Description
The PPT highlights about the case "Kirsten's Cookie Company".
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Design process flow and maximize the production of a small bakery in a student’s college apartment. Decide the price to charge so as to make a profit and calculate the number of orders to accept
?
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Calculate the variables like time, food processors and other equipments to meet orders.
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Each order consists of only one dozen for simplicity. Each person would be doing only that job which has been assigned to him. Ignoring maintenance and opportunity costs. They would work for 4 hours a day
?
?
?
Washing + Mixing Done by: Self Capacity: 3 Dozens Cycle time: 6 minutes
Filling the Tray Done by: Roommate Capacity: 1 Dozen Cycle time: 2 minutes
Order Entry
Start Oven Done by: Roommate Capacity: 1 Dozen Cycle time: 1 minute
Pack, Collect Money Done by: Roommate Capacity: 1 Dozen Cycle time: 3 minute
Baking Done by: Capacity: Cycle time:
Oven 1 Dozen 9 minute
Cool Done by: Capacity: Cycle time:
None 1 Dozen 5 minute
Remove from Oven Done by: Roommate Capacity: 1 Dozen Cycle time: 0 minute
Take Order
Wash Bowl and Mix ingredients
WIP
WIP Fill the tray
Accepting the payment
Packing
Cooling
Baking in oven
Process Activity Order Entry Wash Bowl, Mix Fill Tray Prepare Oven Bake Remove Cool Pack, Collect Money Total
Resource E-mail Self Self Roommate Oven Roommate None Roommate
Cycle Time 0 minutes 6 minutes 2 minutes 1 minute 9 minutes 0 minutes 5 minutes 3 minutes 26 Minutes
Minimum Time Required is 26 min
Activity Order Entry Wash Bowl, Mix 1 Fill Tray 1 Prepare Oven 1 Bake 1 Wash Bowl, Mix 2 Fill Tray 2 Remove 1 Prepare Oven 2 Cool 1 Bake 2 Pack 1 Collect Money 1 Wash Bowl, Mix 3 Fill Tray 3 Remove 2 Prepare Oven 3 Cool 2 Bake 3 Pack 2 Collect Money 2 Remove 3 Cool 3 Pack 3 Collect Money 3
Resource E-mail Self Self Roommate Oven Self Self Roommate Roommate None Oven Roommate Roommate Self Self Roommate Roommate None Oven Roommate Roommate Roommate None Roommate Roommate
Cycle Time 0 minutes 6 minutes 2 minutes 1 minute 9 minutes 6 minutes 2 minutes 0 minutes 1 minute 5 minutes 9 minutes 2 minutes 1 minute 6 minutes 2 minutes 0 minutes 1 minute 5 minutes 9 minutes 2 minutes 1 minute 0 minutes 5 minutes 2 minutes 1 minute
Start Time 0:00 0:00 0:06 0:08 0:09 0:10 0:16 0:18 0:18 0:18 0:19 0:23 0:25 0:20 0:26 0:28 0:28 0:28 0:29 0:33 0:35 0:38 0:38 0:43 0:45
Finish Time 0:00 0:06 0:08 0:09 0:18 0:16 0:18 0:18 0:19 0:23 0:28 0:25 0:26 0:26 0:28 0:28 0:29 0:33 0:38 0:35 0:36 0:38 0:43 0:45 0:46
Time required in making cookies: 1 dozen in 26 minutes 2 dozens in 36 minutes 3 dozens in 46 minutes
Time required to make n one-dozen orders is given by the below expression: 16+10n The shop operates for only 4 hours every day, 16 + 10n = 240 Therefore, n = 22
orders (dozens) per day.
For Self
Activity Cycle Time
Wash Bowl, Mix
Fill Tray Total
6 minutes
2 minutes 8 minutes
For Roommate
Activity
Prepare Oven Remove Pack, Collect Money Total
Cycle Time
1 minute 0 minutes 3 minutes 4 minutes
Total
Self 8 minutes Roommate 4 minutes Total Labor Minutes 12 minutes
For One Dozen
Activity Resource Cycle Time
Order Entry
Wash Bowl, Mix Fill Tray Prepare Oven Bake Remove Cool Pack, Collect Money
E-mail
Self Self Roommate Oven Roommate None Roommate
0 minutes
6 minutes 2 minutes 1 minute 9 minutes 0 minutes 5 minutes 3 minutes
Activity Time
Self Roommate Total Labor Minutes
8 4 12
Total labor Hours
For Two Dozen
Activity Order Entry Wash Bowl, Mix 1 Fill Tray 1 Prepare Oven 1 Bake 1 Wash Bowl, Mix 2 Fill Tray 2 Remove 1 Prepare Oven 2 Cool 1 Bake 2 Pack 1 Collect Money 1 Remove 2 Cool 2 Pack 2 Collect Money 2 Resource E-mail Self Self Roommate Oven Self Self Roommate Roommate None Oven Roommate Roommate Roommate None Roommate Roommate Cycle Time 0 minutes 6 minutes 2 minutes 1 minute 9 minutes 6 minutes 2 minutes 0 minutes 1 minute 5 minutes 9 minutes 2 minutes 1 minute 0 minutes 5 minutes 2 minutes 1 minute Start Time 0:00 0:00 0:06 0:08 0:09 0:10 0:16 0:18 0:18 0:18 0:19 0:23 0:25 0:28 0:28 0:33 0:35 Finish Time 0:00 0:06 0:08 0:09 0:18 0:16 0:18 0:18 0:19 0:23 0:28 0:25 0:26 0:28 0:33 0:35 0:36
Activity Time
Self Roommate Total Labor Minutes
10 7 17
Total labor Hours
Three Dozen
Activity Order Entry Resource E-mail Cycle Time 0 minutes Start Time 0:00 Finish Time 0:00
Wash Bowl, Mix 1
Fill Tray 1 Prepare Oven 1 Bake 1 Wash Bowl, Mix 2 Fill Tray 2 Remove 1
Self
Self Roommate Oven Self Self Roommate
6 minutes
2 minutes 1 minute 9 minutes 6 minutes 2 minutes 0 minutes
0:00
0:06 0:08 0:09 0:10 0:16 0:18
0:06
0:08 0:09 0:18 0:16 0:18 0:18
Activity Time
Prepare Oven 2
Cool 1 Bake 2 Pack 1 Collect Money 1 Wash Bowl, Mix 3 Fill Tray 3 Remove 2 Prepare Oven 3 Cool 2 Bake 3 Pack 2 Collect Money 2 Remove 3 Cool 3 Pack 3 Collect Money 3
Roommate
None Oven Roommate Roommate Self Self Roommate Roommate None Oven Roommate Roommate Roommate None Roommate Roommate
1 minute
5 minutes 9 minutes 2 minutes 1 minute 6 minutes 2 minutes 0 minutes 1 minute 5 minutes 9 minutes 2 minutes 1 minute 0 minutes 5 minutes 2 minutes 1 minute
0:18
0:18 0:19 0:23 0:25 0:20 0:26 0:28 0:28 0:28 0:29 0:33 0:35 0:38 0:38 0:43 0:45
0:19
0:23 0:28 0:25 0:26 0:26 0:28 0:28 0:29 0:33 0:38 0:35 0:36 0:38 0:43 0:45 0:46
Total Labor Hours
Self Roommate Total Labor Minutes 12 10 22
Time taken/dozen Self 1 dozen 2 dozens 8 minutes 10 minutes
Room Mate 4 minutes 7 minutes
Total 12 minutes 17 minutes
3 dozens
12 minutes
10 minutes
22 minutes
Generalizing this for n one-dozen orders: Total = 7 + 5n Assuming labor’s cost @ Rs.30 per hour.
Cost structure
Dozens 1 2 3
Var. Cost Rs. 70.00 Rs. 70.00 Rs. 70.00
Labor Cost Rs. 6.00 Rs. 8.50 Rs. 11.00
Total Cost Rs. 76.00 Rs. 148.50 Rs. 221.00
Total Cost/dozen Rs. 76.00 Rs. 74.25 Rs. 73.66
Cost Decrease
NA
2.3% 3.07%
Selling price @ Rs 91 (assuming a profit of 20%): Feasible discounts on multiple orders are: 2-dozen order – 2.1% 3-dozen order – 2.8%
?
Must equal the maximum number of trays you will be using at any one time.
Stage Time Dozens per Hour (1 Oven) 15 per hour 6 per hour 18 per hour
Wash Bowl, Mix, Fill Tray (yourself) Prepare Oven & Bake (oven) Prepare Oven, Pack, Collect Money (roommate)
12 min. for 3 dozen 30 min. per 3 dozen 10 min. per 3 dozen*
Oven is the bottleneck
There are only 3 types of activities that require a tray: •Filling the ingredient mix to the tray, •Baking (including preparing the oven) •Cooling.
•We are using at most three trays in the filling activity at any given time . •There is never more than one tray in the oven at any given time, nor is there ever any more than one tray cooling. •So we could certainly get by with five trays, and maybe four or even three if we adjust the mixing and filling part of the operation.
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?
3 diff orders & 1 oven 3 diff orders together & 1 oven 3 same orders & 1 oven 3 diff orders & 2 ovens 3 diff orders together & 2 ovens 3 same orders & 2 ovens 2 same & 1 diff order & 2 ovens 3 diff orders & 3 ovens 3 same orders & 3 ovens 46 Minutes 46 Minutes 46 Minutes 44 Minutes 43 Minutes 36 Minutes 36 Minutes 44 Minutes 30 Minutes
•For every order after the first order with 2 ovens in place we gain 2 mins per 2 orders.
•This makes it 22 mins since we calculated that we can accept a maximum of 22 orders in the given time period of 4 hours
•Since we can produce one dozen every 10 mins we can produce 2 extra dozens a day. •If the selling price is Rs91 then the extra profit would be Rs 30 per day and Rs 900 per month. •Assuming a margin of 20% and will be left with Rs.780 •Lease an extra oven for any amount less than Rs.780/month
Thank You
doc_557744552.pptx
The PPT highlights about the case "Kirsten's Cookie Company".
?
Design process flow and maximize the production of a small bakery in a student’s college apartment. Decide the price to charge so as to make a profit and calculate the number of orders to accept
?
?
Calculate the variables like time, food processors and other equipments to meet orders.
?
Each order consists of only one dozen for simplicity. Each person would be doing only that job which has been assigned to him. Ignoring maintenance and opportunity costs. They would work for 4 hours a day
?
?
?
Washing + Mixing Done by: Self Capacity: 3 Dozens Cycle time: 6 minutes
Filling the Tray Done by: Roommate Capacity: 1 Dozen Cycle time: 2 minutes
Order Entry
Start Oven Done by: Roommate Capacity: 1 Dozen Cycle time: 1 minute
Pack, Collect Money Done by: Roommate Capacity: 1 Dozen Cycle time: 3 minute
Baking Done by: Capacity: Cycle time:
Oven 1 Dozen 9 minute
Cool Done by: Capacity: Cycle time:
None 1 Dozen 5 minute
Remove from Oven Done by: Roommate Capacity: 1 Dozen Cycle time: 0 minute
Take Order
Wash Bowl and Mix ingredients
WIP
WIP Fill the tray
Accepting the payment
Packing
Cooling
Baking in oven
Process Activity Order Entry Wash Bowl, Mix Fill Tray Prepare Oven Bake Remove Cool Pack, Collect Money Total
Resource E-mail Self Self Roommate Oven Roommate None Roommate
Cycle Time 0 minutes 6 minutes 2 minutes 1 minute 9 minutes 0 minutes 5 minutes 3 minutes 26 Minutes
Minimum Time Required is 26 min
Activity Order Entry Wash Bowl, Mix 1 Fill Tray 1 Prepare Oven 1 Bake 1 Wash Bowl, Mix 2 Fill Tray 2 Remove 1 Prepare Oven 2 Cool 1 Bake 2 Pack 1 Collect Money 1 Wash Bowl, Mix 3 Fill Tray 3 Remove 2 Prepare Oven 3 Cool 2 Bake 3 Pack 2 Collect Money 2 Remove 3 Cool 3 Pack 3 Collect Money 3
Resource E-mail Self Self Roommate Oven Self Self Roommate Roommate None Oven Roommate Roommate Self Self Roommate Roommate None Oven Roommate Roommate Roommate None Roommate Roommate
Cycle Time 0 minutes 6 minutes 2 minutes 1 minute 9 minutes 6 minutes 2 minutes 0 minutes 1 minute 5 minutes 9 minutes 2 minutes 1 minute 6 minutes 2 minutes 0 minutes 1 minute 5 minutes 9 minutes 2 minutes 1 minute 0 minutes 5 minutes 2 minutes 1 minute
Start Time 0:00 0:00 0:06 0:08 0:09 0:10 0:16 0:18 0:18 0:18 0:19 0:23 0:25 0:20 0:26 0:28 0:28 0:28 0:29 0:33 0:35 0:38 0:38 0:43 0:45
Finish Time 0:00 0:06 0:08 0:09 0:18 0:16 0:18 0:18 0:19 0:23 0:28 0:25 0:26 0:26 0:28 0:28 0:29 0:33 0:38 0:35 0:36 0:38 0:43 0:45 0:46
Time required in making cookies: 1 dozen in 26 minutes 2 dozens in 36 minutes 3 dozens in 46 minutes
Time required to make n one-dozen orders is given by the below expression: 16+10n The shop operates for only 4 hours every day, 16 + 10n = 240 Therefore, n = 22
orders (dozens) per day.
For Self
Activity Cycle Time
Wash Bowl, Mix
Fill Tray Total
6 minutes
2 minutes 8 minutes
For Roommate
Activity
Prepare Oven Remove Pack, Collect Money Total
Cycle Time
1 minute 0 minutes 3 minutes 4 minutes
Total
Self 8 minutes Roommate 4 minutes Total Labor Minutes 12 minutes
For One Dozen
Activity Resource Cycle Time
Order Entry
Wash Bowl, Mix Fill Tray Prepare Oven Bake Remove Cool Pack, Collect Money
Self Self Roommate Oven Roommate None Roommate
0 minutes
6 minutes 2 minutes 1 minute 9 minutes 0 minutes 5 minutes 3 minutes
Activity Time
Self Roommate Total Labor Minutes
8 4 12
Total labor Hours
For Two Dozen
Activity Order Entry Wash Bowl, Mix 1 Fill Tray 1 Prepare Oven 1 Bake 1 Wash Bowl, Mix 2 Fill Tray 2 Remove 1 Prepare Oven 2 Cool 1 Bake 2 Pack 1 Collect Money 1 Remove 2 Cool 2 Pack 2 Collect Money 2 Resource E-mail Self Self Roommate Oven Self Self Roommate Roommate None Oven Roommate Roommate Roommate None Roommate Roommate Cycle Time 0 minutes 6 minutes 2 minutes 1 minute 9 minutes 6 minutes 2 minutes 0 minutes 1 minute 5 minutes 9 minutes 2 minutes 1 minute 0 minutes 5 minutes 2 minutes 1 minute Start Time 0:00 0:00 0:06 0:08 0:09 0:10 0:16 0:18 0:18 0:18 0:19 0:23 0:25 0:28 0:28 0:33 0:35 Finish Time 0:00 0:06 0:08 0:09 0:18 0:16 0:18 0:18 0:19 0:23 0:28 0:25 0:26 0:28 0:33 0:35 0:36
Activity Time
Self Roommate Total Labor Minutes
10 7 17
Total labor Hours
Three Dozen
Activity Order Entry Resource E-mail Cycle Time 0 minutes Start Time 0:00 Finish Time 0:00
Wash Bowl, Mix 1
Fill Tray 1 Prepare Oven 1 Bake 1 Wash Bowl, Mix 2 Fill Tray 2 Remove 1
Self
Self Roommate Oven Self Self Roommate
6 minutes
2 minutes 1 minute 9 minutes 6 minutes 2 minutes 0 minutes
0:00
0:06 0:08 0:09 0:10 0:16 0:18
0:06
0:08 0:09 0:18 0:16 0:18 0:18
Activity Time
Prepare Oven 2
Cool 1 Bake 2 Pack 1 Collect Money 1 Wash Bowl, Mix 3 Fill Tray 3 Remove 2 Prepare Oven 3 Cool 2 Bake 3 Pack 2 Collect Money 2 Remove 3 Cool 3 Pack 3 Collect Money 3
Roommate
None Oven Roommate Roommate Self Self Roommate Roommate None Oven Roommate Roommate Roommate None Roommate Roommate
1 minute
5 minutes 9 minutes 2 minutes 1 minute 6 minutes 2 minutes 0 minutes 1 minute 5 minutes 9 minutes 2 minutes 1 minute 0 minutes 5 minutes 2 minutes 1 minute
0:18
0:18 0:19 0:23 0:25 0:20 0:26 0:28 0:28 0:28 0:29 0:33 0:35 0:38 0:38 0:43 0:45
0:19
0:23 0:28 0:25 0:26 0:26 0:28 0:28 0:29 0:33 0:38 0:35 0:36 0:38 0:43 0:45 0:46
Total Labor Hours
Self Roommate Total Labor Minutes 12 10 22
Time taken/dozen Self 1 dozen 2 dozens 8 minutes 10 minutes
Room Mate 4 minutes 7 minutes
Total 12 minutes 17 minutes
3 dozens
12 minutes
10 minutes
22 minutes
Generalizing this for n one-dozen orders: Total = 7 + 5n Assuming labor’s cost @ Rs.30 per hour.
Cost structure
Dozens 1 2 3
Var. Cost Rs. 70.00 Rs. 70.00 Rs. 70.00
Labor Cost Rs. 6.00 Rs. 8.50 Rs. 11.00
Total Cost Rs. 76.00 Rs. 148.50 Rs. 221.00
Total Cost/dozen Rs. 76.00 Rs. 74.25 Rs. 73.66
Cost Decrease
NA
2.3% 3.07%
Selling price @ Rs 91 (assuming a profit of 20%): Feasible discounts on multiple orders are: 2-dozen order – 2.1% 3-dozen order – 2.8%
?
Must equal the maximum number of trays you will be using at any one time.
Stage Time Dozens per Hour (1 Oven) 15 per hour 6 per hour 18 per hour
Wash Bowl, Mix, Fill Tray (yourself) Prepare Oven & Bake (oven) Prepare Oven, Pack, Collect Money (roommate)
12 min. for 3 dozen 30 min. per 3 dozen 10 min. per 3 dozen*
Oven is the bottleneck
There are only 3 types of activities that require a tray: •Filling the ingredient mix to the tray, •Baking (including preparing the oven) •Cooling.
•We are using at most three trays in the filling activity at any given time . •There is never more than one tray in the oven at any given time, nor is there ever any more than one tray cooling. •So we could certainly get by with five trays, and maybe four or even three if we adjust the mixing and filling part of the operation.
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?
3 diff orders & 1 oven 3 diff orders together & 1 oven 3 same orders & 1 oven 3 diff orders & 2 ovens 3 diff orders together & 2 ovens 3 same orders & 2 ovens 2 same & 1 diff order & 2 ovens 3 diff orders & 3 ovens 3 same orders & 3 ovens 46 Minutes 46 Minutes 46 Minutes 44 Minutes 43 Minutes 36 Minutes 36 Minutes 44 Minutes 30 Minutes
•For every order after the first order with 2 ovens in place we gain 2 mins per 2 orders.
•This makes it 22 mins since we calculated that we can accept a maximum of 22 orders in the given time period of 4 hours
•Since we can produce one dozen every 10 mins we can produce 2 extra dozens a day. •If the selling price is Rs91 then the extra profit would be Rs 30 per day and Rs 900 per month. •Assuming a margin of 20% and will be left with Rs.780 •Lease an extra oven for any amount less than Rs.780/month
Thank You
doc_557744552.pptx