KRISTEN’S COOKIE

By-
Learning Team 1, Section B
( Debanjana Santra, Joedi Atinado,
Mayank Sinha, Nishant Goyal, Paolo
Santos, Siddharth Srivastava,
Sunil Shah.
MOST COMPLICATED ORDERS-
 An order with equally distributed variety. Ex:
 Consider a set of 4 orders, 1 dozen each and with
different variety.
 Consider another set of 4 orders, 2 dozen each and
different variety.
 Fulfilling first set of order is more complicated than
fulfilling the second set.
 For simplicity, consider an example of 2 orders of 2
Dozen cookies with 2 different varieties, 1 Dozen each.
PROCESSES INVOLVED

Order by e-mail Mixer Spooning

(1 min) (6 min./3Dozens) (2 min./Dozen)

Packing Cooling Baking – Oven

(2 min./Dozen) (5 min./Dozen) (10 min./Dozen)
2 Dozen cookies with 2 different varieties, 1 Dozen each
1 mixer, 1 ovens
Payment
O Packing Self
R Cooling None
D Baking   Oven
E
R Spooning Self
 
Mixing   Mixer
2
Order  
Payment                                                                        
Packing   Self
O
Cooling   None
R
D Baking   Oven

E Spooning   Self
R
Mixing   Mixer

1 E
Order m                                                                      
ail
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Time (in minutes) --------->

2 Dozen cookies with 2 different varieties, 1 Dozen each
1 mixer, 2 ovens
Payment
O Packing Self
R Cooling None
D
Baking   Oven
E
R Spooning Self
 
2 Mixing   Mixer

Order  

Payment                                                                        

Packing   Self
O
Cooling   None
R
D Baking   Oven

E Spooning   Self
R
Mixing   Mixer
1 E
Order m                                                                      
ail
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Time (in minutes) --------->

2 Dozen cookies with 2 different varieties, 1 Dozen each
2 mixer, 2 oven
Payment
O
Packing Self
R
D Cooling None
E Baking   Oven
R
Spooning   Self

2 Mixing   Mixer
Em
Order ail

Payment                                                                
O Packing   Self
R Cooling   None
D Baking   Oven
E Spooning   Self
R
Mixing   Mixer

1 Order Em                                                              
ail
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Time (in minutes) --------->

IMPROVEMENTS:
 The throughput for 2 Dozen Cookies has
reduced from 36 min to 28 min.

 Number of cookies we can prepare in 4 hours has

increased from 22 dozen to 46 dozen.

 So, we propose to use 2 ovens and 2 mixer.

WHY ONLY 2 MIXER AND 2 OVEN?
 Cost constraints.
 New business, so investing a lot might not be a
good idea.
 Cooling is the bottleneck – 5 min.
 So, considering the store is in the Dorm and there
are budget constraints, it is better to have a
limited number of equipments for the time being.
PRICING?
 New in the market.
 Only perceived benefits at present.
 At present, our target customers are Students.
 Once we get regular customers we can re
evaluate pricing strategy.
 At present, input cost is just $.7, excluding the
Opportunity Cost. So we can charge a price 10%
below the Market Price, provided Market price is
greater than $2.
THANK YOU