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Executive Shirt Company Inc Marketing

Essay by   •  November 14, 2017  •  Case Study  •  487 Words (2 Pages)  •  1,497 Views

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CASE 3: “Don’t Bother Me, I Can’t Cope”

LINE A:-

Precedence Diagram

[pic 1]

The total time requires to complete the entire process is 480s. With a cycle time of 60s, we need a minimum of 8 workers to complete the task. But considering the time breakup among different tasks and their precedence it is not possible to complete the process even with 8 workers in a straight assembly line. A minimum of 9 workers are necessary to complete the process but we are allowed to hire only one more worker as per Shantha’s instructions.

So for a straight assembly line, we consider 1h 10mins overtime for each worker since line A doesn’t have increased rejection rate with overtime. In this, the cycle time comes out to be 70s. This allows us to complete the entire process with just 7 workers.

TABLE showing Organization of Line B with Time:

1

2

3

4

5

6

7

2 (50)

1 (30)

4 (50)

9 (10)

8 (20)

12 (30)

14 (50)

5(20)

3 (40)

6 (10)

10 (40)

13 (50)

16 (40)

15 (10)

-

-

7 (10)

11 (20)

-

-

-

(70)

(70)

(70)

(70)

(70)

(70)

(60)

                                                                 

Line A with U Table

[pic 2]

For assembly line A, if Sane wants to go with U table, then he needs 1 more worker and he can achieve the increased production with 8 workers without overtime.

CASE 2: Executive Shirt Company Inc.

Case Analysis and Recommendation:

 

Current Process

Mike's Plan

Ike's Plan

Regular Shirts

Regular & Custom Shirts

Regular Shits

Custom Shirts

Actual Cycle Time

0.6

0.533

0.675

4.8

Manufacturing Lead Time (days)

14.7

2.2

11.325

0.5

WIP Inventory (shirts)

11760

1980

9060

50

Production Capacity (shirts/day)

960

960

810

123

Capacity Utilization

83.33%

93.75%

98.76%

81.30%

Direct Labour Content (min/shirt)

26.51

26.45

26.51

26.01

Direct Labour Utilization

69.03%

76.29%

90.17%

33.86%

Direct Labour Cost ($/Shirt)

3.84

3.47

3.49

7.68

In Ike’s plan we are considering an overtime of 1hr in regular shirt production to meet the production demand of 800 shirts per day.

 

Current Process

Mike's Plan

Ike's Plan

Regular Shirts

Regular Shits

Custom Shirts

Regular Shits

Custom Shirts

Raw Materials

$7.00

$7.00

$7.70

$7.00

$7.70

Direct Labour Cost

$4.50

$3.47

$3.47

$3.49

$7.68

Indirect Labour Cost

$0.66

$0.66

$0.66

$0.66

$0.66

Other Indirect Costs

$4.50

$4.50

$4.50

$4.50

$4.50

Total Manufacturing Cost

$16.00

$15.63

$16.33

$15.65

$20.54

Retail Price

$50.00

$50.00

$70.00

$50.00

$70.00

Profit

$34.00

$34.37

$53.67

$34.35

$49.46

...

...

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