1 2 3 4 5 6 7 8

Mix and Spoon

Oven

Cool

Pack

Pay

9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6

GANTT CHART

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6

Mix

Spoon

Load &

Bake

Cool

Pack

Pay

7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6

Bottleneck

1 dozen takes – 26 minutes2 dozen takes – 16 + 10 (2) = 36 minutes

Time taken for other activities Time taken for baking

Hence we arrive at the formula16 + 10 (n )

Where ‘n’ is no of orders

Hence in 4 hours i.e. 240 minutes we can fill

240 = 16 + 10 (n)

n = 22.4 orders i.e. 22 orders

3. How much of your and your room

mates time will it take to fill each

order

3. How much of your and your room mates time will it take to fill each order

1 2 3 4 5 6 7 8

Mix and Spoon

Oven

Cool

Pack

Pay

9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6

YOU

R.M

R.M

R.M

YOU

Activity Cycle TimeWash Bowl, Mix: 6 minutesFill Tray: 2 minutes

Total 8 minutes

R.M (Roommate)

Activity Cycle TimePrepare Oven: 1 minuteRemove: 0 minutePack: 2 minutes Collect Money: 1 minute

Total 4 minutes

4. Should you give any discounts

4. Will it take any time longer to fill

two dozen cookies

First we look at the costNo electricity cost – as its paid by the landlordVariable costs include:Cost of ingredients $0.60/dozenCost of packing $0.10/dozenCost of time $ 15 per hour

1 dozen 2 dozen 3 dozen

Self 8 10 12

Roommate 4 7 10

Total time 12 17 22

Cost ($) 3 4.25 5.5

Cost per dozen ($)

3 2.125 1.83

If our time is worth 15$ per hour

Selling price of the cookie per dozenCost of ingredient 0.60Cost of packing 0.10Cost of time 3.00Profit margin ??

Selling Price ??

It looks like you could afford to give a discount for two- and three-dozen orders. A two-dozen order doesn't cost twice as much as a one-dozen order.

So on a purchase of 2 dozen cookies we give a discount of 10%And on 3 dozen and above 15%

1 dozen 2 dozen 3 dozen

Cost price per dozen ($)

3 2.125 1.83

Selling price ($) 10 20 30

Discount offered

- 10% 15%

Cost after discount

10 18 25.5

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6

Mix

Spoon

Load &

Bake

Cool

Pack

Pay

7 8 9 0 1 2 3 4 5 6

4. Will it take any time longer to fill two dozen cookies

Cookie 1 & 2

1

Cookie 1

Cookie 1

1

Cookie 2

1&2

Cookie 2

2

2

This answer is to be explained only by using pictures.

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6

Mix

Spoon

Load &

Bake

Cool

Pack

Pay

7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6

This answer needs to be explained with pictures. Every cell will have pictures showing what they would be doing. Delete this part once u r done adding pictures.

Our bottleneck operation is the oven, hence here would be no point in expanding or investingin other resources until the operations baking concept is expanded further to two ovens.

If we purchase another oven the time taken for producing 2 orders is 28 minutesExpanding the number of ovens helps us in reducing our time to around 8 minutes per dozen.

Hence it is beneficial for us to add another oven to our capacity.

6. How do we change the production process??? Do we add another oven to our capacity???

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6

Mix

Spoon

Load &

Bake

Cool

Pack

Pay

7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6

7. What without d roommate ?

8. Should you offer special rates for a crash priority order…..?

Trick question