Kristen s Cookies

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

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2 . lowvolume products. Process layouts are found primarily in job shops.PROCESS LAYOUT . This type of layout is suitable for customized products produced in very small batches. This type of layout is highly flexible in terms of handling changes in product design and being able to customize products. or firms that produce customized.

3 . Performing the 30. Admitting a patient to a hospital.Examples of a Process in Service Companies Processing an insurance claim for an accident.000-mile maintenance on a car.

Mix Ingredients Resource: Self Capacity: 3 Cycle Time: 6 minutes Fill Tray Resource: Roommate Capacity: 1 Cycle Time: 2 minutes Start Oven Resource: Roommate. it is useful to make a diagram of the overall process: Order Entry Wash Bowl. Oven Capacity: 1 Cycle Time: 1 minute Bake Resource: Oven Capacity: 1 Cycle Time: 9 minutes Cool Resource: none Capacity: 1 Cycle Time: 5 minutes Remove Resource: Roommate Capacity: 1 Cycle Time: 0 minutes Pack.Process Flow Diagram for Kristen s Cookies Before answering specific questions. Collect Money Resource: Roommate Capacity: 1 Cycle Time: 3 minutes 4 .

we will need to do the following: Therefore. Collect Money 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 Assuming this order is for one dozen cookies. Mix Fill Tray Prepare Oven Bake Remove Cool Pack. the minimum time to fill an order is 26 minutes . How long will it take for you to fill a rush order? Activity Order Entry Wash Bowl.Question 1 1.

6 . 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.Question 2 Assuming that Kristen¶s Cookie Company is open for four hours each night.

Question 2 (continued) 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 .

Question 2 (continued) Assuming that Kristen¶s Cookie Company is open for four hours each night.4 orders ~ 22 orders 8 . 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.

minus off 26 minutes for the first batch and then divide 9 .Question 2 (continued) 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.

Question 3 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 .

no matter how many dozen you bake. A twodozen order doesn't cost twice as much as a one-dozen order. how much? Will it take any longer to fill a twodozen cookie order than a one-dozen cookie order? ‡ First. ‡ So the only resource that might differ with the size of the batch is labor.Question 4 Should you give any discount for people who order two dozen cookies? If so. ‡ The cost of ingredients and the box are the same. let's consider costs. It looks like we can afford to give a discount for two-dozen orders. 11 .

Question 4 (continued) Activity Order Entry Wash Bowl. Mix Fill Tray 1 Fill Tray 2 Prepare Oven 1 Bake 1 Remove 1 Cool 1 Prepare Oven 2 Bake 2 Remove 2 Cool 2 Pack 1 Pack 2 Collect Money Resource E-mail Self Self Self Roommate Oven Roommate None Roommate Oven Roommate None Roommate Roommate Roommate Cycle Time 0 minutes 6 minutes 2 minutes 2 minutes 1 minute 9 minutes 0 minutes 5 minutes 1 minute 9 minutes 0 minutes 5 minutes 2 minutes 2 minutes 1 minute 12 TWO DOZEN .

Your labor costs would be: # Cookies in Batch Minutes Cost Cost per Dozen 1 dozen 12 $2.70 13 .40 $1.40 $2.40 2 dozen 17 $3.Question 4 (continued) ONE DOZEN Self Roommate Total Labor Minutes 8 4 12 Self Roommate Total Labor Minutes TWO DOZEN 10 7 17 Let's assume your time is worth $12 per hour.

‡ Buying another food processor won't improve the productivity of the system at all. and cooling. It is reasonable to have "plenty" of trays on hand. baking (including preparing the oven). 14 . whether that means five. ‡ There are only three kinds of activities that require a tray: filling the tray. or ten.Question 5 How many food processors and baking trays will Kristen need? ‡ The food processor is only used in the mixing stage. On the other hand. ‡ we ought to be able to see that the processor is idle for long periods of time. and it would be a shame if we ever had to keep the oven (the bottleneck) waiting for lack of a tray. trays are cheap. or whatever. and that the real bottleneck is the oven.

the oven stage will still be the bottleneck. Even with the second 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. 15 . we could make cookies faster.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.

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