Case Report : Kristen’s Cookie Company (A1)
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Key Questions
1. To know the time it will take us to fill a rush order, we have to know how many dozens the rush order requires. If it is only one dozen, we need 6 minutes for the washing and mixing steps, 2 minutes for the spooning, 10 minutes for the whole baking, 5 minutes to cooling down, 2 minutes for the packing and 1 minute for the payment. That is to say : 26 minutes. If we consider the order requires N dozens : we always need the first 8 minutes to do the washing and mixing steps and the spooning. As long as the oven can only contain 1 dozen, we need 10xN minutes for the baking of all of the N dozens. I can use the time my roomate needs to bake 1 dozen to produce new cookies (washing + mixing + spooning) if the next dozen order requires a different flavour or if I already made 3 dozens. Finally, my roomate can use the 9 minutes of each baking (except the first one) to do the cooling packing and payment of the previous dozen order. That is why, the time needed to fill a rush order of N dozens is : 8 + 10xN + 5 + 2 + 1 = 16 + 10xN minutes. 2. We assume we are open 4 hours each night. Using Question 1, we know we need 16 + 10xN minutes to fill a N dozens rush order. We want to maximize N knowing we have to have 16 + 10xN < 240. We easily find N = 22. We can fill 22 orders in a night. 3. For me : I only wash the mixer, mix ingredients and spoon the cookies that is why my valuable time for one order is 8 minutes. For my roomate : he sets the oven, remove cookies from it at the end of the baking, pack them and accept the payment that is why his valuable time for one order is : 1 + 0 + 2 + 1 = 4 minutes. 4. We know the costs of boxes and ingredients do not change so the only thing which can change is the cost of time. For 1 dozen, question 3 tells us we have a total valuable time of 12 minutes. For 2 dozens, we will have a total valuable time of 6 + 2 x (2 + 1 + 2) + 1= 17 minutes....
...for an order of 2 dozen cookies is 36 minutes.
An alternate way to compute the theoretical flow time is using the concept of bottleneck resources (discussed in Chapter 5). Oven is the bottleneck resource with 10 minutes of activity per dozen cookies. Observe that the first dozen goes into the oven at the end of 8 minutes. The second dozen will go into the oven 10 minutes after the first dozen. Therefore, the theoretical flow time of the second dozen = theoretical flow time of the first dozen + activity time at the bottleneck = 26 + 10 = 36 minutes. Similarly, theoretical flow time of 3 dozen = theoretical flow time of the first dozen + 2 * activity time at the bottleneck = 26 + 2*10 = 46 minutes.
Figure TM4.2: Gantt Chart for Kristen’sCookie; order size = 2 dozen.
1. With two ovens, the baking of the two dozen can be overlapped. So You can spoon the second dozen into another tray by the 10th minute. At this time, the RM is ready to load the second oven. The second oven will finish baking the second dozen by the 20th minute. The first dozen is out of the oven at the 18th minute after which it cools for 5 minutes and then the RM packs them in 2 minutes finishing at 25th minute. By this time, the second dozen has cooled and ready to be packed which takes another 2 minutes. Payment and delivery takes another 1 minute finishing the order in 28 minutes.
2. With one big oven, both trays get loaded into the oven at the end of the10th...
...Case Report: Kristen’sCookieCompany
Fill in your name in the header. Below, write your answers to Key Questions 15 (in the case writeup handed out in the class OR in the textbook in Chapter 5 on Process Analysis on page 136, right column). If you need to make assumptions to answer a question, clearly state them, logically defend them, and then proceed to answer the question accordingly.
1. Enter your answer and supporting arguments for question 1 here. Include all details necessary to fully justify your answer to the question. Please draw a process flow diagram (easy to do using the “drawing” toolbar in MS Word). You can include the process flow diagram inline or as a third page in addition to your 2 page report (an exhibit), but please submit only one document on Webcampus.
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Answer: it will take 26 minutes to fill a rush order:
▪ 6 min for the wash, the ingredients and the mix
▪ + 2 min to dish up
▪ + 1 min to load the oven
▪ + 9 min to bake the cookies
▪ + 1 min to unload
▪ +5 min to cool the cookies
▪ + 2 min to pack the cookies
▪ + 1 min for the payment
▪ = 26 minutes
2. Enter your answer and supporting arguments for question 2 here. As you answer questions, continue on to the second page as necessary, but include your name and section number on each page (easy to enter your...
...CaseStudy: Kristen’sCookieCompany
Key questions to answer before you launch the business:
1) How long will it take you to fill a rush order?
If we consider that one order is a dozen, the flow time is 26 minutes for the first order.
2) How many orders can you fill in a night, assuming you are open four hours each night?
(4 hours = 240 minutes)
If we consider that one order is a dozen, it will take me:
* For the first order: 26 minutes
* For the second order: 20 minutes (excluding backing and mixing because 6 min can be for 3 dozens)
* For the third order: 20 minutes
→ So, it will take 66 minutes for 3 orders.
→ (240 / 66)* 3 = 10 orders/ night.
3) How much of your own and your roommate’s valuable time will it take to fill each order?
If we assume that we will work 4 hours (240 minutes) each night, and it takes us on average 22 minutes (26+20+20 /3) to produce a dozen. (Considering that one order is a dozen.)
4) Because your baking trays can hold exactly one dozen cookies, you produce and sell cookies by the dozen. Should you give any discount for people who order two dozen cookies, three dozen cookies, or more? If so, how much? Will it take you any longer to fill a twodozen cookie than a onedozen cookie order?
Because producing a second and a third dozen cookies will take less time than producing the first dozen cookies...
...Kristen’scookiecompany precase report
DSC335
1. Draw a flow chart of the cookiemaking process
2. How long will it take to fill a rush order of 1dozen cookie?
It will take 26 minutes to fill a rush order of 1dozen cookie. (I revise my chart to 4 cycle orders)
3. What is the cycle time? How many orders can you fill in a night (4hour period)? Does your answer depend on the size of the order, 1dozen, 2dozen, or 3dozen?
1dozen orders: The cycle time is 10 minutes. The first order of 1dozen cookies will take 26 minutes, and each 10 minutes for another 1dozen cookie order.
(4*6026)/10=21.4 plus the first order, we can make 22 orders of 1dozen cookie fill in a night.
2dozen orders: The cycle time is 20 minutes. The first order of 2dozen cookies will take 36 minutes, and each 20 minutes for another 2dozen cookie order.
(4*6036)/20=10.2 and plus the first order, we can make 11 orders of 2dozen cookie fill in a night.
3dozen orders: The cycle time is 30 minutes. The first order of 3dozen cookies will take 46 minutes, and each 30 minutes for another 3dozen cookie order.
(4*6046)/30=6.47 and plus the first order, we can make 7 orders of 3dozen cookie fill in a night.
4. What is the difference in labor (both you and your roommate’s time) per dozen among...
...Oğulcan TUFAN 11324
KRISTEN’SCOOKIECOMPANYCASE
Put the cookies in the oven and set the thermostat and timer(1min)
Kristen’sCookieCompanycase is a business which is established by 2 college students to serve cookies to students at night. There is a certain plan for getting orders, preparing cookies and delivering them. All of them goes in a sequence. The aim is to produce cookies in the least possible time to maximize sales and profit and also satisfy the customer by delivering them on time and make them eat the cookies hot enough. The costs of resources, machinery and electricity are provided by other sources. The plan to get orders, baking and finalizing the orders are shown on a flowchart below: After taking the order, the following actions happen:
Carefully pack them in a box and accept payment(3min)
Remove cookies from the oven and put them aside to cool(5min)
Cookies bake. (9min)
Dish up cookies one dozen at a time on a tray (2min)
Wash out the mixing bowl, add all ingredients and mix them in processor(6min)
When I calculate the capacity by preparing a table. I do these calculations: 60/26(1x1)= 2,3 dozens/hour. So I found out that in 1 hour this business can produce 2,3 dozens of cookies in an hour. To find the flowtime; I calculate the sum of all operations...
...
Kristen’sCookieCompany

Sunset Team 4 
A. Dobo, F. Montoya, L. Lie, A. Bustamante, M. Chitipiralla, E. Dzelzkalns
1/21/2013

Process Chart
Figure 1: Kristen’sCookie Co. Process Flow Chart
1. How long will it take you to fill a rush order?
A rush order will take 26 minutes to fulfill, as illustrated in the Gantt chart below.
Figure 2: Rushorder Gantt chart
2. How Many Orders can you fill in a night assuming you are open four hours each night?
a. Assuming steady state at the beginning of the period and no limitation on the number of trays and mixers:
* Order time of first order is 26 minutes.
* Second order is fulfilled by the 36th minute
* Steadystate rate is 1 dozen per 10 minutes
* Hourly steadystate production is 6 dozen per hour
* Production per night is 24 dozen per night
b. Assuming a start at the beginning of the period and no limitation on the number of trays and mixers:
* Order time of first order is 26 minutes.
* Second order is fulfilled by the 36th minute
* Steadystate rate is 1 dozen per 10 minutes
* First hour production is 3 dozen.
* Hourly production thereafter is 6 dozen per hour
* Production per night: (24026) / 10 = 21 dozen per night
3. How much of your own and your roommate’s valuable time will it take to fill each order?
Based on the table below of resource utilization...
...Kristen'sCookieCompany Case writeup
Process flow diagram
Inputs Basic Dough, Ingredients
Output Cookies packed in boxes
Flow Units Cookies
Resources Kristen and her roommate, Oven, Spoons, Trays, Food Processor
Assumptions
1. An order is for a dozen cookies of any one type.
2. Kristen and her roommate work for 4 hours per day.
Q1. Time Taken for a rush order = Sum of time taken for Activities 1,2,3,4,5,6, and 7 for an order
= 6 + 2 + 1 + 9 + 5 + 2 + 1 = 26 minutes
Q2. Process Capacity = minimum of time taken for all process steps.
Process step capacity = # of resources / Activity Time ( The values for each step are mentioned in the
process flow diagram above.)
Hence Process Capacity = minimum ( 40,120,240,26.6,48,120,240) = 26.6 orders/day
Or in other words, Kristen and her roommate can fill in 26.6 orders in four hours.
Q3. Time taken by Kristen for one order = Time taken by Kristen to perform activity 1 and 2
= 6 minutes + 2 minutes = 8 minutes.
Time taken by her roommate for one order = Time taken to perform activities 3,6, and 7
= 1 minute + 2 minute +...
...Kristen’s Cookies  Key Issues
Product Differentiation/ Core Competencies
n
Product features
n n n
variety/customization freshness convenience Low overhead Flexible labor  can study during idle time Location  access to targeted market
n
Competitive Advantages
n n n
What are the bottlenecks?
mix (6) spoon (2)
load (1) bake(9)
cool (5)
pack (2)
pay (1)
Resource Activity You mix spoon Oven bake Rmate oven load packing payment
Time 6 min 2 min 10 min 1 min 2 min 1 min
1 Doz. 7.5 6 15
2 Doz. 12 6 17.14
3 Doz. 15 6 18
QUESTIONS: • Who is the bottleneck for 1 Doz. orders? • Who is the bottleneck for 2 Doz. orders? • Who is the bottleneck for 3 Doz. orders?
How should we price the cookies?
Order Size Labor per Order Labor per Dozen* $10/hr (flexible) $8/hr (inflexible)
1 Doz 12 min 12 min $2.00 $2.66
2 Doz 17 min 8.5 min $1.42 $2.66
3 Doz 22 min 7.3 min $1.22 $2.66
Flexible labor can be reallocated to other work when not needed for cookie baking. Therefore, we only incur an opportunity cost for the time that flexible labor is activated for cookies. Inflexible labor cannot be reallocated. Thus, we must pay workers their hourly wage whether they are activated or not.
If our unit costs are lower when we make more than one dozen at a time, perhaps we should pass on the savings to the customers
What if we had another oven?
load (1) bake(9)...