Kristens Cookie Company - 1359 Words

Kristen s Cookie Company Kristen s Cookie Company is a good example where the success or failure of the company depends directly on the process planning adopted by the company, i.e., the company can maximize its productivity by utilizing its resources effectively. One major aspect of process analysis is to identify the major bottlenecks in the process and trying to mitigate their effects with least possible level of costs and resources. The following flowchart shows the overall process adopted by the company: (Exhibit 1) Filling a rush order: Process Resource(s) Process Time Cumulative Time Consumed Taking Order E-mail 0 minutes 0 minutes Washing and Mixing Self 6 minutes 6 minutes Filling Tray Self 2 minutes 8 minutes Preparing†¦show more content†¦So, if labor cost is Rs. 20 per hour, we get the following costs distribution: Order size Labor Time Cost Cost per Dozen 1 dozen 12 Rs. 4.00 Rs. 4.00 2 dozen 17 Rs. 5.66 Rs. 2.83 Thus, cost per dozen of labor is decreasing. This can be applied to orders of more than two dozens as well. Hence, Kristen s Cookie Company can give discounts to customers giving orders of more than one dozen because of the economies of scale as shown above. Material Requirements: The processor is required for mixing the ingredients for the cookies and is idle for most of the time. The oven required for the purpose of baking is the major bottleneck and there is no requirement for more than one processor. Hence, spending money on more than one processor would not be advisable for Kristen s Cookie Company. The baking trays are required for three activities, namely, filling it and keeping it ready for baking, baking it in the oven, and cooling it after baking is done. Since the baking and cooling processes will be going on for at most one tray at a given time and the mixing process gets material ready for at most three trays of one dozen each, five trays would be sufficient, though, even three trays would serve the purpose if mixing and filling activities are done properly. Hence, it is advisable for Kristen s Cookie Company to go for at least three baking trays to maximize its productivity. Cost-Benefit Analysis: The cost benefit analysis can be done byShow MoreRelatedKristen’s Cookie Company1116 Words   |  5 PagesKristen’s Cookie Company We have studied Kristen’s Cookie Company’s planned production process, and have drawn a number of conclusions based on our analysis. The understanding of our analysis will be facilitated by the following flow chart, which shows each step along the production process. The coloration denotes work performed by each member of the two-person workforce, and capacity and timing are specified below for each step: From the above chart, we see that when the process is continuingRead MoreKristens Cookie Company1467 Words   |  6 PagesKRISTEN S COOKIE COMPANY (A1) The overview of the process: QUESTION 1 If we make a table, we can see that the minimum time to fill a rush order is 26 minutes. ACTIVITY RESOURCE TIME START TIME FINISH TIME Order Entry E-mail 0 minutes 00:00 00:00 Wash Bowl, Mix Self 6 minutes 00:00 00:06 Fill Tray Self 2 minutes 00:06 00:08 Start Oven Roommate 1 minute 00:08 00:09 Baking Oven 9 minutes 00:09 00:18 Remove Roommate 0 minutes 00:18 00:18 Cool None 5 minutes 00:18 00:23 Read MoreKristens Cookie Company Essay2219 Words   |  9 Pages| Kristen’s Cookie Company | Sunset Team 4 | A. Dobo, F. Montoya, L. Lie, A. Bustamante, M. Chitipiralla, E. Dzelzkalns 1/21/2013 | Process Chart Figure 1: Kristen’s Cookie Co. Process Flow Chart 1. 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Will it take you longer to fill a two-dozen cookie order than a one-dozen cookie order? †¢ Discounts would be based on labor costs, not raw material cost since the case did not indicate that there are volume discounts for ingredient purchases †¢ There are no overhead costs – utilities are covered by landlord †¢ Assuming each cookie order (whether 1, 2 or 3 dozen) is for the same type of cookie: i. 1 Dozen †¢ Requires 12 total labor minutes to produce a. 8 minutes byRead MoreCase Study Kristens Cookie Company900 Words   |  4 PagesKristen’s Cookie Company Key Questions 1) Washing amp; Mixing | 6 min | Dishing Up | 2 min | Setting the oven | 1 min | Baking | 9 min | Cooling | 5 min | Packing | 2 min | Accept Payment | 1 min | Total | 26 min | 2) The oven holds only one tray (one dozen of cookies) =gt; at full utilization we can cook only 6 dozen of cookies per hour, for example after washing and mixing we have two more minutes to wait before oven will free. 26 + 10(x-1)=240 X=22.4 22 ordersRead MoreProduction Processes at Kristens Cookie Company Essay1051 Words   |  5 PagesKristen’s Cookie Company Missing Charts We have studied Kristen’s Cookie Company’s planned production process, and have drawn a number of conclusions based on our analysis. The understanding of our analysis will be facilitated by the following flow chart, which shows each step along the production process. The coloration denotes work performed by each member of the two-person workforce, and capacity and timing are specified below for each step: From the above chart, we see that when theRead MoreEssay on Kristens Cookies1009 Words   |  5 Pagesï » ¿ 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 howRead MoreSolution to Kristen Cookie Case1361 Words   |  6 PagesKRISTEN’S COOKIE CASE FOR DR. 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Based on this model, order qualifiers are the physical locationRead MoreCase Study: Kristen Cookies1155 Words   |  5 Pagesplanning to start a cookie business called Kirsten Cookie Company. The company is to be housed in a dorm room with many restrictions that limit their production capacity; mainly because of the limited space. Since college students often lived on slim budgets, the students thought they identified a market niche by being able to produce cookies at an affordable price that are custom made to state and freshly baked. Therefore, the students identified the needed raw materials as labor, cookie dough, and boxes