Operations Management
Case Three: Kristen’s Cookie Company 1. Draw a process flow chart for cookie production. 2. How many orders can Kristen fill in a night, assuming she is open for four hours each night?
Throughout rate= 6/hour
6 orders x 4 hours = 24 orders
Therefore Kristen can fill 24 orders each night. 3. How long will it take her to fill a rush order?
A ‘rush’ order will still take 26min as this is how long the operations time is. None of the processes can be eliminated with rush orders therefore the operations time cannot be minimized. 4. How busy (utilization) will she be?
With processing 24 orders each night over four hours, Kristen will be fully utilized with the time activated equaling the time available. Number of Orders | Utilization | 6 | 1/4= 0.25 | 12 | 2/4= 0.50 | 18 | 3/4= 0.75 | 24 | 4/4= 1.0 (fully utilized) |
5. Process improvement: Are there any changes she can make in her production process plans that will allow her to make better cookies or more cookies in less time or at a lower cost?
By developing a “menu” and pre-making the mixture and storing it in their refrigerator/ freezer, the operations time during the evening could be cut down by 6 minutes. Fabrication of the raw materials prior to the operation hours results in maximum productivity and utilization within the four hours of operation each night. Mixture combinations could be made in advance in one-dozen-batches, meaning customers could receive their orders more quickly and Kristen can increase her throughput rate. Customers could also pay online when they order, saving time and decreasing the amount of cash the girls have on hand. By pre-making the mixture and holding stock in fridges, this allows the girls to make more than one night at time, which means they can buy in bulk, saving input costs of not only raw materials but time and fuel also. 6. Recommendations
I would recommend that, to increase efficiency and the number of orders they can process in their
Throughout rate= 6/hour
6 orders x 4 hours = 24 orders
Therefore Kristen can fill 24 orders each night. 3. How long will it take her to fill a rush order?
A ‘rush’ order will still take 26min as this is how long the operations time is. None of the processes can be eliminated with rush orders therefore the operations time cannot be minimized. 4. How busy (utilization) will she be?
With processing 24 orders each night over four hours, Kristen will be fully utilized with the time activated equaling the time available. Number of Orders | Utilization | 6 | 1/4= 0.25 | 12 | 2/4= 0.50 | 18 | 3/4= 0.75 | 24 | 4/4= 1.0 (fully utilized) |
5. Process improvement: Are there any changes she can make in her production process plans that will allow her to make better cookies or more cookies in less time or at a lower cost?
By developing a “menu” and pre-making the mixture and storing it in their refrigerator/ freezer, the operations time during the evening could be cut down by 6 minutes. Fabrication of the raw materials prior to the operation hours results in maximum productivity and utilization within the four hours of operation each night. Mixture combinations could be made in advance in one-dozen-batches, meaning customers could receive their orders more quickly and Kristen can increase her throughput rate. Customers could also pay online when they order, saving time and decreasing the amount of cash the girls have on hand. By pre-making the mixture and holding stock in fridges, this allows the girls to make more than one night at time, which means they can buy in bulk, saving input costs of not only raw materials but time and fuel also. 6. Recommendations
I would recommend that, to increase efficiency and the number of orders they can process in their