Ncc Case Essay

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Pages: 6

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National Cranberry Cooperative

Ques 1: Draw a detailed process flow map of the current process at receiving Plant#1. What is the capacity of each operation in the process?

Refer to the power point presentation. 2. What is the maximum long-term achievable throughput rate of receiving Plant 1? What factors affect this throughput rate?

The Truck arrival rate is at 20 Trucks/Hr. This year based on the numbers there is going to be 70% Wet and 30% Dry Berries.
Dried Berries:
Throughput rate = 30% of 20 Trucks = 6 truck (dried)/hr @ 75 bbls = 450bbls/hr Wet Berries:
Current Throughput rate possible = 600 bbls/hr or 8 Trucks/hr (Bottleneck)
Since 70% of 20 Trucks implies 14 Trucks/hr, we can expect the maximum long-term …show more content…
Keeping the Start time as 11.00 AM for the plant processing, analyzing the situation Time | No of trucks in waiting | waiting in bins | waiting in truck + bins | 7:00 AM | 0 | 14 | 14 | 8 | 0 | 28 | 28 | 9 | 0 | 42 | 42 | 10:00 AM | 0 | 56 | 56 | 11 | 0 | 57 | 57 | 12 | 0 | 58 | 58 | 1 | 0 | 59 | 59 | 2 | 0 | 60 | 60 | 3 | 0 | 61 | 61 | 4 | 0 | 62 | 62 | 5 | 0 | 63 | 63 | 6 | 0 | 64 | 64 | 7:00 PM | 0 | 51 | 51 | 8 | 0 | 38 | 38 | 9 | 0 | 25 | 25 | 10 | 0 | 12 | 12 | 11 | 0 | 0 | 0 | 12 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 2:00 AM | 0 | 0 | 0 | 3 | 0 | 0 | 0 | 4 | 0 | 0 | 0 | 5 | 0 | 0 | 0 | 6:00 AM | 0 | 0 | 0 |

By increasing capacity dollar savings will be (delays previously cost the company): $6624/day *20 days = $132480
In addition they will also save on overtime by working 3 hours less every evening due to increased capacity: 8 workers * 3 hours * 20 days * 1.5 * $2.25( min salary) =$1620
Therefore we get, total savings = $134100
Cost of new equipments = 2*$10000 (dryers) + 10*$2000 = $40000

We get, cost savings for current season = $134100-$40000 = $94100.
Therefore, it is recommended for NCC to purchase new dryers and holding bins and go with the same operating times of plant starting at 11.00

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