1. Current Process Flow
Capacity 25~27 1200
(bbl/hr) `- `- `- 17~24 2000
D1. Holding Bins (Wet)
Process A. Trucks
B. Weighing C. Dumpors
Arrival
D2. Holding Bins (Dry) E. Destoning
`- `- `- 17~24 2000 4500
1~16 4000
Problems: Options to be evaluated
Too much waiting time for Trucks From Process flow its is evident that DRYING capacity is th
Managing Overtime 1. Addition of 1 Dryer
2. Addition of 2 Dryers
3. Converting Dry berry holding bins into Wet berry holdin
Assuming that Deliveries during 9/20~ 10/9 represent distribution of entire deliveries in PEAK period
Avg Deliveries A 16,380
Standard Deviation d 1939
Capacity of A+ 3d will meet 99.7% of Peak load deliveries Capacity of A+ 2d will meet 96% of Peak load deliveries
If we build for 3d, we might end up having underutilisation of MOST of the season, and meet PEAK time demand which occure
In such situations invetsing for capacity of additiona 3d will Not be justified.
Since we don’t have entire Frequency distribution of deliveries, we assume that Avg+ 2d will be the optimal capacity to Target
Target Daily deliveries (bbl) 20258 20000
Hourly incoming berries 1818 Assumption: Berries received only for 07:00~18:00, trucks
Hourly incoming Wetberries 1273

2. 1500 600 1200~1350
G. Drying I. Milling
F. Dechaffing H. Seprator J. Shipping
3000
at DRYING capacity is the bottleneck; Hence DRYER must be added.
ns into Wet berry holding bins
f Peak load deliveries Capacity of A+ d will meet 68% of Peak load deliveries
me demand which occures very rarely say 2~3 times.
ptimal capacity to Target.
for 07:00~18:00, trucks are coming at even rate

3. Time Incoming berries Berries Processed Inventory Build Up Trucks in Waiting
7:00 1273 600 673
8:00 1273 600 1345
9:00 1273 600 2018
10:00 1273 600 2691
11:00 1273 600 3364
AM 12:00 1273 600 4036
13:00 1273 600 4709
14:00 1273 600 5382 9
15:00 1273 600 6055 18
16:00 1273 600 6727 27
17:00 1273 600 7400 36
18:00 1273 600 8073 45
19:00 0 600 7473
20:00 0 600 6873
21:00 0 600 6273
22:00 0 600 5673
23:00 0 600 5073
PM 0:00 0 600 4473
1:00 0 600 3873
2:00 0 600 3273
3:00 0 600 2673
4:00 0 600 2073
AM 5:00 0 600 1473
Total 15273
Peak Season Labour Cost calculation
From Inventory Build up, it will be necessary to run the plant till 05:00 am; hence we will need worker to work till in Third Shif
Timing of Shifts No. of Workers
Shift 1 7:00 15:00 16
Shift 2 15:00 23:00 1
General 11:00 19:00 36
Total Labour/day 53
Peak demand days 1 5Sept~31 Oct 46
Total Labour/Season
Weighted Reg. Labour Wages 5.3
Weighted OT Labour Wages 7.9
Labor Cost
Totsl Labour Cost 212,019.21
Timing of Shifts No. of Workers
Shift 1 7:00 15:00 16
Shift 2 15:00 23:00 1
Shift 3 23:00 7:00 12
General 11:00 19:00 36
Total Labour/day 65
Peak demand days 1 5Sept~31 Oct 46
Total Labour/Season
Weighted Reg. Labour Wages 5.3
Weighted OT Labour Wages 7.9

4. Labor Cost
Totsl Labour Cost 200,132.55

5. Inventory Build up will remain in Holding Unit, Dechaffing unit which precedes Drying Block= 3200+ 1500=4700
Once the capacity of Holding Bins and Dechaffing unit is lost Trucks will be required to wait till HOLDING capacity Frees up.
Berries will be HOLD in trucks here after as Holding Unit and Dechaffing capacity exhausted. 4700
These Trucks will need to wait
9000
8000
7000
6000
5000
4000 Inventory Build
3000 Up
2000
1000
0
7:00
9:00
0:00
1:00
3:00
8:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
2:00
4:00
5:00
It indicates that even after operating for 22 hrs plant will not be able to process all berries receieved on particular day
It will build up additional inventory for next day, and likely damage to portion of WET berries, which is unacceptable.
ker to work till in Third Shift 23:00~07:00
Reg. Labour Hrs OT Hrs
128 60
8 0
288 240
424 300
CURRENT
19504 13800 PLAN
102856 109163.21
Reg. Labour Hrs OT Hrs
128 60
8 0
96 0
288 144
Proposed
519 204
PLAN- additing
23874 9384 3 rd shift

6. PLAN- additing
3 rd shift
125901.57 74230.98

7. 1500=4700
DING capacity Frees up.
d on particular day
h is unacceptable.

9. Addition of 1 Dryer: Processing rate=
Time Incoming berries Berries Processed Inventory Build Up Trucks in Waiting
7:00 1273 800 473
8:00 1273 800 945
9:00 1273 800 1418
10:00 1273 800 1891
11:00 1273 800 2364
AM 12:00 1273 800 2836
13:00 1273 800 3309
14:00 1273 800 3782
15:00 1273 800 4255
16:00 1273 800 4727 0
17:00 1273 800 5200 7
18:00 1273 800 5673 20
19:00 0 800 4873
20:00 0 800 4073
21:00 0 800 3273
22:00 0 800 2473
23:00 0 800 1673
PM 0:00 0 800 873
1:00 0 800 73
2:00 0
3:00 0
4:00 0
AM 5:00 0
Total 15273 15200
Peak Season Labour Cost calculation
From Inventory Build up, it will be necessary to run the plant till 05:00 am; hence we will need worker to work till in Third Shif
Timing of Shifts No. of Workers
Shift 1 7:00 15:00 16
Shift 2 15:00 23:00 1
General 11:00 19:00 36
Total Labour/day 53
Peak demand days 1 5Sept~31 Oct 46
Total Labour/Season
Weighted Reg. Labour Wages 5.3
Weighted OT Labour Wages 7.9
Labor Cost
Total Labour Cost 194,553.09
Savings in Labour Cost 17,466.11
Cost of 1 Dryer 20000
Recovery Period (yrs or Season) 1.15

10. 800
Inventory Build up will remain in Holding Unit, Dechaffing unit which precedes Drying Block= 3200+ 1500=4700
Once the capacity of Holding Bins and Dechaffing unit is lost Trucks will be required to wait till HOLDING capacity Frees up.
Berries will be HOLD in trucks here after as Holding Unit and Dechaffing capacity exhausted. 4700
These Trucks will need to wait
6000
5000
4000
3000
2000 Inventory Build
Up
1000
0
1:00
2:00
3:00
4:00
7:00
8:00
9:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
0:00
5:00
It indicates that only after operating for 18 hrs plant will be able to process all berries receieved on particular day
ker to work till in Third Shift 23:00~07:00
Reg. Labour Hrs OT Hrs
128 60
8 0
288 192
424 252
CURRENT
19504 11592 PLAN
102856 91697.09

11. 1500=4700
DING capacity Frees up.
particular day

12. Addition of 1 Dryer: Processing rate=
Time Incoming berries Berries Processed Inventory Build Up Trucks in Waiting
7:00 1273 1000 273
8:00 1273 1000 545
9:00 1273 1000 818
10:00 1273 1000 1091
11:00 1273 1000 1364
AM 12:00 1273 1000 1636
13:00 1273 1000 1909
14:00 1273 1000 2182
15:00 1273 1000 2455
16:00 1273 1000 2727
17:00 1273 1000 3000
18:00 1273 1000 3273
19:00 0 1000 2273
20:00 0 1000 1273
21:00 0 1000 273
22:00 0 273 0
23:00 0
PM 0:00 0
1:00 0
2:00 0
3:00 0
4:00 0
AM 5:00 0
Total 15273 15273
Peak Season Labour Cost calculation
From Inventory Build up, it will be necessary to run the plant till 05:00 am; hence we will need worker to work till in Third Shif
Timing of Shifts No. of Workers
Shift 1 7:00 15:00 16
Shift 2 15:00 23:00 1
General 11:00 19:00 36
Total Labour/day 53
Peak demand days 1 5Sept~31 Oct 46
Total Labour/Season
Weighted Reg. Labour Wages 5.3
Weighted OT Labour Wages 7.9
Labor Cost
Total Labour Cost 177,086.98
Savings in Labour Cost 34,932.23
Cost of 1 Dryer 40000
Recovery Period (yrs or Season) 1.15

13. 1000
Inventory Build up will remain in Holding Unit, Dechaffing unit which precedes Drying Block= 3200+ 1500=4700
Once the capacity of Holding Bins and Dechaffing unit is lost Trucks will be required to wait till HOLDING capacity Frees up.
Berries will be NOT BE HOLD in trucks since Holding Unit and Dechaffing capacity is NEVER exhausted.
3500
3000
2500
2000
1500
1000 Inventory Build
Up
500
0
-500
8:00
0:00
1:00
2:00
3:00
4:00
7:00
9:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
5:00
It indicates that only after operating for 15 hrs plant will be able to process all berries receieved on particular day
ker to work till in Third Shift 23:00~07:00
Reg. Labour Hrs OT Hrs
128 60
8 0
288 144
424 204
CURRENT
19504 9384 PLAN
102856 74230.98

14. 1500=4700
DING capacity Frees up.
particular day

15. Current Processing Capacity of Dry Berries 1350 (Seprator)
Input rate of Dry Berries 545 Hence we can assume that no invento
Bins to be converted for Wet Berries (4~16) 3250
Time Incoming berries Berries Processed Inventory Build Up Trucks in Waiting
7:00 1273 600 673
8:00 1273 600 1345
9:00 1273 600 2018
10:00 1273 600 2691
11:00 1273 600 3364
AM 12:00 1273 600 4036
13:00 1273 600 4709
14:00 1273 600 5382
15:00 1273 600 6055
16:00 1273 600 6727
17:00 1273 600 7400
18:00 1273 600 8073 2
19:00 0 600 7473
20:00 0 600 6873
21:00 0 600 6273
22:00 0 600 5673
23:00 0 600 5073
PM 0:00 0 600 4473
1:00 0 600 3873
2:00 0 600 3273
3:00 0 600 2673
4:00 0 600 2073
AM 5:00 0 600 1473
Total 15273
Peak Season Labour Cost calculation
From Inventory Build up, it will be necessary to run the plant till 05:00 am; hence we will need worker to work till in Third Shif
Timing of Shifts No. of Workers
Shift 1 7:00 15:00 16
Shift 2 15:00 23:00 1
General 11:00 19:00 36
Total Labour/day 53
Peak demand days 1 5Sept~31 Oct 46
Total Labour/Season
Weighted Reg. Labour Wages 5.3
Weighted OT Labour Wages 7.9
Labor Cost
Totsl Labour Cost 212,019.21
Timing of Shifts No. of Workers
Shift 1 7:00 15:00 16
Shift 2 15:00 23:00 1
Shift 3 23:00 7:00 12
General 11:00 19:00 36
Total Labour/day 65
Peak demand days 1 5Sept~31 Oct 46

16. Total Labour/Season
Weighted Reg. Labour Wages 5.3
Weighted OT Labour Wages 7.9
Labor Cost
Totsl Labour Cost 200,132.55
Savings in Labour Cost 0.00
Cost of Bins Conversion 7500
Recovery Period (yrs or Season) NA

17. can assume that no inventory Build up in Dry Berries Processing. Additionaly Destoning Capacity can be used as Temporary Holding Capaci
Inventory Build up will remain in Holding Unit, Dechaffing unit which precedes Drying Block= 3200+ 1500+3250=7950
Once the capacity of Holding Bins and Dechaffing unit is lost Trucks will be required to wait till HOLDING capacity Frees up.
Berries will be HOLD in trucks here after as Holding Unit and Dechaffing capacity exhausted. 4700
These Trucks will need to wait
9000
8000
7000
6000
5000
4000 Inventory Build
3000 Up
2000
1000
0
7:00
9:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
0:00
1:00
3:00
8:00
2:00
4:00
5:00
It indicates that even after operating for 22 hrs plant will not be able to process all berries receieved on particular day
It will build up additional inventory for next day, and likely damage to portion of WET berries, which is unacceptable.
ker to work till in Third Shift 23:00~07:00
Reg. Labour Hrs OT Hrs
128 60
8 0
288 240
424 300
CURRENT
19504 13800 PLAN
102856 109163.21
Reg. Labour Hrs OT Hrs
128 60
8 0
96 0
288 144
Proposed
519 204
PLAN- additing
3 rd shift

18. Proposed
PLAN- additing
23874 9384 3 rd shift
125901.57 74230.98

19. Temporary Holding Capacity
1500+3250=7950
DING capacity Frees up.
d on particular day
h is unacceptable.

21. Current Option 1
Labour Cost Trucks Waiting Labour Cost Trucks Waiting
212,019.21 45 194,553.09 20
Savings in Labour Cost 0.00 17,466.11
Investment 0.00 20,000.00
Period for Returns NA 1.15
Does it process all Berries NO YES
Addional Capacity NO YES
From above performance parametersOption 2 i.e. Adding two dryers should be excercised
We should also note that in Future Seprator (capacity 1350 bbls/hr) can be Bottleneck.

22. Option 2 Option 3
Labour Cost Trucks Waiting Labour Cost Trucks Waiting
177,086.98 0 200,132.55 2
34,932.23 11,886.66
40,000.00 7,500.00
1.15 NA
YES NO
YES NO