Operation Management:-Systematic direction, control, and evaluation of the entire range of processes that transform inputs into finished goods or services.

1. Kristen’s Cookie
Company
BY-
- RAHUL BIRADAR

2. Business Concept
 Fresh cookie’s, ingredients as per the buyers.
 Pickup within an hour.
 No baking before any order is received.
 Ingredients- chocolate chips, M&M’s, chopped health bars,
coconuts, walnuts, raisins.

3. Production Process
1) Mix all ingredients in the food processor.
2) Spoon out the cookie dough onto the tray.
3) Put cookie’s into the oven.
4) Baking of the cookie’s.
5) Take that tray of cookie’s out of the oven.
6) Let the cookie’s cool down.
7) Take cookie’s out of the tray.
8) Pack them in a box.

4. Costing
 No capital equipment is required as we already have one food
processor, cookie trays and spoons.
 One oven which holds one tray at a time.
 Electricity bill for oven is paid by landlord.
 Variable costs = cost of ingredient’s = $0.60 per dozen.
 Cost of box = $0.10 per box (each box holds a dozen cookie’s)

5. Time Analysis
1) Take order – 0 min.
2) Washing and Mixing – 6 min & dishing up the cookie’s – 2 min / tray.
3) Put cookies in the oven and set the thermostat and timer – 1 min.
4) Baking – 9 min. Thus total baking time is 10 min.
5) Removing the tray and cooling it down – 5 min.
6) Packing – 2 min / dozen.
7) Accepting the payment – 1 min.

6. Process Flowchart

7. Q. How long will it take to fill the rush order?
- 26 min for one dozen.
Q. How much order can be filled in one night if we are open for 4 hours
each night?
- 21 trays.
Q. How much of your own and roommate’s valuable time will it take to
fill each order?
- Roommate = 4 min & Me = 8 min.

8. If 2 ovens are used
 240 – 26 = 214 min.
 214 / 8 = 26.75 = 27 dozens per day with two ovens.
 So, having 2 ovens increase the capacity from 60/10 = 6 dozen per
hour to 60/8 = 7.5 dozen per hour.

9. Thank You