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National Cranberry Cooperative

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by

Laura Eufrasio

on 6 November 2013

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Transcript of National Cranberry Cooperative

National Cranberry Cooperative
Background
This case analyzes the process at RP1, a cranberry plant.
National Cranberry Cooperative is owned by farmers
Peak season for harvesting is between September 1- early December
There are two types of harvests: wet & dry
It's anticipated that wet harvests will account for 70% of the crop in 1971
Amit, Jamie, Jiaxin, John, Kyle, Laura, Liane & Tiger
Problems: Bottleneck and more...
There are several problems in this case that we identified:
Overtime costs for workers
Bottleneck to unload fruit at process plant
Inefficient grading process
Inefficient start times for workers
Agenda
Case Background - Kyle
Capacity of RP1 - Kyle
Process Flow - John
Assumptions- Laura
Problem- Laura
Truck Wait Time - Jamie
Analysis - Tiger, Jiaxin & Liane
Short and Long Term Recommendation - Amit
Process Flow
Case Assumptions
The dryers process all wet berries at 200 bbl/hr.

The effective capacity of each separator line is 400 bbl/hr.

There is one dechaffing machine solely for dry berries and two dechaffing machines solely for wet berries.

The travel time between any two processing operations is negligible, and that there is no storage except in bins and on trucks.

Problem
Bottleneck: Occurs when...
- Trucks waiting to unload (as shown as point in flow chart)
- Bin space for wet cranberries
- Dryers for wet cranberries
Problem Summary
National Cranberry Cooperative needs to find a way to create efficiencies for the production of cranberries during the peaks in production, otherwise a bottleneck will occur, causing delays and increased overtime costs.
All in a day's work...
Estimate the number of hours the plant must operate to complete one day’s work.
19,000 bbl to be processed and 70% wet.
Evenly spaced arrivals starting 7am for 11 hours
Processing starts at 7am

Implement a truck schedule for deliveries
Increase # of holding bins for water harvested cranberries
Install a new light grading system and hire a full-time operator
Short Term Recommendations
Implementation of 2 new dryers and temporary storage space to reduce truck wait time to 0-20 minutes

Turn RP1 into a revenue maker in the off-harvest season

Decrease the number of full time workers and increase the seasonal workers
Long Term Recommendation
Trucks Waiting
Wet Berry Arrival Rate
(19,000/11) * 70% = 1209 bbl/hr
Wet Berry Process rate for the drying unit
600 bbl/hr
Excess Inventory = arrival rate – processing rate
609 bbl = 1209 bbl – 600 bbl
Wet Berry only Bins 25-27, Capacity of 1200 (400 bbl per bin)
Wet or Dry Berry Bins 17-24, Capacity of 2000 (250 bbl per bin)
Wet berry bins will be filled after 5.25 hours
3200/609= 5.25 (12:15 pm)


Questions?
Capacity of RP1
Statistical Fluctuations
Timing of the truck deliveries and # of bbls (average of 75 bbl, range of 20 to 400)
Ratio of wet to dry harvests (increasingly wet)
Varying quality of cranberries received (three different grades)
Difficult to manage work schedules and shifts; overtime variability
High and varying volumes of waste

Process Flow
Product transfer to holding bins, destoning, dechaffing, drying, and separating

Resource utilization remains poor for both equipments and workers
Process improvement needed.
Future direction
Bottleneck is dryer capacity (600 barrels per hour)
Wet berries: 70% x 19,000= 13,300 barrels.
In one day, it would take 13,300/600 = 22 hours to complete process 19,000 barrels.


Calculation: As Is process
Plan A: better schedule to reduce truck wait time to 0-1 hour
Plan B: better schedule and investment on temporary storage space to reduce truck wait time to 0-20 minutes
Plan C: Plan B + 2 new dryers
Performance improvement
Process Flow
Product separation, milling, quality, bagging, and bulk loading
National Cranberry Cooperative
Chokepoint
Process Flow
Product transfer to holding bins, destoning, dechaffing, drying, and separating
National Cranberry Cooperative
National Cranberry Cooperative

Chokepoint

Process Flow
Harvesting, shipping, and receiving inbound raw material

Chokepoint
Utilization of Process
Bin backlog & Trucks waiting Tracking
3 Dryers @ 200bbl/hr = 600 bbl/hr
Full transcript