Case study on Kristen cookie company operations case study please do Consider the burned cookie scenario which is no included in the case

1. KRISTEN’S COOKIES
Group Members
- Ajay Wagh
- Ajay Gupta
- Akash Dubey
- Amit Walawalkar
- Burzin Pavri

2. INTRODUCTION
• Kristen and roommate opening a cookie company and provide fresh
baked cookies to students operated late night in college campus.
• Serving fresh baked cookies as per buyers order combination within
an hour of ordering.

3. WHAT DO WE OFFER?
• Fresh Cookies
• Availability of variety
• Easy Accessibility

4. PRODUCTION PROCESS
• Add ingredients as per requirement of the customer
• Mix ingredients in the food processor
• Dish up mixture onto a cookie tray
• Put the tray inside the oven
• Let it bake
• Remove the cookies from the oven
• Let it cool for sufficient time
• Take the cookies out of the tray
• Pack it for pick up
• Billing

5. • EQUIPMENTS
1 Oven, 1 Food Processor (mixing bowl), Cookie trays and Spoons
• INGREDIENTS
White sugar, Butter, Milk, Flour, Egg, Baking Soda, Vanilla extract

6. COSTING
• No capital equipment is required as we already have one food
processor, cookie trays and spoons
• Electricity bill for oven is paid by landlord
• Variable costs = cost of ingredient’s = $.60 Per Dozen
• Cost of box = $.10 per box (each box holds a dozen cookie’s)

7. TIME ANALYSIS
• Process involved Time taken (min)
• Washing and Mixing 6
• Dish up Cookie tray 2
• Oven set up 1
• Baking oven 9
• Cooling 5
• Packaging 2
• Collecting money 1
• Total 26

8. PROBLEMS OF KIRSTEN COMPANY
• Capacity
• Time
• Budget

9. PRICE
Cost of ingredients (per dozen) $.60
Cost of packaging (paper box) $.10
Total price $.70
Selling price $1
Total Profit $ .30

10. OPERATIONAL TIME
One dozen order takes 26 minutes for a buyer
0
1
2
3
4
5
6
7
8
9
10
wash & mix dishup tray oven setup baking cooling packaging payment
1 Order

11. Two dozen order takes 36 minutes for a single buyer
0
1
2
3
4
5
6
7
8
9
10
wash & mix dishup tray oven setup baking cooling packaging payment
1st Order
2nd order

12. Three dozen order takes 46 minutes for a single buyer
0
1
2
3
4
5
6
7
8
9
10
wash & mix dishup tray oven setup baking cooling packaging payment
1st Order
2nd order
3rd order

13. Processinvolved Timetaken(min)for1st cookie
lot
Timetaken(min)for2ndcookie
lot
Timetaken(min)for3rd cookie
lot
WashingandMixing 6 6 6
DishupCookietray 2 2 2
Ovensetup 1 1 1
Bakingoven 9 9 9
Cooling 5 5 5
Packaging 2 2 2
Collectingmoney 1 1 1
TOTAL 26 26 26
Fulfilling 3 different orders

14. How many orders can you fill in a night?
• 4 Hours = 240 minutes
• 3 different orders will take 78 minutes(26+26+26)
• Therefore we will make minimum of 9 orders in 234 minutes
• Safety Margin of time = 6 minutes
• 3 same orders will take 46 minutes(26+10+10)
• Therefore we will make maximum of 15 orders in 230 minutes
• Safety Margin of time = 10 minutes

15. How much of your own and your roommate’s time
will it take to fill each order?
• Roommate = 4 min.
• Me = 8 min.
Activity Time Required
Wash/Mix 6 min
Dishing up Cookie 2 min
TOTAL 8 min
Activity Time Required
Oven setup 1 min
Packing 2 min
Collecting money 1 min

16. Discounts offered
• 1 Dozen : 0%
• 2 Dozen (same flavour ): 10%
• 3 Dozen (same flavour ): 15%

17. Recommendations
• Purchase an additional oven
• As the bottleneck in the operations is baking time.
• A additional oven will cut down timing for 2 dozen to 27 minutes only,
which is as good as doubling its capacity.

18. Thank you