Kristen Cookie Company

Assignment 1 Operations Management I Kristens Cookie Company (A1) Section No. 5 Group No. AA1 number Marks 50 Marks Obtained Sr. No. Name of Students fix up out No 1 Ameya Prakash Deopujari 12506 2 Mayank Jhawar 12527 3 Nitya Agarwal 12532 4 Pawanjot Singh Makkar 12535 5 Radhika Sharma 12540 1 How long give it take you to fill an roll? autonomic nervous system Total clip taken for a 1 cardinal vagabond is 26 sensitives as per below table. Activity Involved Cycle Time Cumulative period Order Entry 0 piece 0 minute Washing & mixing 6 transactions 6 minutes Spooning 2 minutes 8 minutesOven set up 1 minute 9 minutes Bake cookies 9 minutes 18 minutes Remove cookies 0 minute 18 minutes cool down cookies 5 minutes 23 minutes Pack cookies 2 minutes 25 minutes accommodate carryment 1 minute 26 minutes 2 How many states loafer you fill in a iniquity, assuming you are open four hours each night? Ans Time taken for preparation of a single order mickle be divided into 3 parts Therefore if the tray is ready for the mho order (pre baking hot hot process) plot of land the first order is in the oven for baking, it would save 8 minutes of time for every subsequent order.When the first order is in process in baking, the pre baking session for the instant order will take place for 8 minutes, thus these 8 minutes have been saved. every(prenominal) order has to undergo both baking and post-baking processes taking 18 (10+8) minutes. But when the first order is in post baking session (taking 8 minutes) because during the 8 minutes second order can be baked saving 8 minutes. 2 minutes will be consumed by second order only as baking process in total takes 10 minutes. Then post baking process of second order will take 8 minutes more. So the second order in total takes 10 (8+2) minutes extra.Now when the second order is in baking then third order can be prepared for pre baking process thus saving 8 minutes again. As second order is in post baking process for 8 minutes, then third order can be baked thus saving 8 minutes. 2 minutes extra will be consumed by third order for baking process. 8 minutes will be consumed then for the post baking process. So the third order will take 10 minutes extra for total processing. Therefore every subsequent order will take 10 minutes only for complete process. Therefore time taken for the preparation of additional x orders of 1 dozen would be (26 + 10x) minutesThus if business operates for maximal of 4 hours (i. e. 240 minutes) the maximum no of orders Kristen Cookie Company can take in 1 day would be 22 loads as per table below. So from above table it is clear that after the first dozen every subsequent dozen will take 10 minutes only. So 22 dozens taking a total of 236 minutes can be prepared in 4 hours of business. 3 How much of your own and your roommates worthful time will it take to fill each order? Ans For my roommate time taken to fill each order is- For me first dozen will take time a s per below- For second & third dozen, time taken will be 2 minutes only as mixing one for the first dozen will be available for second & third dozen also. For the fourth dozen, time taken will be again 8 minutes. This trend will continue for every 3rd order after the first order of one dozen. 4 Because your baking trays can hold exactly one dozen cookies, you will produce and sell cookies by the dozen. Should you give any discount for people who order cardinal dozen cookies, three dozen cookies or more? If so, how much? Will it take you any longer to fill a two-dozen cookies order than onedozen cookies order? Ans For 1 dozen order time taken- Self 8 minutesRoommate 4 minutes Total 12 minutes For a 2 dozen order time taken- Self 6(washing & mixing) + 4(spooning 2 times) = 10 minutes Roommate 2 minutes (Oven set up 2 times) + 4 minutes (Pack cookies 2 times) + 1 minute (accept payment) = 7 minutes Total 17 minutes For a 3 dozen order time taken- Self 6(washing & mixing) + 6 (spooning 3 times) = 12 minutes Roommate 3 minutes (Oven set up 3 times) + 6 minutes (Pack cookies 3 times) + 1 minute (accept payment) = 10 minutes Total 22 minutes Let us assume that labor cost is $15 per hour for self & roommate.Order size Total minutes Cost/minute Cost for order Cost per dozen Material Cost Potential Discount 1 dozen 12 $15/60 = $0. 25 12 * 0. 25 = $3 $3 $0. 70 0 2 dozen 17 $0. 25 17*0. 25 = $4. 25 $2. 125 $0. 70 3 (2. 125+0. 70) = $0. 275 3 dozen 22 $0. 25 22*0. 25 = $5. 50 $1. 833 $0. 70 3 (1. 833+0. 70) = $0. 467 As we observe, we can afford to give a discount for two- and three-dozen orders. A two-dozen order doesnt cost twice asmuch as a one-dozen order and a three-dozen order cost much less then thrice a one-dozen order. How many food central processing unit and baking trays will you need? Ans The food processor is idle for a long time in the process so only 1 is undeniable. As it can contain atleast 3 dozens of ingredients during the full proces s we should have atleast 3 trays as each tray handles 1 dozen of the ingredients. 6 Are there any diversifys you can make in your performance plans that will allow you to make better cookies or more cookies in less time or at lower cost? For example, is there a bottleneck operation in you production process that you can expand cheaply?What is the effect of adding another oven? How much would you be willing to pay to operate an additional oven? Ans Producing more no of cookies is dependent upon the baking activity which is the bottleneck operation in the production process. If we install one more oven two dozen cookies will be ready in 28 mins only which is 8 mins less than 36 mins precedingly. Dozen carry through Cycle time lead off time end time 1 Washing Mixing 6 0 6 1 Spooning 2 6 8 1 Oven set up 1 8 9 1 Bake cookies(oven 1) 9 9 18 2 Spooning 2 8 10 2 Oven 2 set up 1 10 11 Bake cookies(oven 2) 9 11 20 1 Cool cookies 5 18 23 1 Pack cookies 2 23 25 2 Cool cookies 5 20 25 2 Pack cookies 2 25 27 Accept payment 1 27 28 Similarly for 3 dozens the time reduces to 36 mins which is 10 mins less than the previous time Dozen Process Cycle time start time end time 1 Washing Mixing 6 0 6 1 Spooning 2 6 8 1 Oven set up 1 8 9 1 Bake cookies(oven 1) 9 9 18 2 Spooning 2 8 10 2 Oven 2 set up 1 10 11 2 Bake cookies(oven 2) 9 11 20 1 Cool cookies 5 18 23 1 Pack cookies 2 23 25 Cool cookies 5 20 25 2 Pack cookies 2 25 27 3 Spooning 2 10 12 3 Oven 1set up 1 18 19 3 Bake cookies(oven 1) 9 19 28 3 Cool cookies 5 28 33 3 Pack cookies 2 33 35 Accept payment 1 35 36 Further number 4 dozens will just take 38 minutes. So in terms of costing we can pay that much for the oven per day which is less than or equal to profit on dozens of cookies that can be made in 4 hours (assuming the business is speed for 4 hours only). 7 What happens if you are trying to do this by yourself without roommate?Ans We have assumed that there is only 1 tray the order for second dozen is of the same variety as the 1st dozen. Activity Cycle Time Start Time End time Order Entry 0 minute 0000 0000 Washing mixing 6 minutes 0600 0600 Spooning (Dozen 1) 2 minutes 0600 0800 Oven set up (Dozen 1) 1 minute 0800 0900 Bake cookies (Dozen 1) 9 minutes 0900 1800 Remove cookies (Dozen 1) 0 minute 1800 1800 Cool cookies (Dozen 1) 5 minutes 1800 2300 Pack cookies (Dozen 1) 2 minutes 2600 2800 Spooning (Dozen 2) 2 minutes 2300 2500Oven set up (Dozen 2) 1 minute 2500 2600 Bake cookies (Dozen 2) 9 minutes 2600 3500 Remove cookies (Dozen 2) 0 minute 3500 3500 Cool cookies (Dozen 2) 5 minutes 3500 4000 Pack cookies (Dozen 2) 2 minutes 4000 4200 Accept payment 1 minute 4200 4300 So we can see that total time required for preparing 2 dozens has change magnitude if all the activities have to be accepte by me only. 8 Should you offer special rate for rush orders? Suppose you have just put a tray of cookies into the oven and someone call up with a crash precedency order for a dozen c ookies 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? Ans * When the priority order is received, the current order is already in oven. By the time the current order cookies are baked in oven, the washing, mixing and spooning operations can be performed for priority order. Post which, there will be an idle time of up to 1 minute for priority order originally the oven setup and baking process starts. * For the remaining process, there will be no idle time for priority order. By the time the priority order cookies are baked in oven, the previous order will be ready. * Thus, if a priority order comes when a tray for a current order is already in oven, the priority order can be filled still fulfilling the current order with a maximum delay time of 1 minute for priority order. * No premium should be charged as the process does not affect previous order. 9 When should you promise delivery? How can you look quickly at you order board (list of pending orders) and tells a caller when his or her order will be ready?How much of a safety margin for measure should you allow? Ans For Priority Orders- * The safety margin should be based upon the time required for the prebaking process. This is because if an order received during baking or post baking process, would not need that operation to be halt intermittently. * Thus if an order is received during washing and mixing process, the process will require to be stopped in between. * The prebaking process takes 8 minutes to complete. Thus the maximum margin should be 8 minutes for normal orders in such cases. So previous order would be delayed by a maximum of 8 minutes. 10 What other factors should you consider at this stage of planning your business? Ans * Competitors strengths and weaknesses. * Potential Customers likes and tastes * Regulations involved * Fin ancing the budgets * Cost Effectiveness of the business proposition * Further investment required * Ways to get cheaper materials * Extra labor required or not 11 Your product must be made to order because each order is potentially unique. If you decide to sell standard cookies instead, how should you change the production system?The order-taking process? Ans * Now the cookies can be sold with the USP of being low price andgood quality. * We can bake the cookies before receiving the order and stock it, instead of making theproduct one by oneaccording to each unique requirement. * The order-taking process also needs tochange. The consumers dont need touse the mail service to place the orders and wait forpickup. They can come to the room directly to buy it. * If someone needs a largesum of cookies, they can inform or orderlittle earlier. * We can have own cookies menu.