JJ Cookies Case

Case Study

JJ Cookie Case

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Assume that JJ’s most important customer has just submitted an order for one dozen cookies, and that she wants to give the highest priority to this order. How long will it take to fill this order?

The time required to fill the “rush order” is: Process’s Throughput Time =

Multiple Select

Does it take twice as long to produce two batches as it does to produce one batch?

• Yes

• No

Multiple Choice

Which is the process’s bottleneck?

• Baking Process

• Oven

• You

• Order Entry

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Once it is “up and running”, what is the process’s hourly capacity?

Multiple Choice

Assuming that JJ’s Cookie Company is open for four hours each night, how many orders can be filled each night?

• 21 dozens

• 22 dozens

• 23 dozens

• 24 dozens

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During each night, what is the utilization (in %) of you and your roommate?

Recall that the process’s cycle time is 10 minutes.

This is assuming all orders are for one dozen cookies.

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Assume that You pay yourself and your roommate $8 per hour. The materials cost per dozen is $0.60 for ingredients and $0.10 for the box. If You and your roommate are paid regardless of whether they are busy or idle, what is the minimum amount you should charge for one dozen cookies? (Recall from previous question that every 10 minutes you can make one dozen of cookie)

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Assume that You pays herself and her roommate $10 per hour. The materials cost per dozen is $0.60 for ingredients and $0.10 for the box. If You and your roommate are not paid for idle time, what is the minimum amount you should charge for one dozen cookies? (Recall from previous question that every 10 minutes you can make one dozen of cookie)

Multiple Choice

If JJ wants to increase the process’s capacity, on which activity should you focus first?

• Load and Bake

• Cool Down

• Pack and Pay

• Mix and Spoon

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Suppose you can make a profit from selling cookie $2 per dozen and you could lease a second oven. What is the maximum daily rate you would pay for the lease? (How many dozen of cookies that you can make now comparing to those when you have only one oven)

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Assuming there is only one oven, if you attempted to run her business without your roommate, how many dozen of cookies that you can make in one hour on average