Background
Q.1)
The production process at the Executive Shirt Company will depend on the types of shirts produced. The single cutting machine can cut just 60 layers and 8 patterns of clothes (Briand, 2002) This takes half an hour. One and half hours will be used to roll all the 60 layers of clothes. Four operators will be operating the machine, to achieve the company’s full capacity.
Shirts in a single run = 480
Time taken = 2 hours
Minutes/ shirt = 25/100
Workers = 4
|
Operation |
Labor content for Regular Shirts in minutes |
Workers |
Amount of time per shirt (minutes) |
Each batch time (minutes) |
|
Cutting |
0.25 |
4 |
0.07 |
3.85 |
|
Make collar |
3.9 |
8 |
0.48 |
29.15 |
|
Make cuffs |
2 |
4 |
0.50 |
30 |
|
Make sleeves |
0.65 |
2 |
0.36 |
19.5 |
|
Make front |
2.5 |
6 |
0.42 |
25 |
|
Make back |
1.7 |
4 |
0.44 |
25.5 |
|
Join shoulders |
0.66 |
2 |
0.32 |
19.8 |
|
Attach collar |
1.65 |
4 |
0.41 |
24.86 |
|
Attach sleeves |
1.56 |
4 |
0.39 |
23.14 |
|
Stitch down sleeves |
0.64 |
2 |
0.35 |
19.5 |
|
Sew side seam |
1.8 |
4 |
0.45 |
27 |
|
Attach cuffs |
1.55 |
4 |
0.38 |
23.26 |
|
Hem bottom |
1.7 |
4 |
0.43 |
25.5 |
|
Inspect |
1.5 |
4 |
0.38 |
22.5 |
|
Iron |
1.96 |
4 |
0.49 |
29.34 |
|
Fold, package |
1.74 |
4 |
0.44 |
26.15 |
|
Total |
25.76 |
64 |
6.27 |
374.05 |
Labor content =25.76
Cycle time per shirt = 0.5 minutes since its 30 minutes/60 batches
Work in process inventory = Number of batches x the size of each batch
Applying Little’s law
Throughput duration = manufacturing lead time = work in process per rate of throughput = work in process x the cycle time
= 11760 x ½
= 5880 min
The production process goes for 8 hours, implying that the manufacturing time = 5880/ 480
= 12¼ days
16,000 shirts are produced each month and the company works for only 20 days then the number of shirts per day will be 800 although at a rate of 8 hours a day, the company has to produce 960 shirts (60 x 8 x (1/0.5))
Utilization of capacity = 83.33 percent
Actual labor used = shirts x labor content
=20,608
Available labor =worker’s x duration
= 30,720
Direct labor utilization = (available/ actual) x 100 =67. 08 percent
Cost per shirt =
= 3.84
The plan for Mike
The regular shirts labor content in the new “low-ply” laser cutting machine = 2.5 / 5 = 0.5 minutes.
Time taken/ shirt = 0.5 minutes
Inventory work-in-process = Operations total number of batches * Batch size
By Little’s Law
Since production goes on for 8 hours per day, manufacturing lead time = 990 / (8 * 60)
= 2.06 days
The output/day = 18000 / 20days = 900 shirts.
Therefore, in 8 hours, capacity utilization = (900 / 960) * 100 = 93.75%
The DLC for sewing operations, = 25.51 minutes/shirt
So, total direct labor content = 25.51 + 0.28 = 25.79 minutes
The actual labor utilized = Number of shirts produced * Direct labor content
The available labor for utilization = Total number of workers * Hours per day * 60
The plan for Ike
For the regular shirts,
Direct labor content = 25.76 minutes/shirt
The TSI Production Facility
Hence making the cycle to change.
|
Operation |
Labor Content for Regular Shirts in minutes |
Workers |
Time taken for each t-shirt in minutes |
Each batch time in minutes |
|
Cutting |
0.25 |
4 |
0.07 |
3.76 |
|
Make collar |
3.9 |
7 |
0.55 |
33.42 |
|
Make cuffs |
2 |
3 |
0.68 |
40 |
|
Make sleeves |
0.65 |
1 |
0.64 |
39 |
|
Make front |
2.5 |
5 |
0.5 |
30 |
|
Make back |
1.7 |
3 |
0.57 |
34 |
|
Join shoulders |
0.66 |
1 |
0.65 |
39.6 |
|
Attach collar |
1.65 |
3 |
0.56 |
33 |
|
Attach sleeves |
1.56 |
3 |
0.51 |
31 |
|
Stitch down sleeves |
0.64 |
1 |
0.67 |
39 |
|
Sew side seam |
1.8 |
3 |
0.6 |
36 |
|
Attach cuffs |
1.55 |
3 |
0.51 |
32 |
|
Hem bottom |
1.7 |
3 |
0.58 |
35 |
|
Inspect |
1.5 |
3 |
0.5 |
30 |
|
Iron |
1.95 |
3 |
0.65 |
39 |
|
15. Fold, package |
1.75 |
3 |
0.58 |
35 |
|
Total |
25.76 |
49 |
8.23 |
492.78 |
Maximum cycle time = 0.67 minutes
Work-in-process inventory =
Therefore, the manufacturing lead time
Production capacity
Regular t-shirts actual production
= 800
Hence, capacity utilization = (800 / 720) * 100 = 111.11%
Direct labor utilization
Overtime = 1.1111 * 8 – 8 = 0.8888 hours/day
Normal time = 8 hours/day
Hence, total labor cost per day = 0.88888 * 9 + 8 * 6
The direct labor cost/shirt = (0.88888 * 9 + 8 * 6) / 800 = $ 3.43
Custom-made shirts,
= $7.68
The table below shows the final outcomes of the analysis.
|
Current Process |
Plan for Mike |
Plan for Ike |
||
|
Regular Shirts |
Regular & Custom Shirts |
Regular Shirts |
Custom shirts |
|
|
Actual Cycle Time |
0.5 |
0.5 |
0.67 |
3.9 |
|
Manufacturing Lead Time (days) |
12.25 |
2.06 |
12.58 |
0.41 |
|
WIP Inventory |
11760 |
1980 |
9060 |
50 |
|
Production Capacity (shirts per day) |
960 |
960 |
720 |
123 |
|
Capacity Utilization(%) |
83.32 |
93.76 |
111.12 |
81.24 |
|
Direct Labor Content(min per shirt) |
25.77 |
25.78 |
25.77 |
26.02 |
|
Direct Labor Utilization(%) |
67.08 |
74.39 |
87.62 |
33.87 |
|
Direct Labor Cost ($ per shirt) |
3.84 |
3.47 |
3.43 |
7.68 |
Q.2)
Properties of Mike’s production process.
There is a uniform production technique for the two types of production. Cycle period is similar to the initial period of half a minute. There is a 142-minute reduction in the lead duration. There is an Increase in the capacity used, 93.75 from 83.333 percent. The cost of production is 3.47 dollars, a decline.
Properties of Ike’s production process.
The cycle and lead time for the production of regular shirts has increased. The utilization capacity is above a hundred percent since there is overtime working (Brintrup, 2008). The production cost for a shirt has decreased while the labor utilization has increased.
The cycle time for the production of custom shirts has still gone up while the direct labor utilization has decreased (Briand, 2002). The production cost for custom shirts is double that of the regular shirts. In spite of that, the lead duration is still reduced.
Mike’s technique is more economical for the custom shirts with faster production time. Since the size of the batch is five, the work in progress inventory has decreased indicating that duration of the raw materials in the process is reduced. There is good utilization of labor and also high capacity utilization hence the process is quite efficient. The only problem, with this technique is considering both types of production as similar which makes his solution quite a slow one in shirt delivery in comparison to Ike’s.
Ike’s technique separates the production process for each kind of shirt. This leads to less intricacy in the production process. It is possible that production of the custom shirts might need more skilled personnel as compared to the regular shirts. Customers are catered for at the earliest time possible since the lead duration is low. This method also has its cons since the production cost is double as compared to Mike’s. It’s the best solution especially when customers need quick delivery and are ready to pay extra money.
The technique used by Mike will be effective if customers are not willing to pay extra money and are patient enough. Contradictorily, Ike’s technique will be good if the customers are willing to pay extra money and are impatient.
Briand, S. M. a. V. R. B., 2002. An Operational Process for Goal-Driven Definition of Measures. IEEE Transcations on Software Engineering, 28(12), pp. 9-17.
Brintrup, P. R. a. M. A., 2008. Methodology for manufacturing process analysis for RFID implementation, Cambridgeshire: Cambridge Auto-ID Lab.
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