Case Study: Keratin’s Cookie Company Key questions to answer before you launch the business: 1) How long will it take you to fill a rush order? If the order is one dozen, the flow time will be 26 minutes for the first order. (Order entry = O miss / Wash and mix = 6 miss / spooning = 2 miss / heating oven = 1 min / baking It = 9 miss / removing the cookies = O minute / cooling them = 5 minutes / collecting them = 3 minutes) 2) How many orders can you fill in a night, assuming you are open four hours each night? 4 hours = 240 minutes) The first step In this analysis Is to convert all of the projected times Into the same measure of units so that we can compare the 4 hours to the amount of time It takes to run through the process. Because the process is measured in minutes, we converted the allotted time of 4 hours into 240 minutes (xx min = 240).

The next thing that we realized was that after the first batch, which takes 26 minutes, it only takes 10 minutes to process the cookies for each subsequent batch.

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So in order to calculate how many orders can be filled in the 4 hours that you have available each eight, we take the 240 minutes and subtract the Initial 26 minutes and then divide that number by ten. Once you have that number of 21 _4 you want to add one to that to account for the first initial batch that you subtracted so that number comes out to 22. 4 orders. Since you cannot produce 0. 4 of an order, we round that number to 22 orders to have a whole amount.

Cycle time + 1 ((240-26)/10) + I = 22. 22 orders of a dozen cookies 3) How much of your own and your roommate’s valuable time will it take to fill each order? To find the valuable time that me “Kristin” and my roommate take to fill each order we found the cycle times of each person’s processes. We disregarded the time It takes to bake and cool the cookies (9 * 5 minutes) because this is non-valuable time that could be used to do something else. My (Keratin’s) personal valuable time cycle includes washing, mixing, and spooning out the dough, which takes a total of 8 minutes (mixing/ cleaning 6 minutes + spooning 2 minutes = 8 minutes).

My roommate’s valuable time cycle Includes setting the thermostat and time, packing the cookies, and collecting payment which totals to 4 minutes (setting thermostat and time 1 minute + packing 2 minutes + collecting pay 1 minute = 4 umlauts).

IT you AAA both of these valuable times together it is 8+4 which totals to an amount of 12 minutes total / order between the two of us. 4) Because your baking trays can hold exactly one dozen cookies, you produce and sell cookies by the dozen. Should you give any discount for people who order two dozens order cookies, three dozens cookies, or more?

If so, how much? Will it take you NY longer to fill a two-dozen cookie than a one-dozen cookie order? Since the second and third dozen of cookies takes a marginal amount of less time, than producing the first one, we would offer a discount of 10-20% off if they were to order a second or third dozen. Two produce one order of a dozen cookies it takes 12 minutes (6+2+1+2+1) which is what we found in the previous problem. The valuable time it takes to produce two dozen cookies is

Since the ingredients ND the boxes all cost the same for each dozen, we look at how much time we save by selling more dozens than Just one too customer. In this case with the time we save selling more dozens we can still be profitable by providing a discount to our customers.

5) How many electric mixers and baking trays will you need? I would say we would need one electric mixer since it’s idle for a long term during the production. We would need 3 baking trays since one mixer cannot hold more than 3 dozens of ingredients during the whole process. ) 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? The first thing that we would do is create a cookie menu, which will provide for quicker customer orders and process times. Another suggestion for change is to freeze pre made balled cookies. Once the customers order it will be much quicker and easier to Just pull the frozen balls out of the freezer and begin processing their order. Another possibility to help improve the process is to add a second oven.

Adding a second oven will allow for more output of cookies assuming we have the emend there. In this case the new bottleneck is mixing the ingredients and spooning it out onto a tray. If we were to add a second oven to the process, we could produce 7. 5 dozen per hour opposed to the 6 dozen (60/10) dozen per hour that we were producing with one oven. So, the process’s nightly (4 hour) capacity increases from 24 to 30 dozen per night, in short, we will see an increase of 6 dozen per night with the addition of another oven.

This will only be worth it if our demand requires it and we can continue to fill orders.