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Practice Question.., Operation Management

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4. (32 points) You and your roommate are planning to open “Pizza In The Dorm” to make and distribute fresh pizza from your dorm room. You plan to provide 100% fresh, high quality pizza on a timely basis. You and your roommate will provide all the labor for the process. As currently planned your roommate would take orders over the phone, which would take 1 minute. Orders would specify the type of pizza, thin or thick crust, and the fillings to be put on top. Once the order is received, you would prepare and hand toss the dough into a circle, which takes approximately 3 minutes and then you would spread the tomato sauce and cheese, which takes 1 minute. While you are doing this, your roommate will pick the fillings, which takes 2 minutes and clean and chop the fillings, which takes 4 minutes. When the fillings and crust are ready you will spread the fillings on top of the cheese, which takes 2 minutes. You then load the oven and set the timer, which takes 1 minute. Thin crust pizzas bake for a 6 minutes (total of 7 including the setting and loading of the oven) while thick crust pizzas take two minutes more than the thin crust pizzas. Your roommate unloads the pizza, which takes 1 minute and puts it in a box, which takes 1 minute more. Your roommate is responsible for accepting payment and delivering the pizza, which takes 2 minute per pizza.

You expect that 35% of the pizzas will be for cheese only (no fillings) and that 75% will be thin crust.

For the following questions there are 3 critical resources. They are 1) your time, 2) roommate’s time and 3) the oven. Show all work to two decimal places.

a) Draw a process flow diagram for the process. Include processing times for each process, critical resources for each process and all buffers.

b) What is the theoretical flow time for an average pizza? Show your work.

c) Show the capacity calculations for the process.

d) What is the capacity of the process?

e) Assume that you decide to be cross-trained so that either you or your roommate can do any task in the process. Redo the capacity calculations.

f) With cross training what is the new theoretical flow time?

g) Assume you wish to increase capacity even further. What do you need to do?

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