Kristen's Cookie Company

Kristen’s Cookie Company

2/8/12

MGT 6400 – Management of Business Processes and Operations

Table of Contents

Section 1

Introduction 3

Process Issue / Problem / Constraint Identification 4

Recommendations for Improvement 5

Section 2

Appendix A: Current Process Flowchart A1

Appendix B: Recipe for Smaller Chocolate Chip Cookies B1

Appendix C: Product Process Matrix……………………………………………………….C1

Introduction

Two students are contemplating running a cookie baking business under the name Kristen’s Cookie Company. The business will be run out of their on-campus apartment and cater to hungry, late-night cravings from students searching for warm, fresh cookies. The objective is to provide fresh baked cookies, which are customized to their individual taste preferences. We need to evaluate the preliminary design for the company’s production process to determine if the process is efficient. Evaluating the process will also allow us to determine the appropriate retail price of the cookies, profitability, and capacity for fulfillment of orders. Kristen’s Cookie Company uses a variety of ingredients including dough, chocolate chips, chopped heath bars, coconut, walnuts, and raisins. The apartment is furnished with one oven, one food processor, cookie trays and spoons. The landlord pays the utility bills including electricity; therefore the variable costs are solely the ingredients and packaging.

The context of the cookie production process is fairly simple and includes taking the order, mixing the ingredients, baking the cookies, allowing the cookies to cool, packaging the cookies, and then accepting the payment. There are some key factors that the company must excel in, in order to be successful with its current college student demographic. This demographic prefers fresh baked cookies with fresh ingredients, and customization is also important to this target market. Therefore, Kristen’s Cookie Company allows the customer to select the...