...Team 3 National Cranberry Cooperative Analysis and recommendations 1. 2. The resource with least capacity determines the maximum long-term achievable throughput rate. Because wet and dry berries follow different routes at RP#1 there will be a maximum achievable throughput for each. The capacity of the dryers is the bottleneck for the wet berries. The maximum throughput for wet berries is 600 bbls/hr. For dry berries the separation process is the bottleneck. The maximum throughput for dry berries is 1200 bbls/hr. The percentage of wet berries to dry berries would affect the throughput rate. Given the current proportion of berries received the capacity of the dryers would be the maximum throughput of the system. The dryers are the system bottleneck. And as the trend of water harvesting continues, this situation worsens. All the process/resources at RP#1 contribute to the throughput but the limitation is the bottleneck. 3. The trucks wait because the processing capacity is less than the system input. And the temporary holding bins are inadequate to buffer the berries coming in and the plants processing capacity. But by using the Theory of Constraints to identify the system bottle necks we are able to discover the root cause of the waits. The large back log of berries is caused by several factors The plant is not currently equipped to handle the supply of wet berries. This problem has likely been increasing over the years as more cranberries are being...
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...1.) Introduction 2 2.) Process Analysis 2 3.) Process Flow at National Cranberry Cooperative 4 4.) Installing a Light Grading System 5 5.) Decreasing the truck waiting time 6 6.) Bag pack or Bulk Pack 8 7.) Conclusions 9 1.) Introduction This case analysis looks at the two primary problems at the receiving plant no. 1 (RP 1) faced by National Cranberry Cooperative during the cranberry harvesting period, viz. 1) too much waiting period for trucks before they unload berries at the RP1 and 2) too much overtime costs. There is also a secondary problem regarding grading of process berries. Half of the berries graded top quality are actually not top quality and do not deserve extra premiums paid on the top quality berries. 2.) Process Analysis We start by making a process flow diagram for the flow of berries at RP1 from the moment berries arrive at the RP1 in trucks to the moment they leave in RP1 after being bag packed, bulk loaded into trucks or loaded into bulk tins. The capacities of the various processes are based on the assumptions or data as shown below: Dumping Capacity Number of Kiwanee Dumpers = 5 Average time taken by truck to load the berries onto Kiwanee Dumpers = 7.5 minutes (Maximum being 10 and minimum being 5 minutes) Average weight of berries in a truck = 75 bbls. Dumping Capacity = 5 * 75 * 60 / 7.5 = 3000 bbls/hr. Holding Bin Capacities Bin No. 1-16 can hold dry berries only up to 250 bbls per bin. Total capacity of bin numbered 1-16 = 250*16...
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...National Cranberry Cooperative 1. Answer on “Flow Map” (attached Document) 2. Throughput Rate is the rate systems generate product per unit of time or I= R (x) T; R=I/T. Here is, R is for rate, I is for inventory, and T is time. Therefore, I must find I when T=4hr, R=3.25 4hr (x) 3.25bbl = 13bbl per hr 3. If the PP1 opens at 7:00AM and Closes at 7:00PM, then the total bbls of cranberry’s processed for that day will be 18,000 bbls. I come to this conclusion because there are 1500 bbls processed each hours. Multiplying 1500 by (12) for a twelve hour processing day, then 18,000 is derived. Bins 1-16 hold 4000 bbl at a time, and bins 17-27 hold 2950 bbl at a time. There are 5 Kiwanee Dumpers (trucks) and each can ship 75 bbl of berries per delivery. Bins 1-16 hold 250 bbl each, so it takes about 3.33 dumps of a truck to fill one storage bin to capacity. 5 trucks at 75 bbl per trip (375 bbl) could fill bins 1-16 (capacity 4000 bbl per hour) in approximately 10.6 trips. 4. The possible capital investments considered by NCC are buying new equipment to reduce the time that drivers wait to unload picked berries. a. The fifth Kwanee Dumper cost $200,000. This acquisition increased loading capacity, yet accrued further overtime costs for drivers because of a lack of processing capabilities and waiting time to dump these loads. b. Another possible capital investment was $40,000 for a light meter system for color grading. No. 3 (premium) berries were...
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...low and there is less differentiation between products. With surplus cranberries and changing American households some enterprising growers began canning cranberries that were below-grade for fresh market. Competition between canners was fierce because profits were thin. Threat of substitutes is a strong competitive force. Other fruit-based juices, beverages not containing fruit, and water are considered to be strong substitutes for cranberry juice – especially in single serving packages. There are fewer substitutes for cranberry products sold for seasonal consumption. Threat of New Entrants Threat of new entry is a weak competitive force for NCC due to excess production capacity already and competition for retail shelf space. Northland Cranberries had recently entered the fruit juice industry, but had yet to gain notable success and only contributed to a further price war among producers. PepsiCo and Coca-Cola have entered the fruit juice industry through acquisitions and have met with far greater success. However, both of these beverage powerhouses were able to leverage their vast distribution capacity and bargaining power with retailers to become successful. Both companies also have tremendous scale advantages in production and bottling costs. Threat of Buying Power Threat of buying power for National Cranberry Cooperative (NCC) is a strong competitive force. Retailers are the primary buyers for cranberry-based products, but distributors play a major role in making products...
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...1. Develop a process flow diagram for processing cranberries (both wet and dry). Show the capacities at the different stages. No Yes 5 Dumpsters 3000 bbls/hr 4000 bbls 1200 bbls 2000 bbls 3 units 4500 bbls/hr Dry 3 units Wet 4500 bbls/hr 3 units 450 to 600 bbls/hr 1200 bbls/hr Term Papers and Free Essays 3 units 4 units 2 units 667 bbls/hr 800 bbls/hr 2000 bbls/hr 2. What are the sources of variability affecting NCC's operations? NCC is influenced by a number of possible variables. As mentioned the in the case, the trucks arrive to the Receiving Pant 1 randomly. In harvest-season day, the growers pick and transit berries to NCC randomly. As the number of berries being collected per day varies, the number of trucks that come to plant to dump them varies as well. The ratio of wet to dry harvested berries received significantly influences the whole operating cycle as the processing flow and capacities at each step is different for wet and dry berries. It is important to note that some of the processes are the same for both types of berries. As drying process is the bottleneck in the overall end to end process, the number of delivered / dumped wet harvested berries will increase the waiting time for trucks. Another variability exists in the grading process. As berries are graded on the scale from 1-3 by the chief berry receiver, 3 being...
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...1. Purchase the light meter and hire an operator. A major unnecessary cost is being incurred in the form of cranberries being misidentified by the chief berry receiver. Half of the 450,000 bbls of cranberries labeled as No. 3 turned out to be No.2, each one costing $1.5 for a total overpayment of $337,500. The cost of a light meter operator would be around $26,000/yr and the system cost would be $40,000, the total cost would be $66,000. With a savings of $337,500 per year, the return on investment in the light meter system would be 5.1 (337,500 / $66,000). 2. Purchase one additional dryer to increase process capacity by almost 33%. The dryer can be purchased for $60,000. Process capacity would increase to 800 bbls/hr, because each dryer rates 200bbls/hr. As the wet berry flow rate increases to 800 bbls/hr, the bottleneck is still on the dryers because (1125-800=325bbls) are still left unprocessed and the separators can still process 800+375=1175bbls from 1200bbls/hr. However, the resulting flow rate increase of around 33% could cut overtime labor during the fall by as much as $72,000 (12,000 over time hours x $6/hr) each year. The return on investment would therefore be positive at 0.2 ($72,000-$60,000 / $60,000). However, if we are to buy 2 dryers, the dryer capacity increases to 1,000bbls/hr, but another bottleneck will occur at the separator stage it cannot process 375dryberries + 1000wet berries/hr. Thus, it is ideal to buy just one more dryer. 3. Dry holding...
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...National Cranberry Cooperative 1. Analyze the current process. Please see the Excel file. 2. On a busy day, what is RP#1’s current maximum throughput rate? The separator line could process up to 450 bbls/hr. instead of 400 bbls/hr. The other bottleneck for this question is dryer process. So the maximum throughput rate should be: 600+450=1050 bbls/hr. 3. Assuming that processing starts 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. Demand rate=18000 bbls/12hr.=1500bbls/hr. 7:00 p.m. trucks stop coming TOTAL INVENTORY = (450*12) bbls =5400 bbls EMPTY=5400/600=9 hr. 9+7:00P.M. =4:00A.M. BIN INVENTORY=3200 bbls (12-7)= 5 (450/75)=6 5*6=30trucks TRUCK INVENTORY=30*75=2250 bbls 4. What are the possible capital investments considered by NCC? One of the possible capital investments considered by NCC was to buy some new equipment. NCC’s overtime costs were out of control and the growers were upset that their trucks and drivers had to spend so much time waiting to unload process fruit into the receiving plant. Will Walliston, the superintendent, thought that the way to avoid these problems was to increase their capacity by buying new equipment. However, in order to buy new equipment it was very important to move quickly since the purchasing and installation lead times are in excess of six months. Another possible capital...
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...one peak day: 18340bbls x 70% = 12838bbls processing rate: 600bbls/hr (bottle neck) total working hours = 12838bbls / 600bbls/hr = 21.4 hrs overtime = 21.4hrs - 12hrs = 9.4 hrs. (We found that two shifts can help with the situation, which means that the workers will work 16 hours a day (7am-3pm, and 3pm - 11pm). And in this scenario, overtime should be 21.4 hrs - 16hrs = 5.4hrs.) 6. Truck waiting We assume that trucks starts arriving at 7am, and we already knew the bottle neck will be the drying stage only for wet berries, so Inventory piled up rate = rate of wet berries needed to be processed - processing rate of bottle neck = 18340bbls x 70% / 12 hrs - 600bbls/hr = 1070bbls / hr - 600bbls / hr = 470bbls / hr (a barrel of cranberries weighs 100lbs) And we know bins #17 - #27 (total 11 bins) can hold 3200bbls, so we can get how long wet berries will be filled in the bins. 3200bbls / 470bbls/hr = 6.8 hrs, which means that trucks start waiting from 1:48pm. At the end of the day, we will have total inventory waiting to be processed: 470bbls/hr x 12 hrs= 5640bbls, out of which, 3200bbls will be in bins, and the rest 2440bbls will be in trucks. And it will take 2440bbls / 600bbls/hr = 4 hrs to empty...
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...Case Report: National Cranberry Cooperative Fill in your name in the header. Please read the Assignment Collaboration Guidelines in Course Syllabus: Collaboration between groups is not allowed; however, if you hear something from some other group, please give a reference. Below, write your answers to Questions 1-4 (on BB/Cases). Your analysis should be based on the assumptions listed in the Syllabus. 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. The idea is to answer the questions concisely. Double spacing is preferred, 1.5-line spacing is the minimum (consider the reader’s eye strain). 1. Analyze the current process. Using the process flow map (available on CTools) of the current process at Receiving Plant No.1, mark the capacity and utilization of each of the resources. Show the flows of wet and dry berries separately. First we receive 18,000 barrels over a 12 hour period which leads to a 1,500 bbl/ Hr, Then 75% of 1,500 total berries per hour equal 1,125 bbl/Hr and the remaining 25% or 375 bbl/Hr are dry berries. While our Dumper is holding a capacity of 3,000 bbl/Hr and utilizing only the 1,500 bbl/Hr we are receiving. Those berries would then split up in the dry and wet storage bins. Dry bins have a capacity of 4,000 bbl/Hr which is 16 bins holding 250 bbl/Hr each. Whereas the wet bins kept a storage capacity of 3,200 with 8 bins holding 250 bbl/Hr...
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...Case Analysis of National Cranberry Cooperative Team1. Report I. Summary <Process Flow Chart> <Operations> 1) Receiving and Testing ☞ RECEIVING * 243 trucks deliver 75 barrels(=7500 pounds) per truck on average * 75*243 = 18225 barrels (1822500 pounds) * Last truck arrived (1140min) – First truck arrived (411min) = 729min (=1140 - 411) → 729min/60 = 12.15hrs (Total receiving time) ∴ For 12.15hours, 243 trucks delivered 18225 barrels. NCC receives 1500barrels/hr. - Delivering 75 barrels per truck - Capacity at each Dumper = 75 (barrel/truck) * 6 (trucks/hr) = 450 barrels/hr : Total capacity of 5 dumpers = 450 (barrel/hr) * 5 (dupms) = 2250 barrels/hr 2) Dumping and Temporary Holding ☞ Dumping * After berries moving 5 Kiwanee Dumpers, they are dumped into one of five conveyers. ☞Temporary Holding * Berries are stored at one of 27 Temporary Holding Bines at 2nd step operation. Bin 1~24 : 250 barrels / Bin 25~27 : 400 barrels * Trucks require 5~10 minutes to empty the berries and leave, but when Bins are full, trucks should wait for 3hrs max. ☞Bins are emptied by dumping berries on conveyers at 1st step operation. * Bin 1~16 : 16 * 250 = 4000 barrels (Dry) * Bin 17~24 : 8 * 250 = 2000 barrels (wet / dry) * Bin 25~27 : 3 * 400 = 1200 barrels (wet) ∴ Total berries : 7200 barrels (=4000+2000+1200) Wet berries : min.1200 barrels ~ Max.3200 barrels ...
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...ational Cranberry Cooperative Please read the course pack item “National Cranberry Cooperative”. Consider the following case assumptions: A. All the processes (including Destone, Dechaff, and Dry) start from 7am. B. On an average “busy” day, there are 18,000 bbls delivered over 12-hour period (from 7am to 7pm). C. Wet berries are 70% of all berries. D. Holding bins 17-24 are dedicated to wet berries. E. Capacity of each of five dumpers is 600 bbl/hr. F. When holding bins for wet berries are full, the Kiwanee dumpers are not available to process wet berries, i.e., dumpers cannot temporarily store any wet berries. G. There are 20 peak days in one year, where there is truck waiting happened. H. Truck Drivers are paid by $18/hr Submitted questions: 1. Analyze the current process. [Using the process flow map, available in the Excel file associated with the assignment, of the current process at Receiving Plant #1, mark the capacity of each of the activities. Show the flows of wet and dry berries separately.] 2. On a busy day, what is RP#1’s current maximum throughput rate? 3. Assuming that processing starts 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. 4. What are the possible capital investments considered by NCC? 5. Quantify the costs and benefits for NCC’s investment for the fifth Kiwanee dumper in 1980. 6. Quantify the costs and benefits of “converting dry berry holding bins...
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...Marketing Communications | Syndicate assignment Case 1 Prius Launch: Harmony Installations 2011 Bronze | Media Innovation Case 2 Canon Eos Cameras: Photography beyond the still 2011 Silver | Consumer Electronics Case 3 Southwest Airlines: Grab your bag it’s on/ Bags fly free 2011 Gold | Transportation Case 4 Ocean Spray Cranberries: Straight from the Bog 2008 Gold | Renaissance 2011 Silver | Sustained Success Case 5 Sears: Don’t just go back. Arrive 2010 Gold | Retail¬ Case 1 Prius Launch: Harmony Installations 2011 Bronze | Media Innovation GET: Echo/Tech friendly minded people WHO: Are environmentally and technologically aware and enjoy innovation. TO: Think Prius is the car they should buy versus the car they want to own. See Prius as an Icon of progress. Encourage consumers to put a Prius in the mainstream consideration set. BY: Outlining that hybrid motoring is good for the environment, endorsing the idea of being proud to own a Prius. LIKE THIS: By highlighting the “harmony between man, nature and machine”. Happiness, Optimism, Pride, Imagination SUCCESS: Desired 20% increase in sales of Prius. Increase hybrid vehicle market share. Engage social media metrics. $4.5m in earned media desired through Solar flower installations/social media. Market/Commercial insight The reported market decline in the Automotive Industry for passenger cars has declined by 37% in FY2011. Financial modelling of passenger...
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...Here’s the problem, gang… We now that the bottleneck in the process is the Drying unit. Using the diagram, we can assess: 1. TPT is 19,000*.7 wet barrels/12 work hrs in work day = 1108 wet bbls per day 2. The dryer unit can process 600 bbls wet cranberries per day Looking at the process we know that there is a bottleneck at Drying unit: I. The capacity of the drying unit is 600 bbl /hr which is much lower than the required 1108 wet bbl/day we need. II. On an average day a total of 10,000 bbl is received out of which 7,000 bbl is wet. At an average processing rate of 600 bbl /hr it will take 11.67 hours to process. Assuming normal working day of 8 hours, there is an overtime of 3.67 hours for each member of the crew on each average working day. III. On a peak day a total of 19,000 bbl is received out of which 13,300 bbl is wet. At an average processing rate of 600 bbl /hr it will take 22.17 hours to process. Thus, there is an overtime of 14 hours. Lack of drying capacity is one of the major reasons for the increase in overtime cost. Another reason is the increase in percentage of wet cranberries. * Waiting time for trucks: Inventory build up = arrival rate – processing rate = 1108 bbl – 600 bbl = 508 bbl at this rate the wet bins will be filled in 3500/508 = 6.89 hours. At the end of the day (12 hours) there will be 450*12=5400 bbl in inventory. Out of this 3,500 bbl will be in bins and rest 1,300 bbl will be in trucks. It will take 1,300/600=2.17...
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...and the impact on prices and the profitability of individual producers that occurred in the cranberry industry in 2006-2007 resulting from the following facts: 1. Cranberries are no longer relegated to a Thanksgiving side dish. They can now be found in more than 2,000 products from muffin mix to soap. 2. Ocean Spray and other growers have unleashed a steady flow of new products, including new low-calorie drinks such as Diet Ocean Spray. The company has also introduced a line of “Grower’s Reserve” 100% natural juices, including a “Super Antioxidant” variety with blueberry, pomegranate, and cranberry juices. Last year Ocean Spray has its most successful year ever, posting $2 billion in revenue with 30% from outside the U.S. [1] Ocean Spray Cooperative has one of the great success stories in agricultural marketing cooperatives. Over the past 80 years the company has struggled in several industry dynamics, pricing, supply, demand issues, and macroeconomic factors but has overcome and be a leader in manufacturing and agricultural products. Cultivated cranberry production can be traced back to the 1800’s when Henry Hull, a ship captain based in Cape Cod notices that wild cranberries flourished when sand blew over them. he transplanted vines to what he called “cranberry yards” and manually spread sand to encourage growth. This practice proved successful, and by the 1850s, cranberry production had expanded both on the Cape and into neighboring Plymouth County. The success...
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...National Cranberry Cooperative Case Study 1. How might transport vehicles be utilized more effectively? Should crews be scheduled differently on peak days? More crews should be scheduled in the bagging station during peak days The fourth bagging station should be utilized during peak hours (instead of just three of the four being used at a given time) An additional 2,667 bbls per 12-hour period could be processed with these changes At receiving plant no. 1 (RP1), trucks would arrive randomly throughout the day, with a random amount of berries, anywhere from 20 to 400 bbls. In order to utilize transport vehicles more effectively, there should be crews scheduled differently on peak days. It only takes 5 to 10 minutes to unload a truck into a Kiwanne dumper, but the backup would occur when the holding bins were full, causing drivers to have waits up to 3 hours. The backup is not occurring in receiving, so now additional crews are necessary at that station. All feed conveyors are in use during peak times so no new crews need to be added there. However, there seems to be a backup occurring in the bagging station. Instead of keeping the fourth bagging machine as a spare, they should add another five-member team to operate the fourth bagging machine during peak hours. This would result in an additional 2,667 bbls per 12-hour period, or a total of 10,667 bbls per 12-hour period. The additional crews and adding of a bagging station would reduce the number of berries that...
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