Transcript KRISTEN'S COOKIE COMPANY (A)

Intro to Process Analysis II
Kristen’s Cookies
Getting more for your cookie,
er, money!
Gantt Charts
Resource conflicts
Batch size and setups
Economies of Scale
The Big Picture

Most of your investments—and a lot
of your other costs—are due to
resources (people, equipment, etc.)

By avoiding resource conflicts and
exploiting economies of scale you can
more efficiently use your resources.

Thus, you can either increase
production or reduce costs.

Either way, ROI goes up.
KRISTEN’S PROCESS FLOW
DIAGRAM
GANTT CHART
(ORDER SIZE = 1 DOZ.)
mix/spoon
bake
cool
pack
pay
Kristen
roommate
oven
0 5 10 15 20 25 30 35 40 45 50 55 60 65
Cookie Questions: 1 Dozen
Q1. Rush order flowtime per order?
Q2. Process cycle time per order?
Q3. What is the process capacity?
Q4. If we start at 8 pm and end at
Midnight, how many cookies can we
make?
Add’l. Cookie Questions
Q5. What is the labor content per order?
Q6. What is the labor utilization?
Q7. How many baking trays?
How many food processors?
Q8. Where should we add resources?
GANTT CHART
(ORDER SIZE = 2 DOZ.)
mix/spoon
bake
cool
pack
pay
Kristen
roommate
oven
0
5 10 15 20 25 30 35 40 45 50 55 60 65
Q9. Suppose the order size increases.
Order
Size
Labor Bottle- System
Content neck Capacity
1 dz.
12 mn.
Oven
Cycle ROFT
Time
6 dz./hr. 10 mn. 26mn.
2 dz.
What happens to the order lead time?
Should we give a Price discount?
5
Suppose we have two ovens. . .
Oven
10 min/dz.
Mix
6 min
per order
Spoon
2 min/dz
Cool
5 min.
Oven
10 min/dz
Pack
2 min/dz
Receive
Payment
1 min
per order
Performance with 2 Ovens
Order Size
1 dz
Kristen’s
Labor Content
Room-Mates’
Labor Content
Oven mins/order
Oven Cycle Time
Bottle-neck
System Capacity
2 dz
More Cookie Quandaries
What is the value of a second oven for
order size = 1 dz.?
What is the impact if your roommate is
out of town for order size = 1 dz.?
LESSONS
1. Throughput time and Cycle time:
Implications for customers, managers:
Interrelationships:
10
LESSONS (cont.)
2. OM tension in the case:
Zero
Lead
Time
Operating
System
Complete
Customization
3. Importance of process knowledge, learning,
experimentation:
11
The Message
BEWARE
Even simple processes are very tricky.
Analyzing them is far from simple.
A spreadsheet is not enough.
Doing them in your head is not enough.
There is no substitute for using your OM tools.