National Cranberry Cooperative Case Summary
DESIGNING OPERATIONS TO MEET DEMAND
NATIONAL CRANBERRY COOPERATIVE CASE ANALYSIS
25th May 2010
Submission by: Group-B Dhananjay Kumar Kshitij Kulkarni Pankaj Shrivastava Rajesh Premchandran Salil Choudhary Siddharth Sinha Tanushree Datta
1. EXECUTIVE SUMMARY * Hugo Schaeffer, VP, Operations faces 3 problems during the harvest season at the National Cranberry Cooperative (NCC). a. Drivers and trucks spend up to 3 hours unloading cranberries when it takes around 5-10 minutes to actually unload if the holding containers are available b. Overtime costs have increased considerably as NCC struggles with absenteeism c. There are problems associated with Grading Inputs as NCC overpaid around 50% of …show more content…
“Separating” is the bottleneck for the Drying Process. * 2. Costs * The Cost related to quality grading is covered in the next item. The Overtime costs incurred is about 87% of direct hours during peak season. See Figure 2. This reflects on the actual labour that is needed to process the volumes of cranberry produced. However, since only 1 shift is run, this area needs significant attention. * 3. Quality * The problem of Quality Grading results in overpayment to the farmers. At .75c a bbl, 225000 bbls amount to $168750 in excess payments. The costs involved in tackling this problem is $20000 for light meter and another Salary paid to a new employee. This being a cooperative, any profit or loss is borne by the farmers. So the more equitable distribution of wealth happening currently is favourable to those farmers who produce inferior goods, but get compensated more. * * If the Quality of customer experience is considered both the average truck wait times and the cost of the waiting period impact the farmers’ profits. * 4. Flexibility * Flexibility in cranberry processing can be based on several
NATIONAL CRANBERRY COOPERATIVE CASE ANALYSIS
25th May 2010
Submission by: Group-B Dhananjay Kumar Kshitij Kulkarni Pankaj Shrivastava Rajesh Premchandran Salil Choudhary Siddharth Sinha Tanushree Datta
1. EXECUTIVE SUMMARY * Hugo Schaeffer, VP, Operations faces 3 problems during the harvest season at the National Cranberry Cooperative (NCC). a. Drivers and trucks spend up to 3 hours unloading cranberries when it takes around 5-10 minutes to actually unload if the holding containers are available b. Overtime costs have increased considerably as NCC struggles with absenteeism c. There are problems associated with Grading Inputs as NCC overpaid around 50% of …show more content…
“Separating” is the bottleneck for the Drying Process. * 2. Costs * The Cost related to quality grading is covered in the next item. The Overtime costs incurred is about 87% of direct hours during peak season. See Figure 2. This reflects on the actual labour that is needed to process the volumes of cranberry produced. However, since only 1 shift is run, this area needs significant attention. * 3. Quality * The problem of Quality Grading results in overpayment to the farmers. At .75c a bbl, 225000 bbls amount to $168750 in excess payments. The costs involved in tackling this problem is $20000 for light meter and another Salary paid to a new employee. This being a cooperative, any profit or loss is borne by the farmers. So the more equitable distribution of wealth happening currently is favourable to those farmers who produce inferior goods, but get compensated more. * * If the Quality of customer experience is considered both the average truck wait times and the cost of the waiting period impact the farmers’ profits. * 4. Flexibility * Flexibility in cranberry processing can be based on several