Cookies Case Study Mode
Figure 1 illustrates Kristin’s Cookie Case flow chart. It will take a minimum of 26 minutes to deliver a dozen fresh baked cookies to a customer. With this constraint, we estimate that the shortest time to fill a rush order of one dozen cookies would be 26 minutes.
Figure 1:
Assuming the hours of operations are 4 hours per night (or 240 min), and a cycle time “CT” of 10 min for baking, we calculated that Kristin’s Cookies could fill approximately 24 dozen cookies a day. It will take 12 min of time for Kristin and her roommate to fill each cookie order (see Figure 2).
Figure 2:
Due to equipment current constraints, we recommend that Kristin’s Cookies should not give any discounts for ordering more than one dozen. While orders of higher quantity will add revenue, it will save only a negligible amount of time per order because the six minutes it takes to mix a new batch of ingredients is shorter than the CT. It will take longer to produce two dozen cookies due to the ten minute CT. However, we will still be within a stated one hour delivery window so we do not anticipate this to be a problem. Nonetheless, if cookie orders are slow at certain times, a promotion of a discounted offer during these times could generate more business.
To support the current business plan, Kristin’s Cookies would only need one stand-up mixer and two baking trays to start their business. We considered adding additional mixing bowls and additional trays to reduce cycle time. However, the 5 min cooling time limits the level to which we can optimize CT.
There are possible changes to consider in the production plan that could allow for volume expansion but they will add to cost and will subsequently reduce profitability. The most notable bottleneck in the operation is the 10 min it takes to bake the cookies. This can be optimized by renting an oven from a neighbor. By adding another oven, we calculate that the cycle time would be reduced to 6 min and this would
Figure 1:
Assuming the hours of operations are 4 hours per night (or 240 min), and a cycle time “CT” of 10 min for baking, we calculated that Kristin’s Cookies could fill approximately 24 dozen cookies a day. It will take 12 min of time for Kristin and her roommate to fill each cookie order (see Figure 2).
Figure 2:
Due to equipment current constraints, we recommend that Kristin’s Cookies should not give any discounts for ordering more than one dozen. While orders of higher quantity will add revenue, it will save only a negligible amount of time per order because the six minutes it takes to mix a new batch of ingredients is shorter than the CT. It will take longer to produce two dozen cookies due to the ten minute CT. However, we will still be within a stated one hour delivery window so we do not anticipate this to be a problem. Nonetheless, if cookie orders are slow at certain times, a promotion of a discounted offer during these times could generate more business.
To support the current business plan, Kristin’s Cookies would only need one stand-up mixer and two baking trays to start their business. We considered adding additional mixing bowls and additional trays to reduce cycle time. However, the 5 min cooling time limits the level to which we can optimize CT.
There are possible changes to consider in the production plan that could allow for volume expansion but they will add to cost and will subsequently reduce profitability. The most notable bottleneck in the operation is the 10 min it takes to bake the cookies. This can be optimized by renting an oven from a neighbor. By adding another oven, we calculate that the cycle time would be reduced to 6 min and this would