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National Cranberry Cooperative Operations Management-SCH-MGMT-670 Catna, Shanmuga 10/17/2014
Operations Management –SCH-MGMT-670 1 Introduction This case analysis looks at the two primary problems at the receiving plant no.1 (RP 1) faced by National Cranberry cooperative during the cranberry harvesting period, viz. 1) too much waiting period for trucks before they unload berries at the RP1 and 2) too much overtime costs. There is also a secondary problem regarding grading of process berries. Half of the berries graded as top quality are actually not top quality and do not deserve extra premiums paid on the top quality berries. Problems and Challenges faced by RP1 While there is a stable demand for the cranberries, the production for the cranberries is not stable. The proportion of water harvested cranberries is increasing and likely to stabilize at around 70%. The plant is incurring high overtime cost Long waiting hours to unload the crop for growers/owners of the cooperative Assumptions: Dumping Capacity# Kiwanee dumpers 5 Average time to dump 7.5 minutes (max:10, min:5) Average weight of berries in truck 75 bbls Total Dumping capacity 5 * 75 * 60 / 7.5 = 3000 bbls/hr Holding CapacityTotal capacity of bins numbered 1-16 250*16 = 4000 bbls Total capacity of bins numbered 17-24 250*8 = 2000 bbls Total capacity of bins numbered 25,26,27 400 * 3 = 1200 bbls Destoning CapacityTotal de-stoning capacity 4500 bbls / hr Dechaffing capacityTotal de-chaffing capacity 4500 bbls / hr Jumbo Separator# separator units 3 with avg capacity of 400 bbls/hr perunit Total separator capacity 3 * 400 = 1200 bbls/hr Bagging Station CapacityMax. output per day 8000 bbls Capacity 8000/ 12 = 667 bbls / day Bulk Bin loading capacity# loaders for bulk bin loading 4 Total bulk loading capacity 4 * 200 = 800 bbls / day Bulk Truck loading capacity# loaders of bulk trucks 2 @ a capacity of 1000 bbls/ hr per unit Total bulk truck loading capacity 2000 bbls / day
Operations Management –SCH-MGMT-670 2 Process Analysis We start by making a process flow diagram for the flow of berries at RP1 from the moment berries arrive at the RP1 in trucks to the moment they leave RP1 after being bagged, bulk loaded into trucks or loaded into bulk bins. Process Diagram of Cranberries in National Cranberry Cooperative •trucks arriving (75 bbls per truck trucks arriving at RP1 •weighed weighed, sampled and color graded. •5 - 10 mins per truck •5 dumpers Dumping 1 - 16 •Bins 1 to 16 process dry berries •Total of 4000 bbls (16 x 250) 17 - 24 •Bins 17 to 24 process dry & wet berries •Total of 2000 bbls (8 x 250) 25,26,27 •Bins 25, 26, 27 process only wet berries •Total of 1200 bbls (3 x 1200) Destoning 4500 bbls total process only dry berries Dechaffing 4500 bbls total process only wet berries Shipping/ Building Bailey Mill Discarded Waste Bulk bins 800 bbls per hour Bulk Truck 2000 bbls per hour Bag 667 bbl per hour Drying 3 dryers 600 bbls /hr Separators 1200 bbls (400 x 3 lines)