Kristen’s Cookie Company Summary Kristen and her roommate are preparing to initiate an on-campus cookie company in their apartment. They intend to provide fresh cookies to students late at night. With very little overhead cost, the two students plan to provide the freshest and most exotic cookies on campus. Although baking cooking is a very simple process, understanding how the processes work is essential to ensuring the effectiveness of their company. Statement of Problem In order for the ladies to launch their business, they will need to set prices and rules for accepting orders.
Many of the issues will not be able to be resolved until after getting started and initiating different ways of producing cookies. They will need a detailed preliminary plan, strict calculations of time required to devote to this business, and how much money they can expect to make from this night time adventure. Solution and Its Implementation I used the following concepts to address some of these issues: (Jacobs &, Chase 2010 p. 110-p. 126) PROCESS FLOW DIAGRAM THROUGHPUT TIME FOR AN ACTIVITY THROUGHPUT TIME FOR THE PROCESS CAPACITY OF AN ACTIVITYC CYCLE TIME OF AN ACTIVITY CAPACITY OF THE PROCESSCYCLE TIME OF THE PROCESS UTILIZATION OF A RESOURCE BOTTLENECK PROCESS INCREASING THE CAPACITY OF A PROCESS [pic] How long will it take you to fill a rush order? Mix& Spoon (8) + Load & Bake (10) + Cool (5) + Pack & Pay (3) =26 minutes.
[pic] 2. How many orders can you fill in a night, assuming you are open four hours each night? Kristen can make 20 dozen cookies in a four hour span. The process completes its first dozen after 26 minutes, and, thereafter, the process completes a dozen every 10 minutes. [pic] 3. How much of your own and your roomate’s valuable time will it take to fill each order?For yourself: |Activity |Cycle Time | |Wash Bowl, Mix |6 minutes | |Fill Trays |2 minutes | |Total |8 minutes | For your roommate: Activity |Cycle Time | |Prepare Oven |1 minute | |Remove |0 minute | |Pack, Collect Money |3 minutes | |Totals |4 minutes | This is assuming all orders are for one dozen cookies.
4. Because your baking trays can 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 it take you any longer to fill a two-dozen cookie order than a one-dozen cookie order? The first thing that comes to mind is cost. Please see the following: One Dozen Activity |Resource |Cycle Time(minutes) |Start Time(minutes) |Finish Time(minutes) | |Order Entry |Email |0 |0 |0 | |Wash Bowl, Mix |Self |6 |0 |6 | |Fill Tray |Self |2 |6 |8 | |Prepare Oven |Roommate |1 |8 |9 | |Bake |Oven |9 |9 |18 | |Remove |Roommate |0 |18 |18 | |Cool |None |5 |18 |23 | |Pack, Collect Money |Room |3 |23 |26 | |Self |8 minutes | |Roommate |4 minutes | |Total Labor |12 minutes | Two Dozen Activity |Resource |Cycle Time(minutes) |Start Time(minutes) |Finish Time(minutes) | |Order Entry |Email |0 |0 |0 | |Wash Bowl, Mix |Self |6 |0 |6 | |Fill Tray 1 |Self |2 |6 |8 | |Fill Tray 2 |Self |2 |8 |10 | |Prepare Oven 1 |Roommate |1 |8 |9 | |Bake 1 |Oven |9 |9 |18 | |Removal 1 |Roommate |0 |18 |18 | |Cool 1 |None |5 |18 |23 | |Prepare Oven 2 |Roommate |1 |18 |19 | |Bake 2 |Oven |9 |19 |28 | |Remove 2 |Roommate |0 |28 |28 | |Cool 2 |None |5 |28 |33 | |Pack 1 |Roommate |2 |23 |25 | |Pack 2 |Roommate |2 |33 |35 | |Collect Money |Roommate |1 |35 |36 | |Self |10 | |Roommate |7 | |Total Labor |17 minutes | Three Dozen Activity |Resource |Cycle Time(minutes) |Start Time(minutes) |Finish Time(minutes) | |Order Entry |Email |0 |0 |0 | |Wash Bowl, Mix |Self |6 |0 |6 | |Fill Tray 1 |Self |2 |6 |8 | |Fill Tray 2 |Self |2 |8 |10 | |Fill Tray 3 |Self |2 |6 |8 | |Prepare Oven 1 |Roommate |1 |8 |9 | |Bake 1 |Oven |9 |9 |18 | |Removal 1 |Roommate |0 |18 |18 | |Cool 1 |None |5 |18 |23 | |Prepare Oven 2 |Roommate |1 |18 |19 | |Bake 2 |Oven |9 |19 |28 | |Remove 2 |Roommate |0 |28 |28 | |Cool 2 |None |5 |28 |33 | |PrepareOven 3 |Roommate |1 |28 |29 | |Bake 3 |Oven |9 |29 |38 | |Remove 3 |Roommate |0 |38 |38 | |Cool 3 |None |5 |38 |43 | |Pack 1 |Roommate |2 |23 |25 | |Pack 2 |Roommate |2 |33 |35 | |Pack 3 |Roommate |2 |43 |45 | |Collect Money |Roommate |1 |45 |46 | |Self |12 | |Roommate |10 | |Total Labor |22 minutes |If you assume you make $12 per hour, labor cost would be: |# Cookies in Batch |Minutes |Cost |Cost Per Dozen | |1 |12 |2. 40 |2.
40 | |2 |17 |3. 40 |1. 70 | |3 |22 |4. 40 |1.
70 | You could afford to give a discount for two and three dozen orders ecause a two dozen order doesn’t cost twice as much as one dozen. 5. How many electric mixers and baking trays will you need? The number of baking trays ought to equal the maximum number of trays you will be using at any one time. The highest volume would be if we produced three-dozen orders continuously. 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 or 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 willing to pay to rent an additional oven?The bottleneck is the oven, which means there is no point in looking at expanding the capacity of any other resource unless the operation's baking capacity is expanded first. If we had two ovens, we could make cookies faster. But I am not sure how to figure out that function. Conclusion Process analysis is a basic skill needed to understand how a business operates. Drawing a simple flowchart diagrams facilitated the flow of materials. The diagram should include all operating elements and how they function together.
The fundamentals are the key to analyzing the process. Whatever goes in the process must also come out of the process. References Jacob R. , & Chase R. (2010) (13th ed).
Operations and supply chain management. Upper Saddle River, NJ: Pearson Prentice Hall.
