The problems that The National Cranberry Cooperative is facing with are described in the table below. Mostly they are related to the problem of capacity.
Problem | Implications | Presence of bottlenecks in the stages of drying and separating of berries. | Excessive overtime costs. | | Overcapacities in other stages of processing of berries. |
2. Process Flow Diagram
From 8-10 min to few hours
400*3= 1200 bbls/h
1500*3 = 4500 bbls/h
1500 bbls/h
Separators
Dry bins 1-16-(24)
Dry
Delivery
Dechaffing
Destoning
Wet Bins (17)-25-27
Wet Delivery
Dechaffing
Drying
Sorting & Shipping
200*3 = 600 bbls/h
1500*2 = 3000 bbls/h
From 8-10 min to …show more content…
According to the data provided, there is 50 % of incoming berries which were wet harvested. In the absolute terms, this amounts to 750 bbls/h. The three drying machines can only handle 600 bbls/h altogether, meaning that 150 bbls of berries have to be stored in the bins each hour while waiting for the drying process. The second bottleneck is “located” at the separators. The three separating lines have the capacity to separate 1200 bbls/h, while there are 1350 bbls/h ready to be separated. Therefore, 150 bbls of dry berries have to be stores each …show more content…
That is not all – the addition of a new separator would also most likely necessitate additional pairs of hands, thus also bringing along additional wage costs.
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Proposal: Employ workers in high season for the »3rd shift« (from 7pm to 11pm)
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Costs: $32 per worker per day
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Benefits: The company could hire additional workers only for the 4 overtime working hours from 7 PM until 11 PM. These workers would be employed only for 3 months, during the high season. Employing seasonal workers instead of suggesting full-year employees to work overtime would save $5 per hour per worker.
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Limitations: We suggest that the company pays the additional workers $8 per hour, as they them in the receiving plant and harvesting jobs. We assume that the dryer units need one employee, so the cost for one additional worker would be $32 per