Kristens Cookies

Group members Purvangi Gupta Nikhat Farooque Pooja Potdar Samiullah Dawre Sayed Ahmed

Roll No 76 Roll No 61 Roll No 70 Roll No 91 Roll No 94

Case Overview
This case is about two roommates who are preparing to start Kristens Cookie Company in the on-campus apartment. They have to evaluate the preliminary design for operations.

Case Overview

The idea is to bake fresh cookies by using any combination of ingredients that the buyer wants and the cookies will be ready for pickup from the apartment within an hour.

They will guarantee completely fresh cookies in short time. They will be the freshest, most exotic cookies anywhere, available right on campus.

Process Flow Diagram for Kristens Cookies

Time for Rush Order

Therefore, the minimum time to fill a rush order = 6+2+10+5+2+1= 26 minutes

ACTIVITY

RESPONSIBILITY

TIME ( in minutes)

Order receipt and reply Mixing of ingredients Spooning of cookies Placing cookies and setting the oven

Roommate Self Self Roommate

0 6 2 1

Cookie Baking
Removing cookies from oven Cooling

Oven
Roommate -

9
0 5

Packing
Receipt of Payment

Roommate
Roommate

2
1
7

Orders fulfilled
Assuming that Kristens Cookie Company is open for four hours each night, how many orders can be filled each night?

Maximum Orders in 4 hours

That would be dependent on the number of the order placed, but maximum only 22 orders Minimum dependent on the order and the sequence of order but would be less than 22

Time taken by each member

The time taken to fulfill an order would be 8 minutes for Kristen and 4 minutes for roommate per dozen.

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Question 4
Should you give any discount for people who order two dozen cookies, three dozen cookies or more? If so, how much? Will it take you any longer to fill a two- dozen cookie order than a onedozen cookie order?

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Cost
Cost of the ingredients = $.60/dozen= Rs 30 Cost of the box in which the cookies are packed = $.10 per box = Rs 5 So, total cost = $ 0.7/dozen= Rs 35/dozen

(Assume $1=Rs 50)

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Pricing
No of cookies Time required (Dozen) (min) Actual price (Rs) Discount (Rs) percentage Discounted Price (Rs)

1 2 3
4 5 6

26 (8+10+8) 36 (8+10+10+8)

60 120

5 (4.125%) 15 (8.25%)
24 (10%) 45 (15%) 72 (20%)

60 115 165
200 255 288
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46 (8+10+10+10+8) 180
56(8+10+10+10+10 240 +8) 66 300 76 360

Question 5
We will need 1 food processor and 2 baking trays. Whatever may be the number of dozens to be prepared, food processor gets free after every 8 min Oven holds only 1 tray at a time
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Question 6
Are there any changes you can make in your production plans that will allow you to make better cookies or more cookies in less time ot low cost? For example, is there a bottle neck 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 oven?

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Since the oven is the bottle neck in the system , if we add 1 oven extra even then we are able to utilise it optimally. At that time bottle neck is stirring , mixing and washing. And hence in this scenario we will need to increase the productivity for that we will require 2 oven , 2 processes, 4 baking trays and 3 people as it is a hostel hence the no of order would not be very high
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As Im optimally using my resources. Hence I would not be buying an extra oven until I deal with the other bottle neck i.e. Stirring, mixing and manpower.

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2 Ovens

18

Increasing Process Capacity

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Question for further thoughts

20

Lonely Kristen

Tiring
Reduced number of delivery i.e. 19.

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I am in Hurry...

Yes, we could fulfil rush order if there are less than 4 orders only Extra profit

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Price for Rush Order

Order (in dozen) 1
2 3 4

Delivery time (min) 26

36 46 56

Price (Rs)
90 165 245 316

Premium charged(Rs) 30
50 80 100
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Time taken
That would be totally dependent on the supply and if the supply is continuous then we could fill an order within 1 hour for the 1st dozen 1 hour for the 2nd dozen 1 hour for the 3rd dozen 1 hour for the 4th dozen

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Order (in Dozens)

1 2 3

Delivery Time(in minutes) 36

46 56

Slack time(in minutes)

10 10 10
25

Price of Standard Cookies

No of dozens
1 2 3

Time for delivery (min) 18

28 38

Price( in Rs) Discount given(in Rs)

50 90 135 0.0 10 15

4
5

48
58

180
220

20
30
26

What to change
Deploy an additional Oven as it keeps the dough ready before if the demand is anticipated Kristen is mixing the dough his roommate could also do the same and hence save the extra 8 minutes. Increasing the productivity and profit.

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