Cookies Case Study Mode
Cookie Case flow chart. It will take a minimum of 26 minutes to deliver a dozen fresh baked cookies too customer. With this constraint, we estimate that the shortest time to fill a rush order of one dozen cookies would be 26 minutes. Figure 1: Assuming the hours of operations are 4 hours per night (or 240 min), and a cycle time “CT” of 10 min for baking, we calculated that Kristin Cookies could fill approximately 24 dozen cookies a day. It will take 12 min of time for Kristin and her roommate to fill each cookie order (see Figure 2).
Figure 21 Due to equipment current constraints, we recommend that Kristin Cookies should not give any discounts for ordering more than one dozen. While orders of higher quantity will add revenue, It will save only a negligible amount of time per order because the SIX minutes It takes to mix a new batch of Ingredients Is shorter than the CT. It will take longer to produce two dozen cookies due to the ten minute CT. However, we will still be within a stated one hour delivery window so we do not anticipate this to be a problem.
Nonetheless, if cookie orders are slow at certain mimes, a promotion of a discounted offer during these times could generate more business.
To support the current business plan, Kristin cookies would only need one stand-up mixer and two baking trays to start their business. We considered adding additional mixing bowls and additional trays to reduce cycle time. However, the 5 min cooling time limits the level to which we can optimize CT. There are possible changes to consider In the production plan that could allow for volume expansion but they will add to cost and will subsequently reduce profitably.
The most notable bottleneck in the operation is the 10 min it takes to bake the cookies. This can be optimized by renting an oven from a neighbor.
By adding another oven, we calculate that the cycle time would be reduced to 6 min and this would increase productivity by 67% (40 doze/240 min). The cost consideration of renting an additional oven would be a direct reduction in profitability since we are not currently recognizing any separate cost for an oven. We would recommend offering ten enlarger compensation AT AT sales AT jean tray Take In tenet oven. The usage would vary based on demand at any given time through working hours.
To run this business with only one person, it would be necessary to work throughout the 12 min of baking and cool down time.
Once a tray is placed in the oven, this staff person would need to immediately begin mixing the next order while the tray is baking. This would be the most efficient mode of operation due to the fact that it would only require one person’s time. The baking time of 10 minutes would allow for the washing and filling stage (6 min) and the time to sheet the cookies (2 min) sufficiently. In addition, by eliminating the second staff, this would also reduce labor costs by 50%.
In an event of a rush order, we recommend an upgrade of 20% to guarantee delivery time of 30 minutes. If we place a 30 min.
Limit on the rush promise, there will never be a need to remove an order already baking from the process. It will give staff time to complete the entire scope of work without impacting the existing workflow. The order board should be able to tell staff exactly when orders will be ready and if there is any backlog. If a batch has Just been put in the oven, the additional 10 min margin ivies staff enough time fill the rush order.
There are additional factors to consider at this stage of the planning process. Below are ideas that could be taken into account: The initial investment cost of purchasing a box for packaging is $0.
10. We can possibly reduce cost by 50% by packaging the cookies in a brown paper bag at $. 05 a bag. Rent would possibly increase due to the increase in energy consumption (skew usage). With only two staff for production, an onset of physical and mental exhaustion could occur.
Lack of sleep and study time could affect their health and academic status. Kristin Cookies competitive edge is the “made-to-order” offering.
If the business decides to sell standard cookies, a change in product could be a pre-mix dough that is baked as an order is placed. Fresh batches of the more popular cookies would be made in advance and placed in the refrigerator waiting to be baked. This would eliminate the washing/mixing time, reduce cycle time and could accommodate a few more dozen cookies each day.
Another offer could be a “take-and-bake” where the business could sell uncooked dough to customers. Customers would then take their uncooked dough home and bake their freshly made cookies in their own ovens.
A possible third offering could be a “fresh cookie of the day’ and Kristin Cookies could produce a special cookie and offer that cookie all day long. If the need is truly Just to fulfill a late night snack craving, the “fresh, made-Worded” business model may not be necessary. Becoming a reseller of daily baked cookies made somewhere else could prove to be a better profit margin than having to deal with the production of freshly baked cookies. All the business would need is to keep enough cookie inventory to manage the demand.