Read Kristen's Cookie case $($below$)$ and answer the following questions:

Q$1.$ Briefly state the criticalcustomer, value prop, competitive priorities, and key capabilities.

$$ Assess your fit

$$

Q$2.$ Draw a complete flow diagram for fulfilling an order.

$$ Do not omit any activity

$$ Do not combine any two $($or more$)$ activities

$$ Place triangles between activities only when it makes sense

Q$3.$ How long will it take to fill a rush order?

$$ Assume order is for $1$ dozen

$$ Rush $=$ clear all work in process, start a new batch, and finish it ASAP.

Q$4.$ How many orders can you fill in a night, assuming you are open exactly four hours each night?

$$ Write down your thoughts.

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Kristin's Cookies

You and your roommate are preparing to start Kristen's Cookie Company in your on$-$campus apartment. The company will

provide fresh cookies to starving students late at night. You need to evaluate the preliminary design for the company's

production process to figure out many variables there are, including what prices to charge, whether you will be able to make a

profit, and how many orders to accept.

Business Concept

Your idea is to bake fresh cookies to order, using any combination of ingredients that the buyer wants. The cookies will be

ready for pickup at your apartment within an hour. Several factors will set you apart from competing products such as

store$-$bought cookies. First, your cookies will be completely fresh. You will not bake any cookies before receiving the order;

therefore, the buyer will be getting cookies that are literally hot out of the oven.

Second, like Steve's Ice Cream, 'you will have a variety of ingredients available to add to the basic dough, including chocolate

chips, M&M$\text{'}$s$,$ Crispy Crunch bars, coconut, walnuts, and raisins. Buyers will telephone in their orders and specify which of

these ingredients they want in their cookies. You guarantee completely fresh cookies. In short, you will have the

freshest, most exotic cookies anywhere, available right on campus.

The Production Process

Baking cookies is simple: mix all the ingredients in a food processor; spoon out the cookie dough onto a tray; put the cookies into the oven; bake them; take the tray of cookies out of the oven: let the cookies cool; and, finally, take the cookies off the tray and carefully pack them in a box. You and your roommate already own all the necessary capital equipment: one food processor, cookie sheets, and spoons. Your apartment has a small oven that will hold one tray at a time. Your landlord pays for all the electricity. The variable costs, therefore, are merely the cost of the ingredients $($estimated to be $$0\mathrm{.}60/$dozen$),$ the cost of the box in which the cookies are packed $($ $$0\mathrm{.}10$ per box: each box holds a dozen cookies$),$ and your time $($what value do you place on your time?$).$

A detailed examination of the production process, which specifies how long each of the steps will take, follows. The first step is to take an order, which your roommate has figured out how to do quickly and with $100$ percent accuracy. $($Actually$,$ you and your roommate devised a method using the Internet to accept orders and to inform customers when their orders will be ready for pickup. Because this runs automatically on your personal computer, it does not take any of your time.$)$ Therefore, this step will be ignored in further analysis.

You and your roommate have timed the necessary physical operations. The first physical production step is to wash out the mixing bowl from the previous batch, add all of the ingredients, and mix them in your food processor. The mixing bowls hold ingredients for up to three dozen cookies. You then dish up the cookies, one dozen at a time, onto a cookie tray. These activities take six minutes for the washing and mixing steps, regardless of how many cookies are being made in the batch. That is$,$ to mix enough dough and ingredients for two dozen cookies takes the same six minutes as one dozen cookies. However, dishing up the cookies onto the sheet takes two minutes per sheet.

The next step. performed by your roommate, is to put the cookies in the oven and set the thermostat and timer, which takes about one minute. The cookies bake for the next nine minutes. So total baking time is $10$ minutes, during the first minute of which your roommate is busy setting the oven. Because the oven holds only one cookic sheet, a second dozen take an additional $10$ minutes to bake.

Your roommate also performs the last steps of the process by first removing the cookies from the oven and putting them aside to cool for five minutes, then carefully packing them in a box and accepting payment. Removing the cookies from the oven takes only a negligible amount of time, but it must be done promptly. It takes two minutes to pack each dozen and about one minute to accept payment for the order.

That is the process for producing cookies by the dozen in Kristen's Cookie Company. As experienced bakers know,