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Kristen Cookie case study
Kristen and her roommate are opening a cookie company on their college campus, offering fresh baked cookies made to order within an hour. The process involves multiple steps such as mixing, baking, and packaging, taking approximately 26 minutes for a dozen cookies, with a selling price of $1 per dozen. To improve efficiency, it is recommended to purchase an additional oven to reduce baking time and increase order capacity.
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Kristen Cookie case study
- 1. KRISTEN’S COOKIES Group Members -Ajay Wagh - Ajay Gupta - Akash Dubey - Amit Walawalkar - Burzin Pavri
- 2. INTRODUCTION • Kristen androommate opening a cookie company and provide fresh baked cookies to students operated late night in college campus. • Serving fresh baked cookies as per buyers order combination within an hour of ordering.
- 3. WHAT DO WEOFFER? • Fresh Cookies • Availability of variety • Easy Accessibility
- 4. PRODUCTION PROCESS • Addingredients as per requirement of the customer • Mix ingredients in the food processor • Dish up mixture onto a cookie tray • Put the tray inside the oven • Let it bake • Remove the cookies from the oven • Let it cool for sufficient time • Take the cookies out of the tray • Pack it for pick up • Billing
- 5. • EQUIPMENTS 1 Oven,1 Food Processor (mixing bowl), Cookie trays and Spoons • INGREDIENTS White sugar, Butter, Milk, Flour, Egg, Baking Soda, Vanilla extract
- 6. COSTING • No capitalequipment is required as we already have one food processor, cookie trays and spoons • Electricity bill for oven is paid by landlord • Variable costs = cost of ingredient’s = $.60 Per Dozen • Cost of box = $.10 per box (each box holds a dozen cookie’s)
- 7. TIME ANALYSIS • Processinvolved Time taken (min) • Washing and Mixing 6 • Dish up Cookie tray 2 • Oven set up 1 • Baking oven 9 • Cooling 5 • Packaging 2 • Collecting money 1 • Total 26
- 8. PROBLEMS OF KIRSTENCOMPANY • Capacity • Time • Budget
- 9. PRICE Cost of ingredients(per dozen) $.60 Cost of packaging (paper box) $.10 Total price $.70 Selling price $1 Total Profit $ .30
- 10. OPERATIONAL TIME One dozenorder takes 26 minutes for a buyer 0 1 2 3 4 5 6 7 8 9 10 wash & mix dishup tray oven setup baking cooling packaging payment 1 Order
- 11. Two dozen ordertakes 36 minutes for a single buyer 0 1 2 3 4 5 6 7 8 9 10 wash & mix dishup tray oven setup baking cooling packaging payment 1st Order 2nd order
- 12. Three dozen ordertakes 46 minutes for a single buyer 0 1 2 3 4 5 6 7 8 9 10 wash & mix dishup tray oven setup baking cooling packaging payment 1st Order 2nd order 3rd order
- 13. Processinvolved Timetaken(min)for1st cookie lot Timetaken(min)for2ndcookie lot Timetaken(min)for3rdcookie lot WashingandMixing 6 6 6 DishupCookietray 2 2 2 Ovensetup 1 1 1 Bakingoven 9 9 9 Cooling 5 5 5 Packaging 2 2 2 Collectingmoney 1 1 1 TOTAL 26 26 26 Fulfilling 3 different orders
- 14. How many orderscan you fill in a night? • 4 Hours = 240 minutes • 3 different orders will take 78 minutes(26+26+26) • Therefore we will make minimum of 9 orders in 234 minutes • Safety Margin of time = 6 minutes • 3 same orders will take 46 minutes(26+10+10) • Therefore we will make maximum of 15 orders in 230 minutes • Safety Margin of time = 10 minutes
- 15. How much ofyour own and your roommate’s time will it take to fill each order? • Roommate = 4 min. • Me = 8 min. Activity Time Required Wash/Mix 6 min Dishing up Cookie 2 min TOTAL 8 min Activity Time Required Oven setup 1 min Packing 2 min Collecting money 1 min
- 16. Discounts offered • 1Dozen : 0% • 2 Dozen (same flavour ): 10% • 3 Dozen (same flavour ): 15%
- 17. Recommendations • Purchase anadditional oven • As the bottleneck in the operations is baking time. • A additional oven will cut down timing for 2 dozen to 27 minutes only, which is as good as doubling its capacity.
- 18.