1. The wait time for trucks to back onto a Kiwanne dumper and empty their contents was up to three hours. Even though $75,000 was spent on a fifth Kiwanne dumper, this did not seem to help overtime costs. This assumes that it is the delay in trucks emptying their contents that caused the overtime to be required.
A potential cause is the lack of dryers and the lack of berry appropriate holding bins, i.e. not enough wet or dry berry holding bins – these causes are inferred from Mel O’Brien’s comments on page one of the case.
NCC invested in increasing capacity but not hire adequate full time labor to handle the incremental capacity (hence higher overtime).
Not enough storage space at RP1 or processing capacity to move out older stock (hence the long wait times to unload). 2. Average time to back a truck onto a dumper is 5-10 minutes, so take 7.5 minutes. 60 minutes / 7.5 minutes = 8 trucks per hour.
5 dumpers * 75 barrels per hour = 375 barrels per hour.
Dumper capacity = 9 * 375 = 3,000 barrels per hour.
Holding bins capacity for dry berries = 16 bins for dry berries * 250 barrels per bin = 4,000 barrels per hour.
Holding bins capacity for wet berries = 3 bins for wet berries * 400 barrels per bin + 8 bins for both dry and wet berries * 250 barrels per bin = 3,200 barrels per hour (assuming these bins are used for wet berries).
Destoning = 3 units * 1500 barrels per unit = 4,500 barrels per hour
Dechaffing = 3 units * 1500 barrels per unit = 4,500 barrels per hour
Drying = 3 units * 200 barrels per unit = 600 barrels per hour
Separating = 3 units * 400 barrels per unit = 1,200 barrels per hour
Bulking and bagging = 4*200 + 2*1,000*(5/6) + 8,000/12 = 3,133 barrels per hour
The bottleneck is in the drying process – where 600 barrels per hour of wet berries can be processed.
The capacity of separator is 1,200 bbls/hr. Assume the rest of the 600 bbls/hr are dry berries. The maximum...