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National Cranberry Cooperative

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Sarah Fulton

on 3 March 2011

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Transcript of National Cranberry Cooperative

National Cranberry Cooperative Team 10 Jack Clifford
Sarah Fulton
Toni Gammello
Tina Gromadzki
Tyler Huhn Case Background NCC is cooperative owned by growers
Peak season runs September 1 - December 15
Water harvesting vs. Dry harvesting
Water harvested berries are expected to increase from 58% to 70%. Process Flow Assumptions Percentage of wet cranberries will continue to rise
For all calculations we used the 70/30 ratio
Trucks currently are not given time tables
1980 data is sufficient to make predictions for the following season
Where specific data was unavailable, averages were used.
Every berry must go into temporary holding bins before entering the dechaffing and destoning units Example How Does this Affect Truck Waiting Time? Sample example from 1980
Bins become full after 3200 barrels arrive
Dumpers become full at 3000 barrels
If in the last 2 hours, bins and dumpers have reached capacity and the next trucks in line have 400, 400, and 200 barrels respectively:
Truck 1
Wait = 400/600=.6677*60 minutes = 40 minutes - 7.5 min
average weighing time = 32.5 minutes before moving
Truck 2
Wait = 40 minutes + 32.5 minutes = 1 hour and 20 minutes
Truck 3
Wait = 40 min + 40 min = (200/600=.33*60 =20min -
7.5min - 1 hour and 30 min)
Total wait truck 3 = 1 hour and 30 min
Wait time compounds as dryer cannot catch up Overtime Costs Max: 12,000 hrs x $9.75 = $117,000
Min: 12,000 hrs x $6.00 = $72,000 Why so high?
Length of time to process berries
How long to operate plant/schedule workers
Drying Capacity: 600 bbls/hr
Work Day: 8 hours
18,000 = 13 hours
12,000 = 6 hours Inaccurate Grading Numbers 1, 2A, 2B, 3
Number 3: $.75 premium
450,000 bbls of Number 3
50% were actually #3 quality (450,000 x .75)/2 = $168,750 Implementation Short Term Mid Term Long Term Begin dechaffing at 7 am
Schedule Truck Arrival Times 1978: Cranberry Marketing Order
Total deliveries of the process berries in 1980: 610,185 barrels
Normal deliveries per truck: Scheduling Trucks 20-400 barrels
Average: 75 barrels 610,185 barrels/75 barrels = 8,136 truck loads each season Scheduling Trucks 5-10 minutes to dump berries onto Kiwanee dumper
Average: 7.5 minutes
(8 hours * 60 min)/7.5 min = 64 trucks per dumper per day
64 trucks * 5 dumpers = 320 trucks per day
40 trucks per hour can therefore
be scheduled Purchase 2 additional dryers - $80,000 History of Cranberry Production Improvements to Bottleneck Current Drying Rate: 600 bbls/hr
Peak day backup: 14.03 hours
Slow day backup: 5.75 hours
New Drying Rate: 840 bbls/hr
Peak day backup: 7.73 hours
Slow day backup: 1.82 hours Light Meter System Find use for RP1 during cranberry off-season
Possible Crops: Cherries
Blueberries
Peaches
Rhubarb
Peas
Strawberries
Sweet Onion Questions? Problem Statement NCC needs to modify its operational format to streamline the processing of cranberries during peak season. 1. Overtime costs
2. Inaccurate grading
3. Inefficient processing start time
4. Truck waiting times Backlog Occurs once the wet holding bins are full.
3200 bbls
Backs up into Kiwanee dumpers Agenda Case Background
Process Flow
Assumptions
Analysis
Problem
Issues
Implementation Reduces truck waiting times
Reduces overtime costs
Reduces backlog in the dryers Benefits 1980 peak season max barrels for one day was 18,879
Wet berries: 70% x 18879 = 13,215
Dryers process 600 berries per hour
In one day, it would take:
13215/600 = 22 hours to process all the barrels Inefficient Processing Start Time
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