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Pilot

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Submitted By santoshmlm
Words 2703
Pages 11
Rev. March 11, 1996
Executive Shirt Company
Case Analysis-The Executive Shirt Company (Group Project)
Part A
Calculations

| Current Process | Mike's Plan | Ike's Plan | | Regular Shirts | Regular & Custom Shirts | Regular Shirts | Custom Shirts | A) Actual Cycle Time (Min/shirt) | 2 minutes per cuff / 4 workers = 0.5 | 120 minutes for cutting / 480 shirts worth = 0.25 < labor content of cuffs at 0.5 CT | All labor content / one less worker for each category while cutting is still 0.25:Cuffs is still the bottleneck at 2 labor content / 3 workers = 0.67 mins/shirt | 2.5 / 5 = 0.5 labor content for cutting.With everything divided by 1, collar is new bottleneck at 3.90 CT | B) Manufacturing Lead Time (days)(WIP * Cycle Time) / Minutes in a working day | 11,760 * 0.5 / 480 minutes = 12.25 | 0.5 * 1980 / 480 = 2.06 days | (9060 * 0.66) / 480 = 12.58 days | (50 * 3.9) / 480 = 0.41 days | C) WIP Inventory (shirts)Average WIP * Batch size | 196 * 60 = 11,760 | 396 * 5 =1980 shirts | 60 * 151 sum of avg. WIP =9,060 shirts | 30 units at sewing + 5 units being cut + 15 units being finished = 50 WIP (given in case) | D) Production Capacity (shirts/day)Minutes available / CT | 8 hours * 60 minutes / 0.5 =960 shirts / day | 8 hours * 60 mins / 0.5 = 960 shirts/day | 480 / 0.666 =720 shirts/day | 8 * 60 / 3.9 =123 shirts/day | E) Capacity UtilizationActual Produced / What could be produced | 10,000 / (960 * 20 days) = 83% | (16,000 + 2000) / (960 * 20) = 93.75% | 16,000 / (720 * 20) = 111.11% | 123 * 20 days = 2460 monthly production capacity2000 / 2460 = 81.25% | F) Direct Labor Content (min/shirt)Time spent cutting + Direct labor for one shirt | (90 + 30 minutes /8hr * 60 mins) + 3.9 + 2 + 0.65 + 2.5 + 1.7 + 0.66 + 1.65 + 1.55 + 0.65 + 1.8 + 1.55 + 1.7 + 1.5 + 1.95 + 1.75 = 25.76 | (16,000 / 18,000) * 0.25 = 0.2777 + (2,000 / 18,000 * 0.5) = 0.2777

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