The Kristen's Cookie Case provides an introduction to process analysis in a simple entrepreneurial context. We shall learn about key concepts and tools for process analysis in this case.In this exercise, there are 14 questions and sub-questions. Each is worth 1 point.

You may want to draw a process flow diagram to help your analysis of the case.

Unless noted otherwise in the questions, we assume that each order is one dozen cookies.

Question:

1. What is the product concept? What is the company selling?

Answer:

Question:

2. Who are the targeted customers?

Answer:

Question:

3. Based on your answers to Questions 1 and 2, what key process attributes are the priority for the success of Kristen's business?

Answer:

Question:

4. Based on your answers to Questions 1-3, do you think the business concept of Kristen's Cookie Company is a good one? If Kristen comes to you for initial investment in her company, are you willing to put down money?

Answer:

Question:

5. How long will it take you (you are Kristen from now on) to fill a rush order?

Answer:

Question:

6. How many electric mixers and baking trays will you need?

6a. Electric mixers:

Answer:

Question:

6.b Baking trays:

Answer:

Question:

7. What is the bottleneck resource in your production process?

Answer:

Question:

8. How many orders can you fill in a night, assuming you are open four hours each night?

Answer:

Question:

9. How much of your own and your roommate's valuable time will it take to fill each order?

9.a My time [minutes]:

Answer:

Question:

9.b Roommate's [minutes]:

Answer:

Question:

10. Because your baking trays can hold exactly one dozen cookies, you will produce and sell cookies by the dozen. Should you give any discount for people who order two dozen cookies, three dozen cookies, or more? Assume each order consists of cookies of the same ingredients.

Answer:

Question:

11. How much longerwill it take you to fill a two-dozen cookie order compared to filling a one-dozen cookie order?

Answer:

Question:

12. Assuming the profit margin for a dozen of cookies is $3. What is the maximum amount you are willing to pay to rent an additional oven for an hour?

Answer: