National Cranberry Cooperative Case Study Essay

756 Words Feb 24th, 2015 4 Pages
National Cranberry Cooperative

1. Analyze the current process.
Please see the Excel file.

2. On a busy day, what is RP#1’s current maximum throughput rate?
The separator line could process up to 450 bbls/hr. instead of 400 bbls/hr.
The other bottleneck for this question is dryer process.
So the maximum throughput rate should be:
600+450=1050 bbls/hr.

3. Assuming that processing starts at 7 am on a “busy” day, present the situation during such a day, by constructing an inventory build-up diagram for bins and trucks.
Demand rate=18000 bbls/12hr.=1500bbls/hr.
7:00 p.m. trucks stop coming

TOTAL INVENTORY = (450*12) bbls =5400 bbls EMPTY=5400/600=9 hr. 9+7:00P.M. =4:00A.M. BIN INVENTORY=3200
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To improve this yield, Schaeffer was considering the installation of a light meter system. This system was projected to cost $40,000 and would require a full-time skilled operator at the same pay grade as the chief berry receiver.
With an increasing percentage of wet berries coming to the plant, superintendent Walliston considered converting some of holding bins 1-16 so they could be used for wet berries also. He was also considering buying a few new dryers as capital investment but wondered what the benefits might be of adding more dryers and whether those benefits would warrant the cost.

5. Costs and Benefits of Adding the 5th Kiwanee Dumpster Costs * Initial cash investment of $75,000 * Use of space Benefits * Reduce truck wait time * Decrease bottle neck * Decrease overtime costs * Increase capacity for storing cranberries

6. Cost * $10,000 cost to upgrade dry to wet/dry * Will have to buy new dryers to account for increase in wet berries processed through dechaffing * Wet berries have to also be dried. This adds an hour to the total processing time as it takes one hour to dry 200 bbls per dryer. However, since there are only 2 steps to each process (dry: dechaff, destine; wet: dechaff, dry) there really is no time added to the whole process * Increase in wet fruit means that 8 to 9 workers have to stay overtime more often because wet fruit cannot sit