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National Cranberry Cooperative Case PDF

Case Study Instructions:

Ross Schneidman


MGT 285: National Cranberry Cooperative


 


1. Bottleneck Analysis


Do a ‘quick and rough’ capacity analysis. Assume the following in your analysis –


a)    Average time to unload a truck = 7.5 minutes


b)    Do not let the description of the quality grading (also called separation) stage confuse you. Assume that the three separator lines each can separate about 400 bbls. per hour.


c)     Assume that the split between dry and wet berries is a 70:30 ratio split to reflect the percentage of wet berries (70%) expected in 1981.


d)    Shared resources capacities can be reallocated as necessary between dry and wet berries with little or no change over time.


e)    Actual processing time of berries is very short.


f)      Bulking and bagging capacity is more than adequate.


 Consider the minimum and maximum capacities at each stage to analyze the boundary conditions. What are the bottlenecks for dry and wet berry processing? What are the capacities (in barrels per hour) for dry and wet berry processing?


2. If you were to assist Mel O’Brien, what would be your recommendations to Mel? What do you think of the decision last winter to buy a fifth Kiwanee dumper?


You may find it useful to consider a day when 18,000 barrels of berries (both Dry and Wet Berries) arrive in trucks between 7 a.m. and 7 p.m. at a constant hourly rate (1,500 barrels/hour). As you know, 70% of the berries are wet.


3. Evaluate the cost-benefit analysis with corresponding ROI numbers for additional investments to capacity, if needed. Consider all possible options across the various stages in the operation.

Case Study Sample Content Preview:

Case Analysis: National Cranberry Cooperative
Name
Course: MGT 285: National Cranberry Cooperative
Instructor
Date
1] Bottleneck Analysis- capacity analysis
The capacity analysis is based on the provided assumptions and the process flow, and this was necessary to identify the processes associated with the bottlenecks. While analyzing the dumping information, the bins will be identified depending on those containing the dry berries, wet berries and those processing both the dry and wet cranberries. The identification of the backlogs helps in identifying the slow princess causing unnecessary delays. The case highlighted on long waiting time while unloading, overtime costs and wrong grading, while further analysis provides more information.
Dumping and Temporary holdingKiwangee dumpers5Average loading time- 7 to 87.5 minutesAverage truck delivery75bblsDumping capacity 5*75*(60/7.5)3000 bbls/ hrHolding bins1-24 bins @ 250 bbls per bin6,000 bbls25 to 27 @ 400 bbls per bin1,200 bblsDestoning, Dechaffing and DryingDry berriesDestoning1-16 bins [3 units @ 1,500 bbls per hr]4,500 bbls/ hrWet berriesdechaffing [ 3 units @ 1,500 bbls per hr per unit]4,500 bbls/ hrdryer [ 3 units @ 200 bbls per hour per unit]600bbls/ hr Separators3Capacity of each unit400bbs/ hrTotal separator capacity1,200 bbls/ hr
Bulk Truck Station capacity is 2 units * 1,000 bbls/ hr= 2000 bbls/ hr
2. Recommendation on decision to buy a fifth Kiwanee dumper?
To highlight the changes three is a need to calculate the number of dryer hours to process the berries
The work day is 12 hours being the time between 7 a.m. and 7 p.m.
The total wet berries processed per hour is 1,500*0.7= 1,050
The three dryers each hold 300 bbls/ hr for a total of 600 bbls/ hr
If on an average the company receives 12,600 wet berries (18,000* 0.7)
The number of dryer hours to process the barrels is 12,600/ 600= 21 hrs
The bottleneck is in the dryer since the capacity is 600 bbls while the quantity to be processed is 1,050 bbls per hour.
The dumpers operate at 3,000 barrels per hour meaning that it takes two hours for the company’s dumpers to become full. Buying the fifth dumper allowed increases the capacity to hold more b...
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