More Biscuit Case

Analysis
GMPE4 – Operations Management
Submission Date : 02nd December 2018

Submitted by :
Name Roll Number
Akhilesh Shukla 2018GMPE0402
Vinod Pawar 2018GMPE0431
Jitendra Maan 2018GMPE0416
Sanjay Pakale 2018GMPE0427
Production Process
Following is the step by step production process for biscuits:

• Washing the bowls and Mixing the ingredients in food processor – 6 mins, max 3
batches
• Spoon out the Biscuits dough onto a tray – 2 mins, one tray of a dozen
• Put the Biscuits into the oven, setup the oven and bake them – 10 mins, one tray(a
dozen)
• Take the tray of Biscuits out of the oven & Let the Biscuits cool – 5 mins, one tray (a
dozen)
• Finally the Biscuits off the tray & Carefully pack them in a box – 2 mins, one tray (a
dozen)
• Payment acceptance – 1 mins
• .
Process Flow Diagram
Order Washing & Dish up in the Setting up the
Acceptance Mixing tray Oven
Raw
No time since 3 dozen 1 dozen 1 dozen
material automated
6 mins 2 mins 1 mins
360 Biscuit/hour 360 Biscuit/hour
Oven Cycle time –
10 mins
72 biscuit/hour

Payment Baking
Delivery Packing Cooling
Processing

1 dozen 1 dozen 1 dozen 1 dozen

1 mins 2 mins 5 mins 9 mins
720 Biscuit/Hour 360 Biscuits/hour
 Question 1
How much time will it take you to fill the order of any customer?
For Illustration, lets assume processing start at 10:00 am, we will calucalte the order
processing time accordingly.

Process Time required Process First Dozen Second Dozen Third Dozen
capacity
Bowl washing 6 mins 3 dozen 10:00 – 10:06 Food processor capacity is 3 dozen, when Baking of first
+Mixing tray is in progress, second & third tray can be filled and
be ready for baking as the baking operation is over
Dish up 2 mins 1 dozen 10:06 – 10:08
Oven Set up 1 min 1 dozen 10:08 – 10:09 10:18 – 10:19 10:28 – 10:29
Baking Time 9 mins 1 dozen 10:09 – 10:18 10:19 – 10:28 10:29 – 10:38
Cooling 5 mins 10:18 – 10:23 10:28 – 10:33 10:38 – 10:43
Packing 2 mins 10:23 – 10:25 10:33 – 10:35 10:43 – 10:45
Payment 1 min 10:25 – 10:26 10:35 – 10:36 10:45 – 10:46
Total time required First order after Second order after Third order after 10 mins
26 mins 10 mins of first order of second order

It will take 26 mins to fulfil first order and subsequent orders will take 10 mins to deliver
Question 2
• How many orders can you fill in a night, assuming you are open four hours each night?

Available time per night – 4 hours = 240 minutes

First batch production time – 26 mins

Time left after first batch production – 214 mins

Subsequent batch production time – 10 mins

Total number of batches in 214 mins = 21.4

Total production – 21.4+1 = 22.4

Hence maximum production in one night – 22 Dozen

Question 3
• How much of your own and your roommate’s valuable time will it take to fill each order?
Assuming we have running order and there is no waiting of order

Process Time Person engagement First Dozen Production

required for each process
Second Person Engagement for first
First person engagement for first dozen
dozen
Bowl washing 6 mins 6 mins 6 mins 0 mins
+Mixing
Dish up 2 mins 2 mins 2 mins 0 mins
Oven Set up 1 min 1 min 1 mins 0 mins
Baking Time 9 mins 0 Use 9 mins idle time to dish up 2nd & 3rd tray = 0 mins
2+2 mins
Still 5 mins are idle
Cooling 5 mins 0 Take out the tray and setup for second tray for 0 mins
baking – 1 mins, still 4 mins idle (meanwhile first
tray is cooling)
Packing 2 mins 2 mins 2 mins 0 mins
Payment 1 min 1 min 1 mins 0 mins
Total time
12 mins for first dozen – only one person
required

It will take 12 mins of own time without room mates time for first dozen production
Question 3 continued
Question 3
• How much of your own and your roommate’s valuable time will it take to fill each order?
Assuming we have running order and there is no waiting of order
Process Time Person engagement Second Dozen Production
required for each process
Second Person Engagement for
First person engagement for fsecond dozen
Second dozen
Bowl washing 6 mins 6 mins 0 mins 0 mins
+Mixing
Dish up 2 mins 2 mins 2 mins (done by first person during idle 0 mins
time of first dozen baking)
Oven Set up 1 min 1 min 1 mins 0 mins
Baking Time 9 mins 0 Use 9 mins of baking time for bowl washing 0 mins
and Mixing for next 3 dozen ( 6 mins) and
keep the first dozen/tray (2 mins) of batch 2
ready and this cycle will continue
Cooling 5 mins 0 Take out the tray and setup for second tray for 0 mins
baking – 1 mins, still 4 mins idle (meanwhile first
tray is cooling)
Packing 2 mins 2 mins 2 mins 0 mins
Payment 1 min 1 min 1 mins 0 mins
Total time
6 mins for Second dozen – only one person
required

It will take 6 mins of own time without room mates time for Second and third dozen production and in
Second batch (4th Dozen) it will be again 12 mins & then 6 mins each for 5th & 6th Dozen and it will repeat
Question 4
• Because your baking trays can hold exactly one dozen Biscuits, you will produce and sell
Biscuits by the dozen. Should you give any discount for people who order two dozen
Biscuits, three dozen Biscuits or more? If so, how much? Will it take you any longer to fill a
two-dozen Biscuits order than one–dozen Biscuits order?
• Cost Calculation in three Production Scenario
Scenario Scenario 1 Scenario 2 Scenario 3 Assume market
One Dozen Two Dozen Three Dozen manpower of 10,000
Mixing Time 6 6 6 Rs/month which is 1.6
Dish up time 2 4 6 Rs/min (26 working day)
Manpower Oven Set up 1 2 3
time Packing 2 4 6 • Considering 10%
Payment processing 1 1 1 margin, following is the
Total Time 12 17 22
discount for 2 dozen
Man power cost 19.2 27.2 35.2
and 3 dozen order
Material Cost/dozen 20 44 66
respectively:
Cost - 9.34%
Packing Cost 2 4 6
- 13.59%
Product Cost 41.2 75.2 107.5
10% Margin 4.12 7.52 10.75 • One dozen order will
Price & Selling Price 45.62 82.72 118.25 take 26 mins to deliver
Discount Selling Price/dozen 45.62 41.36 39.42 and second dozen will
Discount % - 9.34 % 13.59 %
take another 10 mins to
deliver
Question 5
• How many food processor and baking trays will you need?

Answer

• One Food Processor is sufficient since bottleneck operation is baking

• Minimum 2 baking trays are needed, keeping 3rd tray is better since it is low investment
item
Question 6
• Are there any changes you can make in you production plans that will allow you to make
better Biscuits or more Biscuits in less time or at lower cost? For example, is there a bottleneck
operation in you production process that you can expand cheaply? What is the effect of
adding another oven? How much would you be willing to pay to rent an additional oven?

Answer
• Based on Process flow analysis, baking operation (oven) is bottleneck hence adding
one more oven will help to increase the production

• In case one oven, we are able to deliver 22 dozen in 4 hours with lot of idle time and
with second oven the capacity will be 44 dozen with reduced idle time for manpower

• With addition of one Oven, increase in sales can be 22 dozen which leads to increase
in profit by 22x4.12 = 90.64 Rs.

• Lets assume 50% of additional profit is paid as rent which is equal to 45 Rs/per day
Thank You!