Kristen's Cookies

Topics: Process management, Cookies, Project management Pages: 5 (1003 words) Published: October 27, 2013


Operations Management
Fall 2013

Kristen’s Cookie Company
September 26, 2013

Kristen and her roommate are preparing to launch Kristen’s Cookie Company in their on-campus apartment. The company will provide fresh cookies to hungry students late at night. Evaluation of the preliminary design for the company’s production process will be required in order to make key policy decisions, including what prices to charge, what equipment to order and how many orders to accept, and to determine whether the business can be profitable.

i) Identify the items, resources, and the tasks. Draw a process flow diagram for this process.

Items:

Cookie Ingredients
Cookie Dough
Baked Cookies

Resources:

Important Resources
Kristen
Roommate
Oven
Mixer
Computer
Minor Resources
Trays
Spoons
Boxes
Printer & Printer Paper
Many others

Tasks:

Relevant Tasks
Receive Order
Add Ingredients to Bowl & Mix
Spoon Dough onto Tray
Let Cookies Bake
Let Cookies Cool
Pack Cookies into Box
Accept Payment

Figure 1: Process Flow Diagram for Kristen’s Cookie Company

Figure 2: Process Schedule Gantt Chart for Kristen’s Cookie Company

ii)
a) How many cookies can Kristen produce (with roommate’s help) in a 4-hour period from start to finish?

b) How many cookies can Kristen produce (without roommate’s help) in a 4-hour period from start to finish?

iii) At the moment, Kristen is uncertain how much demand there will be for cookies in the future. What will she need to change in the process, if anything, if the demand is:

a) 15 dozen per night?

Nothing will need to be changed in the process because Kristen and her roommate are capable of producing 24 dozens per night.

b) 20 dozen per night?

Nothing will need to be changed in the process because Kristen and her roommate are capable of producing 24 dozens per night.

c) 25 dozen per night?

The bottleneck in the process, which is the time required to bake the cookies, will need to change (decrease) in order to fulfill a demand of 25 dozen cookies per night. Currently, Kristen and her roommate have one oven which can bake one dozen (one tray) cookies in 10 minutes. If Kristen and her roommate were to purchase a second oven, this 10 minute bottleneck in the process could potentially be reduced to a 5 minute process task. This would make the mixing of ingredients the bottleneck, which is a 6 minute task. Due to the bottleneck shifting to another shorter task due to the original bottleneck’s task time decreasing, the max rate of production will also increase as shown below:

d) 30 dozen per night?

The answer is the same as part c.

e) 35 dozen per night?

The answer is the same as part c.

iv) It is midway through the first night of business with a setup as described in the case. A rush order comes in that wants the cookies in 30 minutes. Do you accept the order? Yes or no. Explain how you decided.

Assuming Kristen and her roommate are working on a previous order when the rush order is received, the rush order would only be accepted if it had been received at 11 minutes into the order prior to the rush order and 24 minutes into the order prior to the rush order. This is shown visually below:

Figure 3: Resource Utilization For Rush Order Received 11 Minutes Into Prior Order

Figure 4: Resource Utilization For Rush Order Received 24 Minutes Into Prior Order

These diagrams show that as long as the rush order is received between these times in the prior orders workflow, there will be no resource conflicts and the rush order can be successfully completed.

If the rush-order was received prior to that stretch of time, there will be resource conflicts or extended wait-times as shown in the figures below:

Figure 5: Resource Conflict For Rush Order Received Earlier Than 11 Minutes Into Prior Order...
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