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Executive Shirts

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Submitted By Benerio
Words 2825
Pages 12
Prepared by: Executive Shirt Company Inc. March 22, 2012

Question 1: Compute the following quantities for the current production process as well as for Mike’s and Ike’s plans, assuming the plans are implemented as described in the case.

Cutting:
Time required = (90 mins + 30 mins) / (60 layers x 8 patterns) = 0.25 mins / shirt for 1 cutting machine.

(TABLE: CURRENT PRODUCTION PROCESS) Operation:Current Production Process | Regular Shirts Labor Content(mins/shirt) | Number of Workers | Time required =Labor content / # Workers(mins/worker/shirt) | 1. Make collar | 3.90 | 8 | 0.488 | 2. Make cuffs | 2.00 | 4 | 0.500 | 3. Make sleeves | 0.65 | 2 | 0.325 | 4. Make front | 2.50 | 6 | 0.410 | 5. Make back | 1.70 | 4 | 0.420 | 6. Join shoulders | 0.66 | 2 | 0.330 | 7. Attach collar | 1.65 | 4 | 0.410 | 8. Attach sleeves | 1.55 | 4 | 0.390 | 9. Stitch down sleeves | 0.65 | 2 | 0.320 | 10. Sew side seam | 1.80 | 4 | 0.450 | 11. Attach cuffs | 1.55 | 4 | 0.390 | 12. Hem bottom | 1.70 | 4 | 0.420 | 13. Inspect | 1.50 | 4 | 0.380 | 14. Iron | 1.95 | 4 | 0.490 | 15. Fold, package | 1.75 | 4 | 0.420 |

Current Production Process | Calculation Explanation | Value | a. Actual Cycle Time | = 1 / flow rate | = 1 / (800 shirts / 480 mins) = 1 / 1.667) = 0.60 min / shirt | b. Manufacturing Lead Time | = WIP / flow rate | = 11,760 / 800 = 14.70 days | c. WIP Inventory | = Total WIP x batch size | = (16 + 144 + 12 + 12 + 12) x 60= 196 x 60 = 11,760 shirts | d. Production Capacity | Bottleneck | = (60 layers x 8 patterns) / 0.500= 960 shirts / day | e. Capacity Utilization | = Flow ratea / Production capacity | = 800 / 960 = 83.33% | f. Direct Labor Content | = Direct labor time / unit= Cutting + Operation process time | = (0.25 mins x 4 machines) + 25.51 mins = 26.51 mins / shirt | g. Direct Labor Utilization | = Labor used / labor availableb | =

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