Kirsten Cookie Company

GROUP 5
INTRODUCTION

Kristen and roommate opening a cookie company and provide fresh

baked cookies to students operated late night in college campus.

Serving fresh baked cookies as per buyers order combination within an

hour of ordering.
USP

Fresh Cookies
Availability of variety
Easy Accessibility
PRODUCTION PROCESS

Add ingredients as per requirement of the customer

Mix ingredients in the food processor
Dish up mixture onto a cookie tray
Put the tray inside the oven
Let it bake
Remove the cookies from the oven
Let it cool for sufficient time
Take the cookies out of the tray
Pack it for pick up
Billing
EQUIPMENTS

1 Oven
1 Food Processor (mixing bowl)
Cookie trays
Spoons
COST

No capital equipment is required as they already have one food

processor, cookie trays and spoons
Electricity bill for oven is paid by landlord
Variable costs = cost of ingredients = $.60 Per Dozen
Cost of box = $.10 per box (each box holds a dozen cookies)
 PROCESS FLOW

Stage 1
Stage 0 Stage 2

Order Washing Mixing Spooning

Stage 6 Stage 5 Stage 4 Stage 3

Billing Packing Cooling Baking
TIME ANALYSIS

STAGE TIME(minutes)
Stage 0 0
Stage 1 6
Stage 2 2
Stage 3 10
Stage 4 5
Stage 5 2
Stage 6 1
Total 26
TIME ANALYSIS

Orders of three dozen

Batch 1 Batch 2 Batch 3 Batch 4

Start End Start End Start End Start End

Stage 1 0 6 22 28

Stage 2 6 8 8 10 18 20 28 30

Stage 3 8 18 18 28 28 38 38 48

Stage 4 18 23 28 33 38 43 48 53

Stage 5 23 25 33 35 43 45 53 55

Stage 6 25 26 35 36 45 46 55 56
 Orders of one dozen

Batch 1 Batch 2 Batch 3 Batch 4

Start End Start End Start End Start End

Stage 1 0 6 7 12 13 18 22 28

Stage 2 6 8 12 14 18 20 28 30

Stage 3 8 18 18 28 28 38 38 48

Stage 4 18 23 28 33 38 43 48 53

Stage 5 23 25 33 35 43 45 53 55

Stage 6 25 26 35 36 45 46 55 56
PRICE ANALYSIS

Cost of ingredients (per dozen) $0.60

Cost of packaging (paper box) $0.10
Total price $0.70
Selling price $1.25
Total Profit $0.55
QUESTIONS

Time taken to fill a rush order 26 minutes

Orders per Night

The first batch takes 26 minutes
The subsequent batches take 10 minutes extra
Total time= 240 minutes
Total number of orders = [1+{(240-26)/10}] = 22.4 22
TIME TAKEN

Activity Time Taken(mins)

Activity Time Taken(mins)
Setting the oven 1
Mixing 6
Packing 2
Spooning 2
Billing 1
Total 8
Total 4

ME ROOMMATE
DISCOUNTS
1 Dozen : 0%
2 Dozen (same flavour ): 10%
3 Dozen (same flavour ): 15%
Number of Equipment
Electric Mixer 1
Trays 3
 BOTTLENECKING

The only bottlenecking stage is baking

One more oven can cut down the total time

Batch 1 Batch 2 Batch 3 Batch 4 Batch 5 Batch 6

Start End Start End Start End Start End Start End Start End

Stage 1 0 6 7 12 13 18 18 24 24 30 30 36

Stage 2 6 8 12 14 18 20 24 26 30 32 36 38

Stage 3 8 18 14 24 20 28 26 36 32 42 38 48

Stage 4 18 23 24 29 28 33 36 41 42 47 48 53

Stage 5 23 25 29 31 33 35 41 43 47 49 53 55

Stage 6 25 26 31 32 35 36 43 44 49 50 55 56