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Kristen’s Cookies

This case study explores the process of baking cookies for college students, mapping inputs to outputs and analyzing costs and discounts. Discover the answers to key questions and gain insights for starting a home-based business.

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Kristen’s Cookies

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Presentation Transcript

  1. Kristen’s Cookies A case on Flowtime, Batching and Costs

  2. Kristen’s Cookies • Two friends cooking cookies at their apartment room for college students.

  3. Mapping Inputs to Outputs through Resources

  4. Process Flow Chartwith a unit of analysis of dozen (=12) cookies Deliver & Be paid Pack Wash and Mix Dough,Spoon Dough to Tray Cool Unload Load and Set Timer, Bake Receive Order

  5. 4 Key Questions Orders can be for 1 dozen cookies or 2 dozen cookies, assuming each separately. • How long does it take you to fill a rush order? • How many orders can we fill in a night? • How much labor time is required to fill an order? • How much discount should we give to orders with 2 dozen cookies?

  6. Capacity1 Oven; Orders for 1 Dz. And 2 Dz. Cookies

  7. The First Key Question: How long to fill an order?

  8. Scheduling Orders for 1 Dozen cookies in a Gantt chart Time in minutes Activities 39 2 4 5 6 7 8 9 10 12 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 34 35 36 37 38 40 42 44 45 46 47 48 49 50 3 13 33 43 1 11 41 Resources

  9. The Second Key Question: How many orders per night?

  10. The Third Key Question: Labor Time? What is the cost of dozen cookies? Cost of cookie = Cost of material + Cost of labor

  11. Fourth Key Question: Pricing - Discounts • With one oven and flexible labor • Should we give a discount to a two dozen order as compared to a one dozen order? How much? • With one oven and inflexible labor • Should we give a discount to a two dozen order as compared to a one dozen order? How much?

  12. Suggestions • What are the simple activities similar to cooking that can be done at home to start a business?

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