Pages: 2 (382 words) Published: December 23, 2012
Oğulcan TUFAN 11324

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...