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Executive Shirts Company Case Study

Essay by   •  July 3, 2019  •  Case Study  •  4,844 Words (20 Pages)  •  1,187 Views

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OPERATIONS MANAGEMENT

CASE 1: EXECUTIVE SHIRT COMPANY, INC.

GROUP 11

Savitra Bhagwat | 1914010

Naman Jhamaria | 1914029

Debapriya Majumdar | 1914041

Atul Mishra | 1914047

Anshuman Tiwari | 1914069

Executive Shirt Company, Inc. is known for high quality and competitively priced men’s shirts. A recent dip in sales has led general manager Dwight Collier to explore the alternatives. According to him, the market provides tremendous opportunity for Custom-sized dress shirt. He plans to introduce customized shirts in his current production facility as these shirts can fetch almost 75% more than regular standard shirts. For that, Mr. Collier introduced a change in manufacturing process by integrating a ‘low ply’ Laser Cutting Machine for customized shirts.

Characteristics of the new machine

  • Small: can cut only 1 shirt pattern at a time out of up to 5 layers of cloth
  • Extremely fast: Laying out pattern and cutting took only 2.5 minutes
  • Higher Scrap rate: material costs 10% higher than for standard sized shirts
  • New workers needed to operate the new machine

Planning the Custom Shirt Line: Constraints by Mr. Collier

  • Manufacturing lead time for the custom shirts to be less than 5 working days
  • The production volume to be same for standard-sized shirts at 16000 per month
  • Allow for production of 2000 custom shirts per month
  • Large capital expenditures not to be made

Company’s Current batch processing mechanism

The firm is manufacturing the standard-sized shirts using a batch process. Since few basic styles and colors contribute to a major portion of the sales, the firm has limited variety to produce. Hence, it has large batches of each kind of shirt (size and color).

The firm has five departments, as follows: (Table 1)

Type of Operation

Number of Workers

Number of Machines

Average WIP (number of 60 shirt-batches)

Cutting

4

1

16

Sewing

48

48

144

Inspection

4

12

Ironing

4

4

12

Packaging

4

12

Total

64

53

196

It has one computer controlled cutting machine that can cut up to 60 layers of cloth (up to 8 patterns) at the same time. This process takes 30 minutes irrespective of the number of layers and pattern. Setup time is 1.5 minutes for each layer and 60 layers take total 90 minutes. The machine is operated by 4 workers, and is fully utilized.

  • Number of shirts cut at a time = 60x8 = 480 Shirts
  • Total time = setup time + runtime = 90 + 30 = 120 minutes
  • Standard shirt cutting time = 120/480 = 0.25 minutes/shirt
  • Number of workers = 4

(Table 2)

S.No.

Operation

Regular Shirts Labor Content (minutes/Shirt)

Number of Workers

Time taken per shirt

Time taken per batch

A

Cutting

                                                                                     0.25

4

                                 0.06

          3.75

B1

Make Collar

                                                                                     3.90

8

                                 0.49

        29.25

B2

Make Cuffs

                                                                                     2.00

4

                                 0.50

        30.00

B3

Make Sleeves

                                                                                     0.65

2

                                 0.33

        19.50

B4

Make Front

                                                                                     2.50

6

                                 0.42

        25.00

B5

Make Back

                                                                                     1.70

4

                                 0.43

        25.50

B6

Join Shoulders

                                                                                     0.66

2

                                 0.33

        19.80

B7

Attach Collar

                                                                                     1.65

4

                                 0.41

        24.75

B8

Attach Sleeves

                                                                                     1.55

4

                                 0.39

        23.25

B9

Stitch down sleeves

                                                                                     0.65

2

                                 0.33

        19.50

B10

Sew side seam

                                                                                     1.80

4

                                 0.45

        27.00

B11

Attach cuffs

                                                                                     1.55

4

                                 0.39

        23.25

B12

Hem Bottom

                                                                                     1.70

4

                                 0.43

        25.50

B13

Inspect

                                                                                     1.50

4

                                 0.38

        22.50

B14

Iron

                                                                                     1.95

4

                                 0.49

        29.25

B15

Fold, Package

                                                                                     1.75

4

                                 0.44

        26.25

Total

                                                                               25.76

64

                                 6.23

     374.05

...

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