KRISTEN COOKIE COMPANY

CASE SOLUTION

A-06 A-16 A-28 A-31 A-33 A-34

Arpana Dalvi Nishal Ferrao Sameer Kapur Shantanu Sharma Sushidh Abhishek Tushar Khanolkar

Q.1. HOW LONG WILL IT TAKE YOU TO FILL A RUSH ORDER?

Operation at worker paced line
Washing & Mixing 2. Dishing up 3. Placing/setting timer 4. Baking 5. Cooling 6. Packing 7. Payment Total Activity Time
1.

= 6 min / dozen (activity 1) = 2 min / tray (activity 1) = 1 min (activity 2) = 9 min (activity 2) = 5 min (activity 2) = 2 min (activity 2) = 1 min (activity 3) = 26 min / dozen

If we dont have any cookies in inventory then it would take 26 minutes to produce the first dozen and an additional 10 minutes per order to complete each additional dozen.

Q.2. HOW MANY ORDERS CAN YOU FILL IN A NIGHT, ASSUMING YOU ARE OPEN 4 HOURS EACH NIGHT?
1. 2. 3. 4. 5.

When the washing & mixing have been prepared, we must still wait that the oven is free. We represent that with a buffer time of 2 minutes long. After a short observation we get to the conclusion that the cycle time is 10 minutes long. We finish the first dozen and 10 minutes late the second. To answer the question, we found this equation 26 + 10(x-1) = 240 x= 22.40 Orders per night = 22

26 minutes represents time required for the first dozen.10 minutes is the cycle time multiply by x who is number of orders which could be filled in a night or the number of batches. But minus one because the first dozen is already counted in the 26 minutes. And 240 minutes is the time while the Kristen's Cookies is opened.

Q.3. HOW MUCH OF YOUR OWN AND YOUR ROOMMATES VALUABLE TIME WILL IT TAKE TO FILL EACH ORDER?

Kristens Total Time: Washing & mixing = 6 minutes Dishing up = 2 minutes Total = 8 minutes Roommates Total Time: Placing/Timer Packing Payments Total Total Working Time

= 1 minute = 2 minutes = 1 minute = 4 minutes = 12 minutes/dozen

Q.4. SHOULD YOU GIVE ANY DISCOUNT FOR PEOPLE WHO ORDER 2 DOZEN COOKIES, 3 DOZEN COOKIES OR MORE? IF SO, HOW MUCH? WILL IT TAKE YOU ANY LONGER TO FILL A 2 DOZEN COOKIE ORDER THAN A 1 DOZEN COOKIE ORDER?

1 Dozen
Washing & Mixing Dishing Kristen Kristen 6 min 2+6=8 min

Setting Timer
Baking Cooling Packing Payment

Roommate

1+8=9 min
9+9=18 min 5+18=23 min

Roommate Roommate

2+23=25 min 1+25=26 min

Kristen Roommate Total Labour Min.

8 min 4 min 12 Min.

Q.4. (CNTD.)

2 Dozen
Washing & Mixing Dishing Tray-1 Dishing Tray-2 Setting Timer-Tray1 Baking-Tray1 Cooling-Tray1 Packing-1 Setting Timer-Tray2 Baking-Tray2 Cooling-Tray2 Packing-2 Payment-2 Kristen Kristen Kristen Roommate 6 min 2+6=8 min 2+8=10 min 1+8=9 min 9+9=18 min 5+18=23 min 2+23=25 min 1+18=19 min 9+19=28 min 5+28=33min 2+33=35 min 1+35=36 min 10 min 7 min 17 min

Roommate Roommate

Roommate Roommate Kristen Roommate Total Labour Min.

Q.4. (CNTD.)
3 Dozen
Washing & Mixing Dishing Tray-1 Dishing Tray-2 Dishing Tray-3 Kristen Kristen Kristen Kristen 6 min 2+6=8 min 2+8=10 min 2+10=12 min Setting Timer-3 Baking-3 Cooling-3 Packing-3 Payment-3 Setting Timer-1 Baking-1 Cooling-1 Packing-1 Roommate Roommate 1+8=9 min 9+9=18 min 5+18=23 min 2+23=25 min Roommate Roommate Kristen Roommate Total Labour Min. Roommate 1+28=29 min 9+29=38 min 5+38=43 min 2+43=45 min 1+45=46 min 12 min 10 min 22 min

Setting Timer-2 Baking-2 Cooling-2 Packing-2

Roommate

1+18=19 min 9+19=28 min 5+28=33 min

Roommate

2+33=35 min

Q.4. (CNTD.) Lets assume that the time is worth $12 per hour. Then the labor hour cost could be:

No. of cookies in batch 1 Dozen 2 Dozen 3 Dozen

Min

Cost / Cost Batch

12 min $2.40 $2.40 17 min $3.40 $1.70 22 min $4.40 $1.47

From the above calculations, we can give the discount on the 3 Dozen orders.

Q.5. HOW MANY FOOD PROCESSORS AND BAKING TRAYS WILL YOU NEED?

During the process the mixer remains idle for a long period, so adding up a new mixer is not required. The mixer can only contain 3 dozen of the ingredients during the whole process, so we will need at least 3 trays for making cookies.

Q.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 LOW COST? CHEAPLY?

FOR EXAMPLE, IF THERE IS A BOTTLENECK

OPERATION IN YOUR PRODUCTION PROCESS THAT YOU CAN EXPAND

WHAT IS THE EFFECT OF ADDING ANOTHER OVEN? HOW MUCH WOULD YOU BE WILLING TO PAY TO RENT AN ADDITIONAL OVEN?

1.

During the process, the oven was almost kept working all the time but the mixer has a lot of time being idle. It means sometime is wasted in waiting for the baking process. This time is the bottleneck of the process. If we rent another oven for 1 Dozen orders, time of 1 oven= 16+10n and for 2 oven=16+7n. So for each orders it saves 3 minutes than previous. If its a 2 or 3 dozen orders, it will save more than that. Assume, the profit per dozen is p and considering the 1 dozen order. So the original profit per hour is 60/10p=6p. 2 oven cost per dozen= 60/7p=8.57p. So the highest price of renting an oven, we can accept is 2.57p, that is, when p is set to $10, so it is $25.7 / hour.

2.

THANK YOU