You and your roommate are preparing to start “Creative Cookies” in your on-campus apartment. The company will...

You and your roommate are preparing to start “Creative Cookies” in your on-campus apartment. The company will provide fresh cookies to starving students late at night. You need to evaluate the preliminary design for the company’s production process.

Business Concept

Your idea is to bake fresh cookies to order, using any combination of ingredients that the buyer wants. You will not bake any cookies before receiving the order; therefore, the buyer will be getting cookies that are literally hot out of the oven.

The Production Process

Baking cookies is simple: mix all the ingredients in a food processor; spoon out the cookie dough onto a tray; put the cookies into the oven; bake them; take the tray of cookies out of the oven; let the cookies cool; and, finally, take the cookies off the tray and carefully pack them in a box. You and your roommate already own all the necessary capital equipment: one food processor, cookie trays, and spoons. Your apartment has a small oven – because of this, you will only accept orders of exactly one dozen cookies. The variable costs are the cost of the ingredients (you estimate that this is $0.60 per dozen cookies) and the cost of the box in which the cookies are packed ($0.25 per box).

You and your roommate have timed the necessary physical operations. It takes 6 minutes to wash out the mixing bowl from the previous batch, add all of the ingredients, and mix them in your food processor. Spooning out the cookie dough onto a tray takes 2 minutes.

Putting the cookies into the oven and baking them takes 10 minutes. The activities of removing the cookies from the oven and putting them aside to cool take 5 minutes. Finally, taking the cookies off the tray and putting them into a box takes 3 minutes. The cookies are then ready for pickup.

How long will it take for you to fill an order? (i.e. The time from when a customer places the order until they pick up the cookies)
How many orders can you fill in a night, assuming you are open four hours each night?
What recommendations would you make for improving this production process?

Expert Solution

Answer a) The procedure of making the cookies is a step by step procedure.
1st step is spooning out the cookie dough onto a tray which takes 2 minutes.
2nd step is putting the cookies into the oven and baking them which takes 10 minutes.
3rd step - The activities of removing the cookies from the oven and putting them aside to cool take 5 minutes.
4th step-taking the cookies off the tray and putting them into a box takes 3 minutes.
So, 2m+10m+5m+3m= 20 minutes

Answer b) Assuming we are open for 4 hours. 4 hours has 240 minutes. If we continously recieve orders the moment we begin the working 4hours. First 20 mins will be taken for the first order. Then it takes 6 minutes to wash out the mixing bowl from the previous batch, add all of the ingredients, and mix them in your food processor. So, the total number of minutes for completely finishing one order is 26 minutes.
26 minutes mutiplied by 9 = 234 minutes. That means, total 9 orders could be filled in each night.

Answer c) The only recommendations that could be given is that we should take minimum time as possible for each and every task so that maximum number of orders could be filled in.

keosha answered 2 hours ago

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