1. Develop a process flow diagram for processing cranberries (both wet and dry). Show the capacities at the different stages.

No Yes

5 Dumpsters 3000 bbls/hr

4000 bbls 1200 bbls 2000 bbls

3 units 4500 bbls/hr Dry 3 units Wet 4500 bbls/hr

3 units 450 to 600 bbls/hr 1200 bbls/hr

Term Papers and Free Essays 3 units 4 units 2 units 667 bbls/hr 800 bbls/hr 2000 bbls/hr

2. What are the sources of variability affecting NCC's operations?
NCC is influenced by a number of possible variables. As mentioned the in the case, the trucks arrive to the Receiving Pant 1 randomly. In harvest-season day, the growers pick and transit berries to NCC randomly. As the number of berries being collected per day varies, the number of trucks that come to plant to dump them varies as well. The ratio of wet to dry harvested berries received significantly influences the whole operating cycle as the processing flow and capacities at each step is different for wet and dry berries. It is important to note that some of the processes are the same for both types of berries. As drying process is the bottleneck in the overall end to end process, the number of delivered / dumped wet harvested berries will increase the waiting time for trucks. Another variability exists in the grading process. As berries are graded on the scale from 1-3 by the chief berry receiver, 3 being the best color, a 50 cent premium is paid for No. 3 berries. At last, the quality of berries was graded according to colors by the chief receivers. The chief receiver cannot identify the best quality and the B2 grade, and it make NCC lose the 50 cents premium have paid for the A grade berry. If the berry grading was between 2B and 3, the chief berry receiver chose No. 3. The issue is that when the berries were used, it was found that only about half of them were No.3. As a result, NCC unnecessary lost some of the premium that could have saved. Variability in deliveries of berries that are between grades 2B and 3 will result in bigger losses. Lastly, absenteeism is another major variable affectin NCC operation. Unpredictable absenteeism forces the plant to carry more employees on the payroll than needed. If the absenteeism is higher, than the plant would have to pay more in overtime, which was paid at 1.5 times of regular hourly wage. More overtime further dilutes bottom line profits.
3. Suppose that a peak harvest-season day involves 18,000 barrels of berries, 70% of them wet harvested, arriving unifornly over a twelve-hour period from 7 a.m. to 7 p.m. Would trucks have to wait to unload? When during the day would trucks be waiting? How much truck waiting time would you expect? What is the maximum number of trucks waiting during the day?
70% of machine's capacities are allocated to wet harvesting processing and 30% to dry.
18000*70%= 12600 bbls/day, and 12600/12=1050 bbls/hr.
18000*30%= 5400 bbl/day, and 5400/12= 450 bbls/hr.
Berries will arrive at a rate of 1,500 bbls/hr. We can see that every hour there is 450 bbls in holding bins. Bins will get completely full ager 7 hours = 3200/450. Based on 7 AM start, by 2PM trucks begin to wait as the bins are full. As trucks continue to deliver berries until 7 PM, 5400 bbls will be held before the drying process (1050-600)*12. After 3.67 hours (5400-3200)/600, all trucks will finally dump the last berry into the dumpster. At this point we are looking at 10:40 PM. Total waiting time = 10:40PM - 2 PM= 8.67 hours. Total waiting time = (8.67*(2200/2))/75=127 hours.

4. If it costs $20 per hour to rent a truck and driver, how much money is spent by truck waiting on a peak day?
Average waiting time = (5400-3200)*(8.67/2)/(75*243*70%) = 0.75 hrs = 45 minutes
$20 / 60min = 33 cents a minute
Money spent by truck waiting on that day = 33 cents / min *45 min = $15

5. Is the investment in a light meter system a good option?
50 cent premium was paid on 450000 barrels in 1970.
225000*$0.50 = $112,500