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Kristen s CookiesPRESENTED BY SOMNATH CHATTERJEE SHUBRA DAS RINKU SAHA PUJJYA GARGEE SUJOY SENAPATI SUBIR GHOSH DEBJIT CHATTERJEE

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PROCESS LAYOUT .Process layouts are found primarily in job shops, or firms that produce customized, lowvolume products. This type of layout is highly flexible in terms of handling changes in product design and being able to customize products. This type of layout is suitable for customized products produced in very small batches.

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Examples of a Process in Service CompaniesProcessing an insurance claim for an accident.

Admitting a patient to a hospital.

Performing the 30,000-mile maintenance on a car.

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Process Flow Diagram for Kristen s CookiesBefore answering specific questions, it is useful to make a diagram of the overall process:Order Entry Wash Bowl, Mix Ingredients Resource: Self Capacity: 3 Cycle Time: 6 minutes Fill Tray Resource: Roommate Capacity: 1 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 Resource: none Capacity: 1 Cycle Time: 5 minutes

Remove Resource: Roommate Capacity: 1 Cycle Time: 0 minutes

Pack, Collect Money Resource: Roommate Capacity: 1 Cycle Time: 3 minutes

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Question 11. How long will it take for you to fill a rush order?Activity Order Entry Wash Bowl, Mix Fill Tray Prepare Oven Bake Remove Cool Pack, Collect Money Resource E-mail Self Self Roommate Oven Roommate None Roommate Cycle Time 0 minutes 6 minutes 2 minutes 1 minute 9 minutes 0 minutes 5 minutes 3 minutes

Assuming this order is for one dozen cookies, we will need to do the following:Therefore, the minimum time to fill an order is 26 minutes

Question 2Assuming that Kristens Cookie Company is open for four hours each night, how many orders can be filled each night?

Which activity is the processs bottleneck? The processs bottleneck is to put the cookies in the oven and set the thermostat and Timer.6

Question 2 (continued)Assuming that Kristens Cookie Company is open for four hours each night, how many orders can be filled each night? 4 hours per each night = 4 hours * 60 minutes = 240 minutes Cycle Time = The Duration of the bottleneck = (Setting thermostat and Timer) + (Baking Cookies) = 1 minute + 9 minute = 10 minutes7

Question 2 (continued)Assuming that Kristens Cookie Company is open for four hours each night, how many orders can be filled each night?

Maximum no of orders we can fill in a night = (No of minutes per night-Duration of First Setup) Cycle Time + 1 = (240 26) + 1 10 = 22.4 orders ~ 22 orders

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Question 2 (continued)Assuming that Kristens Cookie Company is open for four hours each night, how many orders can be filled each night? Explanation: This is because the first order takes 26 minutes for the first batch of cookies to finish and each subsequent batch takes 10 minutes because it has reached steady state. Thus, we take 4 hours worth of time, minus off 26 minutes for the first batch and then divide9

Question 3How much of your own and your roommates valuable time will it take to fill each order? Own Time: Mixing Ingredients 6 minutes Dishing out cookies onto tray 2 minutes Total Time 8 minutes Roommates Time: Setting thermostat and timer 1 minutes Packing the cookies 2 minutes Collecting payment 1 minutes Total Time 4 minutes10

Question 4Should you give any discount for people who order two dozen cookies? If so, how much? Will it take any longer to fill a twodozen 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. It looks like we can afford to give a discount for two-dozen orders. A twodozen order doesn't cost twice as much as a one-dozen order.

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Question 4 (continued)Activity Order Entry Wash Bowl, Mix Fill Tray 1 Fill Tray 2 Prepare Oven 1 Bake 1 Remove 1 Cool 1 Prepare Oven 2 Bake 2 Remove 2 Cool 2 Pack 1 Pack 2 Collect Money Resource E-mail Self Self Self Roommate Oven Roommate None Roommate Oven Roommate None Roommate Roommate Roommate Cycle Time 0 minutes 6 minutes 2 minutes 2 minutes 1 minute 9 minutes 0 minutes 5 minutes 1 minute 9 minutes 0 minutes 5 minutes 2 minutes 2 minutes 1 minute12

TWO DOZEN

Question 4 (continued)ONE DOZENSelf Roommate Total Labor Minutes 8 4 12 Self Roommate Total Labor Minutes

TWO DOZEN10 7 17

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

$1.7013

Question 5How many food processors and baking trays will Kristen need? The food processor is only used in the mixing stage. we ought to be able to see that the processor is idle for long periods of time, and that the real bottleneck is the oven. Buying another food processor won't improve the productivity of the system at all. There are only three kinds of activities that require a tray: filling the tray, baking (including preparing the oven), and cooling. On the other hand, trays are cheap, and it would be a shame if we ever had to keep the oven (the bottleneck) waiting for lack of a tray. It is reasonable to have "plenty" of trays on hand, whether that means five, or ten, or whatever.14

Question 6Is 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 for an additional oven?

The bottleneck is the oven, which means there is no point in looking at expanding the capacity of any other resource unless the operation's baking capacity is expanded first. If we had two ovens, we could make cookies faster.Even with the second oven, the oven stage will still be the bottleneck.15

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