Rahul Op Project

7/28/2019 Rahul Op Project

1/6

OPERATIONS ENGINE ASSIGNMENT

ANALYSIS ON

KRISTEN COOKIE CASE

Submitted to: Submitted by:

Prof. Hemendra Pal Rahul Yadav

Roll noPGDM 20140109


2/6

Introduction

Kristens Cookie is initially a cookie business started by two college girls, Kristen and her

roommate in their campus itself. The case whole talks about the idea to supply or provide the

fresh cookies as per the order and earn to the best of this business. They were equipped with all

the necessary resources through which they can increase their product level as much as they can

and thus it may result in higher profit.

The case helps us to evaluate the preliminary design for the companys production proces s to

make policy and pricing decisions, equipment needed, how many orders can be accepted, and

whether the business can be profitable.

The Service Triangle

The

Service

Strategy

The

Customer

The

SystemsThe

People


3/6

Process Flow Chart

Analysis

1. How long will it take you to fill a rush order?Soln:

Activity Resource Cycle Time Start Time Finish Time

Order Entry E-mail 0 min 00:00 00:00

Wash/Mix Kristen 6 min 00:00 6:00

Spooning Kristen 2 min 6:00 8:00

Heat Oven Roommate 1 min 8:00 9:00

Bake Oven 9 min 9:00 18:00

RemoveCookies

Roommate 0 min 18:00 18:00

Cool Tray 5 min 18:00 23:00

Pack/Collect Roommate 3 min 23:00 26:00

The total time taken to fill a rush order is 26 min.

Wash and Mix (Kristen)

6 minutes

Baking (Oven)

9 Minutes

Spooning 2 minutes Heat Oven 1 minute

Order and Reply

(Roommate) 0 minutes

Cooling

5 minutes

Pack/Collect Money

minutes

Hold


4/6

2. How many orders can you fill in a night, assuming you are open four hours eachnight?

Soln: According to process Cycle time the per hour production is 6 dozen but as per

concern the 1st

dozen gets over in 26 min and then after it take 10 min for every dozen.

Thus in 4 hour we have (4*60=240 hour) which make us a calculation of around 22

dozen in 4 hour.

3. How much of your own and your roommates valuable time will it take to fill eachorder?

Soln: Time used by me

Activity: Wash, mix and spoon

Cycle time: 6+2=8 min

Time used by Roommate

Activity: Heat oven, Remove Cookies, Pack and collect money

Cycle time: 1+0+3= 4 min

4. Because your baking trays can hold exactly one dozen cookies you will produce andsell 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?

Soln: All cost of ingredients and boxes for each dozen are the same. With that said, total

valuable time is 6(wash&mix) + 2 (spooning) + 1 (set timer on oven) + 2(packing time)

+1 (process payment) = 12 min. For a two dozen order, total time is 6+2+1+2*2+1=17

min and for a three dozen order, total time is is 6+2+1+2*3+1=22 min.

5. How many electric mixers and baking trays will you need?Soln: As the bottleneck of this process is the oven; we can say that having more mixers

will not improve processing time, thus we will only need 1 mixer. By mixing 3 dozen

cookies at once we need to wait for the oven to bake the cookies as we can only mix 3

dozen cookies at once we would need only that amount of baking trays. The most thing is

that 3 baking trays can only be filled and the tray can only go once at a time. But

although it is better to buy more than 3 baking trays because of future damage while

using it under the process of making cookies.


5/6

6. Are there any changes you can make in your production plans that will allow you tomake better cookies or more cookies in less time or at 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 be

willing to pay for an extra oven?

Soln: Increasing capacity of the oven makes it so we can start a new order every 5

minutes. New capacity is 7.5 dozen/hour if all order are one dozen.

Analysis of Problems for further thought

1. What happen if you are trying to do this by yourself without your roommate?Soln: if we are trying to do this by our self in the absence of roommate, thecalculation we have done for making the cookies remain the same but the main thing

that make different is challenge faced by us due to heavy work load.

2. Should you offer special rate for rush orders? Suppose you have just put thetray 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?

Soln: As we saw in the case, there would be no need to stop baking of the previous

cookie. The time that the rush orders will delay is only at most 1 min. and 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 orderboard (list of pending orders) and tell a caller when his or her order will be

ready? How much of a safety margin for time should you allow?

Soln: Looking at order we will tell s when we finish and become idle. The finishtime, will be that time adding 26 min it takes to finish a one dozen order. At that time,

they can promise delivery.

We suggest an 8 min 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.


6/6

4. What other factors should you consider at this stage of planning your business? Soln: The factors we will consider at this stage of planning our business are:

Market: will we be able to attract the potential customer towards ourproducts?

Cost: Availability of material for making product at chaeaper rate with a goodquality.

Labor: Do I need skilled manpower or can I do it alone only? Product: How can we make the cookie better and tasty? Laws: Am I going against law? Hazards: will I be able to handle the grievance and accident that might can

occur?

Capital: Can I afford adequate capital for good equipment? Investment: how much of initial amount should be invested and too how much

in future?

5. Your product must be made to order because each order is potentially unique. Ifyou decided to sell standard cookies instead, how should you change the

production system? The order- taking process? Other policies?

Soln: At the beginning the cookies are unique. It we sell standard cookies, the value

added product of the company changes.

Bake cookies before receiving order so that time can be saved. Order-taking process needs to change, as the customers dont need to

call/email and wait for pickup. They can visit the apartment directly to buy the

product.

If a large sum is needed, customers can make order earlier, and providedeposit.

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

Rahul Op Project

Documents

Transcript of Rahul Op Project