A Project Report On Kristens cookies Company

(An assessment under the subject operation Engine)

Submitted to:
Prof. Hemendra Pal

submitted by:
Ankur Pathak Roll no - PGDM20140103

ABOUT KRISTENS COOKIE COMPANY

Summary
Kristen and her roommate are preparing to initiate an oncampus cookie company in their apartment. They intend to provide fresh cookies to students late at night. With very little overhead cost, the two students plan to provide the freshest and most exotic cookies on campus. Although baking cooking is a very simple process, understanding how the processes work is essential to ensuring the effectiveness of their company. Statement of Problem In order for the ladies to launch their business, they will need to set prices and rules for accepting orders. Many of the issues will not be able to be resolved until after getting started and initiating different ways of producing cookies. They will need a detailed preliminary plan, strict calculations of time required to devote to this business, and how much money they can expect to make from this night time adventure.

QUESTIONs ANAYISIS

Ques. How long it will take you to fill a rush order? Ans. Action Needed Time in min Clean Bowl, Add ingredients, and Mix 6 Dish Cookies onto Tray* 2 Put cookies in Oven, Set Timer & Temp. 1 Baking* 9 Remove cookies and cool 5 Bag cookies* 2 Accept payment 1 Total 26 * Per dozen cookies Ques. How many orders can be filled in a night assuming you are open for 4 hours each night? Ans. If we use the capacity of the mixing bowl, which is 3 dozen cookies per cycle, we get a different time. Action Needed Time in min Clean Bowl, Add ingredients, and Mix 6 Same for 3 dozen: 6 Dish Cookies onto Tray 2 2x3=6 Put cookies in Oven, Set Timer & Temp. 1 1x3=3 Baking 9

9x3=27 Remove cookies and cool 5 Same for 3 dozen: 5 Bag cookies 2 2x3=6 Accept payment 1 Same for 3 dozen: 1 Total 54 . If we produce 3 dozen cookies every 54 minutes, we will complete 240/54= 4,44 cycles which is equivalent to 13,33 dozen cookies. Because there is no half cycle we need to round down. We can produce 4 cycles which is equivalent to 12 dozen cookies in 4 hours. Ques. What happens if you are trying to do this alone without your room mate? Ans. The main assumption is that all orders are for one dozen cookies. Valuable time is defined as time where me and my roommate actually are doing work. To fill each order I will need 8 min (Wash bowl & Mix (6 min) + spooning on the tray (2 min)= 8 min). My roommates valuable time is Preheat and prepare the oven (1 min)+ Pack (2 min)+ Payment (1 min)= 4 min. The 9 minutes of baking time and 5 minutes of cooling can be used to do further productive work. Ques. How many electric mixers and baking trays will you need? Ans. We know that the bottleneck of this process is the oven; this means that having more mixers will not improve processing time, thus we will only need 1 mixer. By mixing 3 dozen cookies at once we need to wait for the oven to bake the cookies. Because we can only mix 3 dozen cookies at once we would only need that amount of baking trays. The most that can be filled is 3 baking trays and the trays can only go into the oven one at a time. But to be on the save side we would buy more than 3 baking trays, because one or two could be damaged during use. Ques. Are there any changes you 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 can expand cheaply? What is the effect of adding another oven? How much you are willing to pay for an additional oven? Ans. To reduce our raw material costs we could buy in bulk which would result in a lower cost per cookie. If we want to increase our throughput we have to be careful not to add more raw materials (inventory). What we would need to reduce is the time it takes and the cost to reduce the bottlenecks (the ovens) processing time which might mean that we should purchase an additional oven for the cookie company. In order to know for sure though, we would have to test/calculate the affect on the other resources and truly see that throughput would be improved by a significant margin. I say significant because at the point we add an extra oven to the operation we would be working to pay off the cost of that oven as it depreciates as soon as possible. Ques. How much of our own and your roommate valuable time will it take to fill each order? Ans. Time used by me: Action Needed Time in min Clean Bowl, Add ingredients, and Mix 6 Dish Cookies onto Tray 2 Total 8 Time used by my roommate: Action Needed Time in min Put cookies in Oven, Set Timer & Temp. 1 Bag cookies* 2 Accept payment 1 Total 4