Kristen’s Cookie Company (A1) Harvard Case Solution & Analysis

Kristen's Cookie Company (A1)

1.      THE PROCESS FLOW DIAGRAM

2.      QUESTIONS AND ANSWERS

a.      TIME TAKEN TO FILL A RUSH ORDER

kristen cookie case study solution

1. Take order = no time (0 minutes)
2. Wash mixer from previous batch + Add ingredients and turn mixer on = 6 minutes
3. Spoon the cookies (1 dozen = 12 cookies) on the tray = 2 minutes
4. Set the mixer timer (1minute) + put the cookies (1 dozen) in the mixer to bake (9minutes) = 10 minutes per dozen
5. Remove the cookies from the mixer (5 minutes to cool down) + pack them in the box (2 minutes) = 7 minutes per dozen per box
6. Accept payment = 1 minute
7. Oven operates 60 minutes (1hour) to give 6 dozen of cookies assuming 10 minutes for one dozen order sizes.
8. Cycle times :

• Mixing and spooning = 8 minutes
• Load and Bake = 10 minutes
• Cool = 5 minutes
• Pack and Payment = 3 minutes

Dozen per hour (60 minutes) has been calculated for estimating the hourly capacity of the process through the use of cycle times.

Exhibit 1: Hourly capacity calculations

Therefore, the total throughput time to fulfill a rush order is 26 minutes; assuming that there are no cookies in the oven before and 10 minutes for the process cycle time. If there would have been cookies in the oven for baking, then the rush order might take a bit longer to fulfill depending on how much time is remaining for the previous cookies to get baked.

*Please refer Exhibit 1 from sheet 1*

b.      NUMBER OF ORDERS AT NIGHT *ASSUMING KRISTEN IS OPENED 4 HOURS/ NIGHT)*

For a shift of four hours at night, Kristen has 4 * 60 = 240 minutes that would give 24 dozen cookies in all. This is without complexities. However, for every new batch the mixer needs to be washed and re-filled by another set of customized ingredients for the cookies. Therefore, the 8 minutes for the mixing and cleaning and 8 minutes for the washing time need to be deducted from the time available at night. This suggests that now Kristen has 240 – 16 = 224 minutes in all to process orders at night. 224 minutes means = 224 / 60 = 3.74 hours. The number of orders that will be processed at night would be 224 / 10 = 22.4 or 23 (rounding off) orders for a four hour night shift.

*Please refer Exhibit 2 from sheet 1*

c.       TIME TAKEN TO PROCESS ORDER BY KRISTEN AND BY ROOM MATE

For each dozen the cycle time is 8 minutes. This suggests that Kristen can process one dozen shift six times as suggested by the output of the oven. Therefore, Kristen has 6 * 8 = 48 minutes in all. As the case suggests that the roommate works on the acceptable payment, the packaging, and turn the oven on, this equals 1 + 2 + 1 = 4 minutes. Kristen roommate is working 4 minutes per dozen on the order. If there are 6 orders in all, the roommate is working 4 * 6 = 24 minutes for processing 6 orders. Therefore, the utilization of my roommate will be 24 / 60 = 40% and the utilization of Kristen will be 48 / 60 = 80%.

In addition to this, the idle time for both will be:

1. Roommate : 100 – 40 = 60%
2. Kristen :  100 – 80 = 20%
3. *Please refer Exhibit 3 from sheet 1*

d.      TIME TAKEN AND DISCOUNTS GIVEN ON MORE THAN ONE DOZEN COOKIES

*Assuming that the three and two dozen order is placed by the same person*

As told earlier in the case that the mixer can hold up to three dozens of the mixture, which takes 6 minutes to mix. Even the cost for the box is same for each dozen. Therefore, the time taken:

1. For one dozen  =  8 minutes (mixing and spooning) + 1 minute (oven setting and timer on) + 2 minutes (packing time) + 1 minute (payment collection) = 12 minutes
2. For two dozen =  10 minutes (mixing and spooning) + 2 minute (oven setting and timer on) + 2 * 2 = 4 minutes (packing time) + 1 minute (payment collection) = 17 minutes
3. For three dozen =  12 minutes (mixing and spooning) +  3 minute (oven setting and timer on) + 2 * 3 = 6 minutes (packing time) + 1 minute (payment collection) = 22 minutes

Obviously it would take more time to fulfill a three dozen order as compared to a one dozen order. If the same customer asks for same ingredients .......................

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