Put the cookies in the oven and set the thermostat and timer(1min) Kristen’s Cookie Company case 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 which is 26 minutes. To calculate the flow rate assuming the demand and supply are both equal to 50 orders per hours: Min{Demand(50), Supp(50) Capacity(2,3)}= 2,3. The utilization of the resources are found by Throughput Rate/ Capacity of resources which is 26/2,3= 11,3. The Gantt chart for only one order is shown below:
In this case, I found the quantitative information about the performance of this company, how they operate the business, how well they can operate it and their capacities and efficiency. By knowing these terms and calculations, an entrepreneur can be more successful when entering a...
...Case Report : Kristen’sCookieCompany (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...
...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...
...Kristen’scookiecompany precase report
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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...
...
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)
mix (6)
spoon...
...4. Because your baking trays hold exactly one dozen cookies, you will produce and sell cookies by the dozen. Should you give discount for people who order two dozen cookies, three dozen cookies, or more? If so, how much? Will it take you longer to fill a twodozen cookie order than a onedozen cookie order?
• Discounts would be based on labor costs, not raw material cost since the case did not indicate that there are volume discounts for ingredient purchases
• There are no overhead costs – utilities are covered by landlord
• Assuming each cookie order (whether 1, 2 or 3 dozen) is for the same type of cookie:
i. 1 Dozen
• Requires 12 total labor minutes to produce
a. 8 minutes by Kristen: prepare (6 minutes) and spoon (2 minutes per dozen)
b. 4 minutes by roommate: set oven (1 minute per dozen), package (2 minutes per dozen), and accept payment (1 minute per order)
• This represents 1 labor minute per cookie (12 labor minutes / 12 cookies)
ii. 2 Dozen
• Requires 17 total labor minutes to produce
a. 10 minutes by Kristen: prepare (6 minutes) and spoon (4 minutes)
b. 7 minutes by roommate: set oven (2 minutes), package (4 minutes), and accept payment (1 minute)
• This represents 0.71 labor minutes per cookie (17 labor minutes / 24 cookies)
• This means that there was a 29% reduction in labor (1 – 0.71), which means that it cost us 29% less in labor. Therefore, we...
...Kristen'sCookieCompanyKristen'sCookieCompany is a good example where the success or failure of the company depends directly on the process planning adopted by the company, i.e., the company can maximize its productivity by utilizing its resources effectively. One major aspect of process analysis is to identify the major bottlenecks in the process and trying to mitigate their effects with least possible level of costs and resources. The following flowchart shows the overall process adopted by the company: (Exhibit 1)
Filling a rush order:
Process Resource(s) Process Time Cumulative Time Consumed
Taking Order Email 0 minutes 0 minutes
Washing and Mixing Self 6 minutes 6 minutes
Filling Tray Self 2 minutes 8 minutes
Preparing Oven Roommate 1 minute 9 minutes
Baking Oven 9 minutes 18 minutes
Removing the tray Roommate 0 minutes 18 minutes
Cooling None 5 minutes 23 minutes
Packaging & Collecting Money Roommate 3 minutes 26 minutes
Thus, it requires minimum 26 minutes to fill a rush order.
Production Capacity (4 hours):
Since the resources required for the different processes are not common everywhere, there can be two orders (of one dozen each, for simplicity) being processed simultaneously. Thus, it would not require twice as much time for the second order (of one dozen) to be completed as it requires for the first...
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