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Start Oven
Resource: Roommate, Oven
Capacity: 1
Cycle Time: 1 minute
Bake
Resource: Oven
Capacity: 1
Cycle Time: 9 minutes
Cool Remove
Resource: none Resource: Roommate
Capacity: 1 Capacity: 1
Cycle Time: 5 minutes Cycle Time: 0 minutes
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 26:00
Therefore, the minimum time to fill an order is 26 minutes. We can illustrate the
sequence of events with a Gantt chart:
16 10n
3. How much of your own and your roommate's valuable time will it take to fill
each order?
For yourself:
Activity Cycle Time
Wash Bowl, Mix 6 minutes
Fill Tray 2 minutes
Total 8 minutes
For your roommate:
Activity Cycle Time
Prepare Oven 1 minute
Remove 0 minutes
Pack, Collect Money 3 minutes
Total 4 minutes
This is assuming all orders are for one dozen cookies.
Self 8
Roommate 4
Total Labor Minutes 12
Two Dozen
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 1 Self 2 minutes 06:00 08:00
Fill Tray 2 Self 2 minutes 08:00 10:00
Prepare Oven 1 Roommate 1 minute 08:00 09:00
Bake 1 Oven 9 minutes 09:00 18:00
Remove 1 Roommate 0 minutes 18:00 18:00
Cool 1 None 5 minutes 18:00 23:00
Prepare Oven 2 Roommate 1 minute 18:00 19:00
Bake 2 Oven 9 minutes 19:00 28:00
Remove 2 Roommate 0 minutes 28:00 28:00
Cool 2 None 5 minutes 28:00 33:00
Pack 1 Roommate 2 minutes 23:00 25:00
Pack 2 Roommate 2 minutes 33:00 35:00
Collect Money Roommate 1 minute 35:00 36:00
Self 10
Roommate 7
Total Labor Minutes 17
Self 12
Roommate 10
Total Labor Minutes 22
Let's assume your time is worth $12 per hour. Your labor costs would be:
# Cookies in Batch Minutes Cost Cost per Dozen
1 dozen 12 $2.40 $2.40
2 dozen 17 $3.40 $1.70
3 dozen 22 $4.40 $1.47
It looks like you could afford to give a discount for two- and three-dozen orders.
A two-dozen order doesn't cost twice as much as a one-dozen order.
5. How many food processors and baking trays will you need?
The number of baking trays ought to equal the maximum number of trays you
will be using at any one time. The highest volume production imaginable would
be if we produced three-dozen orders continuously, a scenario depicted in this
Gantt chart:
6. Are there any changes you can make in your production plans that will allow
you to make better cookies or more cookies in less time or at lower cost? For
example, is there a bottleneck operation in your production process that you can
expand cheaply? What is the effect of adding another oven? How much would
you be willing to pay for an additional oven?
Even with the second oven, the oven stage will still be the bottleneck. To decide
how much we would be willing to pay for another oven, we would have to do
some more complicated analysis (including finding out what the distribution of
orders would look like — how many for one dozen, how many for two dozen,
etc.). Then we could project the increase in revenue and perform some present
value analysis on the incremental improvement in our revenue.
Here is a Gantt chart for one two-dozen order: