking: 10 min/dozen = 6 dozen/hour. This is the bottleneck.

3. Based on the answer to question 2, should you give any discount for customers who order 2 dozen or more? Why or why not?

No, there should be no discounts offered. Because the capacity involving bottlenecks is independent of order size. For example, if there were 2 dozen ordered, although there would be an increase in the beginning steps, the bake time is still 10 min regardless of how many dozens are ordered. 4. Assuming you are open 4 hours per day, how many orders of one dozen can you fill per day?

You can fill a total of 22 orders. Here’s why: 4 hours is equal to 240 minutes. Since the bottleneck is your maximum capacity, you would subtract the 8 minutes’ startup and the 8 minutes’ finish. Therefore, maximum capacity = (4*60-16) / 10 = 224 / 10 = 22

5. Imagine you upgrade your old oven for one that can process two trays at a time (i.e., 2 dozen cookies). What would the capacity be for orders of one dozen? Two dozen? Three dozen?

If you were now able to product 2 dozen cookies during the bake time that would change things significantly. Capacity in baking would increase from 6 dozen/hour to 12 dozen/hour.

As noted in this flow chart, the new bottleneck would be Wash/Mix/Spoon at capacity of 7.5 dozen/hour.…...

Similar Documents

Premium Essay

Kristen's Cookie Case

...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......

Words: 745 - Pages: 3

Premium Essay

Case Study: Kristen’s Cookie Company

...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......

Words: 534 - Pages: 3

Premium Essay

Kristen’s Cookie Company

...Kristen’s Cookie Company  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 ......

Words: 1084 - Pages: 5

Premium Essay

Kristen's Cookies

...bottleneck step and calculate the cycle time. In our process the bottleneck is the oven with a total cycle time of 10 minutes. The capacity of this process is 6 trays per hour. So in 4 hours we would have ( 6 x 4 ) 24 trays of cookies. *This assumes that the after baking activities could be completed after store closing. If we take into consideration the open hours only, the real capacity would be ((60 x 4)-8 / 60) or 3.73 hours and be able to produce only 22.38 trays. 3. How much of your own and your roommate's valuable time will it take to fill each order? Looking at labor time we see the following: Resource | Activity | Time | You | Wash & Mix + Spoon | 6 + 2 = 8 minutes | Roommate | Prepare Oven + Pack + Payment | 1 + 2 + 1 = 4 minutes | Total Resource time for 1 batch = 12 minutes Total Resource time for 1 batch = 17 minutes Total Resource time for 1 batch = 22 minutes *For up to 3 orders the first operation only counts once Idle time = 10 minutes! 4. For Kristen Cookies, develop a Gantt chart of the activities and the resources (Kristen, Roommate, and Oven). Determine the amount of idle time Kristen and Roommate has for each dozen cookies produced. What is the time for Kristen and Roommate if the orders are for two-dozen cookies (of the same type) or three-dozen? As calculated for our group project and presented here we have the following: (see embedded excel document) In addition to the Gantt Charts above, the idle time is as......

Words: 502 - Pages: 3

Free Essay

Kristen Cookies Case

...One Dozen Cookies 1) 26 minutes (include all steps including payment) 2) 4 x 6 = 24 dozen (4 hours x 6 dozen—the oven bottle neck amount) 3) Valuable time everything but idle time? My time – 8 minutes per batch Roommate time – 1 (into oven) + 2 (box them) + 1 (accept payment) = 4 minutes per batch 4) A discount of less than $1.6 for each additional dozen cookies should be given. It will take 10 minutes longer (the bottle neck) to produce two dozen cookies rather than one dozen cookies. 5) Two trays and one food processor 6) Our assumption is that if we have a constant stream of orders each night that it would be worthwhile to have an additional oven. Two Dozen Cookies 1) 36 minutes 2) 4 x 6 = 24 dozen 3) Me 10 minutes per two dozen Roommate 1 + 1 + 2 + 2 + 1 = 7 minutes per two dozen 4) A discount of less than $1.6 for each additional dozen cookies should be given. It will take 10 minutes longer (the bottle neck) to produce two dozen cookies rather than one dozen cookies. 5) Two trays and one food processor Three Dozen Cookies 1) 46 minutes 2) 4 x 6 = 24 dozen 3) Me 12 minutes per two dozen Roommate 1 + 1 + 1 + 2 + 2 + 2 + 1 = 10 minutes per two dozen 4) A discount of less than $1.6 for each additional dozen cookies should be given. It will take 10 minutes longer (the bottle neck) to produce two dozen cookies rather than one dozen cookies. 5) Two trays and one food processor...

Words: 268 - Pages: 2

Premium Essay

Kristen's Cookies

...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 ......

Words: 1586 - Pages: 7

Premium Essay

Cookies

...Is the use of technologies, such as "cookies", strategic to marketing goods and services online? What is the impact, if any, on consumer privacy? A few years ago, the combination of technology and marketing was not a common term. Even a very successful marketing model that was followed by software giant Microsoft, was neglected in many top ranking business schools. According to them what Microsoft was doing was a fad. But time has proved that they were wrong. Marketing guru Kotler has agreed that traditional marketing is not working any more. The economic power has shifted from marketers to customers. This shift happens in the market place due to the technology. Today customers have the access to information that lets them make much more informed decisions. Customers are increasingly telling companies what type of product or services they want and when, where and how they want to buy them. Before purchase a product or service, they compare each of the competitors' product and their pricing, availability and value for money. So customers are now in control. Customer's action and their demands are profoundly impacting every industry in the market. The use of technologies such as cookies is paramount to the implementation of such marketing practices, which ultimately benefit both the retailer and the consumer. Without these, retailers would not be able to fine-tune their marketing strategies and focus, and consumers would not be able to provide, through their......

Words: 6638 - Pages: 27

Free Essay

Kristen's Cookies Case Anaysis

...Kristen’s Cookie Company Case Study OPTM 6090 Spring 2014 Team 1 Executive Summary Kristen and her roommate have planned the Kristen’s Cookie Company (KCC) as a joint venture to create and operate a successful business operated in a college campus apartment, with potential to grow in the future. The core competency is providing made-to-order fresh cookies after standard business operating hours. There are several immediate decisions to address including scale of operation, business partner relationship, operation and production systems, as well as pricing, ordering, and delivery policies. Kristen and her partner must determine which of various alternatives presented will help them achieve operational optimization. After a careful analysis, it is recommended that Kristen that all orders be standardized to one dozen, with rush deliveries limited to the first batch of the night while using existing equipment available. Kristen should continue to maintain her working relationship with her roommate in order to run the business out of their apartment using one oven, one mixer and two baking trays. Problem Definition Kristen needs to decide how to optimize the cookie making process to achieve the best business practices. The partners must formulate rules for accepting and fulfilling orders that will address any of the system’s current insufficiencies. The business is small, with limited resources in finances, space, equipment and time. The primary constraint......

Words: 3543 - Pages: 15

Free Essay

Kristen’s Cookie Company Case Report

...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......

Words: 682 - Pages: 3

Free Essay

Kristin's Cookies

...Case Three: Kristen’s Cookie Company Kate Johnson INTRODUCTION For many students on a college campus, late nights are as common as group projects and comprehensive tests. During these late nights, snacks can help keep a student focused. Kristen’s Cookie Company (KCC), hopes to capitalize on this fact by providing these students with customizable (perceived quality), high quality, freshly made cookies (aesthetic quality) with a quick delivery time (serviceability) in close proximity to the students (serviceability). Ordinarily, students can get cookies in many venues—including grocery stores, restaurants, and bakeries—that are premade for reasonable prices; but these venues may be closed late at night, or are too far from the campus to fit into a student’s busy schedule. For this reason, many students may be receptive to the convenience and fast delivery time of KCC. Additionally, the easy online ordering process will benefit the company as it continues to grow. KCC is positioned to be successful if it can continue to effectively deliver on all of its order winners. COOKIE PRODUCTION The production process for making the cookies is shown in the process flow diagram in Exhibit 1. Since the time to preheat the oven is omitted from this case, the total processing time for the first batch of one dozen cookies is 26 minutes. If a mistake is made on one of the batches of cookies, it will set KCC back by a minimum of 25 minutes. When the first batch is put into the oven...

Words: 3094 - Pages: 13

Premium Essay

Case Study Kristen's Cookie

...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 |......

Words: 844 - Pages: 4

Premium Essay

Kristen Cookies'

...1 Kristen's Cookie Company (A1) You and your roommate are preparing to launch Kristen’s Cookie Company in your on-campus apartment. The company will provide fresh cookies to hungry students late at night. You need to evaluate the preliminary design for the company’s production process in order to make key policy decisions, including what prices to charge, what equipment to order and how many orders to accept, and to determine whether the business can be profitable. Illustration by Jane Simon 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, like many Boston-based area ice-cream shops, you will have a variety of ingredients available to add to the basic dough, including chocolate chips, M&M’s, chopped Heath bars, coconut, walnuts, and raisins. Buyers will telephone in their orders and specify which of these ingredients they want in their cookies. You will guarantee completely fresh cookies. In short, you will have the freshest, most exotic cookies anywhere, available right on campus. The Production Process Baking cookies is......

Words: 1584 - Pages: 7

Free Essay

Home Style Cookies # Case Study

...HOME STYLE COOKIES # CASE STUDY MGH:620 ORGANIZATIONS MANAGEMENT & SUPPLY CHAIN JANUARY 15 ,2015 HOME STYLE COOKIES The case study entitled Home Style Cookies presents a broad spectrum analysis examining the operations of a baking company located in a small town in New York State. This company operates in New York, Connecticut and New Jersey . It employs around 200 workers and they work in an informal atmosphere. Question:1 Brief description of Production Process The production process is explained in great detail , beginning with the use of a pair of continuously operating brand ovens which is known as a batch processing system. As soon as management gets order from distributor it helps them to schedule their production. At the start of each shift a list of the cookies to be made that day is delivered to the person in charge of mixing. That person checks a master list, which indicates the ingredients needed for each type of cookies, and enters that information into the computer. The computer automatically determine the ingredients necessary and add them in precisely the correct amount. After the ingredients have been mixed , the batter is poured into a cutting machine where it is cut into individual cookies and drop it to a conveyor belt to transport through one of two ovens. Filled cookies such as apple , date ans raspberry needs an additional step for filling and folding. After they came off from oven to cooling rack workers start their......

Words: 653 - Pages: 3

Free Essay

Kristen's Cookie Company

...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......

Words: 807 - Pages: 4

Premium Essay

Kristen's Cookie Company

...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......

Words: 671 - Pages: 3