Free “Operations And Supply Chain Management” Case Study Sample

This essay intends to answer the case questions and the appropriate answers will be based on the following cookie production process.

After taking an order, the following procedure is followed in the cookie baking process

Wash the mixing bowls
Add and mix all the ingredients takes 6 minutes ( can hold up to 3 dozens)
Dishing up the cookies onto the tray takes 2minutes per tray
Put the cookies into the oven and setting both the thermostat and the timer takes one minute. This is done by roommate

Cooking process takes nine minutes, hence total baking time is 10 minutes per dozen

Removing the cookies from the oven and allowing them to cool takes 5 minutes (roommate)
Packing a dozen takes 2 minutes (Roommate)
Accepting payment takes 1 minute (Roommate)
Flow chart for the cookie production process
6 min 2 min per tray 1 min 9 min
3 dozens maximum one tray maximum
I minute 2 min 5 min
Total time = 6 min +2 min+ 1 min+ 9 min+ 5 min+ 2 min+ 1 min
=26Minutes

Questions

Analysis
This is because the roommate performs the task of putting the cookies into the oven and setting both the thermostat and the timer in one minute, packs them in two minutes, and finally accepts payment in one minute.

Calculation

=26 +1+2+1 = 30 minutes

Note that, the five minutes for cooling is not included since the process of cooling takes place naturally

Yes. It is possible to fill the priority order while fulfilling the order for the cookies already in the oven.

Analysis

This is because the time required to undertake the three stages of adding and mixing ingredients, dishing the cookies into the tray and then putting them into the oven and setting both the thermostat and the timer is nine minutes, which is equivalent to the time (nine minutes), required for the cookies to cook in the oven.

Calculation

Time required to prepare the cookies with a different flavor = time required for the cookies in the oven to cook
Time to add and mix ingredients + time for dishing + time to put into the thermostat = time for the cookies to cook in the oven
= 6 min+ 2min + 1 min = 9 min
9 min = 9min
This calculation indicates that, there is no time lost and no negative effect can result from undertaking the two processes concurrently. This is because by the time the cookies with a different flavor are put into the oven, the earlier dozen is removed for cooling, waiting packing and acceptance of payment, which will take a total of eight minutes. This implies that, by the time the payment for the earlier dozen is accepted, one minute will be left for the later dozen to cook, and this will allow the process of cooling, packing and accepting its payment, to take place efficiently.

It is notable, that, this process needs more effort and high level of accuracy.

Promise of delivery
This will be made upon completion of the second last order and accepting the payment for the last order.
Analysis
This implies that, when accepting payment for this order, there is no more baking. This creates time to deliver the order. This brings us to the criteria of deciding to make the promise of delivery. Consider the assumption below
Time set a side for the business = 4 hours
Dozens required per day = 8 dozens

Each dozen requires 30 minutes

Hence, at the time of accepting the payment for the seventh order, a promise to deliver the eighth order can be made, since there is no more baking. This implies that, the promise of delivery can be made 40 minutes earlier. The 10 minutes is a preserve for delivery of the cookies to the client.

Checking of the order board

This will be done during the cooking process (when putting the cookies into the oven). Consider the calculation below, indicating the time that is available for checking
Time for baking in of cookies in the oven = 10minutes- 1 minutes = 9 minutes

This is the free time to check the order board and accept new orders.

Safety Margin
Since there is 9 minutes free, then the safety margin can be calculated as follows
Time required to check the order and reply = 2 minutes
Safety margin = 9 minutes – 2minutes = 6 minutes

The factors to be considered at the planning stage include the following

Cost and profit per dozen
Since the expenditure per dozen is approximated as follows
Ingredients = $0.60
Packaging box = $ 0.10
Total expenditure =$ 0.70
The cost per dozen will be estimated according to the market price, quality and specific requirements of the clients. In this case, the cost of a dozen of cookies can be projected at $ 1.30. Hence the profit per dozen becomes
$ 1.30- 0.70 = $0.60

Capacity against demand

Capacity = 1/ processing time = 1/0.5 hours = 2 dozens per hour.
For instance, in four hours there will be 8 dozens. This amount can be increased depending on the increasing trend of demand. This implies that, the time of production will increase to accommodate the demand of clients.
If a change from unique cookies to selling of standard cookies is embraced, then the production system should change from Make-to-Order system to Make-to- Stock system. Consequently, the order- taking system will change pay and take, since no special specifications are needed.

Analysis and calculation

This is because there is no uniqueness needed in the preparation of the cookies. However, this system is not cost effective, since an inexact quantity of cookies demanded is produced. For instance, consider the following illustration
Quantity demanded = 8 dozens
Quantity produced = 7 dozens
Deficit = 8-7 = 1 dozen
This implies that the clients are not satisfied. The supply is less than the demand