Case Study:

Kristen’s Cookies

Class # 2
Paul Tumolo

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 Kristin’s Cookies

LEARNİNG OBJECTIVES
Introductory activity to the basics of process analysis:

• Cycle Time
• Set Up Time
• Throughput Time
• Bottleneck
• Capacity
• Cause/Effect of Process Changes

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 Kristin’s Cookies

Questions:
1. How long will it take to fill a rush order?
2. How many orders can you fill in a night (4 hours)?
3. How much of your own and your roommate’s time will it take
to fill each order?
4. Any discount for two-dozen orders? Will it take you any
longer to fill a two-dozen order than a one-dozen order?
5. Any changes to improve production?
6. Any change to the production plans? Bottleneck? Another
oven?

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 OVERVIEW
• You are about to open a two-person midnight cookie
baking operation which involves several stages:

Load & Bake (1+9min/dozen)

Spoon (2min/dozen)
Mixing (6min - up to 3 dozen)
Unload

Packing (2min)

Payment (1min)
Cool off (5min)

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Wash Bowl, Mix Ingredients Fill Tray

Order Resource: Self Resource: Roommate
Entry Capacity: 3 Capacity: 1
Cycle Time: 6 minutes Cycle Time: 2 minutes

Start Oven
Resource: Roommate, Oven
Capacity: 1
Cycle Time: 1 minute

Bake
Resource: Oven
Capacity: 1
Cycle Time: 9 minutes

Cool Remove
Resource: none Resource: Roommate
Capacity: 1 Capacity: 1
Cycle Time: 5 minutes Cycle Time: 0 minutes

Pack, Collect Money

Resource: Roommate
Capacity: 1
Cycle Time: 3 minutes

Process Flow Diagram, or PFD

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 Kristin’s Cookies

1. How long will it take for you to fill a rush order?

Assuming this order is for one dozen cookies, we will need to do the following:
Activity Resource Cycle Time Start Time Finish Time
Order Entry E-mail 0 minutes 00:00 00:00
Wash Bowl, Mix Self 6 minutes 00:00 06:00
Fill Tray Self 2 minutes 06:00 08:00
Prepare Oven Roommate 1 minute 08:00 09:00
Bake Oven 9 minutes 09:00 18:00
Remove Roommate 0 minutes 18:00 18:00
Cool None 5 minutes 18:00 23:00
Pack, Collect Money Roommate 3 minutes 23:00 26:00
Therefore, the minimum time to fill an order is 26 minutes.

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 Kristin’s Cookies

In general, a formula for the number of minutes to produce n

one-dozen batches is given by this expression:

16  10n
Set-up time Cycle time per 1-dozen batch

This views the cookie operation as a single activity. We arrived

Throughput Time = Set Up Time plus Cycle Time
at these numbers through analysis of individual sub-activities
at a more detailed level.

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Kristin’s Cookies

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 Kristin’s Cookies

2. How many orders can you fill in a night, assuming you are open four hours
each night?
Here is a Gantt chart for two batches of one dozen cookies each. It doesn't take
twice as long to produce two batches as it does to produce one batch, because
you can start mixing the second batch without having to wait for the whole first-
batch process to be completed (you can start washing out the bowl as soon as
you finish filling the tray). It is possible to produce two batches in 36 minutes.

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3. How much of your own and your roommate's valuable time will it take to fill
each order?
For yourself:
Activity Cycle Time
Wash Bowl, Mix 6 minutes
Fill Tray 2 minutes
Total 8 minutes
For your roommate:
Activity Cycle Time
Prepare Oven 1 minute
Remove 0 minutes
Pack, Collect Money 3 minutes
Total 4 minutes
This is assuming all orders are for one dozen cookies.

Total labor time per order = 12 minutes

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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 any longer to fill a two-dozen cookie order than a one-dozen cookie
order?
First, let's consider costs. The cost of ingredients and the box are the same, no
matter how many dozen you bake. So the only resource that might differ with
the size of the batch is labor.
One Dozen
Activity Resource Cycle Time Start Time Finish Time
Order Entry E-mail 0 minutes 00:00 00:00
Wash Bowl, Mix Self 6 minutes 00:00 06:00
Fill Tray Self 2 minutes 06:00 08:00
Prepare Oven Roommate 1 minute 08:00 09:00
Bake Oven 9 minutes 09:00 18:00
Remove Roommate 0 minutes 18:00 18:00
Cool None 5 minutes 18:00 23:00
Pack, Collect Money Roommate 3 minutes 23:00 26:00

Self 8
Roommate 4
Total Labor Minutes
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Two Dozen
Activity Resource Cycle Time Start Time Finish Time
Order Entry E-mail 0 minutes 00:00 00:00
Wash Bowl, Mix Self 6 minutes 00:00 06:00
Fill Tray 1 Self 2 minutes 06:00 08:00
Fill Tray 2 Self 2 minutes 08:00 10:00
Prepare Oven 1 Roommate 1 minute 08:00 09:00
Bake 1 Oven 9 minutes 09:00 18:00
Remove 1 Roommate 0 minutes 18:00 18:00
Cool 1 None 5 minutes 18:00 23:00
Prepare Oven 2 Roommate 1 minute 18:00 19:00
Bake 2 Oven 9 minutes 19:00 28:00
Remove 2 Roommate 0 minutes 28:00 28:00
Cool 2 None 5 minutes 28:00 33:00
Pack 1 Roommate 2 minutes 23:00 25:00
Pack 2 Roommate 2 minutes 33:00 35:00
Collect Money Roommate 1 minute 35:00 36:00

Self 10
Roommate 7
Total Labor Minutes 17
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Three Dozen
Activity Resource Cycle Time Start Time Finish Time
Order Entry E-mail 0 minutes 00:00 00:00
Wash Bowl, Mix Self 6 minutes 00:00 06:00
Fill Tray 1 Self 2 minutes 06:00 08:00
Fill Tray 2 Self 2 minutes 08:00 10:00
Fill Tray 3 Self 2 minutes 06:00 08:00
Prepare Oven 1 Roommate 1 minute 08:00 09:00
Bake 1 Oven 9 minutes 09:00 18:00
Remove 1 Roommate 0 minutes 18:00 18:00
Cool 1 None 5 minutes 18:00 23:00
Prepare Oven 2 Roommate 1 minute 18:00 19:00
Bake 2 Oven 9 minutes 19:00 28:00
Remove 2 Roommate 0 minutes 28:00 28:00
Cool 2 None 5 minutes 28:00 33:00
Prepare Oven 3 Roommate 1 minute 28:00 29:00
Bake 3 Oven 9 minutes 29:00 38:00
Remove 3 Roommate 0 minutes 38:00 38:00
Cool 3 None 5 minutes 38:00 43:00
Pack 1 Roommate 2 minutes 23:00 25:00
Pack 2 Roommate 2 minutes 33:00 35:00
Pack 3 Roommate 2 minutes 43:00 45:00
Collect Money Roommate 1 minute 45:00 46:00

Self 12
Roommate 10
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Total Labor Minutes 22
 Kristin’s Cookies

Let's assume your time is worth $12 per hour. Your labor costs would be:
# Cookies in Batch Minutes Cost Cost per Dozen
1 dozen 12 $2.40 $2.40
2 dozen 17 $3.40 $1.70
3 dozen 22 $4.40 $1.47
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.

Labor Time = $12.00/60 = $.20 per minute

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 Kristin’s Cookies

1. How long will it take to fill a rush order?

This is throughput time equals 26 minutes

2. How many orders can you fill in a night (4 hours)?

What are you looking for to determine the answer?

Capacity! Capacity is the bottleneck (slowest stage) = baking
time = 10 minutes
Cycle time for system is = cycle time for bottleneck
In 4 hours can make 24 orders (6 per hour (since 10 minutes
each) and 4 hrs)
BUT may need time for set up and clean up therefore
conservatively 22 dozen (concept of Effective Capacity)
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3. How much of your own and your roommate’s time will it

take to fill each order?

This is labor time: baking is the bottleneck, therefore other activities

have excess capacity (idle time)
For a 1 dozen cookie order total labor time = 12 min
In each cycle you are working 8 minutes and you roommate
works 4 minutes

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4. Any discount for two-dozen orders? Will it take you any

longer to fill a two-dozen order than a one-dozen order?
No discounts, why? Bottleneck operations capacity is
independent of order size.
For example, 2 orders: mixing takes 10 minutes (6 min mix, 4
min for spooning out to 2 trays), Baking still takes 10 min per
dozen.
5. How many food processors? Baking trays?
Since baking is bottleneck but several trays:
• 1 in oven,
• 1 being prepared for oven,
• 1 cooling
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6. Any change to improve the production plans? Bottleneck?

Another oven?
To remove the bottleneck: add an oven (therefore now 2 ovens)
Thus, capacity increases from 6 doz per hour to 12 doz per hour.

Mix and spoon 7.5 dozen per hour

Bake 12 dozen per hour
Cool 5 minutes
Pack 30 dozen per hour
Receive $$ 60 dozen per hour

Where is bottleneck now?

Mix & spoon therefore capacity is 7.5 doz cookies per hour
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7. What is the impact of adding a new cookie to the offerings?

• Is the new cookie design compatible with the existing process?
• What about the Bill of Material?
• Can the existing equipment be utilized?
• What is the impact on labor?
• What is the impact on cost?
• How will Demand play a role?
• How will we predict demand to insure supply?

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