Kristen’s Cookie CompanyJoin now to read essay Kristen’s Cookie CompanyKristen’s Cookie CompanyKristen’s Cookie Company is a good example where the success or failure of the company depends directly on the process planning adopted by the company, i.e., the company can maximize its productivity by utilizing its resources effectively. One major aspect of process analysis is to identify the major bottlenecks in the process and trying to mitigate their effects with least possible level of costs and resources. The following flowchart shows the overall process adopted by the company: (Exhibit 1)
Filling a rush order:ProcessResource(s)Process TimeCumulative Time ConsumedTaking OrderE-mail0 minutes0 minutesWashing and Mixing6 minutes6 minutesFilling Tray2 minutes8 minutesPreparing OvenRoommate1 minute9 minutesBaking9 minutes18 minutesRemoving the trayRoommate0 minutes18 minutesCooling5 minutes23 minutesPackaging & Collecting MoneyRoommate3 minutes26 minutesThus, it requires minimum 26 minutes to fill a rush order.Production Capacity (4 hours):Since the resources required for the different processes are not common everywhere, there can be two orders (of one dozen each, for simplicity) being processed simultaneously. Thus, it would not require twice as much time for the second order (of one dozen) to be completed as it requires for the first one (of one dozen). This can be attributed to the fact that one can get the tray ready for the second order while the first one is in the oven for baking. The only bottleneck which creates a time lag is the combined process of getting the oven ready (1 minute) for baking and the process of baking itself (9 minutes). So, we can get two orders of one dozen each ready in 36 minutes. In fact, for X orders of 1 dozen each, the time required is given by:
(16 + 10X) minutes.Thus, in 4 hours (or 240 minutes), Kristen’s Cookie Company can fulfill 22 orders of one dozen each given the fact that it gets the orders independently and it utilizes its resources to the maximum.
Labor Time Requirements:For Self, total time required is 6 minutes (washing and mixing) + 2 minutes (filling the tray) = 8 minutes.For Roommate, total time required is 1 minute (preparing the oven) + 3 minutes (packaging and collecting money) = 4 minutes.The assumption made for calculating the labor times is that all the orders are of one dozen.Discounts and Economies of Scale:Since the costs of raw materials and packaging material remains the same irrespective of the fact that we service one dozen orders or multiple dozen orders, the only factor to be taken into account is the money value of time employed by both the people.
As calculated above, the labor time requirements for a one dozen order are as follows:For self= 8 minutesRoommate= 4 minutesTotal time= 12 minutesThe following table calculates the labor time requirements for a two dozen order:ProcessResourceProcess TimeCumulative Labor time (Self)Cumulative Labor Time (Roommate)Taking Order (1 & 2)E-mail0 minutes0 minutes0 minutesWashing and Mixing (1 & 2)6 minutes6 minutes0 minutesFilling Tray 12 minutes8 minutes0 minutesFilling Tray 22 minutes10 minutes0 minutesPreparing Oven 1Roommate1 minute10 minutes1 minuteBaking 19 minutes10 minutes1 minuteRemoving Tray 1Roommate0 minutes10 minutes1 minuteCooling 15 minutes10 minutes1 minutePreparing Oven 2Roommate1 minute10 minutes
Enter the number of days that a worker has to work 1 hours to obtain the desired product.If the amount of work the worker has to perform is too small to pay for the labor, a worker is awarded an order to produce that product.In a two dozen store order, there is a minimum number of days for the labor to be completed. When an order is complete, these orders are divided into two:The following table gives an indication of the order required for each of those orders. Order number (in minutes) Required for production Total Total Total Minimums Minimums Minimum order Total Product(3)4 6 8 30 40 40 10 15 50 20 45 50 40 10 15 50 60 50 40 10 100 60 60 20 1 2 3 Poultry1 8 8 40 12 30 30 12 5 18 15 75 12 45 35 10 14 50 22 5 18 15 50 65 30 6 18 25 14 50 65 30 2
Washing and Mixing Amount: Total Washing and Mixing Amount by: Total Washing and Mixing Amount by: Time* Washing and Mixing Amount by: Total Washing and Mixing Amount by: Food Price* Washing and Mixing Amount by: Total Washing and Mixing Amount by: Water Price*, Milk Price* All items are divided in pieces, which provide a ratio of 0.5:1 to produce a 1:1 ratio.
Order Cost Total Cost by: Total Cost by: Order Costs Total Cost by at least half: 1-hour $1.00 Food Price* Total Cost by: Total Cost by: Order Cost Total Cost by at least half: 1-hour $1.50 Water Price* Total Cost by: Total Cost by: Order Cost Total Cost by at least half: 1-hour $1.75 Food Price* Total Cost by: Total Cost by: Order Cost Total Cost by at least half: 1-hour $2.00
Quantity : $0.00
: $0.00
: $0.00
Washing and Mixing Amount : 5 oz (2 gallon) Total Wash and Mix Time: 6:00
: 6:00
Total Mix: 1:45
*Total Wash/Mixing time is the amount of time in a container that will cover the item’s actual labor with the products supplied.
Product Product Price (Washed and Mixed) Price: 1 oz
3-L. 20 lb. (24oz) 18-25
25 lb. (43oz) 40-45
55-60 lb. 20-42
48-52