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Executive Shirts Essay

2878 words - 12 pages

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 | ...view middle of the document...

04% |
h. Direct Labor Cost | = Total labor costc / units produced | = $3,072 / 800 shirts = $3,84 / shirt |
a Flow rate = 16,000 shirts / 20 working days/month = 800 shirts / day.
b Labor used = 800 shirts x 26.51 mins/shirt = 21,208 mins.
Labor available = 480 mins/day x 64 workers = 30,720 mins.
c Total labor cost = 64 workers x 8 hours x $6/hour = $3,072.

The following table represents Mike’s Production Plan:

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

Time required for custom shirts = 2.5 mins / (5 layers x 1 pattern) = 0.50 mins / shirt.

(TABLE: MIKE’S PRODUCTION PROCESS)
Mike’s Production Process | Calculation Explanation | Value |
a. Actual Cycle Time | = 1 / flow rate | = 1 / (900 shirts / 480 mins) = 0.53 min |
b. Manufacturing Lead Time | = WIP / flow rate | = 1,980 / 900 = 2.2 days |
c. WIP Inventory | = Total WIP x batch size | = (36 + 288 + 24 + 24 + 24) x 5= 396 mins x 5 batches = 1,980 shirts |
d. Production Capacity | Bottleneck | = (60 layers x 8 patterns) / 0.500= 960 shirts / day |
e. Capacity Utilization | = Flow ratea / Production capacity | = 900 / 960 = 93.75% |
f. Direct Labor Content | = Direct labor time / unit = Cutting reg. + cutting custom + operation process time | = 27.57b mins / shirt |
g. Direct Labor Utilization | = Labor used / labor availablec | = 24,813 / 31,200 = 79.53% |
h. Direct Labor Cost | = Total labor costd / units produced | = $3,120 / 900 shirts = $3,47 / shirt |
a Flow rate = (16,000 reg. shirts + 2,000 custom shirts) / 20 working days/month = 900 shirts / day.
b Direct labor content for mike = weighted average of custom labor content + regular labor content.
Custom labor content = 26.52 + (2.5 / 5) = 26.01.
Regular labor content = 25.51 + [(1.5 x 8 patterns x 5 shirts) + 30] / (8 x 5)
= 25.51 + 2.25 mins = 27.76 mins.
Weighted average = (26.01 x 100 + 27.76 x 800) / 900 = (2,601 + 22,208) / 900 = 27.57.
c Labor used = 900 shirts x 27.57 mins/shirt = 24,813 mins.
Labor available = 480 mins/day x 65 workers = 31,200 mins.
d Total labor cost = 65 workers x 8 hours x $6/hour = $3,072.

(TABLE: IKE’S PRODUCTION PROCESS)
Operation:Ike’s Production Process | Labor ContentREGULAR shirts(mins/shirt) | Number of Workersfor REGULARShirts | Time required for REGULARShirts(mins/worker/shirt) | Time required for CUSTOM Shirts(mins/worker/shirt) |
1. Make collar | 3.90 | 7 | = 3.9 / 7.0 = 0.557 | = 3.9 / 1 = 3.90 |
2. Make cuffs | 2.00 | 3 | 0.667 | 2.00 |
3. Make sleeves | 0.65 | 1 | 0.650 | 0.65 |
4. Make front | 2.50 | 5 | 0.500 | 2.50 |
5. Make back | 1.70 | 3 | 0.567 | 1.70 |
6. Join shoulders | 0.66 | 1 | 0.660 | 0.66 |
7. Attach collar | 1.65 | 3 | 0.550 | 1.65 |
8. Attach sleeves | 1.55 | 3 | 0.517 | 1.55 |
9. Stitch down sleeves | 0.65 | 1 | 0.650 | 0.65 |
10. Sew side seam | 1.80 | 1 | 0.600 | 1.80 |
11. Attach cuffs | 1.55 | 3 | 0.517 | 1.55 |
12. Hem...

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