National Cranberry Cooperative In early 1981, at the National Cranberry Cooperative’s receiving plant number 1 (RP1), overtime costs are too high and delivery trucks and their drivers have to wait several hours to unload. The trucks have to wait because the plant’s holding bins fill up and there is not temporary storage. The holding bins fill up because within the cranberry operating system there is a bottleneck, a place in the production process where production slows down because of a slow or insufficient number of machines. This bottleneck is being caused by the lower relative capacity of the dryers. Relieving the bottleneck in the dryers by adding more dryers will allow the trucks to move through the dumping area more efficiently …show more content…
Adding the dryers will lower the time the cranberries spend in the dryers enough to relieve the bottleneck. (see exhibit 3)
• At 12,600 (70% of 18,000) wet barrels per day, the cranberries currently spend 21 hours a day in the dryers.
• Adding one dryer lowers the time in the dryers to 15.75 hours a day.
• Adding two dryers lowers the time in the dryers to 12.6 hours a day. Spending 12.6 hours in the dryers relieves the dryer bottleneck and the separator becomes the bottleneck. Long-term, RP1 should begin to look at how to relieve this next bottleneck. The time spent waiting for the holding bins to empty causes extra overtime. Simply adding in two new dryers will decrease this overtime. The 21 hours currently spent in the dryers will be decreased to 12.6 hours. However, the slowest process will then be the separator at 15 barrels per hour, so the throughput time is cut by (21-15=6) six hours. This results in an average of six overtime hours saved daily. Currently, there is no need to add holding bins. While the bottleneck is still located in the dryers, adding capacity in the holding bins will only cause the cranberries to wait in the bins longer and will not improve throughput time.
Purchasing two new dryers for the National Cranberry Cooperative’s receiving plant number 1 will reduce the wait time for trucks by speeding up the overall process. The quicker process will result in a reduction of overtime hours. The two new dryers will
In the boy scout hiking group, Alex’s slowest person was not the first in line. The spread in the scout line was being caused by the kid who was too slow (Herbie) compared to the speed of the other kids. To change this, Alex took a different approach “tied the rope” from the first scout leading the line to the bottleneck (Herbie) limiting the distance and time between them. The ropes and drums Alex used in the plant were where he controlled entry points for material release routings that led to NCX-10 machine. The ropes choked off the release to the rate and quantity required by the NCX-10 machine to make demands for both inventory and discreet orders. Alex also changed the rules for workers on when they take breaks, moved quality inspection to the in front of bottlenecks, made
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Arrival of berries- In the process fruit, first berries are arrived on receiving plant no.1. In which, average truck delivery was 75bbls.
* Will have to buy new dryers to account for increase in wet berries processed through dechaffing
* Idle Time and Cleanup Time: Unfavourable by $3.000 + $1.600 respectively, might be due to different reasons such as low efficiency in the cleanup process, or bad shape of the machines used to manufacture the motors that turned into a lot of idle time compared to the one budgeted. The idle time must be monitored since it can lead to further decrease of Labour
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In 1874 Arkansas developed a new state constitution and thus ended reconstruction. At that time, democrats gained control over the state in an attempt to “redeem” Arkansas and restore white supremacy. The cultural heritage of the South stayed the same, but a lot of changes were beginning to take place in the economy of the “New South”. The economy of Arkansas was almost always exclusively agricultural, but in the New South agriculture was changing and new sources of economy were emerging; leading to shifts in politics as well.
Alex comes up with the consensus that the “Goal” of his business and many others is to increase net profit while simultaneously increasing return on investment and their cash flow at the plant. This basically means to make money. These three measurements can be achieved by looking closer into his second set of measurements. Alex specifically must find a way to increase throughput while at the same time decreasing it inventory and operational expenses. All three of these measurements must be cautiously monitored since they all rely on each other to be obtained in balance. Factors that cause throughput, inventory, and operational expenses to become unbalanced are excess manpower and balance capacity of the demand of resources in the market.
Addition of two new dryers implies the increased capacity for the drying station. They add an additional capacity of 2*200bbls wet berries per hour.
Cranfield Inc. is a leading producer of juices for range of cranberry cocktails. After a market research experiment Cranfield Inc. has many different business decisions to make. One to introduce a new line called lite cocktail which requires space and machinery and will eat into sales of currently offered products. Or not to introduce the new product and lease out it’s space, or do nothing to save the space until it’s needed for its current product line.
Each additional dryer will increase the amount of water-harvested berries that can be processed by 200 bbls. per hour for berries loaded to bulk trucks,
The above cost system was efficient during the 1980s because it split up overhead over three cost pools, adding an additional pool, which has machine hours as its cost driver. This proved efficient because “[w]ith increased usage of automated machines, direct labor run time no longer reflected the amount of processing being performed on parts, particularly when one operator was responsible for several machines.” Packet, pg. 7.