kristenscookies222 - Problem Statement The specific problem...

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Problem Statement: The specific problem that our group decided to focus on is the Time constraint, including our cookie capacity. We will try to come up with a solution to minimize throughput time by maximizing capacity. This constraint is a major problem with the business because it puts a limit on how much profit we can earn. We will look at alternatives and ultimately a solution that will expand our capacity for cookie production, and therefore minimize some of the time constraints that currently hold Kristen’s Cookies back from its potential. The first problem with our capacity constraint is that a bottleneck occurs within our cycle process. Because we can only cook a dozen cookies every ten minutes, we currently can only give an output of six-dozen cookies per hour. For a dozen cookies, the cycle time can be as low as 26 minutes, which assumes every detail goes exactly to plan. This time is from when the order is taken, to when the customer can pick the cookies up. The capacity problem is exists because while cycle time can take 26 minutes, our current oven can only hold a dozen cookies at a bake time of ten minutes. The next dozen cookies have to wait until the first dozen is done in the oven. The bottleneck occurs because we can prepare and mix three-dozen cookies, but then only one dozen can be baked at a time. This process is outlined in the flow diagram. As the flow diagram shows, the whole process for a dozen should take 26 minutes after the order is taken. The problem lies between the mix, which has a capacity of three- dozen cookies, and the bake, which can only do one-dozen cookies. This means that two- dozen cookies are still waiting to bake after the mixing station, and also means that we cannot keep mixing cookies because there is already a line for the oven. The throughput time and capacity problem creates an unknown cycle time depending on the batch. If we only look at three-dozen cookies, it can take anywhere from 26 to almost 50 minutes, and that’s with no error in the process. We also currently operate under an hour finish time guarantee. If only one dozen of an order takes 50 minutes, then that customer is already pushing our hour guarantee. If an order is for two- dozen, and we already have two-dozen to do, then that order will already take over an hour, and our promise cannot be fulfilled. After a problem analysis, we have come up with three alternatives to try and expand capacity and lower cycle time, which in turn will help our throughput time. The first alternative is to create a minimum and maximum order quota. This can give us a more regular schedule of orders. The second is to obtain another oven for more capacity. Another oven will eliminate the bottleneck effect at the oven. Finally, the third alternative Ingredients (Raw Materials) Mix- 6 minutes (3 dozen capacity) Spoon Cookies onto tray- 2 Minutes per tray (1 dozen per tray) Bake- 10 minutes (1 dozen / 10 minutes) Cool- 5 minutes Packaging - 2 Minutes per dozen Collect Payment- 1 minute
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