Kristen Cookies Company

Case Analysis: Kristen's Cookies Company

Preliminary Analysis:

Inputs:

Cookie Order

Outputs:

One dozen cookies

Sequence of tasks:

1) Washing & Mixing

2) Spooning

3) Placing in Oven / Setting Timer

4) Baking

5) Cooling

6) Packing Cookies in Boxes

7) Processing Payment(s)

The ability to produce a rush order, in a worker pace line, depends on whether or not we

have cookies in inventory. If we don't have any cookies in inventory then it would take

26 minutes to produce the first dozen and an additional 10 minutes per order to complete

each additional dozen.

2) How long does it take to produce an order dozen cookies? How many orders can be

filled in a 4 hour night?

* Washing & Mixing = 6 minutes (dozen)

* Spooning = 2 minutes (per tray)

* Placing in Oven / Setting Timer = 1 minute

* Baking = 9 minutes

* Cooling = 5 minutes (activity 2)

* Packing in Box = 2 minutes (activity 2)

* Payment = 1 minute (activity 3)

Total Activity Time: 26 minutes (one dozen, "worker paced line")

Kristen is responsible for 8 minutes of production related to activity 1= capacity of .

125 batches/minutes x 60 minutes=7.5 dozens/hour

Roommate is responsible for 18 minutes of production related to activities 2 and

3=.55556 batches/minute x 60 minutes - 3.33 dozens/hour

Process Capacity = Capacity of the bottle neck = 1/10 min (10 min includes set the timer

and oven)= .10

Flow rate = Process Capacity = 1/10 min (This number includes time in oven)=.10

Time to finish X batches = Time through an empty process + (X-1)/Flow rate

If total time = 4hr, then

4hrs = 4hrs*60 min/hr = 26 min + (X-1) /(1/10 min)

 240 min = 26 min + (X-1)*10min

 (X-1)*10min = 240min - 26min = 214/10

 X-1 = 21.40

 X = 22.40 orders for one dozen cookies

Therefore, in 4 hrs, Kristen can fulfill 22 orders of 1 dozen cookies

2) How much of your own and your rommate's valuable time will it take to fill each order?

Kristen is responsible for 8 minutes of production related to activity 1= capacity of .125

batches/minutes x 60 minutes=7.5 dozens/hour

Roommate is responsible for 18 minutes of production related to activities 2 and

3=.55556 batches/minute x 60 minutes =3.33 dozens/hour

3) What is the labor content in an order of one dozen cookies? How much should Kristen

charge for such an order?

Washing & Mixing (Kristen) = 6 minutes (dozen)

Spooning (Kristen) = 2 minutes (per tray)

Placing in Oven / Setting Timer (Roomie) = 1 minute

Packing in Box (Roomie) = 2 minutes

Payment (Roomie) = 1 minute

Labor Content = Sum of Activity Times With Labor

= 6 mins/dozen + 2 mins/dozen + 1 min/dozen + 2 mins/dozen + 1 mins/dozen

= 12 mins / dozen

*Assumption that washing and mixing requires operator presences/intervention.

Since the value of Kristen's time, nor the hourly cost of her roommate's time, was given

in the article provided, we can only guess at how much Kristen should ultimately charge

per