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MAN 6501 Operations Management CASE ANALYSIS: Kristen s Cookies 1. How long will it take to fill a rush order?

2/9/2012

The time required to fill the rush order is: Process s Throughput Time = 8+10+5+3=26 minutes If there is multiple rush order the person will have to wait an additional 10 minutes because we only have one oven. So, the second rush order s time would be 36 minutes, and the third rush order would be 46 minutes. 2. How many orders can you fill in a night, assuming you are open four hours each night?

I m able to fill at most 22 dozens because my first batch takes 26 minutes and the subsequent batched will take 10 minutes. Therefore: Total time: 240 minutes 240 26 = 214 214 / 10 = 21.4 3. How much of your own and your roommate s valuable time will it take to fill each order? After the first batch, Kirsten will take 8 minutes and the roommate will take 2 minutes. 4. Because you baking trays can only hold exactly one dozen cookies, you will produce and sell cookies by the dozen. Should you give any discount for people who order two dozen cookies, three dozen cookies, or more? If so, how much? Will you take any longer to fill a two dozen cookie order than a one-dozen cookie order? No discounts because my process cycle time will still be 10 minutes regardless due to my bottleneck. If the customer orders 2 or 3 dozens, it will save Kirsten the missing time of 6 minutes, but that cannot be factored in because we cannot bake more than one dozen cookies at a time.

MAN 6501 Operations Management 5. How many food processors and baking trays will you need? One food processor and 4 trays.

2/9/2012

6. Are there any changes in you can make in your production plans that will allow you to make better cookies or more cookies in less time or at lower cost? For example, is there a bottleneck operation in your 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 over? We could add another food processor and oven to increase capacity. The current bottleneck is the Load & Bake process. However, if we add another oven, then the bottleneck becomes the Mix & Spoon step. Therefore, our hourly capacity increases from 6 dozens to 7.5 dozens per hour.