Kristen's Cookie Company Case Study and Analysis
Kristen's Cookie Company Case Study and Analysis
Kristen's Cookie Company Case Study and Analysis
Agenda
Introduction and Preliminary Modeling
Key Questions and Problems for Further Thought
Recommendations for Improvement
Q & A Session and Discussion
Kristen’s Cookie Company
Introduction
Kristen’s Cookie Company Mission Statement:
Born from a hunger to feed the student body and the craving brain…
The
Service
Strategy
The
Customer
The The
Systems People
Kristen’s Cookie Company
Wash and
Baking Pack/Colle
Mix
(kristen)
ct Money
6 minutes (Oven) 3 minutes
9
minute
s
Spooning Heat Oven
2 1 minutes
minutes
Kristen’s Cookie Company
Key Question 1:
How long will it take to fulfill a rush order?
Activity Resource Cycle Time Start Time Finish Time
Order Entry E-mail 0 minutes 00:00 00:00
Wash/Mix Kristen 6 minutes 00:00 06:00
Spooning Kristen 2 minutes 06:00 08:00
Heat Oven Roommate 1 minute 08:00 09:00
Bake Oven 9 minutes 09:00 18:00
Remove Cookies Roommate 0 minutes 18:00 18:00
Cool Tray 5 minutes 18:00 23:00
Pack/Collect $$ Roommate 3 minutes 23:00 26:00
Kristen’s Cookie Company
Key Question 2
How many orders can you fill in a night, assuming you are
open four hours each night?
Task 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
Order Entry 1
Spooning
Start Oven 1
Baking Time 1
Cooling Time 1
Order Entry 2
Fill Tray 2
Start Oven 2
Baking Time 2
Cooling Time 2
Key Question 3
How much of your own and your roommate’s
valuable time will it take to fill each order?
Kristen Roommate
Total 4 minutes
Kristen’s Cookie Company
Key Question 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 or more dozen? If so,
how much? Will it take you any longer to fill a two-dozen order
than a one-dozen order?
All costs of ingredients and boxes for each dozen are the same. With that
said, total valuable time is 6 (wash and mix) + 2 (spooning) + 1 (set timer on
oven) + 2 (packing time) + 1 (process payment) = 12 minutes. For a two
dozen order, total time is 6 + 2 + 1 + 2 x 2 + 1 = 17 minutes. For a three
dozen order, total time is 6 + 2 + 1 + 2 x 3 + 1 = 22 minutes.
Kristen’s Cookie Company
$0.60/dozen, ingredients
$0.10/dozen, box
Kristen’s Cookie Company
Key Question 5
How many electric mixers and baking trays will
you need?
As the charts and tables have shown, the electric mixer is idle for a
long time during the production process, so only one is needed. Because
the mixer can only contain 3 dozens of ingredients, during the whole
process, at least 3 trays are needed.
Key Question 6
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? For example, is 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 to rent an additional oven?
Kristen’s Cookie Company
Because all the tasks have to be done by Kristen alone, her time for
one dozen cookies becomes 12 minutes (8 + 4), which exceeds the
previous 10 minute cycle time for one dozen cookies. In this case,
Kristen becomes the bottleneck, rather than the baking process.
However, if the order contains two dozens of the same kind of cookie,
the washing and mixing can be done together, so her time for this
order becomes 17 minutes (6 + 2 x 2 + 2 x 1 + 2 x 2 + 1), which is less
than the previous of 20 minutes. If the order is 3 dozen, it becomes 22
minutes.
Kristen’s Cookie Company
Looking at the order board will tell us when we finish and become idle.
The finish time, will be that time, plus 26 minutes it takes to finish a one
dozen order. At that time, they can promise delivery.
• Premixing in advance
- eliminates the mixing step for these popular cookies
- work-in-process inventory would eliminate mixing step
for those cookies and thus increase capacity to 12 dozen
per hour.
Thank you.