Assignment Case Study KirstenCookie Company

The flow diagram of the process is as follows:

Wash and Mix

Spoon

6 min per dozen:

Me

Load, set thermostat & timer

1 min per dozen:

Roommate

2 min per dozen:

Me

Pack

Accept payment

1 min per order

Roommate

Cool

2 min per dozen

Roommate

Bake

9 min per dozen:

Oven

Unload

5 min

Roommate

Cookie Making Process:

Mix & Spoon

Load & Bake

Cool

Pack & Pay

Throughput Time

6 +2 =8 min

1 + 9 = 10 min

5 min

2 + 1 = 3 min

Hourly Capacity

7.5 dozen

6 dozen

12 dozen

20 dozen

Cycle Time

8 min

10 min

5 min

3 min

Personnel Utilized

Me

Roommate
-Loading

Roommate

Equipment Utilized

Processor - Mixing
Tray - Spooning

Tray Oven

Tray

Tray - Packing

Operational Questions:
1. Time to fill a Rush Order
For 1 order of 1 dozen cookies, the flow time is 26 minutes for the entire process from accepting
the order to receiving payment and handing over the cookie package to the customer (8 min for
mix and spoon + 10 min for load and bake + 5 min for cooling + 3 min for pack and pay). This is
shown in the process flowchart.
2. Night Orders
The capacity of the system is based on the output of the bottleneck. The bottleneck is the oven
which can process 60min/10min = 6 dozen orders per hour.
One nights output = 4 hours x bottleneck output = 4 hours x 6 dozen /hour = 24 dozen cookies
3. Time to fill each order (utilization)
I am working 6+2 minutes for each dozen. Over the hour, I do this 6 times so I am working 48
minutes. My utilization is Flowrate/Capacity = 48/60=80%.
My roommate is working 1+2+1 = 4 minutes per dozen. So, my roommates utilization = 4x6=24
minutes per hour. My roommates utilization = 24/60=40%.
4. Discount for more than 1 dozen orders
The cost of ingredients per dozen remain the same. Total valuable time for each dozen is 12
minutes (6 min for wash and mix + 2 for spooning + 1 loading & timer + 2 min for packing + 1
payment). Total valuable time for 2 dozen order is 17 minutes (6 mins + 2 mins + 1 min + (2 x
2) mins + 1 min). Total valuable time for 3 dozen order is 22 minutes (6 mins + 2 mins + 1 min
+ (2 x 3) mins + 1 min).

A discount of 10% to 20% is doable. Or a set dollar amount for two dozen orders or more is also
possible.
5. Food processors and baking trays
The food processor is idle for most time during production process as the process charts show, so
only 1 is necessary for the time being. Since the mixing bowls can hold only 3 dozen cookies, 3
trays per mixer for the production process is needed.
6. Factors to consider at this stage of planning the business
Market: consider how attractive the product offering is to existing and potential customers
Costs: Can reduce prices to attract more customers or increase profit margins by getting cheaper/
discounted materials with good quality.
Labor: Consider hiring more people to increase productivity.
Product: How to make the cookies better, more innovative, or standardized so as to make them
quicker.
Services: Possibility of providing value added services like delivery.
Hazards: What are the safety requirements to reduce/avoid accidents?
Laws: To set up the business so that it complies with all the laws and regulations.
Investment: Anticipate further investment costs for extra machinery, and equipment.
There is the possibility to change the production process by freezing the cookie dough. In this
way, cookies can be ordered by number and just pulled from the freezer for baking. The baked
cookies can then be pulled from the oven and served fresh to the customer.

1. What happens if you are trying to do this by yourself without a roommate?

Without a roommate, I would do the process alone, which means I would take over my
roommates responsibilities of 4 minutes per dozen (1 min for loading, and setting the thermostat
& timer + 2 min for packing + 1 min for accepting payment). My new time would be 12 minutes
per order, which exceeds the previous 10 minutes cycle time for 1 dozen cookies. My new
capacity would be 60/12 = 5 dozen cookies per hour.