National Cranberry Cooperative

Topics: Process modeling, Cranberry, Process management Pages: 3 (616 words) Published: January 28, 2012
* Nishi Sharma
In 1971, National Cranberry Cooperative faced recurring operational problems that affected the productivity and relationship of NCC to growers. This analysis will discuss how NCC can improve its operation before the peak-season comes in. The analysis was based from facts cited in the case, using tools such as but not limited to process flow diagram, cost, benefit and utilization analysis, and work-force scheduling. The author recommends solution that will not just improve NCC's operations but will also increase plant's capacity and decrease its cost thereby leading to long-term savings for the growers. Problem Statement/Key Issues This case analysis will investigate two primary problems faced by NCC (1) Long waiting period of trucks during unloading of berries at RP1 and (2) Too much overtime cost. This case will also look at a secondary problem, specifically, the inaccuracy of grading of berries. Supporting Argument It is necessary to address the truck's queuing problem in 1970 in order to attain NCC's planned increase in output of water harvested crop from 58% to 70% the following year. The queuing/idle time during unloading also creates unnecessary costs particularly the cost of leasing trucks and hiring drivers. Also, Cranberries' market price is influenced by the government regulation Cranberry Marketing Order 1070, which mandates owners to scrap 10% or 200,000 bbls of harvested crops, thereby reducing income for the same resources used. With this, it is important that NCC manage its resources properly including scheduling of workforce (seasonal & full-time) to reduce the costs like the overtime pay. With the cost amounting to $112,500 ($450,000/2x0.5) incurred for paying extra premiums to second graded berries, it is important to look at the grading process and assess the need for installing an equipment that can help reduce the said cost. Alternatives The following are the alternatives...
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