Haven't found the Essay You Want?
For Only \$12.90/page

National Cranberry Cooperative Essay

Wet berries are 75% of all berries.
Holding bins 17-24 are dedicated to wet berries.
Capacity of the dumpers is 3,000 bbl / hr (it takes on average 7.5 minutes to dump a truck, a truck holds on average 75 bbl so, from Little’s Law, each dumper will take 600 bbl/hr). Drivers are paid \$10/hr. Rates for other employees are given in the case. If you need to make additional assumptions to answer a question, clearly state them, logically defend them, and then proceed to answer the question accordingly. Questions

1.Analyze the current process. Using the process flow map (given below) of the current process at Receiving Plant No. 1 (RP1), mark the capacity and utilization of each of the resources. Show the flows of wet and dry berries separately. On an average busy day, 18,000 bbl arrive over the 12-hr period. Thus, we can say that 1,500 bbl arrive every hour. Since 75% of the berries are wet berries, 1,125 bbl of wet berries and 375 bbl of dry berries arrive every hour. These berries are dumped into 5 Kiwanee Dumpers that take 600 bbls per hour each. And then, dry berries and wet berries are divided. Dry berries go into bins 1 to 16 and wet berries go into bins 17-27. Since bins 1 to 24 have capacity of 250 bbls/hr and bins 25 to 27 have 400 bbls/hr, bins 1 to 16 have capacity of 4,000 bbls/hr total, while bins 17-27 have capacity of 3,200 bbls/hr total. Dry berries are sent to 3 destoners, each of which has a capacity of 1,500 bbls/hr.

There is only one dechaffer for dry berries, and therefore has a capacity of 1,500 bbls/hr. However, the other two dechaffers are assigned to wet berries. Since each dechaffer has a capacity of 1,500 bbls/hr, two dechaffers have a capacity of 3,000 bbls/hr for wet berries. Then, these wet berries go into the dryer, which as a capacity of 600 bbls/hr total. After these processes, the berries arrive at separators, which has a maximum capacity of 1,200 bbls/hr. We assumed that all the processes start at 7 a.m. and identified that the dryers for the wet berries are the bottleneck because dryers have the lowest capacity. (Please note that the filled process flow map is given below) 2.On a busy day, what is RP1’s current maximum throughput rate? As we show in the process flow map below:

Demand rate = 1,500 bbl / hr (375 for dry berries and 1,125 for wet berries) Capacity rate = 975 bbl / hr (375 for dry berries and 600 for wet berries, because the bottleneck, which is dryer of capacity 600 bbl / hr, determines the capacity of a linear process) That is, Demand rate > Capacity rate, and in this scenario throughput rate = Capacity rate = 975 bbl / hr 3.Assuming that all of the operations at RP1 start 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. For trucks:

For bins:

Even though, the operator gets paid more than the amount above, the return on the investment would still be positive. Secondly, purchasing one additional dryer would cost \$60,000. Then, the process capacity would increase to 800 bbls/hr. The dry berries (375bbls/hr) and the wet berries (800bbls/hr) would now sum up to 1175 bbls/hr, which will increase the utilization rate of separators to 97.91%. The resulting increase in flow rate could reduce the overtime labor as much as \$78,000 (assuming 12,000 over time hours of all workers * \$6.5/hr) and the return on the investment would be 0.3 (18,000/60,000). Thirdly, purchasing the fifth Kiwanee Dumper had increased the capacity by 600 bbls/hr. However, the fact that throughput rate is 975 bbls/hr, and the hourly incoming berries are about 1500 bbls/hr, we do not think that the fifth dumper was necessary because with four dumpers we would have a capacity of 2400 bbls/hr, which is enough as of current state. In other words, since the bottleneck of the process is the dryer rather than the dumper, we would have saved \$200,000 if we did not buy the fifth dumper.