PRESENTED BY

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

1
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.

2
Processing an insurance claim for an accident.

Admitting a patient to a hospital.

Performing the 30,000-mile maintenance on a

car.

3
Before answering specific questions, it is useful to make a
diagram of the overall process:
Wash Bowl, Mix Ingredients Fill Tray
Order Resource: Self Resource: Roommate
Entry Capacity: 3 Capacity: 1
Cycle Time: 6 minutes Cycle Time: 2 minutes

Start Oven
Resource: Roommate, Oven
Capacity: 1
Cycle Time: 1 minute

Bake
Resource: Oven
Capacity: 1
Cycle Time: 9 minutes

Cool Remove
Resource: none Resource: Roommate
Capacity: 1 Capacity: 1
Cycle Time: 5 minutes Cycle Time: 0 minutes

Pack, Collect Money

Resource: Roommate
Capacity: 1
Cycle Time: 3 minutes 4
 1. How long will it take for you to fill a rush
order?
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

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

Which activity is the process’s bottleneck?

The process’s bottleneck is to put the cookies in the oven and
set the thermostat and Timer.
6
 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
7
 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 8
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

9
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 10

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. 11
 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 12
 Question 4 (continued)
ONE DOZEN TWO DOZEN
Self 8 Self 10

Roommate 4 Roommate 7

Total Labor Minutes 12 Total Labor Minutes 17

Let's assume your time is worth $12 per hour. Your

labor costs would be:
# Cookies in Batch Minutes Cost Cost per Dozen

1 dozen 12 $2.40 $2.40

2 dozen 17 $3.40 $1.70

13
 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.
14
 Question 6
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?

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. 15
16