Kristen’s Cookie Company

KRISTEN’S COOKIE COMPANY CASE STUDY AND

ANALYSIS

AYUSH ARORA
MJ18GL059
Q1. How long will it take to fulfil a rush order?

ACTIVITY RESOURCE CYCLE TIME START TIME FINISH TIME

ORDER ENTRY E-MAIL 0 MINUTES 00:00 00:00
WASH/MIX KRISTEN 6 MINUES 00:00 06:00
SPOONING/DISHING KRISTEN 2 MINUTES 06:00 08:00
HEAT OVEN (SET ROOMMATE 1 MINUTE 08:00 09:00
THERMOSTAT OVEN)
BAKE OVEN 9 MINUTES 09:00 18:00
REMOVE COOKIES ROOMMATE 0 MINUTES 18:00 18:00
COOL TRAY 5 MINUTES 18:00 23:00
PACK/COLLECT $ ROOMMATE 3 MINUTES 23:00 26:00

So, it takes approximately 26 minutes to fulfil a rush order.

Q2. How many orders can you fill in a night, assuming you are open four hours each
night?
We consider the situation of a 2dozens order (GANTT CHART, SEE APENDIX). When Kirsten
finished with the spooning first dozens of cookies, roommate can start her work at the end
of min 6. When baking the second dozens of cookies, roommate can start cooling the first
dozen of cookies and pack them.
Order Size Order Completion Time

1 dozen 26 minutes
2 dozen 36 minutes
3 dozen 46 minutes
4 dozen 56 minutes
5 dozen 66 minutes
6 dozen 76 minutes
7 dozen 86 minutes
8 dozen 96 minutes
9 dozen 106 minutes
10 dozen 116 minutes
11 dozen 126 minutes
12 dozen 136 minutes
13 dozen 146 minutes
14 dozen 156 minutes
15 dozen 166 minutes
16 dozen 176 minutes
17 dozen 186 minutes
18 dozen 196 minutes
19 dozen 206 minutes
20 dozen 216 minutes
21 dozen 226 minutes
22 dozen 236 minutes
Therefore, Operating Time is 240 minutes (4 hours).
Hence 22 orders can be filled in a night.
Q3. How much of your own and your roommate’s valuable time will it take to fill each order?
For me, the steps are washing, mixing and spooning. So, my valuable time for 1 order is
6+2=8(min).
For my roommate, the steps of setting the oven, removing cookies from the oven, packing
them and accepting the payment are done by my roommate. So, the valuable time for
1 order is 1+0+2+1= 4(min).

Q4. 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 or more dozen? If
so, how much? Will it take you any longer to fill a two-dozen order than a one-dozen order?

All costs of ingredients and boxes for each dozen are the same.
Total valuable time is 6 (wash and mix) + 2 (spooning) + 1 (set timer on oven) + 2
(packing time) + 1 (process payment) = 12 minutes.
For a two-dozen order, total time is 6 + (2 + 1 + 2) x 2 + 1 = 17 minutes.
For a three-dozen order, total time is 6 + (2 + 1 + 2) x 3 + 1 = 22 minutes.

Assuming 12$ per hour cost.

= 0.2 $ per minute.

Cookies Minutes Cost Cost per Potential

Dozen Discount
1Dozen 12 2.4 2.4 0
2Dozen 17 3.4 1.41 0.99
3Dozen 22 4.4 1.63 0.77

So, 10-20% Discount of on orders of two or above is an option.

Q5: How many Food processor and baking trays will you need?

According to the Gantt chart, the Food Processor is idle for a long time during the complete
process, so only 1 Food Processor is needed. But the electric mixer can only contain 3
dozens of ingredients, during the whole process, at least 3 trays are needed.
 Q6: 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 to rent an additional oven?

The Production Plan can be changed by adding an additional oven.

The Process Flow with 2 Ovens-

LOAD AND
BAKE

MIX AND
SPOON

COOL PACK AND PAY

LOAD AND
BAKE

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 orders are one dozen. 7.5 = 60/8

Throughput 6 + 2 = 8 minutes 1 + 9 5 minutes 2+1

Time = 10 minutes = 3 minutes
Hourly Capacity 7.5 Dozen 12 Dozen 12 Dozen 20 Dozen
Cycle Time 8 minutes 5 minutes 5 minutes 3 minutes
APPENDICES-

DATA PREPARED (GANTT CHART) FOR TIMELINES-