Name(s):

Sam has a small business for making donuts. Sam’s Donuts has a pre-defined set of steps to meet
customer demand. First, orders are taken via a free app, a text message, or an email message. When
the order is received, the dough is mixed by Sam in a bowl with the proper ingredients for the item on
the order. This effort takes 8 minutes. A helper then places the dough in a form that holds 6 donuts and
this effort takes 2 minutes to fill one form. The form then loaded into the oven and left there for 12
minutes to achieve the proper product consistency. After the oven cooking, the donuts are allowed to
cool for 3 minutes before being packaged. The helper then takes 1 minute to package the donuts and
process the payment.

a)       Draw a flowchart of the process. (it does not have to be real fancy)
b)      Calculate the theoretical flowtime for the process from the time an order is received
until the payment is processed.
c)      Determine the unit load on the three resources: Sam, helper, and oven. Assume all
three resources are available for 8 hours, or 480 minutes.
d)      Determine the capacity of the cookie making process as well as the capacity of the
three resources.
e)      Suppose an order is received for 1 dozen donuts. The mixing bowl can handle
enough dough for one dozen donuts, but the oven can only hold one form (6 donuts) at
a time. Calculate the theoretical flowtime.

f)      Refer to the situation in part c where an order is received for 1 dozen donuts. For
each of the following system changes, calculate the theoretical flowtime, process
capacity, and the flow rate. Analyze these system changes independent of each other.

1)      Replace the current oven with a larger one that will hold 2
forms (1 dozen donuts).
2)      Buy another small oven that holds 6 donuts.
3)      Replace the current oven with a convection oven that will
bake one form (6 donuts) in half the time (6 minutes instead of
12)
g) If the current oven is replaced with a convection oven that will bake one form (6
donuts) in half the time (6 minutes instead of 12), what is the theoretical capacity of the
system process?
PLACE ANSWERS IN TEXT BOXES BELOW:
A home insurance application consists of two forms: F1, which relates to the home owner, and
F2, which relates to the property. On receipt, each application is processed, recorded, and
separated into F1 and F2. This operation is done by the data-entry clerk and requires 10
minutes, F1 is processed by professional A for 12 minutes per unit and then by professional B
for 8 minutes per unit. F2 is processed by professional C for 22 minutes per unit. F1 and F2 are
then combined and further processed by a loan officer for 15 minutes.
a. Draw a process flowchart for the processes.
b. What is the theoretical flow time?
c. The average flow time of an application is five working days. Assuming 480 minutes per day,
compute the flow-time efficiency of the process.
d. If every applicatoin must pass through all of these steps, then what is the possible output in
a 480 minute day?
PLACE ANSWERS IN TEXT BOXES BELOW:
Human Capital Sources (HCS) pre-processes two types of applications
for its many customers, those recently graduating and those with
experience. For this service, HCS is paid $20 per recent grad applicant
and $30 per experienced applicant. HCS can theoretically process 150
recent grad applications per day OR theoretically 110 experienced
applications per day.

a)       Which type of application provides the best revenue for HCS?

b)      HCS has decided that it can only process a maximum of 90

experienced applications per day. What is the best mix of products for
HCS to process under these conditions?
PLACE ANSWERS IN TEXT BOXES BELOW:
A processing system is shown below along with the amount of work required at each of 9 stations. A
product is made up of two sub assemblies, one sub assembly from D-E-F and one from G-H-I. These
two sub assemblies are brought together at station A. Assume that very little inventory if any, is kept
between any two stations and ignore the time it takes to move the product between stations. Assume
there is one person working at each station. What is the possible output per hour for the product?

A 30 sec F 30 sec D E F
B 28 sec G 24 sec A
C 14 sec H 28 sec
D 50 sec I 19 sec G H I
E 18 sec

Sub Assemblies can pass through DEF at a rate of 3600/50 = per hour
Sub Assemblies can pass through GHI at a rate of 3600/28 = per hour
Final stage ABC can produce at a rate of 3600/30 = per hour
 PLACE ANSWERS IN TEXT BOXES BELOW:

A B C