operation management
DESCRIPTION
kristine cookies case studyTRANSCRIPT
Kristin cookie company (oPERATION
Management)Born from a hunger to feed the student body and the
craving brain…
ByShanta Mishra
Btech-MBA04/08/23 1
Introduction
Me and my roommate are planning to launch Kristen cookie company in our on campus restaurant, this company will provide fresh cookies to hungry students late at night within an hour.
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• This presentation will evaluate the preliminary design for the Company’s production process to make policy and pricing decisions, equipment needed, how many orders can be accepted, and whether the business can be profitable
What We Have To Do?..
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Our cookie will be completely fresh(will not prepare any cookie before order)
We will provide you a variety of ingredients like chocolate chip, coconut chop health bar, walnuts..
We will provide you freshest, most exotic cookie anywhere right in the campus.
What makes my cookie different from others??
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Process flow chart
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Order & reply(0 min)
Spooning(2 min)
Wash & mix(6 min)
Cooling(5 min)
Baking (oven)(9 min)
Heat oven(1 min)
hold
Packing+Accepting monEy( 3 min)
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Q1>How Long Will It Take To Fulfill A Rush Order?
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Activity Cycle time Start time Finish time
Order entry 0 min 00:00 00:00
Wash/mix 6 min 00:00 06:00
spooning 2 min 06:00 08:00
Heating oven 1 min 08:00 09:00
bake 9 min 09:00 18:00
Remove cookie 0 min 18:00 18:00
cool 5 min 18:00 23:00
Pack/collect$ 3 min 23:00 26:0004/08/23
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Kristen
Roommate
d
Q2>How Much Your Own & Your Roommate Time Will Take To Full An Order?
Activity Cycle time
Wash, mix, spoon 6+2
total 8 minutes
Activity Cycle time
Heat oven remove cookies + pack & collect money
1+0+3
Total 4 minutes04/08/23
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
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.
Perhaps offering a 10% - 20% discount (or set dollar amount)
on orders of two dozen and above is an option
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Q4> How Many Electric Mixer & Baking Tray Do We 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.
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Q5>What other factors should you consider at this stage of planning your business?
Market: Is this attractive to potential customers? Cost: How can we get cheaper materials with good
quality? Labor: Can I do this alone? Should I hire people? Product: How can we make the cookies better? Services: Can I provide other services, such as delivery? Hazards: How should I handle an accident? Laws: Am I violating any laws? Investment: What kind of initial and/or further investment
is required?
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Contd..
Question 06>
Your product must be made to order because each order is potentially unique. If you decide to sell standard cookies instead, how should you
change the production system? The order-taking process? Other policies?
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Answer
Create your own cookie menu Freeze balled cookies. Cookies can be ordered by number, and
pulled from a freezer Cookies cooked and served fresh from the
menu
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Thank You!
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