National Cranberry Cooperative
 Process

Flow:

 Receiving

Cranberries
 Weighing
 Sampling
 Grading
 Dumping (If th...
Process Flow
 Process

breaks into two different patterns for dry and wet cranberries at this point:

 Dry

Crop:
 Dest...
Assumptions
 18,000

bbls per day uniformly distributed over 12 hours starting 7am.

 Average

 70%

truck delivery loa...
4
Questions
 What

are the problems RP1 facing?
 All the problems that are mentioned in the case and anything extra that c...
Questions
 How

much overtime labor is used, how much money does that represent?
 Comparing number of workers in each se...
Questions
 How

much overtime labor is used, how much money does that represent?
 Comparing number of workers in each se...
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National cranberry case study

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National cranberry case study

  1. 1. National Cranberry Cooperative  Process Flow:  Receiving Cranberries  Weighing  Sampling  Grading  Dumping (If the dumping cannot be performed cranberries are held in the trucks until they can be processed)  Storing Cranberries into Bins  Dry bins  Dual bins (you have to decide how these dual bins are allocated)  Wet bins 1
  2. 2. Process Flow  Process breaks into two different patterns for dry and wet cranberries at this point:  Dry Crop:  Destoning  Dechaffing  Seprators/Baily Mill  Packaging  Wet Crop:  Dechaffing  Drying  Seprators/Baily Mill  Packaging 2
  3. 3. Assumptions  18,000 bbls per day uniformly distributed over 12 hours starting 7am.  Average  70% truck delivery load is 75 bbls. of the berries are wet.  Bailey mill rates are same as the separators and the Bailely mill process time is determined based on the second quality berries not the potential second quality berries.  Figures D and E, will give you the start time of each process and number of both types of workers available.  Do not compute overtime from figure E, overtime should be computed so that there are no cranberries left in the system. 3
  4. 4. 4
  5. 5. Questions  What are the problems RP1 facing?  All the problems that are mentioned in the case and anything extra that comes to your mind.  Draw process flow.  What is the bottleneck?  Remember that only processes can be bottleneck.  Do not forget to consider the number of machines in each station.  How does the backlog grows on a peak day?  Using Figure E and the bottleneck rate you can compute how the inventory of cranberries in the system will change.  The difference between what can be kept in the system and what is cumulated in the system is how the backlog is growing. 5
  6. 6. Questions  How much overtime labor is used, how much money does that represent?  Comparing number of workers in each section in Figure E with Figure D you can compute the number of regular and seasonal workers.  Considering the changes in the backlog from the previous case and number of workers in each section from Figure E you can compute the total overtime cost.  How much waiting cost is incurred?  Using the information above and the method explained at the end of assumptions you would be able to compute this.  Remember that wait cost is per truck waiting not per barrel.  What recommendations?  Buying dryers and/or converting bins? Do the cost analysis and determine how many dryers you would buy and how many bins would you pay for if any.  Any recommendation independent of equipment purchase? 6
  7. 7. Questions  How much overtime labor is used, how much money does that represent?  Comparing number of workers in each section in Figure E with Figure D you can compute the number of regular and seasonal workers.  Considering the changes in the backlog from the previous case and number of workers in each section from Figure E you can compute the total overtime cost.  How much waiting cost is incurred?  Using the information above and the method explained at the end of assumptions you would be able to compute this.  Remember that wait cost is per truck waiting not per barrel.  What recommendations?  Buying dryers and/or converting bins? Do the cost analysis and determine how many dryers you would buy and how many bins would you pay for if any.  Any recommendation independent of equipment purchase? 6
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