1. Intro to Process Analysis II
Kristen’s Cookies
Getting more for your cookie, er, money!
Gantt Charts
Resource conflicts
Batch size and setups
Economies of Scale

2. The Big Picture
Most of your investments—and a lot of your other costs—are due to resources (people, equipment, etc.)
By avoiding resource conflicts and exploiting economies of scale you can more efficiently use your resources.
Thus, you can either increase production or reduce costs.
Either way, ROI goes up.

3. KRISTEN’S PROCESS FLOW DIAGRAM

4. GANTT CHART (ORDER SIZE = 1 DOZ.)5 10 15 20 25 30 35 40 45 50 55 60 65
oven
roommate
Kristen
pay
pack
cool
bake
mix/spoon

5. Cookie Questions: 1 Dozen
Q1. Rush order flowtime per order?
Q2. Process cycle time per order?
Q3. What is the process capacity?
Q4. If we start at 8 pm and end at Midnight, how many cookies can we make?
Let us look at a Gantt chart

6. Add’l. Cookie Questions
Q5. What is the labor content per order?
Q6. What is the labor utilization?
Q7. How many baking trays?
How many food processors?
Q8. Where should we add resources?
Add’l. Cookie Questions

7. GANTT CHART (ORDER SIZE = 2 DOZ.)5 10 15 20 25 30 35 40 45 50 55 60 65
oven
roommate
Kristen
pay
pack
cool
bake
mix/spoon

8. Q9. Suppose the order size increases.
Order Labor Bottle- System Cycle ROFT
Size Content neck Capacity Time
1 dz mn Oven dz./hr mn. 26mn.
2 dz.
What happens to the order lead time?
Should we give a Price discount? 5

9. Suppose we have two ovens. . .
10 min/dz.
Mix
6 min
per order
Receive
Payment
1 min
per order
Spoon
2 min/dz
Cool
5 min.
Pack
2 min/dz
Oven
10 min/dz

10. Performance with 2 Ovens
Order Size
1 dz 2 dz
Kristen’s
Labor Content
Room-Mates’
Oven mins/order
Oven Cycle Time
Bottle-neck
System Capacity

11. More Cookie Quandaries
What is the value of a second oven for order size = 1 dz.?
What is the impact if your roommate is out of town for order size = 1 dz.?
More Cookie Quandaries

12. LESSONS 1. Throughput time and Cycle time:
Implications for customers, managers:
Interrelationships: 10

13. LESSONS (cont.) 2. OM tension in the case: Zero Lead Time Operating
System
Complete
Customi-
zation
3. Importance of process knowledge, learning,
experimentation: 11

14. BEWARE The Message Even simple processes are very tricky.
Analyzing them is far from simple.
A spreadsheet is not enough.
Doing them in your head is not enough.
There is no substitute for using your OM tools.