Kristen’s Cookies - Key Issues Product Differentiation/ Core Competencies n Product features n n n variety/customization freshness convenience Low overhead Flexible labor - can study during idle time Location - access to targeted market n Competitive Advantages n n n What are the bottlenecks? mix (6) spoon (2) load (1) bake(9) cool (5) pack (2) pay (1) Resource Activity You mix spoon Oven bake R-mate oven load packing payment Time 6 min 2 min
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KRISTEN’S COOKIE COMPANY CASE Put the cookies in the oven and set the thermostat and timer(1min) Kristen’s Cookie Company case is a business which is established by 2 college students to serve cookies to students at night. There is a certain plan for getting orders‚ preparing cookies and delivering them. All of them goes in a sequence. The aim is to produce cookies in the least possible time to maximize sales and profit and also
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Kristen ’s Cookie Company Kristen ’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
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take to fill each order? • Kristen: 8 minutes (prepare/spoon) • Roommate: 4 minutes (turn on oven/packaging/accept payment) 4. Because your baking trays hold exactly one dozen cookies‚ you will produce and sell cookies by the dozen. Should you give discount for people who order two dozen cookies‚ three dozen cookies‚ or more? If so‚ how much? Will it take you longer to fill a two-dozen cookie order than a one-dozen cookie order? • Discounts would be based on labor costs‚ not raw material cost
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KRISTEN ’S COOKIE COMPANY (A1) The overview of the process: QUESTION 1 If we make a table‚ we can see that the minimum time to fill a rush order is 26 minutes. ACTIVITY RESOURCE TIME START TIME FINISH TIME Order Entry E-mail 0 minutes 00:00 00:00 Wash Bowl‚ Mix Self 6 minutes 00:00 00:06 Fill Tray Self 2 minutes 00:06 00:08 Start Oven Roommate 1 minute 00:08 00:09 Baking Oven 9 minutes 00:09 00:18 Remove Roommate 0 minutes 00:18 00:18 Cool None 5 minutes 00:18 00:23
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Kristen’s Cookie Company Key Questions 1) Washing & Mixing | 6 min | Dishing Up | 2 min | Setting the oven | 1 min | Baking | 9 min | Cooling | 5 min | Packing | 2 min | Accept Payment | 1 min | Total | 26 min | 2) The oven holds only one tray (one dozen of cookies) => at full utilization we can cook only 6 dozen of cookies per hour‚ for example after washing and mixing we have two more minutes to wait before oven will free. 26 + 10(x-1)=240 X=22.4 22 orders
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Case Report: Kristen’s Cookie Company 1. Assuming that the order contains a dozen of cookies‚ the time to take a rush order is the sum of cycle times for each activity: 0+6+2+9+1+0+5+2+1=26 min. 2. Assuming a two dozens order‚ we have to consider that for the first dozen‚ my roommate can start backing after I have spooned the cookies on the tray. However when backing the second order he simultaneously cools and then packs the cookies from the first order. I can start mixing the second batch
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Case Study: Kristen’s Cookie Company Key questions to answer before you launch the business: 1) How long will it take you to fill a rush order? If we consider that one order is a dozen‚ the flow time is 26 minutes for the first order. 2) How many orders can you fill in a night‚ assuming you are open four hours each night? (4 hours = 240 minutes) If we consider that one order is a dozen‚ it will take me: * For the first order: 26 minutes * For the second order: 20 minutes
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Case Report : Kristen’s Cookie Company (A1) [pic] Key Questions 1. To know the time it will take us to fill a rush order‚ we have to know how many dozens the rush order requires. If it is only one dozen‚ we need 6 minutes for the washing and mixing steps‚ 2 minutes for the spooning‚ 10 minutes for the whole baking‚ 5 minutes to cooling down‚ 2 minutes for the packing and 1 minute for the payment. That is to say : 26 minutes. If we consider the order requires N dozens : we always need
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Hello Cookies‚ Welcome to the Martha Cook Building for the fall of 2010. We hope to be able to meet many of you on Move-in Day. Please stop by our ice cream station in the main hall that afternoon and let us serve you. We look forward to helping to make your experience at MCB this year a memorable one. You may not know that the Martha Cook Building is the only dorm on campus that is supervised by a Board of Governors consisting of five women who were formerly residents of MCB. The Board of
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