What are the major reasons for trucks waiting and excess worker overtime? III. MAJOR REASONS FOR DELIVERY TRUCK WAIT TIME & EXCESSIVE OVERTIMEWhen deliveries are processed at National Cranberry, truckloads of cranberries are initially weighed, sampled and color-graded as they move through the front-end of the plant. The delivery truck commences the process by backing up and tilting out its contents onto 5 conveyor belts, which moves the cranberries up to the second floor to be held in temporary holding bins. From temporary bins, the cranberries should move into later processes as long as there is no bottleneck issue and there is space available for transfer. The full procedure of emptying the contents of these trucks onto the conveyor belts should only take 7-8 minutes to drop-off and depart from the facility, but on occasion the process is taking several hours.Currently, the major reasons for excessive wait-times and overtime are the temporary holding bins are becoming full because of a bottleneck at RP1. Specifically, the delivery trucks have to wait with the cranberries if the temporary holding bins become full because no portion of the receiving plant is dedicated to transition cranberries off the first floor if none of the holding bins are available on the second floor. Thus, trucks are waiting several hours for the back-end of the facility to catch up with the amount of cranberries already in the temporary holding bins. This type of bottleneck ultimately holds up the delivery trucks and the entire process unless National Cranberry rethinks and augments its existing system and strategy.

Assuming:Input of 1,500 BBLS/hourTransfer time between phases is negligible1,500/75 = 20 trucks and 5 kiwanee dumpers. Wed need to unload 4 sequential sets of 5 trucks to equal 1,500 BBLS.Ratio of wet: dry of 70:30Wet: 1050 BBLS/hour or 262.5/loadDry: 450 BBLS/hour or 112.5/loadCycle starting 7:00: Throughput: 131.625 minutesTemp storage: 8 minutes (first transfer from trucks)Wet track: 44.625 minutesDe-Chaffing: (262.5/3000)*60 minutes = 5.25 minutesDrying: (262.5/600)*60 minutes = 26.25 minutesGrading: (262.5/1200)*60 minutes = 13.125 minutesDry track: 14.625 minutesDe-Stoning: (112.5/1500)*60 minutes = 4.5 minutesDe-Chaffing: (112.5/1500)*60 minutes = 4.5 minutesGrading: (112.5/1200)*60 minutes = 5.625 minutesTemp storage: 8 minutes (Second transfer from trucks)Wet track: 62.875 minutesDe-Chaffing: (262.5/3000)*60 minutes = 5.25 minutesIdle: 18.25 (Drying process working on first load)Drying: (262.5/600)*60 minutes = 26.25 minutesGrading: (262.5/1200)*60 minutes = 13.125 minutesDry track: 14.625 minutesDe-Stoning: (112.5/1500)*60 minutes = 4.5 minutesDe-Chaffing: (112.5/1500)*60 minutes = 4.5 minutesGrading: (112.5/1200)*60 minutes = 5.625 minutes

IV. TRUCK WAIT TIME ON A BUSY WORKDAYThe following is applicable to calculate wait time for a busy workday: Working Hours: from 7am to 11pm Total working hours: 15 hours Assume delivery per hour is 1,500 bbls Wet berry: 70% Weighted: 1,050 bbls Capacity of bins for wet berry: 3,200 bblsBecause the capacity is 3,200 bbls, the trucks dont have to wait to load before 1pm.The time that the trucks need to wait at 1pm is:(filling + dechaffing + (drying*3))- delivery time = (0.5 +0.4+(1.8*3))-6 = 0.3The time that the trucks need to wait after 12pm is:1.8 (0.5 + 0.4) = 0.9 hourThe weighted average waiting time for wet berry is:(0.3 + (0.9*9) )/16= 0.525Dry berry: 30%Weighted: 450 bblsCapacity of bins for wet berry: 4,000 bblsTime required processing the one hour delivery:*hourBecause the high capacity, the trucks for dry berry dont need to wait if they deliver 450 bbls per hour.The total weighted average waiting time for all trucks is: (0.525*0.7)=0.3675 hour or 22.05 minutes.

V. BENEFITS OF SHIFTING PROCESS TIMEA significant issue facing the National Cranberry Co-operatives receiving plant #1 is the amount of time that the trucks are sitting idle waiting to download their product. This issue is further magnified by the fact that as a cooperative, the costs of the leased trucks and hired drivers increases as the trucks sit idle which directly impacts the bottom line of our business partners. We need to keep the growers happy.Moving the processing time from 11:00 a.m. to 7:00 a.m. during the peak period is critical to downloading trucks quickly and avoiding costly idle time. Based on the assumption that we receive 18000bbl on a single day during the peak season, 66% or 12,000bbl is wet and 33% or 6,000bbl is dry equates to 240 truckloads of berries. Of these truckloads, 160 would be wet berries and 80 would be dry. It takes trucks 8 minutes to back onto the dumper, empty its contents, and leave the platform. With additional storage bins to hold berries added to the process, we could keep trucks moving. By beginning the process at 7:00 a.m., the receiving plant would be able to end operations at 8:00 p.m. More importantly, these improvements would benefit the growers.Based on Exhibit 2 total barrels delivered from 9/1 through 12/10 is 610,185. From 9/20 through 10/9 RP#1 receives 327,596 or 54% of the production for the entire season. The 7:00 a.m. start time would be most critical during these three weeks, but I feel the benefits of keeping the trucks moving makes this start time a good idea for the entire season.VI. PROPOSED CHANGES: COST/BENEFIT ANALYSIS

In sum, we propose to start the process at 7:00 a.m., and install 2 dryers and an additional grading line. This will cut the workday from 7:00 a.m. through 4:00 a.m. (under current capacity) to a workday of 7:00 a.m. through 8:00 P.M.Hourly cost of labor: Length of season: 16 weeks Workdays per week: 7 Average salary per employee: $10.5 (assuming no overtime) Average number of employees: 40 (assuming equal time of heavy and light volume days) Total Cost per hour of having workforce: $47,040Past 11 PM: Total Cost per hour of workforce: $10,584 (only 9 employees are needed beyond 11 p.m.If we only purchased one Dryer it would reduce the work hours from 4:00 a.m. to 11:00 p.m. This would only produce savings of $52,920 and therefore not enough to cover the cost of one dryer.If we purchased two Dryers it would reduce the work hours from 4:00 a.m. to 10:00 p.m. this would produce savings of $99,960 again not enough to cost of this solution ($120,000).However, if we purchased 2 dryers and added an additional separator line hours of operation would be reduced from 4:00 a.m. to 8:00 p.m.Savings due to reduced hours:X = 5 * ($10,584) + 3* (47,040)X = $52,920 + $141,120 = $194,040Total Cost of implementing recommended solution: Total cost of dryers: $120,000 Maximum cost of new separator line to maintain this option as viable: $74,040VII. CONCLUSIONIn conclusion, National Cranberry Cooperative is facing a bottleneck in RP #1 that is causing several hours of excessive overtime and delivery truck wait-time at the front-end of the facility. Our team analyzed the data and offered alternative solutions towards correcting the problem that is upsetting suppliers because of idle time and additional cost burdens. National Cranberry understands that it must augment its processes to become more efficient or potentially lose business and overall profits.As discussed in detail above, commencing the process at 7:00 am, installing 2 dryers, and an additional grading line, will ultimately decrease the amount of hours worked by 8 hours, and National Cranberry will achieve a savings of $194,040 because of these reduced hours and proposed recommendations. Our team after reviewing the data believes this proposed solution is the most proactive, and cost-effective way to reduce the bottleneck issue and excessive wait-times plaguing our front line. Our team suggests we implement said changes immediately as they are critical to effectively adjust the efficiency, and overall productivity of National Cranberry Cooperative in the future.