OPERATIONS ENGINE ASSIGNMENT ANALYSIS ON KRISTEN COOKIE CASE

Submitted to:
Prof. Hemendra Pal

Submitted by:
Rahul Yadav Roll no PGDM 20140109

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 Systems

The People

Process Flow Chart

Order and Reply (Roommate) 0 minutes Cooling 5 minutes Hold

Wash and Mix (Kristen) 6 minutes

Baking (Oven) 9 Minutes

Pack/Collect Money 3 minutes

Spooning 2 minutes

Heat Oven 1 minute

Analysis
1. How long will it take you to fill a rush order? Soln: Activity Resource Cycle Time Order Entry E-mail 0 min Wash/Mix Kristen 6 min Spooning Kristen 2 min Heat Oven Roommate 1 min Bake Oven 9 min Remove Roommate 0 min Cookies Cool Tray 5 min Pack/Collect Roommate 3 min The total time taken to fill a rush order is 26 min.

Start Time 00:00 00:00 6:00 8:00 9:00 18:00 18:00 23:00

Finish Time 00:00 6:00 8:00 9:00 18:00 18:00 23:00 26:00

2. How many orders can you fill in a night, assuming you are open four hours each night? 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 each order? 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 and sell 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.

6. Are there any changes you can make in your production 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 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, the calculation 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 the tray 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 order board (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 finish time, 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.

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 our products? Cost: Availability of material for making product at chaeaper rate with a good quality. 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. If you 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 provide deposit. Create own cookies menu. Cookies cooked and served fresh from the menu. Cookies can be ordered by number, and pulled from a freezer.