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NCC Netflix Solutions
4/3/2012

Operations Management

National Cranberry Cooperative
Case Objectives: Process
P
A
Analysis
l i &C
Capacity
it
Planning
~ Flow Diagram
~ Bottleneck Analysis
~ Little’s Law
~ Utilization Profile
~ Inventory Build-Up diagram
~ Analysis of Possible Investments

1

Dry berries bbl/hr Trucks in
Queue

Wet berries bbl/hr Kiwanee Dumpers
C=

U=

Bins 1-16 storage =

C=

Bins 17-27 storage =

Destoners
U=
Dechaffers
C=

U=
Dryers
C=

U=

Separators
C=

U=

Bulk and Bag
2

1

4/3/2012

Operations Management

Capacity and Utilization Analysis
Operation Capacity

Utilization

Dumpers

1 truck/7 truck/7.5 5 min = 75 bbl/7 bbl/7.5 5 min × 60 min/hr = 600 bbl/hr 1440/3000 = 48%
5 × 600 bbl/hr = 3000 bbl/hr

Storage
Bins

Dry: 16 × 250 bbl = 4000 bbl
Wet: 8 × 250 bbl + 3 × 400 bbl = 3200 bbl

To be determined by buildup analysis

Destoners
(dry only)

3 × 1500 bbl/hr = 4500 bbl/hr

360/4500 = 8%

Dry: 1 × 1500 bbl/hr = 1500 bbl/hr
Wet: 2 × 1500 bbl/hr = 3000 bbl/hr
Wet

Dry: 360/1500 = 24%
Wet 1080/3000 = 36%
Wet:

3 × 200 bbl/hr = 600 bbl/hr

1080/600 = 180%

Dechaffers
Dryers
(wet only)
Separators

1440/1200 = 120%

3 × 400 bbl/hr = 1200 bbl/hr

(360+600)/1200 = 80%
Implied vs. actual utilization

17,280 bbl/day ÷ 12 hr/day = 1,440 bbl/hr

Operations Management

Trucks in
Queue

Dry berries
0.25(1440)=360 bbl/hr

3

Wet berries
0.75(1440)=1080 bbl/hr

Kiwanee Dumpers
C = 3000 bbl/hr
Bins 1-16 storage =

U = 48%
Bins 17-27 storage =

4000 bbl

3200 bbl

Destoners
C = 4500 bbl/hr
U = 8%
Dechaffers
C = 1500 bbl/hr (dry), 3000 bbl/hr (wet) U = 24% (dry) 36% (wet)
Dryers
C = 600 bbl/hr

U = 180%

Separators
C = 1200 bbl/hr

U = 120%

Bulk and Bag
4

2

4/3/2012

Operations Management

Base Case
Inventory Buildup Diagram
7000
Truck Inventory
6000

Total Inventory
Wet Bin Inventory

Inventories

5000

4000

3000

2000

1000

0
7:00

9:00 11:00 13:00 15:00 17:00 19:00 21:00 23:00 1:00

3:00

5:00

7:00

Time

Base Case

5

Operations
Buildup Rate = 1080-600=480
bbl/hr
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