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Bottlenecks, Setups, and Make-to-Orders, Essay Example
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- The lead time for filling a rush order will be made up of dishing up the cookies (2 minutes), baking (10 minutes), removing the cookies from the oven and cooling them (5 minutes), packing and accepting payment (3 minutes), which is the total of 20 minutes. This is in case the order is not the first for the night and we already have the dough. (Since the mixing bowl holds ingredients for 3 dozen cookies, we can only mix and wash once for three batches. Moreover, we can mix a new portion of dough for the next three batches while the last tray of the previous three batches is in the oven. The washing and mixing take only 6 minutes, so the baking process can be non-stop.) If it is the first order, the lead time will also include mixing time (6 minutes) and will thus amount to 26 minutes.
- The minimum set-up time is 6 minutes for mixing the first portion of ingredients. Provided we have two trays and there are always two of us, we can reduce our idle time to a minimum mixing ingredients (once for three batches), cooling and packing cookies, washing the tray and dishing up cookies on it while another dozen is being baked on the second tray. The first batch will take 26 minutes to prepare, and the rest – only 20 minutes, but two successive orders have an overlapping time of 10 minutes. It means that in four hours we will be ready with 23 orders and use the remaining 4 minutes on cleaning after the night of work.
- The set-up operation can only be made by one person (for instance me) since it deals with a single food processor (6 minutes). Then I dish up the first tray (2 minutes) and start dishing up the second while my roommate sets the oven and puts in the first tray (1 minute). Then my roommate has 9 minutes of idle time before he removes the first tray and puts in the second one. He spends the next nine minutes of baking on emptying the tray, cooling and packing the cookies and accepting payment, while I dish up the remaining dough on the first tray and do the mixing and washing. So, except for the first order, it will take each of us 20 minutes to fill an order and keep both busy. With the first or individual order, it will take me 8 minutes (mixing ingredients and dishing up) and take my roommate 18 minutes with 9 idle minutes.
- It is worthwhile to encourage bigger orders by giving discounts. For example, two cookies can go free for a two-dozen order, three – for a three-dozen order and, finally, we can promise an extra dozen for a ten-dozen order. Bigger orders are more profitable for us because we can save time on negotiating them and accepting payment as well as be surer of the availability of demand for a particular night. Moreover, it is a good way to earn regular customers. It will take me longer to fill a two-dozen cookie order because of doubled baking time. Still, I can mix ingredients for both dozens in one go. Filling a two-dozen order from the start will take us 6 minutes of set-up time, 10 minutes for baking the first dozen and dishing the second, 10 minutes for baking the second dozen and cooling and packing the first and about 6 more minutes for cooling and packing the second dozen, which makes 32 minutes.
- We will do with one processor since it can store ingredients for 3 batches and two trays.
- The main bottleneck point in our production is the size of the oven which limits us to baking a dozen cookies at a time. It would be good to have an oven for three dozen cookies since this is the number which is possible to produce from one portion of dough mixed in the food processor. It will significantly boost our process capacity. Still, the decision will depend on the demand for our product, the readiness of our landlord to pay increased electricity bills and the possibility to install a second powerful electric appliance in our room without overcharging the electric circuit or breaking fire safety regulations. With the cost of a dozen raised to $2 and good demand for them, we could probably rent an oven for $500 per month.
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