# Kristens Cookie Company Case Study+Sample Answer Racing

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#### Kristen's Cookie Company

...Kristen's Cookie Company Kristen's Cookie Company is a good example where the success or failure of the company depends directly on the process planning adopted by the company, i.e., the company can maximize its productivity by utilizing its resources effectively. One major aspect of process analysis is to identify the major bottlenecks in the process and trying to mitigate their effects with least possible level of costs and resources. The following flowchart shows the overall process adopted by the company: (Exhibit 1) Filling a rush order: Process Resource(s) Process Time Cumulative Time Consumed Taking Order E-mail 0 minutes 0 minutes Washing and Mixing Self 6 minutes 6 minutes Filling Tray Self 2 minutes 8 minutes Preparing Oven Roommate 1 minute 9 minutes Baking Oven 9 minutes 18 minutes Removing the tray Roommate 0 minutes 18 minutes Cooling None 5 minutes 23 minutes Packaging & Collecting Money Roommate 3 minutes 26 minutes Thus, it requires minimum 26 minutes to fill a rush order. Production Capacity (4 hours): Since the resources required for the different processes are not common everywhere, there can be two orders (of one dozen each, for simplicity) being processed simultaneously. Thus, it would not require twice as much time for the second order (of one dozen) to be completed as it requires for the first one (of one dozen). This can be attributed to the fact that one can get the tray ready for the second order while the first one is in the oven...

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#### Kristen's Cookie Case

...Kristen’s Cookie Case Case Answers Global Operations Hult International Business School Module B, 2012-13 Suneel Udpa January 21, 2013 1. 26 minutes assuming that the system is completely empty. If we receive a call anytime at or after the Mix&Spoon stage, it'll take us 26 + additional 10 minutes. This includes 8 minutes at the Mix&Spoon stage and a 2 minute wait to finish baking the previous batch. Therefore, it would take us 36 minutes to fill a rush order. (Please refer to Table 1.0 on page 4 for details). 2. At a steady state we'd be able to produce 6 (process capacity) x 4 (hours) = 24 dozen per night. At a starting state, assuming that 1st dozen takes 26 minutes, and we move into a steady state of production, we have 4 hours or 214 minutes (out of 4 hours) left, enabling us to produce 22 dozen cookies total. 3. For each dozen, I would spend 8 minutes working on it, and my roommates would spend 4 minutes. Hence, I would spend 176 minutes per shift and my roommate would spend 88 minutes per shift (with 22 dozen at a starting state). At a starting steady state, I would spend 192 minutes and my roommate 96 minutes. 4. We can in fact offer discounts to our customers who order more than one dozen cookies due to the time we save in the Load&Bake stage of production. Since we are able to produce up to 3 batches in the Mix&Spoon stage, our calculations would be as follows: 6 minutes to Mix and an extra 2 minutes to spoon for each batch. 30% of our......

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#### Beta Management Company Case Report

...| Beta Management Company Case Report | | Full name: Student ID: Class Time: Lecturer's Name: | Table of Contents I.Case background 2 II.Sarah Wolfe 2 III.Background of California R.E.I.T. and Brown Group, Inc. 3 IV.Return and risk 4 V.Summarize in bullet points what you learn from your case analysis. 7 VI.Appendix 8 I. Case background Who: Sarah Wolfe who is the founder and also the CEO of Beta Management Company Where: Small investment companies near a suburb of Boston When: The Beta Management Group was formed in 1988. Up to 1991, high-net-worth individual clients totaling $25 million in assets were under control by the Beta Management Group. What: She had been successful in the management of Beta’s funds by focusing on the Vanguard Index 500 Trust, even generating good returns in the worst of times. After doubling the size of Beta, she decided to pick some smaller stocks to go along with the index mutual fund. She also planned to increase the proportion of Beta’s assets in equities. II. Sarah Wolfe Strategy applied was to timing the market can be simply defined “buy low and sell high” to minimize the risk and enhance returns for clients since 1988. To get higher return by eliminating the risk was one of the good ways to add value for clients. Another strategy was to explore the range of market strategy. She has successfully adjusted the level of market exposures between 50% and 99%. The best way was chosen to maintain and adjust......

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#### Case Study: Kristen’s Cookie Company

...Case Study: Kristen’s Cookie Company Key questions to answer before you launch the business: 1) How long will it take you to fill a rush order? If we consider that one order is a dozen, the flow time is 26 minutes for the first order. 2) How many orders can you fill in a night, assuming you are open four hours each night? (4 hours = 240 minutes) If we consider that one order is a dozen, it will take me: * For the first order: 26 minutes * For the second order: 20 minutes (excluding backing and mixing because 6 min can be for 3 dozens) * For the third order: 20 minutes → So, it will take 66 minutes for 3 orders. → (240 / 66)* 3 = 10 orders/ night. 3) How much of your own and your roommate’s valuable time will it take to fill each order? If we assume that we will work 4 hours (240 minutes) each night, and it takes us on average 22 minutes (26+20+20 /3) to produce a dozen. (Considering that one order is a dozen.) 4) Because your baking trays can hold exactly one dozen cookies, you produce and sell cookies by the dozen. Should you give any discount for people who order two dozen cookies, three dozen cookies, or more? If so, how much? Will it take you any longer to fill a two-dozen cookie than a one-dozen cookie order? Because producing a second and a third dozen cookies will take less time than producing the first dozen cookies (excluding the washing and mixing steps), we can give a discount for people ordering two or three......

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#### Kristen’s Cookie Company

...Kristen’s Cookie Company You and your roommate are preparing to start Kristen’s Cookie Company in your on‐campus apartment. The company will provide fresh cookies to starving students late at night. You need to evaluate the preliminary design for the company’s production process to figure out many variables, including what prices to charge, whether you will be able to make profit and how many orders to accept. Business Concept Your idea is to bake fresh cookies to order, using any combination of ingredients that the buyer wants. The cookies will be ready for pickup at your apartment within an hour. Several factors will set you apart from competing products such as store‐bought cookies. First, your cookies will be completely fresh. You will not bake any cookies before receiving the order; therefore, the buyer will be getting cookies that are literally hot out of the oven. Second, you will have a variety of ingredients available to add to the basic dough, including chocolate chips, M&M’s, chopped health bars, coconut, walnuts and raisins. Buyer will telephone in their orders and specify which of these ingredients they want in their cookies. You gurantee completely fresh cookies. In short, you will have the freshest, most exotic cookies anywhere, available right on campus. The production process Baking cookies is simple: mix all the ingredients in a food ......

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#### Kristen's Cookie Company

...Kristen’s Cookie Company Submitted By: James Skinner Prepared for: Jeff Peterson Investments Spring 2 – 2010 Webster University 3/30/2010 CERTIFICATE OF AUTHORSHIP: I certify that I am the author. I have cited all sources from which I used data, ideas, or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. ------------------------------------------------- Signature Date Executive Summery Two roommates are offering cookies to the students studying late at night. The concept is simple bake cookies to order with a verity of ingredients have them ready for pick up in an hour and to only work four hours a night they hope to make the company a success. To help with this the production process will be evaluated to identify any bottlenecks and to eliminate any blocking. Also to review each step in the process to try to identify if more equipment will improve the pacing or just be more cogs in the wheel. Flow Units: Cookies Inputs: Basic Dough, Ingredients Output: Cookies packed in boxes Flow Units: Cookies Resources: Kristen and her roommate, Oven, Spoons, Trays, Food Processor Assumptions 1. An order is for a dozen cookies of any one type. 2. Kristen and her roommate work for 4 hours per day. Orders Ignorance Wash & Mix Work Process Dish up Finishing Packing Cooling ......

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#### Kristen's Cookies Case Anaysis

...Kristen’s Cookie Company Case Study OPTM 6090 Spring 2014 Team 1 Executive Summary Kristen and her roommate have planned the Kristen’s Cookie Company (KCC) as a joint venture to create and operate a successful business operated in a college campus apartment, with potential to grow in the future. The core competency is providing made-to-order fresh cookies after standard business operating hours. There are several immediate decisions to address including scale of operation, business partner relationship, operation and production systems, as well as pricing, ordering, and delivery policies. Kristen and her partner must determine which of various alternatives presented will help them achieve operational optimization. After a careful analysis, it is recommended that Kristen that all orders be standardized to one dozen, with rush deliveries limited to the first batch of the night while using existing equipment available. Kristen should continue to maintain her working relationship with her roommate in order to run the business out of their apartment using one oven, one mixer and two baking trays. Problem Definition Kristen needs to decide how to optimize the cookie making process to achieve the best business practices. The partners must formulate rules for accepting and fulfilling orders that will address any of the system’s current insufficiencies. The business is small, with limited resources in finances, space, equipment and time. The primary constraint......

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#### Clarkson Lumber Company Case Report

...To: Loan Committee, Northrup National Bank Date: September 17, 2014 Re: Clarkson Lumber Company Loan Application Overview Borrower: Keith Clarkson, sole owner and president of the Clarkson Lumber Company Purpose: To support rapid growth in business during recent years and anticipated further substantial increase in sales, allowing Mr. Clarkson to fully utilize trade discounts to improve profitability. Request / Amount: Not to exceed $750,000 Rate: Set on a floating rate basis at two percent above the prime rate; initially approximately 11.0% Term: Revolving, secured, 90-day note Estimated Loan Requirements The loan amount required by Clarkson Lumber to finance the expected expansion in sales to $5.5 million in 1996 and to take all trade discounts can be calculated using the pro forma income statement and balance sheet (see pro forma). By balancing the values of bank notes with the total assets and liabilities, we have concluded that Mr. Clarkson’s estimate is under-stated. Expansion Rate Risk: If Clarkson Lumber continues to expand at such a rapid rate that cannot be financed proportionally from retained earnings, the company will be left in a very vulnerable high risk position. The company needs larger amounts of bank financing for longer terms than Mr. Clarkston realizes. Actual Loan Amount Required: $XXX,000 Loan Request Decision Based on Clarkson Lumber's past financial performance, it’s increasing debt and decreasing financial health, and...

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#### Kristen’s Cookie Company Case Report

...Kristen’s cookie company pre-case report DSC335 1. Draw a flow chart of the cookie-making process 2. How long will it take to fill a rush order of 1-dozen cookie? It will take 26 minutes to fill a rush order of 1-dozen cookie. (I revise my chart to 4 cycle orders) 3. What is the cycle time? How many orders can you fill in a night (4-hour period)? Does your answer depend on the size of the order, 1-dozen, 2-dozen, or 3-dozen? 1-dozen orders: The cycle time is 10 minutes. The first order of 1-dozen cookies will take 26 minutes, and each 10 minutes for another 1-dozen cookie order. (4*60-26)/10=21.4 plus the first order, we can make 22 orders of 1-dozen cookie fill in a night. 2-dozen orders: The cycle time is 20 minutes. The first order of 2-dozen cookies will take 36 minutes, and each 20 minutes for another 2-dozen cookie order. (4*60-36)/20=10.2 and plus the first order, we can make 11 orders of 2-dozen cookie fill in a night. 3-dozen orders: The cycle time is 30 minutes. The first order of 3-dozen cookies will take 46 minutes, and each 30 minutes for another 3-dozen cookie order. (4*60-46)/30=6.47 and plus the first order, we can make 7 orders of 3-dozen cookie fill in a night. 4. What is the difference in labor (both you and your roommate’s time) per dozen among 1-dozen, 2-dozen, and 3-dozen orders? 1-dozen orders: Me: Wash and Mixing 6 minutes + fill the tray 2 minutes = 8 minutes +my roommate: Setting timer and putting in the oven 1......

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#### Case Study Kristen's Cookie

...Case Report: Kristen's Cookie company 1. It takes 26 minutes to complete a rush order, that is, the addition of the time it takes to complete each step: 6 (wash and mix) + 2 (spoon) + 10 (load and bake) + 5 (unload and cool) + 2 (pack) + 1 (pay) = 26. Process flow diagram of the cookie-making process: Me Mixer Me Spoon and tray Roommate Oven and tray Oven and tray INPUT OUTPUT Roommate Oven and tray Tray Roommate Roommate Remarks: Since it does not consume any time, the first step, that is to take an order, is here ignored. Inventory is not kept at any time as the cookie dough is continuously being processed by the dozen to fit the bottleneck's capacity and only produce fresh cookies according to placed orders. 2. We assume the following: The minimum amount of cookies per order is one dozen cookies (the case states that the process produces “cookies by the dozen”). There are at least two trays and spoons, as the case mentions “cookie trays” and “spoons” Since the amount of time necessary to unload the oven is considered “negligeable”, it can be done during the same minute used to load the next batch. In this view, the first order takes 26 minutes but each following batch only requires an additional 10 minutes (see Gantt chart 1 attached). Capacity of resources (dozen cookies per hour): | Me | Roommate | Mixer (1) | Trays (2) | Spoons (2) | Oven (1) | Cycle time | 8mns/unit |......

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#### P429 Kristen's Cookie

...Indivisual Assignment 1: Kristen’s Cookie I. Flow Diagram for fulfilling an order II. How long will it take to fill a rush order? Washing out mixer bowl and mixing ingredient + Spooning cookie on to tray + Putting cookie in oven & setting timer and baking + Leaving for cool + Packing in a box + Accepting payment 6 + 2 + 10 + 5 + 2 + 1 = 26 min III. How many orders can you fill in a night, assuming you are open four hours each night? Since the required resource for different stages are not all in common, Kristen and his roommate could process two orders simultaneously. However, before starting the second tray of cookie, we need to wait until Kristen is done with washing mixer bowl, mix ingredients and spooning cookie on to tray for the first tray, for which the time lag would be 6 + 2 = 8 min. After Kristen are done with washing mixer bowl, mix ingredients and spooning cookie on to tray for the second tray, they would realize the oven is still in use of baking the first tray of cookie; therefore, we need to wait another 2 minutes for the availability of oven. Thus, the total time lag between the first and the second would be 8 + 2 = 10 min. The expression of the number of minutes to produce n one-dozen batches is: 16+10n≤4*60 So we can get n≤22.4. The nearest integer is 22; therefore, we can fill 22 order in a night in maximum....

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#### Kristen's Cookie Company

...2 minutes to spoon the cookie dough onto a tray, a dozen per tray; 10 minutes to put the cookie into the one tray capacity oven, set the timer, and bake the cookies; 5 minutes to take the cookies out of the oven and let them cool; 2 minutes per dozen to take the cookies off the tray and carefully pack them into a box; and 1 minute to accept payment for the order. The overall process takes 19 minutes per dozen and a constant 8 minutes for every order under four dozen cookies because of each order under four dozen will always take 2 minutes to receive and accept payment for the order and 6 minutes to mix ingredients up three dozen cookies worth. So for a rush order of two dozen it will take 46 minutes and a rush order of three dozen will take 65 minutes. 2. How many orders can you fill in a night, assuming you are open four hours each night? Assuming all orders are only one dozen, we could fill 24 orders in a night because the bottleneck resource of the process, which determines the capacity of the whole process, is the baking in the oven. Baking takes 10 minutes giving it the lowest capacity of all the steps and the capacity of the whole process, 6 dozen cookies per hour thus 24 dozen cookies each four-hour night. The capacity for the other steps are 60 dozen per hour to receive, read, print, and send reply to the customer order; 10 dozen per hour to place all the ingredients of the order into a mixing bowl; 30 dozen per hour to spoon the cookie dough onto a tray; 12......

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#### Kristen's Cookies Case

...Kristen’s Cookies 1. How long would it take to process a rush order of one dozen? Two dozen? Three dozen? Based on the diagram below it would take 26 min to make 1 batch of cookies. Considering it takes 10 total minutes to bake a dozen, each additional dozen cookies would add 10 minutes to the total time. Therefore, to produce 2 dozen (assuming they are the same ingredients) would take 36 minutes. Three dozen would take 46 minutes and so on. Activity | Resource used | Time for activity (minutes) | Total Time (minutes) | Order Entry | Email | 0 | 0 | Wash from last batch - Mix new batch | Kristen | 6 | 6 | Spoon onto cookie tray | Kristen | 2 | 8 | Place cookies in oven / Set thermostat | Roommate | 1 | 9 | Cookie bake time | In oven | 9 | 18 | Remove Cookies | Roommate | 0 | 18 | Cool cookies | Roommate | 5 | 23 | Pack | Roommate | 2 | 25 | Collect $$ | Roommate | 1 | 26 | 2. What is the maximum capacity of the process for orders of one-dozen cookies only? Two-dozen only? Three dozen only? The maximum capacity refers to the bottleneck in the process. Because regardless of how much can be produced in the other steps, your efficiency will be determined by your slowest step, or, the bottleneck. In Kristen’s cookies, the bottleneck is the baking time which is equal to 10 minutes. That cannot be sped up unless there are more ovens to bake. Baking: 10 min/dozen = 6 dozen/hour. This is the bottleneck. 3. Based on the answer to......

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#### Kristen's Cookie Company

...Case Report: Kristen’s Cookie Company Question 1 How long will it take to fulfill a rush order? | Gantt Chart for Kristen's Cookie Case | | | | | | | | | | | | | To fulfill the rush order it is still necessary to go through all parts of the process illustrated on the process flow diagram of the cookie-making process (it can be found on the last page). As there are no processes that can be done in a parallel way, every stage follows the other. Calculating the time needed for each step it can be concluded that the order can’t be prepared less than in 26 minutes. Question 2 How many orders can you fill in a night, assuming you are open 4 hours each night? We already know from the first question, the first dozen can be fulfilled in 26 minutes. Lets have a look, on the fastest possible way to prepare the second and all the following dozens. I can start preparing the 2nd order as soon as I start heating the oven (the chart visually demonstrates it): According to the chart it takes 26 minutes to fill the first order and 10 minutes more to fill each following order. From here we have: Operating time = 4*60 = 240 minutes The formula for counting the amount of orders that are able to be produced can be seen as: 16+10n <= 240 where n is the numbers of orders. From this equation we get, that n(max) = 22 dozen. So during 4 hours in a night one can prepare 22 dozen of cookies in 236 minutes. Question 3 How much of your own and your roommate’s......

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#### Kristen's Cookie Company

...Homework #1: Kristen’s Cookie Company Case 1 6+2+1+9+5+2+1 = 26 mins Resources Activities where needed Time required per unit of work Number of each resource Capacity Kristen Wash and Mix Dish up to trays 6 min 2 min 1 7.5 dozen/hr Bowl Wash and Mix 6 min 1 10 dozen/hr Trays Dish up to trays 2 min Infinite Infinite dozens/hr Roommate Load & Set Timer Packing Payment 1 min 2 min 1 min 1 15 dozen/hr Oven Load & Set Timer Baking 1 min 9 min 1 6 dozen/hr Empty space Cooling 5 min Infinite Infinite dozens/hr The oven is the bottleneck resource. Its capacity is 6 dozen cookies per hour. Because the process’s hourly capacity is 6 dozen, the process’s cycle time is 10 min. Therefore the maximum number of dozens that the process can produce can be given with the help of the following formula: 16 + 10x = 240 x = 22.4 The maximum number of dozens that the process can produce in four hours is 22. 16 + 10x = 60 x = 4.4 λ = 4.4 dozen/hr W = flow time = 26 min = 26/60 hr L = λ W = 1.91 Case 2 Resources Activities where needed Time required per unit of work Number of each resource Capacity Kristen Wash and Mix Dish up to trays 6 min 4 min 1 6 orders/hr Bowl Wash and Mix 6 min 1 10 orders/hr Trays Dish up to trays 4 min Infinite Infinite orders/hr Roommate Load & Set Timer Packing Payment 2 min 4 min 1 min 1 8.57 orders/hr Oven Load & Set Timer Baking 2 min 18 min 1 3 orders/hr Empty......

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Case Study Kristen’s Cookie Company (Please submit this case report before class. Keep a copy for class discussion.) OBJECTIVE Use the bottleneck analysis to analyze a process with and without batch processing; learn some key ideas to improve a process. REPORT WRITING GUIDELINE: ▪ Include all details necessary to support your answers. ▪ If you need to make assumptions to answer a question, clearly state them, logically explain them, and then proceed to answer the question accordingly. ▪ Gantt Chart is provided; you could use it to help yourself understand the process. However, you are not required to use it, since you can do the case with what we have covered in class. Please convert your report to a PDF file , and submit only ONE document for each group , including any attachment. Please submit your report to Blackboard before class, under Case Study submission folder. Total points = 40 pts = 4% of course grade This is a group project. Include all participants’ names here: Questions:

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