Kristens Cookie Company

~ Sarvesh Kumar Gantala & Hema Sindhuja Koneru

Competitive Advantage
Cookies are always fresh
No Order : No Cookies
Buyers : Hot cookies out of oven.

Variety of ingredients
Chocolate chips, M&Ms, Chopped Health Bars, Coconut, Walnuts and
Raisins.

Customize orders.

Always freshest, Most Exotic Cookies : Right on campus

Process Flow Diagram

KRISTEN
DOUGH

KRISTEN

MIXER

TRAY

ROOMIE
OVEN
TRAY

MIX

LOAD
TRAY

SET
OVEN

ROOMIE
OVEN
TRAY

BAKE

TRAY

COOL

ROOMIE

TRAY

PACK

PAY

Production Process Flow Chart

3 minutes
Pack &
Collect
Money

Hol
d

1. Time to fill a rush order :

Activity

Resource

Cycle Time

Start Time

Finish
Time

Order Entry

E- Mail

0 minutes

0:00

0:00

Wash/Mix

Kristen

6 minutes

0:00

6:00

Spooning

Kristen

2 minutes

6:00

8:00

Heat Oven

Roommate

1 minute

8:00

9:00

Bake

Oven

9 minutes

9:00

18:00

Remove
Cookies

Roommate

0 minutes

18:00

18:00

Cool

Tray

5 minutes

18:00

18:00

Pack/
Collect
Money

Roommate

3 minutes

23:00

26:00

2. How many orders can you fill in a

night, assuming you are open 4 hours
each night

Pick & Collect Money

Activity

Cooling Time
Remove from Oven
Baking Time

Start Oven
Spooning
Mix
4

12

16
Time

20

24 26 28

32

36

Order Size

Order Completion Time

1 dozen

26 minutes

2 dozen

36 minutes

3 dozen

46 minutes

4 dozen

56 minutes

5 dozen

66 minutes

6 dozen

76 minutes

7 dozen

86 minutes

8 dozen

96 minutes

9 dozen

106 minutes

10 dozen

116 minutes

11 dozen

126 minutes

12 dozen

136 minutes

13 dozen

146 minutes

14 dozen

156 minutes

15 dozen

166 minutes

16 dozen

176 minutes

17 dozen

186 minutes

18 dozen

196 minutes

19 dozen

206 minutes

20 dozen

216 minutes

21 dozen

226 minutes

22 dozen

236 minutes

Operating Time = 240 Minutes

(4 hours)
Solution
22 dozen cookies in 4 hours

HOW MUCH OF YOUR OWN AND YOUR

ROOM MATES VALUABLE TIME WILL IT
TAKE TO FILL EACH ORDER?
KRISTEN
Activity

Cycle Time

Wash, Mix and Spoon

6+2 =8 minutes

ROOMMATE
Activity
Heat Oven, Remove Cookies &
Pack and Collect Money

Cycle Time
1+0+3 = 4 minutes

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 or
more dozen? If so, how much? Will it take you any longer
to fill a two dozen order than a one dozen order?
All costs of ingredients and boxes for each dozen are
same,
Total valuable for one dozen is
6(Wash & Mix) + 2 (Spooning) + 1 (Set timer on
oven) + 2 (Packing time) +1 Process Payment = 12
minutes
Two dozen order, total time is 6+2+1+2 x 2+1 = 17
minutes
Three dozen order, total time is 6 + 2 + 1 +2 x 3 +1 =
22 minutes

 Solving by material costs with labor costs, we find that costs are
also decreases with larger orders.
Given Ingredients = 0.60 $ /dozen
Box=0.10/dozen
No. of
Cookie
s in
batch

Minute
s

Cost

Labor
Cost
per
dozen

Materi
al Cost
per
dozen

Total

Potenti
al
Discou
nt

1 dozen

12

$2.00

$2. 00

$0.70

$2.70

2 dozen

17

$ 2.83

$ 1.41

$0.70

$2.11

$0.59

3 dozen

22

$3.66

$1.22

$0.70

$1.92

$0.08

5. How many electric mixers and baking

trays will you need?
The electric mixer is idle for long time during
production process, so only one is needed.
During the whole process, The mixer can only
contain 3 dozen of ingredients, at least 3 trays
are needed.

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 at lower cost?
For example, is there a bottle neck operation in your
production process that you can expand cheaply?
What is effect of adding another oven? How much
would you be willing to pay to an additional oven
PROCESS FLOW DIAGRAM FOR TWO OVEN
Load &
Bake
Mix &
Spoon

Cool

Load &
Bake

Pack & Pay

 Increasing capacity of oven makes to start new

order in 5 minutes.
New Capacity = 7.5 dozen/hour (60/8 =7.5)

Throug
h Put
Time
Hourly
Capacit
y
Cycle
Time

6+2 = 8 1+9 =
5
2+1 = 3
minutes 10
minutes minutes
minutes
7.5
12 dozen 12 dozen 20 dozen
dozen
8 minute 5
minutes

5
minutes

3
minutes

Further
Thought

1. What happens if you are trying to do

this by yourself without your roommate?
By calculating the amount of time it takes to begin a
new batch of cookies with their selected ingredients, to
the time when the dozen cookies are packed into a box
and paid for.
Because all the task have to be done by Kristen alone,
her time for one dozen cookies become 12
minutes(8+4) which exceeds the previous 10 minute
cycle time for one dozen cookies. In this case Kristen
becomes the bottle neck, rather than the baking
process
However, if order contains two dozens of the same kind
of cookie, the washing and mixing can be done
together, so her time for this order becomes 17 minutes
(6+2x2+2x1+2x2+1), which is less than the previous of
20 minutes. If the order is 3 dozen, it becomes 22
minutes.

Suppose you have just put a tray of cookies into

the oven and someone calls up with a crash
priority order for a dozen cookies of a different
flavor. Can you fill the priority order while still
fulfilling the order for the cookies that are
already in the oven? If not, how much of a
premium should you charge for filling the rush
order?
The Gantt Chart describes that there would be no need
to stop baking of the previous cookie.
The time that the rush order will delay is only at most 1
minute. The previous order can be finished on time.
There is no need to offer a special rate.

3. When should you promise delivery? How can you

look quickly at your order board and tell a caller
when his or her order will be ready? How much of a
safety margin for timing should you allow?
Looking at the order board will tell us when we finish and
become idle.
The finish time, will be that time, plus 26 minutes it takes to
finish a one dozen order. At that time, they can promise
delivery.
We suggest an 8 minute safety margin for rush orders. If we
begin a wash and mix process, then a rush order comes in,
we have to stop and process that order.
The previous order would be delayed by a max of 8 minutes
to wash and mix the rush order. Time is 6 + 2 = 8 minutes.

4. What other factors should you consider at

this
stage of planning your business?

Market: Is this attractive to potential customers?

Cost: How can we get cheaper materials with good quality?
Labor: Can I do this alone? Should I hire people?
Product: How can we make the cookies better?
Services: Can I provide other services, such as delivery?
Hazards: How should I handle an accident?
Laws: Am I violating any laws?
Capital: What kind of equipment will I need?
Investment: What kind of initial and/or further investment is required?.

because each
you decide to
how should
system? The
policies?

order is potentially unique. If

sell standard cookies instead,
you change the production
order-taking process? Other

Create your own cookie menu

Freeze balled cookies.
Cookies can be ordered by number, and pulled from a
freezer
Cookies cooked and served fresh from the menu

Thank You
-

Sarvesh Kumar Gantala

Hema Sindhuja Koneru