Assignment 1 Operations Management I Kristen’s Cookie Company (A1) Section No. | 5| Group No. | AA1| Total Marks| 50| Marks Obtained| | Sr. No. | Name of Students| Roll No| 1| Ameya Prakash Deopujari| 12506| 2| Mayank Jhawar| 12527| 3| Nitya Agarwal| 12532| 4| Pawanjot Singh Makkar| 12535| 5| Radhika Sharma| 12540| 1 – How long will it take you to fill an order? Ans – Total time taken for a 1 dozen order is 26 minutes as per below table. Activity Involved| Cycle Time| Cumulative time| Order Entry| 0 minute| 0 minute| Washing & mixing| 6 minutes| 6 minutes| Spooning| 2 minutes| 8 minutes|

Oven set up| 1 minute| 9 minutes| Bake cookies| 9 minutes| 18 minutes| Remove cookies| 0 minute| 18 minutes| Cool cookies| 5 minutes| 23 minutes| Pack cookies| 2 minutes| 25 minutes| Accept payment| 1 minute| 26 minutes| 2 – How many orders can you fill in a night, assuming you are open four hours each night? Ans – Time taken for preparation of a single order can be divided into 3 parts: Therefore if the tray is ready for the second order (pre baking process) while the first order is in the oven for baking, it would save 8 minutes of time for every subsequent order.

When the first order is in process in baking, the pre baking session for the second order will take place for 8 minutes, thus these 8 minutes have been saved. Every order has to undergo both baking and post-baking processes taking 18 (10+8) minutes. But when the first order is in post baking session (taking 8 minutes) then during the 8 minutes second order can be baked saving 8 minutes. 2 minutes will be consumed by second order only as baking process in total takes 10 minutes. Then post baking process of second order will take 8 minutes more. So the second order in total takes 10 (8+2) minutes extra.

Now when the second order is in baking then third order can be prepared for pre baking process thus saving 8 minutes again. As second order is in post baking process for 8 minutes, then third order can be baked thus saving 8 minutes. 2 minutes extra will be consumed by third order for baking process. 8 minutes will be consumed then for the post baking process. So the third order will take 10 minutes extra for total processing. Therefore every subsequent order will take 10 minutes only for complete process. Therefore time taken for the preparation of ‘additional x’ orders of 1 dozen would be: (26 + 10x) minutes

Roommate – 4 minutes Total – 12 minutes For a 2 dozen order time taken:- Self – 6(washing & mixing) + 4(spooning 2 times) = 10 minutes Roommate – 2 minutes (Oven set up 2 times) + 4 minutes (Pack cookies 2 times) + 1 minute (accept payment) = 7 minutes Total – 17 minutes For a 3 dozen order time taken:- Self – 6(washing & mixing) + 6(spooning 3 times) = 12 minutes Roommate – 3 minutes (Oven set up 3 times) + 6 minutes (Pack cookies 3 times) + 1 minute (accept payment) = 10 minutes Total – 22 minutes Let us assume that labor cost is \$15 per hour for self & roommate.

Order size| Total minutes| Cost/minute| Cost for order| Cost per dozen| Material Cost| Potential Discount| 1 dozen| 12| \$15/60 = \$0. 25| 12 * 0. 25 = \$3| \$3| \$0. 70| 0| 2 dozen| 17| \$0. 25 | 17*0. 25 = \$4. 25| \$2. 125| \$0. 70| 3 – (2. 125+0. 70) = \$0. 275 | 3 dozen| 22| \$0. 25| 22*0. 25 = \$5. 50| \$1. 833| \$0. 70| 3 – (1. 833+0. 70) = \$0. 467| As we observe, we can afford to give a discount for two- and three-dozen orders. A two-dozen order doesn’t cost twice as much as a one-dozen order and a three-dozen order cost much less then thrice a one-dozen order. – How many food processor and baking trays will you need? Ans – The food processor is idle for a long time in the process so only 1 is required. As it can contain atleast 3 dozens of ingredients during the whole process we should have atleast 3 trays as each tray handles 1 dozen of the ingredients. 6 – Are there any changes you can make in your production plans that will allow you to make better cookies or more cookies in less time or at lower cost? For example, is there a bottleneck operation in you production process that you can expand cheaply?