EXECUTIVE SHIRT COMPANY CASE
PGP1 – Section A
A Touseefullah Siddiqui
Q.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.
Current batch processing
Sales for the Executive Shirt Company are constituted of only a few basic styles and colours. Hence the company has a limited number of varieties to produce. So, it has large batches of each kind of shirt (size and color).
It has only one cutting machine, which is computer-controlled and can cut up to 60 layers of cloth at the same time. …show more content…
Therefore, the regular shirts labor content = 2.5 / 5 = 0.5 minutes.
The time taken per shirt = 0.5 minutes
Since this is the same as the maximum time taken for a single sewing process causing the bottleneck (make cuffs), the cycle time / shirt will remain equal to 0.5 minutes
Here the time taken is 2.5 min / labor / batch, which forms the bottleneck and represents the cycle time. The cycle time / shirt = 2.5 / 5 = 0.5 min / shirt.
We now proceed to compute the operations metrics for the current process.
The work-in-process inventory = Total number of batches in all operations * Batch size
= (36 + 288 + 24 + 24 + 24) * 5
= 396 * 5 = 1980 shirts
Now we can apply Little’s Law to calculate the throughput time which is equal to the manufacturing lead time in this case.
By Little’s Law, Throughput time = Work-in-process / Throughput rate = Work-in-process * Cycle time
= 1980 * 0.5
= 990 minutes
Since production goes on for 8 hrs per day, manufacturing lead time = 990 / (8 *