National Cranberry Cooperative
National Cranberry Cooperative
October 29th, 2014
OIE 500 – Analyzing And Designing Operation To
Create Value; Walter T. Towner 2014
Problems with NCC
• Overtime costs
• Truck waiting
• Wet harvesting becoming more common than dry harvesting
• Even more overtime and truck waiting problems in the future
OIE 500 – Analyzing And Designing Operation To
Create Value; Walter T. Towner 2014
Process flow chart
OIE 500 – Analyzing And Designing Operation To
Create Value; Walter T. Towner 2014
Bottleneck and overtime hours
• On peak days can expect 18,879 bbls
• Wet berries → 0.7*18,879 = 13,215 bbls/day
• Wet berry process time → total bbls/dryer capacity → 13,215 bbls/600 bbls/hr = 22 hours
• Dry berries process time → 5,664 bbls/600 bbls/hr =9.44 hours
• Buying an extra dryer for $60,000 increases dryer capacity from 600 to
800 bbls/hr
• New wet berries process time → 13,215/800 =16.5 hours
• New dry berries process time → 5,664/400 = 14.2 hours
• Reduces bottleneck by 22-16.5 = 5.5 hours
• Saves 5.5 hours of overtime on peak days
OIE 500 – Analyzing And Designing Operation To
Create Value; Walter T. Towner 2014
What if we added another dryer?
• Dryer processing capacity increases to 1000 bbls/day
• Wet berries process time → 13,215/1000 = 13.2 hours
• Dry berries process time → 13.2 hours + (5,664-13.2*200)/1200 = 15.9 hours
• The dry berry processing time becomes new bottleneck
• Limits benefit of second dryer 16.2-15.9 = 0.3 hours reduction in process time
• Need to increase separator capacity to realize full 3 hour reduction in process time from a 2nd dryer
• Second dryer not worth the investment
OIE 500 – Analyzing And Designing Operation To
Create Value; Walter T. Towner 2014
How does alleviating dryer bottleneck impact truck waiting times? • Inventory builds up in bins at a rate of 18,879 bbls*0.7/12 hours – 600 bbls/hour = 501 bbls/hour
• When last truck arrives at 7pm
• There is 501
October 29th, 2014
OIE 500 – Analyzing And Designing Operation To
Create Value; Walter T. Towner 2014
Problems with NCC
• Overtime costs
• Truck waiting
• Wet harvesting becoming more common than dry harvesting
• Even more overtime and truck waiting problems in the future
OIE 500 – Analyzing And Designing Operation To
Create Value; Walter T. Towner 2014
Process flow chart
OIE 500 – Analyzing And Designing Operation To
Create Value; Walter T. Towner 2014
Bottleneck and overtime hours
• On peak days can expect 18,879 bbls
• Wet berries → 0.7*18,879 = 13,215 bbls/day
• Wet berry process time → total bbls/dryer capacity → 13,215 bbls/600 bbls/hr = 22 hours
• Dry berries process time → 5,664 bbls/600 bbls/hr =9.44 hours
• Buying an extra dryer for $60,000 increases dryer capacity from 600 to
800 bbls/hr
• New wet berries process time → 13,215/800 =16.5 hours
• New dry berries process time → 5,664/400 = 14.2 hours
• Reduces bottleneck by 22-16.5 = 5.5 hours
• Saves 5.5 hours of overtime on peak days
OIE 500 – Analyzing And Designing Operation To
Create Value; Walter T. Towner 2014
What if we added another dryer?
• Dryer processing capacity increases to 1000 bbls/day
• Wet berries process time → 13,215/1000 = 13.2 hours
• Dry berries process time → 13.2 hours + (5,664-13.2*200)/1200 = 15.9 hours
• The dry berry processing time becomes new bottleneck
• Limits benefit of second dryer 16.2-15.9 = 0.3 hours reduction in process time
• Need to increase separator capacity to realize full 3 hour reduction in process time from a 2nd dryer
• Second dryer not worth the investment
OIE 500 – Analyzing And Designing Operation To
Create Value; Walter T. Towner 2014
How does alleviating dryer bottleneck impact truck waiting times? • Inventory builds up in bins at a rate of 18,879 bbls*0.7/12 hours – 600 bbls/hour = 501 bbls/hour
• When last truck arrives at 7pm
• There is 501