This document outlines Kristen's Cookie Company process flow and assumptions. It describes the steps to make one dozen cookies, which takes 26 minutes total. It then provides answers to various questions about production capacity, labor time, pricing strategies, equipment needs, and identifying bottlenecks. The key bottleneck identified is the single oven, and expanding to two ovens for $2.70 rental would increase production by 40% and generate $13.50 in additional revenue per night.

1. Kristen’s Cookie
Company
Team Members:
Akrati Chauhan Girish Khatri
Arpan Chhabra Rachna Gupta
Dheriya Shrinivas Vaikunth Kossambe

2. PROCESS FLOW: KRISTEN'S COOKIE COMPANY

3. CASE STUDY ASSUMPTIONS
 Kristen and roommate have 1 oven and 3 oven trays.
 Spooning on tray of next batch is done simultaneously when baking of previous
batch happens.
 When oven gets idle after removing previous batch, next batch cookies go in.
 Kristen sells cookies at $1.5 /dozen.
 No additional delays other than mentioned in the case.
 Rush order is same as one dozen cookie order.
 Kristen and her roommate work simultaneously wherever possible.
 Efficiency of all resources especially of equipment is 100%.
 No additional costs incurred other then mentioned in assumptions or main
question.
 Additional assumptions which are question specific are mentioned in solutions.

4. Questions & Solutions
Process Description Time Taken
Mixing the ingredients in a bowl (includes washing
utensils from previous orders) 6
Taking out dough with spoon and spreading on Tray 2
Putting the cookies in oven and setting thermostat and
timer 1
Baking the cookies 9
Removing the tray from oven and cooling 5
Packing the cookies in a box 2
Accepting Payment for the cookie box 1
Total 26 Minutes
Q1: How long will it take to fill in the rush order?
Answer: 26 minutes

5. Questions & Solutions
Q2: How many orders can you fill in a night assuming you are open four hours each night?
Answer: 22 orders

6. Questions & Solutions
Q3: How much of your own and your roommate’s valuable time will it take to fill each
order?
Activity Time
Mixing and washing 6 minutes
Spoon out dough and lay on the trays 2 minutes
Total 8 minutes
Activity Time
Setting timer 1 minute
Packing 2 minutes
Exchange of order and payment 1 minute
Total 4 minutes
Me (Kirsten)
Roommate

7. Questions & Solutions
Q4: Because your baking trays can hold exactly one dozen cookies, you will produce and sell cookies by the dozen. Should you
give any discount to people who order two, three or more dozen cookies? If so, how much? Will it take you any longer to fill a
two-dozen cookie order than a one dozen cookie order?

8. Questions & Solutions
Q5: How many Electric Mixer and Baking Tray do we need?
ELECTRIC MIXER: As the chart and case shows, electric mixer is
IDLE for a long time during the production process, so ONLY
ONE is needed.
BAKING TRAYS: Because the mixer can only contain 3 dozen of
ingredients, during the whole process, at least 3 TRAYS are
needed.
Answer:

9. Questions & Solutions
Q6: Is there a bottleneck operation in your production process that you can expand cheaply?
The bottleneck here is the Oven.
Process involved
Time taken (in minutes)
Process involved Time taken (in minutes)
1 batch 2 batch
Washing and mixing 6
Spoon dough into tray 2 1 [2-1(1 minute goes in
setting thermostat)]
Oven setup 1 1
Baking time 9
Cooling 5
Packaging 2 2
Collection money 1 1
Total Time 26 5
2 dozen using 1 oven takes 31 minutes
Here, we can use two ovens instead of one. This will result in two
dozen cookies being produced simultaneously. Thus, next batch
will be delivered in next 5 minutes while other batches will be
delivered in next 7 minutes.
So, 2 ovens will increase the efficiency by 40%
Price of 1 dozen = $1.5
Price of 22 dozen = 1.5 * 22= $33
Price of 31 dozen = 1.5 * 42=$46.5
Using an additional oven will help to generate Additional
Revenue of $13.5 due to increase in our efficiency to take more
orders in the same time.
So, we can pay $2.7 to rent an additional oven which will count
to 20% of our additional revenue.

10. Thank you