GANTT CHART

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6

Mix and Spoon

Oven

Cool

Pack

Pay
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Mix

Spoon

Load
&
Bake
Bottleneck
Cool

Pack

Pay
1 dozen takes – 26 minutes
2 dozen takes – 16 + 10 (2) = 36 minutes

Time taken for other

Time taken for baking
activities

Hence we arrive at the formula

16 + 10 (n )
Where ‘n’ is no of orders

Hence in 4 hours i.e. 240 minutes we can fill

240 = 16 + 10 (n)

n = 22.4 orders i.e. 22 orders

3. How much of your
and your room
mates time will it
take to fill each
order
 3. How much of your and your room mates time will it take to fill each order

YOU
1 2 3 4 5 6 7 8 R.M (Roommate)
9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6

YOU

Activity Cycle Time Activity Cycle Time

Mix and Spoon
Wash Bowl, Mix: 6 minutes
R.M Prepare Oven: 1 minute
Fill Tray:
Oven 2 minutes Remove: 0 minute
Pack: 2 minutes Collect
Cool Money: 1 minute
R.M
Total 8 Pack
minutes Total 4 minutes
R.M
Pay
4. Should you give any discounts

4. Will it take any

time longer to fill
two dozen cookies
 First we look at the cost
No electricity cost – as its paid by the landlord
Variable costs include:
Cost of ingredients $0.60/dozen
Cost of packing $0.10/dozen
Cost of time $ 15 per hour
 If our time is worth 15$ per hour

1 dozen 2 dozen 3 dozen

Self 8 10 12
Roommate 4 7 10
Total time 12 17 22
Cost ($) 3 4.25 5.5
Cost per 3 2.125 1.83
dozen ($)
 Selling price of the cookie per dozen
Cost of ingredient 0.60
Cost of packing 0.10
Cost of time 3.00
Profit margin ??

Selling Price ??

It looks like you could afford to give a discount for two- and three-dozen orders.
A two-dozen order doesn't cost twice as much as a one-dozen order.
So on a purchase of 2 dozen cookies we give a discount of 10%
 
And on 3 dozen and above 15%
 1 dozen 2 dozen 3 dozen
Cost price per 3 2.125 1.83
dozen ($)
Selling price ($) 10 20 30
Discount - 10% 15%
offered
Cost after 10 18 25.5
discount
 4. Will it take any time longer to fill two dozen cookies

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6

Mix Cookie 1 & 2

Spoon 1 2
Load
& Cookie 1 Cookie 2
Bake

Cool Cookie 1 Cookie 2

Pack 1 2
1
Pay &
2
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Mix

Spoon

Load
&
Bake
This answer is to be explained only by using pictures.
Cool This answer needs to be explained with pictures. Every cell will have pictures
showing what they would be doing. Delete this part once u r done adding pictures.
Pack

Pay
 6. How do we change the production process??? Do we add
another oven to our capacity???

Our bottleneck operation is the oven, hence here would be no point in expanding or
investing
in other resources until the operations baking concept is expanded further to two ovens.

If we purchase another oven the time taken for producing 2 orders is 28 minutes
Expanding the number of ovens helps us in reducing our time to around 8 minutes per
dozen.

Hence it is beneficial for us to add another oven to our capacity.

 7. What without d roommate ?
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Mix

Spoon

Load
&
Bake

Cool

Pack

Pay
8. Should you offer special rates for a crash priority order…..?

Trick question