[생산관리] National Cranberry Cooperative(NCC)

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2013.02.27 / 2019.12.24
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목차: 1. Summary

2. In the current flow of the process, identify the bottleneck area(s). What are the causes? What recommendations, both short-term and long-term, would you make to solve the bottleneck problem?

3. Creative Ideas

본문내용: 1. Summary
National Cranberry Cooperative (NCC) was an organization formed and owned by growers of cranberries to process and markets their berries. In recent years 99% of all sales of cranberries were made by the corporation.
In 1971, Hugo Schaeffer, vice president of operations of NCC, was worried about the problem of overtime costs and truck queue. To solve these problems, Will Walliston, the superintendent, suggested buying and installing two new dryers and convert the bins for dry berries so that they can hold both water harvested and dry berries.
About this case, we went through a procedure to get the best solution regarding adding new dryers and converting bins. Moreover, we discussed our own creative solutions considering the trend of increasing water harvested berries.

2. In the current flow of the process, identify the bottleneck area(s). What are the causes? What recommendations, both short-term and long-term, would you make to solve the bottleneck problem?
The bottleneck area in the process is drying. There are about 19,000bbls go through the process (average 75bbls * 243 trucks). Among them, 13,330bbls are wet berries (70% of total processed berries), which should go through drying process. However, the capacity of drying is only 600bbls per hour, the lowest capacity in the process. In other words we need 22.2hr to process all the berries (13,330/600 = 22.2). But, the regular time is only 11hr per day so over time cost for 11.2hr occurs. Therefore, we need more bins to hold the berries waiting to be dried. In current process we can hold 3200bbls temporarily at max (8bins * @250bbls/hr + 3bins * @400bbls/hr). Nevertheless, the amount of berries waiting to be dried are 6,710bbls ((13,330/11 - 600) * 11). About 3,510bbls are waiting to be unloaded in the truck (6,710bbls - 3200bbls). So, 46.8 trucks are waiting (3,510bbls / 75bbls). And 5.85hr are needed to completely empty all the trucks that are waiting (3,510 / 600). 5.33hr are needed to empty the bins (3200 / 600). According to this, total over time is 11.18hr and total processing time is 22.18hr. Therefore, truck queue occurs and overall productivity decreases.

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