Om Case Analysis Executive Shirt Company
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 Labour Cost ($/shirt) | 3.84 | 3.47 | 3.43 | 7.68 |
Assumption: Throughout the case, it has been assumed that there is no specialization, i.e. the work performed by all workers in a station is similar.
Each of the cases has been analysed separately, the quantities asked in the table have been calculated for each case, and filled in the above table.
Current Process
The details of the process, as given in Exhibit 3, have been reproduced, along with the run time and the time taken for each batch for each process have been calculated and shown in the table below
Operation | Labour Content (min/shirt) | Number of Workers | Cycle Time (min/shirt) | Time taken for 1 batch (min) | | | | | Regular | Custom | Make collar | 3.90 | 8 | 0.4875 | 29.25 | 2.4375 | Make cuffs | 2.00 | 4 | 0.5 | 30.00 | 2.5 | Make sleeves | 0.65 | 2 | 0.325 | 19.50 | 1.625 | Make front | 2.50 | 6 | 0.416 | 25.00 | 2.08 | Make back | 1.70 | 4 | 0.425 | 25.50 | 2.125 | Join shoulders | 0.66 | 2 | 0.33 | 19.80 | 1.65 | Attach collar | 1.65 | 4 | 0.4125 | 24.75 | 2.0625 | Attach sleeves | 1.55 | 4 | 0.3875 | 23.25 | 1.9375 | Stitch sleeves | 0.65 | 2 | 0.325 | 19.50 | 1.625 | Sew sideseam | 1.80 | 4 | 0.45 | 27.00 | 2.25 |
| Current ProcessRegular Shirts | Mike’s PlanRegular & Custom Shirts | Ike’s PlanRegularShirts | Ike’s PlanCustom Shirts | Actual Cycle Time (min/shirt) | 0.5 | 0.5 | 0.67 | 3.9 | Manufacturing Lead Time (days) | 0.815 | 0.052 | 1.056 | 0.058 | WIP inventory (shirts) | 11760 | 1980 | 9060 | 48 | Production Capacity (shirts/day) | 960 | 960 | 720 | 123.07 | Capacity Utilization | 83.33 | 93.75 | 111.11 | 81.25 | Direct Labour Content (min/shirt) | 26.51 | 26.45 | 26.51 | 26.01 | Direct Labour Utilization | 69.04 | 76.22 | 90.17 | 33.87 | Direct Labour Cost ($/shirt) | 3.84 | 3.47 | 3.43 | 7.68 |
Assumption: Throughout the case, it has been assumed that there is no specialization, i.e. the work performed by all workers in a station is similar.
Each of the cases has been analysed separately, the quantities asked in the table have been calculated for each case, and filled in the above table.
Current Process
The details of the process, as given in Exhibit 3, have been reproduced, along with the run time and the time taken for each batch for each process have been calculated and shown in the table below
Operation | Labour Content (min/shirt) | Number of Workers | Cycle Time (min/shirt) | Time taken for 1 batch (min) | | | | | Regular | Custom | Make collar | 3.90 | 8 | 0.4875 | 29.25 | 2.4375 | Make cuffs | 2.00 | 4 | 0.5 | 30.00 | 2.5 | Make sleeves | 0.65 | 2 | 0.325 | 19.50 | 1.625 | Make front | 2.50 | 6 | 0.416 | 25.00 | 2.08 | Make back | 1.70 | 4 | 0.425 | 25.50 | 2.125 | Join shoulders | 0.66 | 2 | 0.33 | 19.80 | 1.65 | Attach collar | 1.65 | 4 | 0.4125 | 24.75 | 2.0625 | Attach sleeves | 1.55 | 4 | 0.3875 | 23.25 | 1.9375 | Stitch sleeves | 0.65 | 2 | 0.325 | 19.50 | 1.625 | Sew sideseam | 1.80 | 4 | 0.45 | 27.00 | 2.25 |