NATIONAL CRANBERRIES

CO-OPERATIVE
Group 1
Vedant Bang M013-15
Bindiya Deora M015-15
Niraj Jhunjhunwala M034-15
Saswata Banerjee M048-15
Suyash Bajpai M057-15
Nishant Tilokani M058-15

Process Flow

Scenarios
We have done calculations for different scenarios
1. The regular scenario mentioned in the case (Process starting at
11am)
2. Considering the normal operations (Process starting at 7am)
3. After adding one more dryer in the process (Process starting at
7am)
4. After adding the color detection machine and a dryer (Process
starting at 7am)

Operating at present practice

A. Operational flow during day 1996 season (arrival starts at 7 am and processing
stars at 11 am)
Time (hours)

7-8
8-9
9-10
10-11
11-12
12-13
13-14
14-15
15-16
16-17
17-18
18-19
19-20
20-21
21-22
22-23
23-24
24-1
1-2
2-3
3-4
4-5
5-6
6-7
7-8
8-9

Arrival
Process
Stored (bins)
Unstored
Truck on hold
Holding
Dry
Wet
Dry
Wet
Dry
Wet
Dry
Wet
Dry
Wet
Cost ($)
Berries Berries Berries Berries Berries Berries Berries Berries Berries Berries
456
1,063
0
0
456
1,063
0
0
0
0
0
456
1,063
0
0
911
2,126
0
0
0
0
0
456
1,063
0
0
1,367
3,189
0
0
0
0
0
456
1,063
0
0
1,823
3,200
0
1,053
0
15
1,500
456
1,063
600
600
1,678
3,200
0
1,516
0
21
2,100
456
1,063
600
600
1,534
3,200
0
1,979
0
27
2,700
456
1,063
600
600
1,389
3,200
0
2,442
0
33
3,300
456
1,063
600
600
1,245
3,200
0
2,905
0
39
3,900
456
1,063
600
600
1,101
3,200
0
3,368
0
45
4,500
456
1,063
600
600
956
3,200
0
3,831
0
52
5,200
456
1,063
600
600
812
3,200
0
4,294
0
58
5,800
456
1,063
600
600
668
3,200
0
4,758
0
64
6,400
0
0
600
600
68
3,200
0
4,158
0
56
5,600
0
0
68
600
0
3,200
0
3,558
0
48
4,800
0
0
0
600
0
3,200
0
2,958
0
40
4,000
0
0
0
600
0
3,200
0
2,358
0
32
3,200
0
0
0
600
0
3,200
0
1,758
0
24
2,400
0
0
0
600
0
3,200
0
1,158
0
16
1,600
0
0
0
600
0
3,200
0
558
0
8
800
0
0
0
600
0
3,158
0
0
0
0
0
0
0
0
600
0
2,558
0
0
0
0
0
0
0
0
600
0
1,958
0
0
0
0
0
0
0
0
600
0
1,358
0
0
0
0
0
0
0
0
600
0
758
0
0
0
0
0
0
0
0
600
0
158
0
0
0
0
0
0
0
0
158
0
0
0
0
0
0
0
5,468 12,758
5,468 12,758

57,800

Operating at present practice

contd.
If the processing operations starts at 11am, we lose out on 15% of wet
berries
There is a holding cost of $57,800 incurred from the trucks that stay
loaded
Overtime costs are incurred for 6 hours
Plant is in operation for 22 hours

Operating with early process

start

B. Operational flow during day 1996 season (arrival starts at 7 am and

processing stars at 7 am)
Time (hours)

7-8
8-9
9-10
10-11
11-12
12-13
13-14
14-15
15-16
16-17
17-18
18-19
19-20
20-21
21-22
22-23
23-24
24-1
1-2
2-3
3-4
4-5
5-6
6-7
7-8
8-9

Arrival
Process
Stored (bins)
Unstored
Truck on hold
Holding
Dry
Wet
Dry
Wet
Dry
Wet
Dry
Wet
Dry
Wet
Cost ($)
Berries Berries Berries Berries Berries Berries Berries Berries Berries Berries
456
1,063
456
600
0
463
0
0
0
0
0
456
1,063
456
600
0
926
0
0
0
0
0
456
1,063
456
600
0
1,389
0
0
0
0
0
456
1,063
456
600
0
1,853
0
0
0
0
0
456
1,063
456
600
0
2,316
0
0
0
0
0
456
1,063
456
600
0
2,779
0
0
0
0
0
456
1,063
456
600
0
3,200
0
42
0
1
100
456
1,063
456
600
0
3,200
0
505
0
7
700
456
1,063
456
600
0
3,200
0
968
0
13
1,300
456
1,063
456
600
0
3,200
0
1,431
0
20
2,000
456
1,063
456
600
0
3,200
0
1,894
0
26
2,600
456
1,063
456
600
0
3,200
0
2,358
0
32
3,200
0
0
0
600
0
3,200
0
1,758
0
24
2,400
0
0
0
600
0
3,200
0
1,158
0
16
1,600
0
0
0
600
0
3,200
0
558
0
8
800
0
0
0
600
0
3,158
0
0
0
0
0
0
0
0
600
0
2,558
0
0
0
0
0
0
0
0
600
0
1,958
0
0
0
0
0
0
0
0
600
0
1,358
0
0
0
0
0
0
0
0
600
0
758
0
0
0
0
0
0
0
0
600
0
158
0
0
0
0
0
0
0
0
158
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
5,468 12,758 5,468 12,758

14,700

Operating with early process start

contd.
3,500

3,000

2,500

2,000

1,500

1,000

500

Build up Bins
Build up Trucks

Operating with early process start

contd.
If the processing operations starts at 7am, we do not lose out on
berries
There is a holding cost of $14,700 incurred from the trucks that stay
loaded
Overtime costs are incurred for 6 hours
Plant is in operation for 22 hours

Operating with an additional

dryer

C. Operational flow during day 1996 season with one additional dryer (arrival starts at 7 am
and processing stars at 7 am)
Time (hours)

7-8
8-9
9-10
10-11
11-12
12-13
13-14
14-15
15-16
16-17
17-18
18-19
19-20
20-21
21-22
22-23
23-24
24-1
1-2
2-3
3-4
4-5
5-6
6-7
7-8
8-9

Arrival
Process
Stored (bins)
Unstored
Truck on hold
Dry
Wet
Dry
Wet
Dry
Wet
Dry
Wet
Dry
Wet
Berries Berries Berries Berries Berries Berries Berries Berries Berries Berries
456
1,063
400
800
56
263
0
0
0
456
1,063
400
800
111
526
0
0
0
456
1,063
400
800
167
789
0
0
0
456
1,063
400
800
223
1,053
0
0
0
456
1,063
400
800
278
1,316
0
0
0
456
1,063
400
800
334
1,579
0
0
0
456
1,063
400
800
389
1,842
0
0
0
456
1,063
400
800
445
2,105
0
0
0
456
1,063
400
800
501
2,368
0
0
0
456
1,063
400
800
556
2,631
0
0
0
456
1,063
400
800
612
2,894
0
0
0
456
1,063
400
800
668
3,158
0
0
0
0
0
400
800
268
2,358
0
0
0
0
0
268
800
0
1,558
0
0
0
0
0
0
800
0
758
0
0
0
0
0
0
758
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
5,468 12,758
5,468 12,758

Holding
Cost ($)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

Operating with an additional dryer

contd.
4,500
Build up Bins
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0

Build up Trucks

Operating with an additional dryer

contd.
If the processing operations starts at 7am, we do not lose out on
berries
There is no holding cost incurred, trucks are not kept waiting
No overtime costs are incurred for 6 hours
Plant is in operation for 16 hours in 2 shifts

Investment in dryer
Labor Cost for 1996 season

With
Dryer

Seasonal workers rate (USD/hr)

7am - 3pm
3pm - 11pm

Full-time workers rate (USD/hr)

7am - 3pm
3pm - 11pm

Overtime cost
Total Labour Cost (w/o color
m/c)

W/o Dryer

8
88,192
88,192

13
154,336
143,312

0
474,032

88,192
88,192
154,336
143,312
260,442
734,474

Potential savings on color m/c &

dryer
Color Grading and Dryer Investment

Installment Cost
Dryer ($)
Color Machine ($)
Skilled labor rate ($/hr)
No. of skilled labor required
Labor Cost for color m/c ($)
Net investment ($)
Cost saving with color m/c ($)
Cost saving with dryer ($)
Total Potential Savings ($)

5 Year
Per Year
60,000
12,000
40,000
8,000
13
2
89,700
17,940
189,700
37,940
1,584,052
316,810
1,302,210
260,442
2,696,562
539,312

Assuming life of the color machine and dryer to be 5

years

Recommendations
Schedule trucks in advance (40 per hour)
This will reduce the truck waiting times and the overtime costs
Should deploy a new dryer as it reduces wait times and also the
overtime costs
Adding a color detection machine is beneficial as it saves a huge
chunk of the costs

Thank You!