operation managment course. case study

1. Kristin cooKie
company (operation
management)
Born from a hunger to feed
the student Body and the
craving Brain…
By
Shanta Mishra
DR.Helal Al-Helal
01/02/16 1

2. introduction
Me and my roommate are planning to
launch Kristen cookie company in our on
campus restaurant, this company will
provide fresh cookies to hungry students
late at night within an hour.
201/02/16

3. 3
• This presentation will evaluate the preliminary
design for the Company’s production process to
make policy and pricing decisions, equipment
needed, how many orders can be accepted, and
whether the business can be profitable
What We have to do?
..
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4. 4
 Our cookie will be completely fresh(will not
prepare any cookie before order)
 We will provide you a variety of ingredients like
chocolate chip, coconut chop health bar,
walnuts..
 We will provide you freshest, most exotic cookie
anywhere right in the campus.
What makes my cookie different
from others??
01/02/16

5. Process flow chart
5
Order & reply
(0 min)
Spooning
(2 min)
Wash & mix
(6 min)
Cooling
(5 min)
Baking (oven)
(9 min)
Heat oven
(1 min)
hold
Packing+
Accepting mon
Ey( 3 min)
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6. Q1>How Long Will It Take To Fulfill A
Rush Order?
6
Activity Cycle time Start time Finish time
Order entry 0 min 00:00 00:00
Wash/mix 6 min 00:00 06:00
spooning 2 min 06:00 08:00
Heating oven 1 min 08:00 09:00
bake 9 min 09:00 18:00
Remove cookie 0 min 18:00 18:00
cool 5 min 18:00 23:00
Pack/collect$ 3 min 23:00
26:00
01/02/16

7. 7
Kristen
Roommate
d
Q2>How Much Your Own & Your Roommate
Time Will Take To Full An Order?
Activity Cycle time
Wash, mix, spoon 6+2
total 8 minutes
Activity Cycle time
Heat oven remove
cookies + pack &
collect money
1+0+3
Total 4 minutes01/02/16

8. Because your baking trays can hold exactly one dozen cookies, you will produce and sel
cookies by the dozen. Should you give any discount for people who order two or more dozen
All costs of ingredients and boxes for each dozen are the
same. With that said, total valuable time is 6 (wash and
mix) + 2 (spooning) + 1 (set timer on oven) + 2 (packing
time) + 1 (process payment) = 12 minutes. For a two
dozen order, total time is 6 + 2 + 1 + 2 x 2 + 1 = 17
minutes. For a three dozen order, total time is 6 + 2 + 1
+ 2 x 3 + 1 = 22 minutes.
Perhaps offering a 10% - 20% discount (or set dollar amount)
on orders of two dozen and above is an option
01/02/16 8

9. Q4> How Many Electric Mixer & Baking Tray Do We
Need?
As the charts and tables have shown, the electric
mixer is idle for a long time during the
production process, so only one is needed.
Because the mixer can only contain 3 dozens
of ingredients, during the whole process, at
least 3 trays are needed.
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10. Q5>What other factors should you consider at this
stage of planning your business?
 Market: Is this attractive to potential customers?
 Cost: How can we get cheaper materials with good
quality?
 Labor: Can I do this alone? Should I hire people?
 Product: How can we make the cookies better?
 Services: Can I provide other services, such as delivery?
 Hazards: How should I handle an accident?
 Laws: Am I violating any laws?
 Investment: What kind of initial and/or further
investment is required?
01/02/16 10

11. Contd..
Question 06>
Your product must be made to order because
each order is potentially unique. If you
decide to sell standard cookies instead,
how should you
change the production system? The order-
taking process? Other policies?
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12. Answer
Create your own cookie menu
Freeze balled cookies.
 Cookies can be ordered by number, and
pulled from a freezer
Cookies cooked and served fresh from the
menu
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13. Thank You!
01/02/16 13