Case Study: Kristen’s Cookie Company
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 two-dozen cookie than a one-dozen cookie order?
Because producing a second and a third dozen cookies will take less time than producing the first dozen cookies (excluding the washing and mixing steps), we can give a discount for people ordering two or three dozens. It can be a 10% off for the second and third dozens.
5) How many electric mixers and baking trays will you need?
I can have 3 baking trays for each electric mixer. It will save me 2 minutes of spooning in the second dozen and 2 minutes in the third dozen. By having 3 baking trays, I can use the time of baking of the first dozen by spooning cookies onto the tray in the two others baking trays. In addition to that, the number of mixers will depend on the different flavors. It will...
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