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# OPERATIONS MANAGEMENT-1

Group Assignment
National Cranberries Co-operative

## Group 1, Section A, PGP1

A.G.Lakshmanan

Aashish Mylapally

Abhishek Apurv

Bothra Deepak
PROCESS DIAGRAM – NATIONAL CRANBERRIES CO-
OPERATIVE

## Receivi Weighi Sampli Colour Dumpin

ng ng ng Sampling g

Dr Dry/We Dry
y t

## Milling Dryin Dechaffin Destoni

g g ng

Baggin Freezer
g
2 Bulk Bin Finish
Processing
Bulk Another
Truck Plant
3 Waste,
5%

per hour.

## • We have not considered per hour operating cost of plant

• Overtime for both regular and part time worker has been taken to be \$
6.50 per hour.

• In calculating the payback time, the same cost saving will occur every day.

It is given in case that wet berries will make 70 % of total berries and that
normal running hours for plant is 11 (12-1) hours.
Case 1: 10000 bbl/day

## Now, assuming this is not a peak season, we have considered only 27

workers. Since plant is working suboptimal level during overtime , only
two-third of the work force will be working on wet berries drying process.

= 20*(2/3)

= 12

Analysis

## Considering the cost of depreciation and cost of investment in

dryer(8-10%) it will not be economical to buy another dryer.

## WB feed=10500/11 = 950 bbl/hr

DB feed= 4500/11 = 410 bbl/hr

bbl

Analysis

Workers  15

Workers  36

## WB feed=14000/11 = 1270 bbl/hr

DB feed= 6000/11 = 550 bbl/hr

bbl

WB feed  800

## Cost of a bin = 7500

We’ll have to convert dry bins to wet bins, number of bins needed to be
converted

= (5170-3200)/250 =8

## Total Cost  8* 7500 = 60000

This is more than the cost of adding one more dryer (40000).

Workers = 15

## Processing Hours  12.34-11 = 1.34

Worker36
Cost saved = 36*1.34*6.5 = \$313.5

## Payback period = 80000/4496 =17.8 days

The chart displaying the initial scenario in all three cases – 10000, 15000,
20000 bbls/day – has been provided below:

Intake (BBls/Day)
Trucks
Wet
The chart displaying the new scenario in all three cases – 10000, 15000,
20000 bbls/day – with additional dryers (as applicable), has been provided
be;ow:

Intake (BBls/Day
Trucks
Wet
Scheduling of workforce and another shift:

• In the case of 10,000 bbl per day, overtime is minimal so another shift
is not needed.

• In the case of 15000 bbl per day, overtime is about 2 hrs which is not
enough to schedule another shift. Moreover, since it is almost a
continuous process, we can start all the processes at same time. At most
De-stoning, De-chaffing, Milling and shipping can start one hour after
receiving and control room operator has started working.

## • In case of 20000 bbls per day, overtime is approximately 6 hrs, which

means that we can schedule another shift of part time workers on
busy or peak days. All the operations will have to start at same time
otherwise if we wait one hour, holding bins (both dry and wet) will be full
and trucks will have to wait.