Evaluate the cost-benefit analysis with corresponding roi

Question

1. Bottleneck Analysis

Do a ‘quick and rough' capacity analysis. Assume the following in your analysis -

a) Average time to unload a truck = 7.5 minutes

b) Do not let the description of the quality grading (also called separation) stage confuse you. Assume that the three separator lines each can separate about 400 bbls. per hour.

c) Assume that the split between dry and wet berries is a 70:30 ratio split to reflect the percentage of wet berries (70%) expected in 1981.

d) Shared resources capacities can be reallocated as necessary between dry and wet berries with little or no changeover time.

e) Actual processing time of berries is very short.

f) Bulking and bagging capacity is more than adequate.

Consider the minimum and maximum capacities at each stage to analyze the boundary conditions. What are the bottlenecks for dry and wet berry processing? What are the capacities (in barrels per hour) for dry and wet berry processing?

2. If you were to assist Mel O'Brien, what would be your recommendations to Mel? What do you think of the decision last winter to buy a fifth Kiwanee dumper?

You may find it useful to consider a day when 18,000 barrels of berries (both Dry and Wet Berries) arrive in trucks between 7 a.m. and 7 p.m. at a constant hourly rate (1,500 barrels/hour). As you know, 70% of the berries are wet.

3. Evaluate the cost-benefit analysis with corresponding ROI numbers for additional investments to capacity, if needed. Consider all possible options across the various stages in the operation.

Article: National Cranberry Cooperative, 1996

Answer 1

For the task illustrated below, consider the minimum and maximum capacities at each phase to examine the boundary conditions. Q1. Determine the bottlenecks for dry and wet berry processing? Describe the capacities (in barrels per hour) for the dry and wet berry processing? Q2. If you were to help Mel O'Brien, what would be your proposals to Mel? Illustrate what do you think of the decision last winter to purchase a fifth Kewanee dumper? You might find it helpful to consider a day whenever 18,000 barrels of berries (that is, both Dry and Wet Berries) arrive in trucks between 7 a.m. and 7 p.m. at a constant hourly rate (that is, 1,500 barrels/hour). As you are familiar with, 70% of the berries are wet. Q3. Assess the cost-benefit analysis by means of corresponding ROI numbers for extra investments to capacity, if required. Consider all the possible options across different phases in the operation.