National Cranberry Cooperative Essay
NATIONAL CRANBERRY CO-OPERATIVE CASE STUDY * Nishi Sharma
In 1971, National Cranberry Cooperative faced recurring operational problems that affected the productivity and relationship of NCC to growers. This analysis will discuss how NCC can improve its operation before the peak-season comes in. The analysis was based from facts cited in the case, using tools such as but not limited to process flow diagram, cost, benefit and utilization analysis, and work-force scheduling. The author recommends solution that will not just improve NCC's operations but will also increase plant's capacity and decrease its cost thereby leading to long-term savings for the growers. Problem Statement/Key Issues This case analysis will investigate two primary …show more content…
• We have not considered per hour operating cost of plant
• Overtime for both regular and part time worker has been taken to be $ 6.50 per hour.
• In calculating the payback time, the same cost saving will occur every day.
It is given in case that wet berries will make 70 % of total berries and that normal running hours for plant is 11 (12-1) hours.
Case 1: 10000 bbl/day
Wet Berries (WB) ( 7000 bbl/day
Dry Berries (DB) ( 3000bbl/day
Total Time = 11 Hrs
WB feed=7000/11 = 637 bbl/hr
DB feed= 3000/11 = 273 bbl/hr
Minimum processing rate for WB is at dryers, which is = 600 bbl/hr
Minimum processing rate for DB is = 1500 bbl/hr
Hence, after 11 hours total accumulation of WB = (637-600)*11 = 407 bbl
Overtime = 407/600 = 0.7 hrs
Now, assuming this is not a peak season, we have considered only 27 workers. Since plant is working suboptimal level during overtime , only two-third of the work force will be working on wet berries drying process.
=2/3 work force
= 20*(2/3)
= 12
Savings per day = 12 * 6.5=
In 1971, National Cranberry Cooperative faced recurring operational problems that affected the productivity and relationship of NCC to growers. This analysis will discuss how NCC can improve its operation before the peak-season comes in. The analysis was based from facts cited in the case, using tools such as but not limited to process flow diagram, cost, benefit and utilization analysis, and work-force scheduling. The author recommends solution that will not just improve NCC's operations but will also increase plant's capacity and decrease its cost thereby leading to long-term savings for the growers. Problem Statement/Key Issues This case analysis will investigate two primary …show more content…
• We have not considered per hour operating cost of plant
• Overtime for both regular and part time worker has been taken to be $ 6.50 per hour.
• In calculating the payback time, the same cost saving will occur every day.
It is given in case that wet berries will make 70 % of total berries and that normal running hours for plant is 11 (12-1) hours.
Case 1: 10000 bbl/day
Wet Berries (WB) ( 7000 bbl/day
Dry Berries (DB) ( 3000bbl/day
Total Time = 11 Hrs
WB feed=7000/11 = 637 bbl/hr
DB feed= 3000/11 = 273 bbl/hr
Minimum processing rate for WB is at dryers, which is = 600 bbl/hr
Minimum processing rate for DB is = 1500 bbl/hr
Hence, after 11 hours total accumulation of WB = (637-600)*11 = 407 bbl
Overtime = 407/600 = 0.7 hrs
Now, assuming this is not a peak season, we have considered only 27 workers. Since plant is working suboptimal level during overtime , only two-third of the work force will be working on wet berries drying process.
=2/3 work force
= 20*(2/3)
= 12
Savings per day = 12 * 6.5=