Executive Shirt Company Inc Marketing
Essay by Sahil Jain • November 14, 2017 • Case Study • 487 Words (2 Pages) • 1,339 Views
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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