Assumptions: - Assume process is capacity (not demand) constrained. This means t

Question

Assumptions:

- Assume process is capacity (not demand) constrained. This means there is plenty of demand and your bottleneck needs to be working all the time.
- Assume orders come in at regular intervals and all process times are exact (no variability).
- Your baking trays hold exactly 1 dozen cookies. You have lots of baking trays.
- Consider Order Processing as part of the process.
- Kristen “works” during mixing (she is not idle). - Orders are always for the same type of cookie.
- Note: as it states in the case, the packing is per dozen, not per order.
Process Steps in Kristen’s Kitchen:
• Receive Order: 1 minute
• Mix: 6 minutes/order for 3 dozen cookies (or fewer)
• Spoon: 2 minutes per 1 dozen
• Oven: 10 minutes bake/tray (loading time negligible)
• Cooling: 5 min/dozen
• Pack: 2 min/dozen
1+6+2+10+5+2+1= 27 minutes
This assignment will step you through different order sizes and different resource combinations in order to show you how the bottleneck shifts in the process. We expect you to understand the capacity and average labor utilization calculations, but, more importantly, we expect you to be able to understand how these basic operational concepts directly impact the bottom line.
We also (Q7) expect you to be able to move beyond the case to a more realistic scenario and suggest other operational improvements for this business. This is exactly what is happening today as traditional operations is disrupted in many different ways.

Q3) Labor Considerations 1 dozen: Order Size 1 dozen, 1 worker only 10 points What would happen if Kristen took over the entire show? Perform the calculations for this situation for an order size of 1 dozen cookies with only Kristen working Find the bottleneck and calculate the process capacity (in orders/hour) for this situation Q3: Order Size Resource 1 dozen, 1 worker only Capacity (min) m/p 60min/hr (number of resources) (orders/hour) Kristen Oven What is the production cycle time? Calculate direct labor content (in minutes) for this situation. Calculate total idle time (in minutes) for this situation. Calculate average labor utilization (%) for this situation.

Explanation / Answer

(a) Production cycle time is the time taken from the first step in production to the last step.

i.e. sum of all events = 27 min.

(b) Direct labour content = sum of all tasks that involve labour

= 27 min - ( baking time + cooling time)

= 27- ( 10+5) =12 min.

(c) Total idle time in this situation = time when worker is bound to be idle = baking +cooling time = 15 min

(d) Productivity = avg labour utilisation = actual working time / cycle time = 12/27 = 44.44%

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