Tammy is following Kristen’s success story and uses the same business model. Since she had heard that Kristen had limited production capacity because of her oven size, she has invested in a better and faster oven; her oven can cook a dozen cookies in 7 minutes. Tammy is not as experienced as Kristen in cookie making so it takes her 8 minutes to mix the dough. Tammy’s roommate is as fast as Kristen’s roommate, and all the other steps are exactly the same Kristen’s Cookie Company. What is the capacity of Tammy’s Cookie Company, in dozens of cookies per hour, when the order size is 1 dozen? Where is the bottleneck? What is the capacity of Tammy’s Cookie Company, in dozens of cookies per hour, when the order size is 2 dozens? Where is the bottleneck? Again assume that Tammy has only 1 oven and order size is one dozen. Without adding any new resources how can your increase the capacity and by how much?
Number of ovens = 1
Shift hours per night = 4 hours
Total capacity in hours = Number of ovens x Shift hours per night = 4 hours x 1 = 4 hours
Time taken to bake a dozen of cookies and pack them = (6+2+10+5+2) minutes = 25 minutes.
Capacity = Total time available / Time taken to bake a dozen cookies
Total time available = Number hours x minutes per hour = 4 x 60 = 240 minutes
So, Capacity = = 240 / 25 = 9.6 dozens
The bottleneck is the microwave oven which holds one tray. So, even if the two people prepare more raw materials and ingredients there is no way to increase the number of trays to hold or speed the baking process of the cookies.
In this, the first six minutes of preparing the ingredients and washing the electric bowl in addition to turning on the mixer to mix the ingredients, will not be included as this is already done for the first three dozens of cookies.
So, time taken for making the next two dozen of cookies = (25 – 6) minutes. = 19 minutes.
Capacity = 4 x 60 / 19 = 12.6 dozens.
In this case the bottleneck is the mixing of ingredients as only one time mixing can be used in only three dozens and it has already been consumed. So there is need for preparing more ingredients regardless of the working of the microwave oven.
Since the roommate is faster and better, he can also help in preparing for the ingredients. This can be done during the nine minutes when the oven is baking the cookies. As such it will enhance, the amount of ingredients available for the next baking cycle.