The Cookie Factory

Jessica Moningka

Steffi Kamandito

Fenny Lemena

Heehyun Chee

Sangjae Park

Our MissionThe Cookie Factory guarantees the freshness of our cookies for the utmost enjoyment of our wonderful customers. By baking all our sweets from quality, hand-picked ingredients, each morsel is full of our love and sincerity. We strive to bring delightful warmth into each bite you take. We love you!!!

The HistoryThe cookie factory, the global leader in the chocolate confectionery market, began in 1983 when two young Korean immigrants, named Heehyun Chee and Sangjae Park, came to the United States. When they fought in the Korean War, they could never have chocolate chips cookies that they loved so much. So, the two veterans decided to open their first shop in Hawaii. Sangjae Park used his grandmother secret recipe to make his specialty cookies. It was a hit! Everybody loves the cookies! As their business expanded, they hired three young cute girls to help them. Together they founded The Cookie Factory.

Est. 1983

Ingredients and RecipeINGREDIENTS* ½ cup butter* ½ cup brown sugar * cup granulated sugar* ½ tsp vanilla* 1 cup flour* 1 egg* ¾ tsp baking soda* ¼ tsp salt* 1 cup chocolate chips* ½ cup nuts

DIRECTION* Mix butter and sugars. Beat in egg and vanilla until smooth.* Mix flour, baking soda, salt. Stir and beat into butter mixture. Add chips and nuts.* Bake in 300 until edges are browned (14 mins).

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Job Measurement Document

Cost per cookie : $ 0.65

Number of cookies produced : 121* Number meeting specs : 120* Number rejected : 0* Number reworked : 0* Number sampled : 1* Unexplained differences : 0

Total throughput time : 120 mins* Mix time : 30 mins* Bake time : 45 mins* Packaging time : 30 mins* Downtime : 5 mins* Cleanup time : 10 mins

Job Specification

Size of cookies before baking* 1 inch diameter

Size of cookies after baking* 2 inches diameter

Cookie quality* excellent cookies with high quality chocolate chips and walnuts inside

Appearance* light brown cookies with chocolate chips

and walnuts

Packaging* bags made of transparent plastics and colorful paper strips.

Required Comments

• What should the denominator be for the cost per cookie calculation? * Total cost / number of cookies

• What measures would your group use to effectively evaluate production performance? * (Labor cost + Material Cost + OH) / number of cookies = cost per cookie

• What measures were unnecessary? Why? * Size of cookies before and after. It does not affect the production process and costs, unless the cookies were measured as per their weight.

Product CostDirect Materials Total Cost ($) Cost per Cookie ($)

Flour 2.45 0.02

Egg 0.80 0.01

Butter 3.52 0.03

Granulated sugar 1.29 0.01

Brown sugar 1.29 0.01

Chocolate chips 3.58 0.03

Walnuts 4.92 0.04

Baking soda 0.05 0.00

Vanilla 0.05 0.00

Salt 0.05 0.00

TOTAL 18.00 0.15

Job Cost CardWorkers Number of

WorkersHours per

WorkerWages per Hour per Worker ($) Total Cost ($)

Baker 2 2 6 24

Supervisor 1 2 6 12Marketer 1 1 6 6

Accountant 1 1 6 6

TOTAL 5 6 24 48

Direct Labor

Number of Workers

Hours per Worker

Wages per Hour per Worker ($) Total Cost ($)

Baker 2 2 6 24

TOTAL 2 2 6 24

Job Cost Card

Actual Manufacturing Overhead:* Indirect materials* Indirect labors* Electricity for baking* Water for cleaning up* Baking equipments* Utensils* Cleaning supplies

Job Cost CardTotal Costs ($) Costs per Cookie ($)

Direct Material 18 0.15

Direct Labor 24 0.20

Manufacturing Overhead 36 0.30

TOTAL 78 0.65

Required Comments

• Evaluate the $2 overhead rate for reasonableness.* It is reasonable in real life application, but not in this project.

Thank you for listening!

The Cookie Factory loves you !! <3

Est. 1983