103537257 Kristen s Cookie Company Case Analysis

Kristen’s Cookie Company Case Study and Analysis Forecasting and Operations Management Saint Mary’s College of California Executive MBA Program

Jessica Marie – www.jessicamariemba.com

Kristen’s Cookie Company Agenda Introduction and Preliminary Modeling Key Questions and Problems for Further Thought Recommendations for Improvement Q & A Session and Discussion

Kristen’s Cookie Company Introduction Kristen’s Cookie Company Mission Statement: Born from a hunger to feed the student body and the craving brain…

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.

Kristen’s Cookie Company The Service Triangle The Service Strategy

The Customer

The Systems

The People

Kristen’s Cookie Company Process Flow Chart Order and Reply (Roommate) 0 minutes

Cooling 5 minutes

Hold

Wash and Mix (kristen) 6 minutes

Baking (Oven) 9 minutes

Pack/Colle ct Money 3 minutes

Spooning 2 minutes

Heat Oven 1 minutes

Kristen’s Cookie Company Key Question 1: How long will it take to fulfill a rush order? Activity

Resource

Cycle Time Start Time

Finish Time

Order Entry

E-mail

0 minutes

00:00

00:00

Wash/Mix

Kristen

6 minutes

00:00

06:00

Spooning

Kristen

2 minutes

06:00

08:00

Heat Oven

Roommate

1 minute

08:00

09:00

Oven

9 minutes

09:00

18:00

0 minutes

18:00

18:00

Tray

5 minutes

18:00

23:00

Roommate

3 minutes

23:00

26:00

Bake

Remove Cookies Roommate Cool

Pack/Collect $$

Kristen’s Cookie Company Key Question 2 How many orders can you fill in a night, assuming you are open four hours each night? Task Order Entry 1 Wash and Mix 1 Spooning Start Oven 1 Baking Time 1 Remove from Oven 1 Cooling Time 1 Pack and Collect Money 1 Order Entry 2 Wash and Mix 2 Fill Tray 2 Start Oven 2 Baking Time 2 Remove from Oven 2 Cooling Time 2 Pack and Collect Money 2

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Kristen’s Cookie Company Group 2 Order Size 1 dozen 2 dozen 3 dozen 4 dozen 5 dozen 6 dozen 7 dozen 8 dozen 9 dozen 10 dozen 11 dozen 12 dozen 13 dozen 14 dozen 15 dozen 16 dozen 17 dozen 18 dozen 19 dozen 20 dozen 21 dozen

Order Completion Time 26 minutes 36 minutes 46 minutes 56 minutes 66 minutes 76 minutes 86 minutes 96 minutes 106 minutes 116 minutes 126 minutes 136 minutes 146 minutes 156 minutes 166 minutes 176 minutes 186 minutes 196 minutes 206 minutes 216 minutes 226 minutes

22 dozen

236 minutes

• Operating time = 240 minutes (4 hours) • Solution • 22 dozen cookies in 4 hours. • From the table, a formula can be generalized: The number of minutes to produce n one-dozen batches is given by this expression: 16 + 10n