Kristen Cookies

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1 PRESENTED BY SOMNATH CHATTERJEE SHUBRA DAS RINKU SAHA PUJJYA GARGEE SUJOY SENAPATI SUBIR GHOSH DEBJIT CHATTERJEE

Transcript of Kristen Cookies

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PRESENTED BY• SOMNATH CHATTERJEE• SHUBRA DAS • RINKU SAHA• PUJJYA GARGEE• SUJOY SENAPATI• SUBIR GHOSH• DEBJIT CHATTERJEE

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Process layouts are found primarily in job shops, or firms that produce customized, low-volume products.

This type of layout is highly flexible in terms of handling changes in product design and being able to customize products.

This type of layout is suitable for customized products produced in very small batches.

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Processing an insurance claim for an accident.

Admitting a patient to a hospital.

Performing the 30,000-mile maintenance on a car.

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Before answering specific questions, it is useful to make a diagram of the overall process:

Order Entry

Wash Bowl, Mix Ingredients Resource: Self

Capacity: 3 Cycle Time: 6 minutes

Fill Tray Resource: Roommate

Capacity: 1 Cycle Time: 2 minutes

Bake Resource: Oven

Capacity: 1 Cycle Time: 9 minutes

Start Oven Resource: Roommate, Oven

Capacity: 1 Cycle Time: 1 minute

Remove Resource: Roommate

Capacity: 1 Cycle Time: 0 minutes

Cool Resource: none

Capacity: 1 Cycle Time: 5 minutes

Pack, Collect Money Resource: Roommate

Capacity: 1 Cycle Time: 3 minutes

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Activity Resource Cycle Time

Order Entry E-mail 0 minutes

Wash Bowl, Mix Self 6 minutes

Fill Tray Self 2 minutes

Prepare Oven Roommate 1 minute

Bake Oven 9 minutes

Remove Roommate 0 minutes

Cool None 5 minutes

Pack, Collect Money Roommate 3 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:Therefore, the minimum time to fill an order is 26

minutes

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Assuming that Kristen’s Cookie Company is open for four hours each night, how many orders can be filled

each night?

The process’s bottleneck is to put the cookies in the oven and set the thermostat and Timer.

Which activity is the process’s bottleneck?

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Assuming that Kristen’s Cookie Company is open for four hours each night, how many orders can be filled

each night?

4 hours per each night = 4 hours * 60 minutes= 240 minutes

Cycle Time = The Duration of the bottleneck= (Setting thermostat and Timer) + (Baking Cookies)= 1 minute + 9 minute= 10 minutes

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Assuming that Kristen’s Cookie Company is open for four hours each night, how many orders can be filled

each night?

Maximum no of orders we can fill in a night = (No of minutes per night-Duration of First Setup)     Cycle Time + 1

= (240 – 26) + 1 10= 22.4 orders~ 22 orders

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Assuming that Kristen’s Cookie Company is open for four hours each night, how many orders can be filled

each night?

Explanation: This is because the first order takes 26 minutes for the first batch of cookies to finish and each subsequent batch takes 10 minutes because it has reached steady state. Thus, we take 4 hours worth of time, minus off 26 minutes for the first batch and then divide

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How much of your own and your roommate’s valuable time will it take to fill each order?

Own Time:• Mixing Ingredients 6 minutes• Dishing out cookies onto tray 2 minutes

• Total Time 8 minutes

Roommate’s Time:• Setting thermostat and timer 1 minutes• Packing the cookies 2 minutes• Collecting payment 1 minutes

• Total Time 4 minutes

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Should you give any discount for people who order two dozen cookies? If so, how much? Will it take any longer to fill a two-dozen cookie order than a one-dozen cookie order?

• First, let's consider costs. • The cost of ingredients and the box are the same, no matter how many dozen you bake. • So the only resource that might differ with the size of the batch is labor.

It looks like we can afford to give a discount for two-dozen orders. A two-dozen order doesn't cost twice as much as a one-dozen order. 

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Question 4 (continued)Activity Resource Cycle Time

Order Entry E-mail 0 minutes

Wash Bowl, Mix Self 6 minutes

Fill Tray 1 Self 2 minutes

Fill Tray 2 Self 2 minutes

Prepare Oven 1 Roommate 1 minute

Bake 1 Oven 9 minutes

Remove 1 Roommate 0 minutes

Cool 1 None 5 minutes

Prepare Oven 2 Roommate 1 minute

Bake 2 Oven 9 minutes

Remove 2 Roommate 0 minutes

Cool 2 None 5 minutes

Pack 1 Roommate 2 minutes

Pack 2 Roommate 2 minutes

Collect Money Roommate 1 minute

TWO DOZEN

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Question 4 (continued)

Self 8

Roommate 4

Total Labor Minutes 12

Self 10

Roommate 7

Total Labor Minutes 17

ONE DOZEN TWO DOZEN

# Cookies in

Batch

Minutes Cost Cost per Dozen

1 dozen 12 $2.40 $2.40

2 dozen 17 $3.40 $1.70

Let's assume your time is worth $12 per hour. Your labor costs would be:

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How many food processors and baking trays will Kristen need?

• The food processor is only used in the mixing stage.• we ought to be able to see that the processor is idle for long periods of time, and that the real bottleneck is the oven. • Buying another food processor won't improve the productivity of the system at all.• There are only three kinds of activities that require a tray: filling the tray, baking (including preparing the oven), and cooling. On the other hand, trays are cheap, and it would be a shame if we ever had to keep the oven (the bottleneck) waiting for lack of a tray. It is reasonable to have "plenty" of trays on hand, whether that means five, or ten, or whatever.

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The bottleneck is the oven, which means there is no point in looking at expanding the capacity of any other resource unless the operation's baking capacity is expanded first. If we had two ovens, we could make cookies faster. Even with the second oven, the oven stage will still be the bottleneck.

Question 6Is 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?

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