Om Case Analysis Executive Shirt Company

1611 Words Aug 22nd, 2012 7 Pages
Q.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. (50 points)

| Current ProcessRegular Shirts | Mike’s PlanRegular & Custom Shirts | Ike’s PlanRegularShirts | Ike’s PlanCustom Shirts | Actual Cycle Time (min/shirt) | 0.5 | 0.5 | 0.67 | 3.9 | Manufacturing Lead Time (days) | 0.815 | 0.052 | 1.056 | 0.058 | WIP inventory (shirts) | 11760 | 1980 | 9060 | 48 | Production Capacity (shirts/day) | 960 | 960 | 720 | 123.07 | Capacity Utilization | 83.33 | 93.75 | 111.11 | 81.25 | Direct Labour Content (min/shirt) | 26.51 | 26.45 | 26.51 | 26.01 | Direct Labour Utilization | 69.04 | 76.22 | 90.17 | 33.87 | Direct
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h) Direct Labour Cost = $3.47/shirt

Ike’s Plan
We will prepare a similar Table for Ike’s plan to calculate the various required parameters Operation | Labour Content (min/shirt) | Number of Workers | Cycle Time (min/shirt) | Time taken for 1 batch (min) | | | Regular | Custom | Regular | Custom | Regular | Custom | Make collar | 3.90 | 7 | 1 | 0.557 | 3.9 | 33.42 | 3.9 | Make cuffs | 2.00 | 3 | 1 | 0.67 | 2.00 | 40.2 | 2.00 | Make sleeves | 0.65 | 1 | 1 | 0.65 | 0.65 | 39 | 0.65 | Make front | 2.50 | 5 | 1 | 0.5 | 2.50 | 30 | 2.50 | Make back | 1.70 | 3 | 1 | 0.57 | 1.70 | 34.2 | 1.70 | Join shoulders | 0.66 | 1 | 1 | 0.66 | 0.66 | 39.6 | 0.66 | Attach collar | 1.65 | 3 | 1 | 0.55 | 1.65 | 33 | 1.65 | Attach sleeves | 1.55 | 3 | 1 | 0.52 | 1.55 | 31.2 | 1.55 | Stitch sleeves | 0.65 | 1 | 1 | 0.65 | 0.65 | 39 | 0.65 | Sew side seam | 1.80 | 3 | 1 | 0.60 | 1.80 | 36 | 1.80 | Attach cuffs | 1.55 | 3 | 1 | 0.52 | 1.55 | 31.2 | 1.55 | Hem bottom | 1.70 | 3 | 1 | 0.57 | 1.70 | 34.2 | 1.70 | Inspect | 1.50 | 3 | 1 | 0.5 | 1.50 | 30 | 1.50 | Iron | 1.95 | 3 | 1 | 0.65 | 1.95 | 39 | 1.95 | Fold, Package | 1.75 | 3 | 1 | 0.58 | 1.75 | 34.8 | 1.75 | Cutting | 1.00 | 4 | 1 | 0.33 | 2.5 | 120 | 2.50 |

(a) The actual cycle time for regular shirts = 0.67 min/shirt
For custom shirts = 3.9 min/shirt (b) Lead time for regular shirts = 508.2 min = 1.056 days
Lead time for custom shirts = 28.01 min = 0.058 days (c) From Exhibit 6, WIP Inventory = 60 * (16 + 108 +

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