Question 1:
The whole process needs 26 minutes to an order.
Question 2:
The process can be divided into three sub processes: pre-baking: 8 min, baking: 10 min,
and post baking: 8 min
While the first order is processing, we can save up to 8 min for the next order, which has to
undergo both baking and post-baking time. Therefore, the time required for the second
order while the first order is processing is 18 min – 8 min = 10 min. Therefore the cycle
time for an order is 10 min.
The total time to make additional X order is: 26+10X min
If business open maximum 4 hours/day, which is 240 min/ day, we have:
26 + 10X = 240
X = 21
Total maximum order = X + first order = 22
Question 3:
Cycle time of an order is 10 min.
Valuable time by me:
Washing and mixing + Dish up cookie = 6 min + 2 min = 8 min.
My valuable time is: 8 min / 10 min = 80% of time.
Valuable time by my roommate:
Put cookies in Oven + Backing cookies + Accept payment = 1min + 2min + 1min = 4min
The valuable time of my roommate is: 4min / 10 min = 40% of time.
Question 4:
Assume that labor is variable cost, which means labor is not paid when idle.
Assume the labor cost rate is $10/hour.
Labor cost for 1 dozen: (8min + 4min) * $10/hour = $2.
Labor cost for 2 dozen: (10min + 7 min) * $10/hour = $2.83
