Executive t shirt company circumstance analysis

OPERATIONS MANAGING EXECUTIVE T-SHIRT COMPANY CIRCUMSTANCE PGP1 – Section A Group 13 Manohar Vankadara Darshan Karkera Sukvinder Singh Sunil Kumar A Touseefullah Siddiqui Q. 1) Compute this quantities intended for the current production process along with Mike’s and Ike’s programs, assuming the plans are implemented while described in case. Solution: Current batch control Sales pertaining to the Professional Shirt Company are constituted of just one or two basic designs and colors. Hence the business has a limited number of types to produce. So , it has significant batches of every kind of tee shirt (size and color).

It has only one cutting machine, which can be computer-controlled and will cut up to 60 tiers of cloth simultaneously. Also approximately 8 habits can be minimize simultaneously. The cutting method by the machine takes half an hour irrespective of the range of patterns and number of layers. But , the set up time is quite significant. It takes 1 . 5 minutes to roll out a layer of fabric and so to get 60 layers, it takes 80 minutes setup time. The machine is being managed by 4 operators as well as the company can be using its maximum capacity, we. e. 62 layers and 8 patterns at a time. So , Total number of shirts lower in one manage = 60*8 = 480

Total time taken by 1 run sama dengan setup period + runtime = 85 + 30 = one hundred twenty minutes Standard shirts labor content (minutes per shirt) for slicing = a hundred and twenty / 480 = zero. 25 min per clothing Number of employees = some |Operation |Regular Shirts Labor Content (minutes |Number of |Time taken per |Time taken every | | |per shirt) |workers |shirt (minutes) |batch (minutes) | |1. Cutting |0. 25 |4 |0. 06 |3. 75 | |2.

Help to make collar |3. 9 |8 |0. 49 |29. twenty-five | |3. Make cuffs |2 |4 |0. 60 |30 | |4. Produce sleeves |0. 65 |2 |0. thirty-three |19. your five | |5. Make front |2. five |6 |0. 42 |25 | |6. Make backside |1. |4 |0. 43 |25. your five | |7. Join shoulder muscles |0. sixty six |2 |0. 33 |19. 8 | |8. Affix collar |1. 65 |4 |0. 41 |24. 75 | |9. Attach fleshlight sleeves |1. fifty five |4 |0. 39 |23. 25 | |10. Stitch down fleshlight sleeves |0. sixty five |2 |0. 3 |19. 5 | |11. Affix side seam |1. almost eight |4 |0. 45 |27 | |12. Attach cuffs |1. 55 |4 |0. 39 |23. 25 | |13. Hem bottom |1. 7 |4 |0. 43 |25. a few | |14. Inspect |1. 5 |4 |0. 37 |22. five | |15. Iron |1. 5 |4 |0. 49 |29. 25 | |15. Fold, deal |1. 75 |4 |0. 44 |26. 25 | |Total |25. 76 |64 |6. twenty seven |374. 05 | Therefore, the immediate labor content (min. /shirt) = twenty-five. 76 Therefore we see which the maximum time taken by a process in 31 min as well as labor as well as batch, which forms the bottleneck and represents the cycle time. The cycle period / shirt = 40 / 60 = zero. min as well as shirt. The work-in-process inventory = Count of batches in all businesses * Set size sama dengan (16 + 144 + 12 & 12 & 12) * 60 sama dengan 196 5. 60 sama dengan 11760 shirts Now we could apply Little’s Law to calculate the throughput time which is equal to the making lead amount of time in this case. By simply Little’s Rules, Throughput period = Work-in-process / Throughput rate sama dengan Work-in-process * Cycle time = 11760 * zero. 5 = 5880 a few minutes Since development goes on pertaining to 8 hours periods per day, making lead time = 5880 / (8 * 60) = doze. 25 days Total number of shirts made per month is definitely 16, 000. The company works for 20 days a month.

So , the output per day = 16000 as well as 20 sama dengan 800 tshirts. In, eight hours per day, the company can produce 60 2. 8 5. (1/0. 5) = 960 shirts, which is the current creation capacity. But it needs to create only 800 shirts. So , the capacity utilization = (800 / 960) * 100 = 83. 33% Some of the labor applied = Range of shirts produced * Immediate labor articles = 800 * twenty-five. 76 sama dengan 20608 minutes The readily available labor pertaining to utilization sama dengan Total number of workers 5. Hours each day * 60 = 64 * almost eight * 62 = 30720 minutes Consequently , the immediate labor use = (20608 / 30720) * 75 = 67. 08% Direct labor cost ($/shirt) = (64 * 8 5. 6) as well as 800 sama dengan 3. 84 Mike’s Plan In this prepare, the new “low-ply” laser reducing machine could take 2 . 5 minutes to generate 5 shirts. One additional worker must be hired to use this machine. Therefore , the standard shirts labor content = 2 . five / your five = zero. 5 minutes. The time taken per shirt = 0. five minutes Since this is equivalent to the maximum period taken for a single sewing process triggering the logjam (make cuffs), the routine time / shirt will remain equal to zero. 5 minutes Below the time used is installment payments on your 5 min / labor / batch, which forms the logjam and represents the cycle time.

The pattern time / shirt = 2 . a few / your five = zero. 5 minutes / shirt. We now go to compute the operations metrics for the present process. The work-in-process products on hand = Total number of batches in all operations * Batch size sama dengan (36 + 288 & 24 + 24 + 24) 2. 5 sama dengan 396 * 5 = 1980 shirts Now we can apply Little’s Law to calculate the throughput period which is corresponding to the developing lead amount of time in this case. By Little’s Legislation, Throughput period = Work-in-process / Throughput rate = Work-in-process * Cycle period = 80 * zero. 5 = 990 a few minutes Since creation goes on for 8 hrs per day, manufacturing lead time = 990 / (8 * 60) 2 . 06 days Amount of tshirts produced each month is 16000 + 2150 = 18000. The company functions for twenty days a month. So , the output per day sama dengan 18000 / 20 sama dengan 900 shirts. In, eight hours a day, the company can produce 60 5. 8 2. (1/0. 5) = 960 shirts, which is the current development capacity. But it really needs to develop only 900 shirts. Therefore , the capacity utilization = (900 / 960) * 95 = 93. 75% Pertaining to calculating the direct labor content, we must find out the direct labor content ideals for regular sewing and cutting separately. To get sewing functions, the DLC = twenty-five. 51 minutes/shirt

For the cutting operation, since both new and old devices are used, the weighted average of the individual DLCs are considered DLC for trimming = (No of collection shirts * Time taken for each collection shirt + No of standard shirts * Time taken for each regular shirt) as well as Total not any of t shirts = (100 * 0. 5 & 800 5. 0. 25) / nine hundred = zero. 28 a few minutes Therefore , total direct labor content = 25. fifty-one + 0. 28 = 25. seventy nine minutes Using the labor used = Number of shirts developed * Immediate labor articles = 900 * twenty-five. 79 sama dengan 23211 a few minutes The offered labor to get utilization = Total number of workers 5. Hours per day * 70 = sixty five * almost eight * 70 31200 minutes Therefore , the direct labor utilization sama dengan (23211 as well as 31200) 2. 100 = 74. 39% Direct labor cost ($/shirt) = sama dengan (65 2. 8 5. 6) as well as 900 = 3. forty seven Ike’s Arrange for the regular tshirts, the direct labor content material will be the identical to in the current procedure as here the new reducing machine is usually kept independent from the standard shirt production process. Consequently , the immediate labor articles = 25. 76 minutes/shirt for standard shirts Below, however the number of workers in each process is lowered by one. Therefore , the cycle period may alter. |Operation |Regular Shirts Labor Content (minutes Number of |Time taken every |Time taken per | | |per shirt) |workers |shirt (minutes) |batch (minutes) | |1. Cutting |0. 25 |4 |0. summer |3. 75 | |2. Make training collar |3. on the lookout for |7 |0. 56 | 33. 43 | |3. Make cuffs |2 |3 |0. 67 |40 | |4. Make sleeves |0. 5 |1 |0. sixty-five |39 | |5. Help to make front |2. 5 |5 |0. 5 |30 | |6. Produce back |1. 7 |3 |0. 57 |34 | |7. Become a member of shoulders |0. 66 |1 |0. 66 |39. six | |8. Attach collar |1. 65 |3 |0. 55 |33 | |9.

Attach fleshlight sleeves |1. fifty five |3 |0. 52 |31 | |10. Stitch straight down sleeves |0. 65 |1 |0. sixty five |39 | |11. Fasten side joints |1. eight |3 |0. 6 |36 | |12. Attach cuffs |1. 55 |3 |0. 52 |31 | |13. Hem bottom |1. 7 |3 |0. 7 |34 | |14. Inspect |1. 5 |3 |0. a few |30 | |15. Iron |1. ninety five |3 |0. 65 |39 | |15. Fold, package |1. 75 |3 |0. 58 |35 | |Total |25. 76 |49 |8. 23 |492. 78 | Therefore , the most cycle period = zero. 67 mins

Similar to the past plans, the work-in-process products on hand = (16 + 108 + being unfaithful + being unfaithful + 9) * 62 = 9060 shirts Similar to the other plans, we can determine the developing lead period = (9060 * zero. 67) as well as (8 2. 60) sama dengan 12. fifty eight days Production capacity = 480 mins / 0. 67 minutes/shirt = 720 shirts Genuine production of regular shirts sama dengan 800 Consequently , capacity use = (800 / 720) * 100 = 111. 11% Direct labor usage = (800 * twenty-five. 76) as well as (49 2. 8 2. 60) = 20608 / 23520 = 0. 8762 For determining the direct labor cost, since there may be overutilization of capacity, we should consider the overtime price also. Overtime, however, = 1 ) 1111 2. 8 – 8 sama dengan 0. 888 hours/day Usual time = 8 hours/day Therefore , total labor expense per day sama dengan 0. 8888 * 9 + almost eight * 6 The direct labor cost/shirt = (0. 8888 2. 9 + 8 * 6) / 800 sama dengan $ several. 43 To get the custom-made shirts, the work-in-process products on hand = Products on hand in slicing + products on hand in finalizing = five + 15 * three or more = 40 shirts Seeing that a single tee shirt is refined at a time by a single employee, the cycle time may be the maximum of all of the individual regular shirt labor content = 3. 9 minutes / shirt Making lead time = (50 * 3. 9) as well as (8 5. 60) = 0. 41 days Creation capacity = (8 * 60) as well as 3. being unfaithful = 123 shirts as well as day Potential utilization = (100 / 123) 5. 100 = 81. 3%

Direct labor content = Labor content for trimming + labor content for processing sama dengan 0. a few + 25. 51 = 26. 01 minutes/shirt Direct labor use = (100 * 26. 01) as well as (16 * 8 * 60) = 2601 / 7680 = 0. 3387 Direct labor cost as well as shirt sama dengan (16 * 8 2. 6) as well as 100 sama dengan $7. sixty-eight The final effects of the examination are proven in the stand below. | |Current Method |Mikes Program |Ikes Strategy | | |Regular Tshirts |Regular Personalized Shirts |Regular Shirts |Custom shirts | |Actual Pattern Time (min. shirt) |0. 5 |0. 5 |0. 67 |3. 9 | |Manufacturing Business lead Time (days) |12. 25 |2. 06 |12. 58 |0. 41 | |WIP Inventory (shirts) |11760 |1980 |9060 |50 | |Production Capacity (shirts/day)|960 |960 |720 |123 | |Capacity Utilization(%) |83. 33 |93. 5 |111. eleven |81. twenty-five | |Direct Labor Content(min/shirt) |25. 76 |25. 79 |25. seventy six |26. 01 | |Direct Labor Utilization(%) |67. ’08 |74. 39 |87. sixty two |33. 87 | |Direct Labor Price ($/shirt) |3. 84 |3. 47 |3. 43 |7. 68 | Q. 2) Compare the 2 plans, regarding both frequent shirt creation and custom-shirt production.

Based on your evaluation, what is your advice for Dwight Collier? Mike’s process of creation has the pursuing properties: It uses a uniform production way of both frequent as well as custom-shirt production. Pattern time of creation remains identical to initial value of 0. 5. Making Lead the reduced to 142 Minutes. as the batch size has been reduced to 5 via 60. Ability utilization has increased from 83. 33% to 93. 74%. Direct labor utilization has increased and the price has lowered to $3. 47 every shirt. Ike’s process of production has the next properties:

Intended for the regular shirt production, pattern time has increased and also the lead time. Capacity utilization has increased beyond totally as a result of which workers have to function overtime. Direct labor usage has also increased and the expense of production every shirt has gone down. To get the custom made shirt production, cycle the increased, direct labor utilization has lowered drastically. Cost of production of these shirts has more than doubled, when compared to standard shirt price. Despite each one of these, Ike’s creation process has reduced the Lead moment for custom t shirts. With the understanding of these parameters, we can infer the following:

Mike’s solution offers a cost effective means of producing custom-shirts which are as well delivered in a reasonable period of time. Due to little batch size of 5, work in progress products on hand has reduced from the normal value. This kind of shows that the time spend by raw material in the production method has also lowered. His process of production can be efficient mainly because it allows better direct labor utilization. Ability utilization has additionally increased and therefore the efficiency of development process has additionally increased. Mike’s solution provides one negative aspect that it goodies the production of standard and custom-shirts as same.

This results in slow delivery of these t-shirts when compared to Ike’s way of creation. Ike’s answer segregates the production process for regular and custom-shirts. For this reason there is no mixture between the two of these. Custom-shirt production process has been decoupled from your regular procedure production. This may lead to less complexity. There might be a possibility that skill set required to generate custom t-shirt might be large when compared to normal shirt development. Workers with higher skill set can work on separate development line. Low lead period allows the business to focus on the customers in earliest time possible.

This leads to more customer satisfaction. But the costs of creation of these shirts have bending. This method would be feasible only if customers are impatient to find the shirt manufactured in least time possible and they are generally willing to pay more prices. Taking into consideration all the limitations and choices available, Mike’s production technique can be used when the customer will be averse to paying twice the standard volume for custom shirt. Lead time is additionally high, so the customer will need to wait for a longer time. Ike’s production technique can be used the moment customers happen to be impatient and are also willing to pay double the original selling price.