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Kristen's Cookies Case

In: Business and Management

Submitted By tmurdock84
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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.…...

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