Caso Executive Shirt Company
Short Description
Download Caso Executive Shirt Company...
Description
Camiseta ejecutivo de la compañía de análisis de cas
Pregunta 1. Calcular las siguientes cantidades para el proceso de producción actual, así como de Mike y los planes de
El procesamiento por lotes actual Las ventas para el Shirt Company Ejecutivo están constituidos por sólo unos pocos est
Sólo tiene una máquina de corte, que es controlado por ordenador y puede reducir hasta 60 capas de tela al mismo tiem tiempo de puesta a punto es muy importante. Se tarda 1,5 minutos para desplegar una capa de tela y así por 60 capas, lo tanto, Número total de camisas de corte en una carrera = 60 * 8 = 480. Contenido de trabajo (minutos por camiseta) para el corte = 120/480 = 0.25 min por camiseta
Question # 1 Actual Cycle Time (min/shirt) Manufacturing Lead Time (days) WIP inventory (shirts) Production Capacity (Shirts/day) Current Production(Shirts/day) Capacity utilization Direct Labor Content (min/shirt)
Tiempo de Ciclo Real (min/camisa) Tiempo de Manufactura ( dias ): WIP inventario ( camisas ) Cap. De produccion Teorica (camisas/dia) Cap. De Produción Actual ( camisas/dia) % Utilización de la Capacidad Contenido de MOD (min/camisa)
Actual Labor Time (min)
Horas de Trabajo MOD Totales (min)
Available Labor Time (min) Direct Labor Utilization Direct Labor Cost ($/Shirt) Camisas en sobretiempo Total Overtime (hrs dia necesarias) Total $/Overtim Total Labor ($)
Tiempo Disponible para labores (min) % Ut. MOD Costo MOD ( $/camisa) Camisas en sobretiempo / dia Total Hrs Extras (hrs/dia) Total labor ($) * Supone dia de 8 hrs de trabajo, u 8 horas adicionales de sobretiempo si fuera necesario 16000 14400 1600 80
de la compañía de análisis de casos
des para el proceso de producción actual, así como de Mike y los planes de Ike, asumiendo los planes se implementan como se describe en el caso.
as para el Shirt Company Ejecutivo están constituidos por sólo unos pocos estilos y colores básicos. De ahí que la compañía tiene un número limitado de variedades para producir. Por lo tant
ntrolado por ordenador y puede reducir hasta 60 capas de tela al mismo tiempo. También hasta 8 patrones se pueden cortar simultáneamente. El proceso de corte de la máquina en 30 min nte. Se tarda 1,5 minutos para desplegar una capa de tela y así por 60 capas, sino que toma 90 minutos el tiempo de instalación. La máquina está siendo operada por 4 operarios y la empresa en una carrera = 60 * 8 = 480. Tiempo total / carrera = tiempo de instalación + ejecución = 90 + 30 = 120 minutos camisas Regulares.
a) para el corte = 120/480 = 0.25 min por camiseta Número de trabajadores = 4
Katia tamayo Calculo cuello de botella WIP / Capacidad de Producción Corte + Otras Operaciones (minutos laborables) / cuello botella Prod. Mes / dias laborales mes Cap. actual/Cap. Teorica ∑ de min incurridos por act. / camiseta (Prod. Actual mes) x (Contenido MOD)
Proceso Actual Camisas Regulares 0.50 12.25 11,760 960 800 83.33% 26.51 21,208
Plan de Mike Camisas Regulares y a la Medida 0.5 2.06 1,980 960 900 93.75% 26.01 23,409
30,720
31,200
69% 3.84
75.03% 3.47
0.00
0
3.84
3.47
(Hrs lab / dia) x ( 60 min) x Total personas Horas laborables Actuales / Horas dispon (min) Costo Total MOD / Prod actual dia
14.7
ras adicionales de sobretiempo si fuera necesario 80
ribe en el caso.
úmero limitado de variedades para producir. Por lo tanto, tiene grandes cantidades de cada tipo de camisa (tamaño y color).
eamente. El proceso de corte de la máquina en 30 minutos, independientemente del número de patrones y el número de capas. Sin embargo, el quina está siendo operada por 4 operarios y la empresa está utilizando su capacidad máxima, es decir, 60 niveles y los patrones de ocho a la vez. Por
Shirts Regular 0.667 8.96 8,604 960 800 83.33% 26.51 21,208
3.9 0.41 50 123 100 81.30% 26.34 2,634
23,520
7,680
90.17% 2.94 80 0.888888889
34.30% 7.68 0
Plan Ike`s Shirts Regular Shirts Customs 0.666666667 3.9 12.58 0.41 9060 50 720 123 800 100 111.11% 81.30% 25.76 26.01 20608
2601
23520 87.62% 3.33
7680 33.87% 7.68
5.15
0
9.14
8.34
8 10.94
7.68
Otras Operaciones MOD
Plan Ike`s Shirts Customs
ACTUALIDAD DATOS Maquina corte manual
120
Camisas / corrida
480
Procesos CORTE COSTURA INSPECCION PLANCHADO EMPAQUE
Capacidad actual / mes Dias laborables / mes Capacidad actual / dia
# Trab. 4 48 4 4
min / corrida
# Maq. 1 48 4
4
16000 20 800
WIP ( # Lotes de 60 camisas) 16 144 12 12
WIP (Camisas) 960 8640 720 720
12
720 11760
El tiempo empleado por lote
camisas dias camisas/dia
Contenido para Camisas regulares (minutos / camisa)
# Trabajadores
El tiempo empleado por camisa (minutos)
Corte
0.25
4
0.06
3.75
Hacer Cuello Hacer puños Hacer Mangas Hacer frente Hacer espalda Unir hombros Pegar Cuello Pegar managas Puntear mangas Coser costura lateral Puegar Puños Hacer dobladillo Inspeccionar Planchar Doblar y empacar
3.90 2.00 0.65 2.50 1.70 0.66 1.65 1.55 0.65 1.80 1.55 1.70 1.50 1.95 1.75
8 4 2 6 4 2 4 4 2 4 4 4 4 4 4 64
0.49 0.50 0.33 0.42 0.43 0.33 0.41 0.39 0.33 0.45 0.39 0.43 0.38 0.49 0.44
29.25 30.00 19.50 25.00 25.50 19.80 24.75 23.25 19.50 27.00 23.25 25.50 22.50 29.25 26.25
Cuello de Botella
30.00 0.50
Operación
Contenido de MOD
Corte convencional Otras Operaciones
1.00 25.51 26.51 0.25
PROPUESTA MIKE ( Camisas regulares y a la medida ) Maquina corte manual
120
Camisas / corrida
480
Procesos CORTE COSTURA INSPECCION PLANCHADO EMPAQUE
Cap. Camisas Reg/mes Cap. Camisas medida/mes Total cap prod/mes Dias laborables / mes Capacidad actual / dia
6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6
Costo Total MOD $/dia
192 384 192 96 288 192 96 192 192 96 192 192 192 192 192 192 3072
# Maq. 2 48 4
4
16000 2000 18000 20 900
camisas camisas Camisas dias camisas/dia
Contenido para Camisas regulares (minutos / camisa)
# Trabajadores
Corte convencional
0.25
4
Corte a medida Hacer Cuello Hacer puños Hacer Mangas Hacer frente Hacer espalda Unir hombros Pegar Cuello Pegar managas Puntear mangas Coser costura lateral Puegar Puños Hacer dobladillo Inspeccionar Planchar Doblar y empacar
0.50 3.90 2.00 0.65 2.50 1.70 0.66 1.65 1.55 0.65 1.80 1.55 1.70 1.50 1.95 1.75
1 8 4 2 6 4 2 4 4 2 4 4 4 4 4 4
Operación
Otras Operaciones
Costo MOD $/hr
# Trab. 5 48 4 4
min / corrida
65 Contenido de MOD
Corte convencional Corte automatico Otras Operaciones
1.00 -0.50
25.51 26.01
PROPUESTA IKE ( Camisas regulares y a la medid Maq. Autom Camisas / corrida WIP ( # Lotes de 5 camisas) 36 288 24 24
WIP (Camisas) 180 1440 120 120
24
120 1980
2.5
min / corrida
Maquina corte manual
5
Camisas / corrida Procesos CORTE COSTURA INSPECCION PLANCHADO EMPAQUE
Cap. Camisas Reg/mes Cap. Camisas medida/mes Total cap prod/mes Dias laborables / mes Cap. Regular actual / dia Cap. A Medida actual / dia
CAMISAS REGULAR El tiempo empleado por lote
Costo MOD $/hr
Costo Total MOD $/dia
0.06
3.75
6
0.50 0.49 0.50 0.33 0.42 0.43 0.33 0.41 0.39 0.33 0.45 0.39 0.43 0.38 0.49 0.44
30 29.25 30.00 19.50 25.00 25.50 19.80 24.75 23.25 19.50 27.00 23.25 25.50 22.50 29.25 26.25
6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6
192 48 384 192 96 288 192 96 192 192 96 192 192 192 192 192 192
Operación Corte convencional
Otras Operaciones
El tiempo empleado por camisa (minutos)
Hacer Cuello Hacer puños Hacer Mangas Hacer frente Hacer espalda Unir hombros Pegar Cuello Pegar managas Puntear mangas Coser costura lateral Puegar Puños Hacer dobladillo Inspeccionar Planchar Doblar y empacar
3120 Cuello de Botella
30.00 0.50
Contenido de MOD
Corte convencional Corte automatico Otras Operaciones
CAMISAS A MEDIDA Operación Corte a medida
Otras Operaciones
Hacer Cuello Hacer puños Hacer Mangas Hacer frente Hacer espalda Unir hombros Pegar Cuello Pegar managas Puntear mangas Coser costura lateral Puegar Puños Hacer dobladillo Inspeccionar Planchar Doblar y empacar Contenido de MOD
Corte convencional Corte automatico Otras Operaciones
E ( Camisas regulares y a la medida ) 120
min / corrida
Maq. Autom
480 # Trab. 4 36 3 3
Camisas / corrida # Maq. 1 36 3
3
16000 2000 18000 20 800 100
2.5 3
WIP ( # Lotes de 60 camisas) 16 108 9 9
WIP (Tradic.) 960 6480 540 540
9
540 9060
50
camisas camisas Camisas
WIP ( Medida)
5 36 3 3 3
11%
dias camisas/dia camisas/dia
Contenido para Camisas regulares (minutos / camisa)
# Trabajadores
El tiempo empleado por camisa (minutos)
El tiempo empleado por lote
Costo MOD $/hr
0.25
4
0.06
3.75
6
3.90 2.00 0.65 2.50 1.70 0.66 1.65 1.55 0.65 1.80 1.55 1.70 1.50 1.95 1.75
7 3 1 5 3 1 3 3 1 3 3 3 3 3 3
0.56 0.67 0.65 0.50 0.57 0.66 0.55 0.52 0.65 0.60 0.52 0.57 0.50 0.65 0.58
33.43 40.00 39.00 30.00 34.00 39.60 33.00 31.00 39.00 36.00 31.00 34.00 30.00 39.00 35.00
6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6
Cuello de Botella
40.00 0.67
49 1.00 0.00
25.51 26.51
Contenido para Camisas regulares (minutos / camisa)
# Trabajadores
El tiempo empleado por camisa (minutos)
El tiempo empleado por lote
Costo MOD $/hr
0.83
1
0.83
2.5
6
0.00
0
6
3.90 2.00 0.65 2.50 1.70 0.66 1.65 1.55 0.65 1.80 1.55 1.70 1.50 1.95 1.75
0.83 0.00
25.51 26.34
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 16
3.90 2.00 0.65 2.50 1.70 0.66 1.65 1.55 0.65 1.80 1.55 1.70 1.50 1.95 1.75
11.70 6.00 1.95 7.50 5.10 1.98 4.95 4.65 1.95 5.40 4.65 5.10 4.50 5.85 5.25
Cuello de Botella
11.70 3.90
6 6 6 6 6 6 6 6 6 6 6 6 6 6 6
min / corrida
Costo Total MOD $/dia
192 0 336 144 48 240 144 48 144 144 48 144 144 144 144 144 144 2352
Costo Total MOD $/dia
48 0
0.16666667
48 48 48 48 48 48 48 48 48 48 48 48 48 48 48 768
MATERIA PRIMA
CORTE DISPOSICION DE CAPAS
TELAS
Inputs + Inputs Hora WIP (Telas) (Telas)
WIP 1
CORTE
Tiempo Actividad:
1.5 min/Tela
Tiempo Actividad:
Cap. Proceso :
40 Telas/hra
Cap. Proceso :
Cap. Proceso : Inputs + Outputs Inputs WIP2 (Telas) (Telas/hra) (Telas)
320 Camisas/hra
Cap. Proceso : Inputs + Output Inputs WIP3 WIP 2 (Telas/hra) (Telas/hra) (Telas)
1
60
20
40
40
0
40
40
2
60
80
40
40
40
40
0
40
40
40
3
60
100
60
40
40
40
0
40
40
40
4
60
120
80
40
40
40
0
40
40
40
5
60
140
100
40
40
40
0
40
40
40
6
60
160
120
40
40
40
0
40
40
40
7
60
180
140
40
40
40
0
40
40
40
8
60
200
160
40
40
40
0
40
40
40
9
0
160
120
40
40
40
0
40
40
40
10
0
120
80
40
40
40
0
40
40
40
11
0
80
40
40
40
40
0
40
40
40
12
0
40
0
40
40
40
0
40
40
40
13
0
0
0
0
0
0
0
0
0
0
14
0
0
0
0
0
0
0
0
0
0
CORTE
TRASLADO 0.5 min/ Tela
# Recursos TOTAL Camisetas/ho ra
120 Telas/hra 960 Camisas/hra WIP 3
Output (Telas/hra)
Cap. Proceso : Cap. Proceso Total: Inputs + Inputs WIP3 (Camisas/hra) (Telas)
4 60 Camisas/Coche 240 Camisas/ 4 pers WIP 4
Output (Camisas/hra)
0
40
320
320
80
240
0
40
320
320
400
80
240
0
40
320
320
400
80
240
0
40
320
320
400
80
240
0
40
320
320
400
80
240
0
40
320
320
400
80
240
0
40
320
320
400
80
240
0
40
320
320
400
80
240
0
40
320
320
400
80
240
0
40
320
320
400
80
240
0
40
320
320
400
80
240
0
40
320
320
400
80
240
0
0
0
0
80
0
80
0
0
0
0
0
0
0
Case Analysis-The Executive Shirt Company (Gr (2011-05-01 21:03:10) Harvard Business School 9-696-071 Rev. March 11, 1996 Executive Shirt Company Case Analysis-The Executive Shirt Company (Group Project) Part A Calculations Current Process Regular Shirts
2 minutes A) Actual per cuff / 4 Cycle Time workers = (Min/shirt) 0.5 B) Manufacturi ng Lead Time (days)
Mike's Plan Regular & Custom Shirts
Regular Shirts
120 minutes for cutting / 480 shirts worth = 0.25 < labor content of cuffs at 0.5 CT
All labor content / one less worker for each category while cutting is still 0.25: Cuffs is still the bottleneck at 2 labor content / 3 workers = 0.67 mins/shirt
(WIP * Cycle 11,760 * 0.5 Time) / / 480 0.5 * 1980 / Minutes in a minutes = 480 = 2.06 working day 12.25 days
C) WIP Inventory (shirts) Average WIP * Batch size
196 * 60 = 11,760
Ike's Plan
(9060 * 0.66) / 480 = 12.58 days
Custom Shirts
2.5 / 5 = 0.5 labor content for cutting. With everything divided by 1, collar is new bottleneck at 3.90 CT
(50 * 3.9) / 480 = 0.41 30 days units at
sewing + 5 units being cut + 15 60 * 151 sum of avg. units being finished = 396 * 5 = WIP = 50 WIP (given in 1980 shirts 9,060 shirts case)
D) Production Capacity 8 hours * 60 (shirts/day minutes / 480 / 0.666 8 hours * 60 ) 0.5 = = Minutes mins / 0.5 = available / 960 shirts / 720 960 CT day shirts/day shirts/day
123 shirts/day 123 * 20 days = 2460 monthly production capacity
E) Capacity Utilization Actual Produced / What could be produced
8 * 60 / 3.9 =
10,000 / (960 * 20 days) = 83%
(16,000 + 2000) / (960 16,000 / * 20) = (720 * 20) = 2000 / 2460 = 81.25% 93.75% 111.11% (16,000 / 18,000) * 0.25 = 0.2777 + (2,000 / 18,000 * 0.5) = 0.2777 = weighted F) Direct avg. cutting (90 + 30 (120 minutes 0.5 direct Labor time for minutes /8hr / 480 total labor for Content regular and * 60 mins) + minutes) + cutting + 3.9 (min/shirt) custom 3.9 + 2 + 3.9 + 2 + + 2 + 0.65 + 0.65 + 2.5 + 0.65 + 2.5 + 2.5 + 1.7 + 1.7 + 0.66 + 25.76 - 0.25 1.7 + 0.66 + 0.66 + 1.65 Time spent 1.65 + 1.55 = 25.51 sum 1.65 + 1.55 + 1.55 + cutting + Direct labor + 0.65 + 1.8 of standard + 0.65 + 1.8 0.65 + 1.8 + for one shirt + 1.55 + 1.7 station time + 1.55 + 1.7 1.55 + 1.7 + 25.51 + + 1.5 + 1.95 + 1.5 + 1.95 1.5 + 1.95 + 0.2777 = + 1.75 = + 1.75 = 1.75 = 25.79 25.76 25.76 25.01 G) Direct Labor (900 * Utilization 25.79) / (65 (Shirts per direct (800 per day day * Direct (800 shirts * workers * * 25.76) / labor 25.76 Direct 480 minutes (64 - 15) * content / labor available)= 480) = (Direct labor content) / 23,211 / 20,608 / 100 * 26.01 * minutes 64*480 = 31,200 = 23,520 = / (16 * 480) available) 67.08% 74.39% 87.62% = 33.87% 720 shirts / day on normal salary: 49 * H) Direct 6*8= Labor Cost $2,352
($/shirt) Direct labor (Salary * hours worked) / shirts produced
80 remaining shirts * 0.67 = 53.6 minutes
53.6 / 60 * 9 = 8.04 49 * 8.04 = 65 ( $6 * 393.96 Total: 8hours) / 900 = 31200 (393.96 + 16 ($6 * 8 2352) / 800 hours) / 100 64 (6 * 8) / / 900 = = 3.43 800 = $3.84 $3.47 = 7.68
Explanation 1. Regular shirt production process without custom shirt fabrication. a. i. ii.
Cycle time for each station = total station time / # of workers at station Cycle time for system = longest station cycle time Cuffs station = System CT = 2.0 minutes / 4 workers = 0.5 minutes
b.
Manufacturing Lead Time (MLT) = Cycle Time (CT) * Works in Progress (WIP)
i.
CT = 0.5 minutes
ii. iii.
WIP individual shirts = (196 batches * 60 shirts / batch) = 11,760 MLT in days = (0.5 * 11,760) / 480 minutes per day = 12.25 days
c. i.
Total individual shirts as WIP = Sum of average batches * 60 shirts per batch WIP shirts = 196 batches * 60 shirts per batch = 11,760 shirts as WIP
d.
Production capacity of system at continuous 100% utilization (minutes)
i. ii.
Production capacity = minutes per day / CT of system Production capacity = 480 / 0.5 = 960 units per day @ continuous 100% utilization
e.
Production capacity utilization = monthly production / monthly production capacity
i.
Current monthly production is 16,000 (given in case)
ii. iii.
Total monthly capacity = 19,200 (920 per day * 20 days per month) Production utilization = 16,000 / 19,200 = 83%
f.
Direct Labor content = sum of time at all stations + time per shirt for cutting
i.
Sum of time at all stations = 25.51 minutes per shirt
ii.
A single cutting of 8 patterns on 60 layers of cloth produces (60 * 8) = 480 shirts
iii.
Total cutting time = (1.5 minutes * 60 layers) + (30 minutes cutting) = 120 minutes
iv. v.
Cutting time per shirt = 120 minutes / 480 shirts = 0.25 minutes per shirt Total labor content (time) per shirt = 25.51 + 0.25 = 25.76 minutes per shirt
g.
Direct Labor Utilization = Total used labor time / Total labor time available
i.
Total labor time available = 64 workers * 480 minutes per day = 30,720 minutes
ii. iii. iv. h.
Total time used = time per shirt * daily production (16,000 per month / 20 days) Total time used = 25.76 minutes * 800 shirts per day = 20,608 minutes Direct Labor Utilization = 20,608 minutes used / 30,720 minutes available = 67.08% Total Direct Labor Cost per shirt = (# workers * 8 hours per day * $6 per hour) / 800
i. ii.
Total Direct labor cost = (64 * 8 * 6) / 800 (total daily production = 16,000 / 20 days) Total Direct Labor Cost = $3.84 / shirt
2.
Mike’s plan for production of regular and custom shirts using existing facilities with the add
a.
System CT remains unchanged = 0.5 (the cuffs station still has the longest station CT)
b.
Manufacturing Lead Time (MLT) = Cycle Time (CT) * Works in Progress (WIP)
i. ii. iii.
CT = 0.5 minutes WIP individual shirts = (396 batches * 5 shirts / batch) = 1,980 MLT in days = (0.5 * 1,980) / 480 minutes per day = 2.06 days
c. i.
Total individual shirts as WIP = Sum of average batches * 5 shirts per batch WIP shirts = 396 batches * 5 shirts per batch = 1,980 shirts as WIP
d.
Production capacity of system at continuous 100% utilization (minutes)
i.
Production capacity = minutes per day / CT of system
ii.
Production capacity = 480 / 0.5 = 960 units per day @ continuous 100% utilization
e.
Production capacity utilization = monthly production / monthly production capacity
i.
Current monthly production is 16,000 regular + 2000 custom shirts (given in case)
ii. iii. f. i. ii.
Total monthly capacity = 18,000 (900 per day * 20 days per month) Production utilization = 18,000 / 19,200 = 93.8% Direct Labor content = sum of time at all stations + time per shirt for cutting Sum of time at all stations = 25.51 minutes per shirt New machine can cut 1 pattern on five layers in 2.5 minutes
ii.Custom cutting time = 5 shirts / 2.5 minutes = 0.5 minutes per custom shirt iii.
Total cutting time = Weighted average of old & new machine cutting times
iii.(16,000 reg / 18000 total) * 0.25 + (2000 / 18000) * 0.5 = 0.278 min/shirt iv. Total labor content (time) per shirt = 25.51 +0.28 = 25.79 minutes per shirt g.
Direct Labor Utilization = Total used labor time / Total labor time available
i.
Total labor time available = 65 workers * 480 minutes per day = 31,200 minutes
ii. iii. iv.
Total time used = time per shirt * daily production (18000 per month / 20 days) Total time used = 25.79 minutes * 900 shirts per day = 23,211 minutes Direct Labor Utilization = 23,211 minutes used / 31,200 minutes available = 74.39%
h.
Total Direct Labor Cost per shirt = (# workers * 8 hours per day * $6 per hour) / 900
i. ii.
Total Direct labor cost = (65 * 8 * 6) / 900 (total daily production = 18,000 / 20 days) Total Direct Labor Cost = $3.47 / shirt
3.
Ike’s plan for shifting labor from the regular assembly floor to create a separate assembly l
(A) Regular Shirt Production: a.
System CT = 0.67 (the cuffs station still has the longest station CT @ 2.0 min / 3 workers )
b.
Manufacturing Lead Time (MLT) = Cycle Time (CT) * Works in Progress (WIP)
i. ii. iii.
CT = 0.67 minutes WIP individual shirts = (151 batches * 60 shirts / batch) = 9,060 MLT in days = (0.67 * 9,060) / 480 minutes per day = 12.58 days (for regular shirts)
c. i.
Total individual shirts as WIP = Sum of average batches * 60 shirts per batch WIP shirts = 151 batches * 60 shirts per batch = 9,060 shirts as WIP
d.
Production capacity of system at continuous 100% utilization (minutes)
i. ii. e.
Production capacity = minutes per day / CT of system Production capacity = 480 / 0.67 = 720 units per day @ continuous 100% utilization Production capacity utilization = monthly production / monthly production capacity
i.
Current monthly production is 16,000 regular shirts (given in case)
ii. iii.
Total monthly capacity = 14,400 (720 per day * 20 days per month) Production utilization = 16,000 / 14,400 = 111%
f.
Direct Labor content = sum of time at all stations + time per shirt for cutting
i.
Sum of time at all stations = 25.51 minutes per shirt
ii.
A single cutting of 8 patterns on 60 layers of cloth produces (60 * 8) = 480 shirts
iii.
Total cutting time = (1.5 minutes * 60 layers) + (30 minutes cutting) = 120 minutes
iv. v.
Cutting time per shirt = 120 minutes / 480shirts = 0.25 minutes per shirt Total labor content (time) per shirt = 25.51 + 0.25 = 25.76 minutes per shirt
g.
Direct Labor Utilization = Total used labor time / Total labor time available
i. New direct labor available = 64 – 15 = 49 ii.
Total labor time available = 49 workers * 480 minutes per day = 20,608 minutes
iii.
Total time used = time per shirt * daily production (16000 per month / 20 days)
iv. v.
Total time used = 25.76 minutes * 800 shirts per day = 23,211 minutes Direct Labor Utilization = 20,608 minutes used / 23,520 minutes available = 87.62%
h.
Total Direct Labor Cost per shirt = (# workers * 8 hours per day * $6 per hour) / 800
i.
Overtime is incurred for all employees in order to reach excess of normal hour production levels (calcu
ii. Overtime production = daily production – daily capacity = 800 – 720 = 80 shirts ii.OT (minutes) = 80 * CT = 80 * 0.67 = 53.60 extra minutes per worker ii.OT cost = (53.60 / 60) *$6 / hour * number of workers = (53.60 / 60) * 6 * 49 ii.OT cost = $393.96 iii. iv.
Total Direct labor cost = (49 * 8 * 6) + 393.96 / 800 (total daily production = 18,000 / 20 days) Total Direct Labor Cost = $3.43 / regular shirt
(B)
Custom shirt production on separate assembly line (15 workers + 1 new hire):
a. i. ii. b. i. ii. iii.
Cycle time for each station = total station time / # of workers at station Cycle time for system = longest station cycle time Cuffs station = System CT = 3.90 minutes / 1 worker = 3.90 minutes (collar station) Manufacturing Lead Time (MLT) = Cycle Time (CT) * Works in Progress (WIP) CT = 0.5 minutes WIP individual shirts = (10 batches * 5 shirts / batch) = 50 shirts MLT in days = (3.90 * 50) / 480 minutes per day = 0.41 days
c. i.
Total individual shirts as WIP = Sum of average batches * 5 shirts per batch WIP shirts = 30 shirts in sewing + 5 shirts in cutting + 15 shirts in finishing = 50 shirts as WIP (giv
d.
Production capacity of system at continuous 100% utilization (minutes)
i. ii.
Production capacity = minutes per day / CT of system Production capacity = 480 / 3.90 = 123 units per day @ continuous 100% utilization
e.
Production capacity utilization = monthly production / monthly production capacity
i.
Current monthly production is 2,000 (given in case)
ii. iii. f. i. ii.
Total monthly capacity = 2460 (123 per day * 20 days per month) Production utilization = 2000 / 2460 = 81.25% Direct Labor content = sum of time at all stations + time per shirt for cutting Sum of time at all stations = 25.51 minutes per shirt A single cutting of 1 pattern on 5 layers of cloth produces 5 shirts
iii.
Total cutting time = 2.5 minutes
iv. v.
Cutting time per shirt = 2.5 minutes / 5 shirts = 0.50 minutes per shirt Total labor content (time) per shirt = 25.51 + 0.50 = 26.01 minutes per shirt
g.
Direct Labor Utilization = Total used labor time / Total labor time available
i.
Total labor = 12 sewers + 3 finishers + 1 cutter = 16
ii.
Total labor time available = 16 workers * 480 minutes per day = 7680 minutes
iii.
Total time used = time per shirt * daily production (2000 per month / 20 days)
iv. v.
Total time used = 26.01 minutes * 100 shirts per day = 2601 minutes Direct Labor Utilization = 2601 minutes used / 7680 minutes available = 33.87%
h. i. ii.
Total Direct Labor Cost per shirt = (# workers * 8 hours per day * $6 per hour) / 200 Total Direct labor cost = (16 * 8 * 6) / 200 (total daily production = 2000 / 20 days) Total Direct Labor Cost = $7.68 / custom shirt
Part B
Recommendation to Management Using the calculations in Part A it is possible to evaluate each of the two proposals in terms of their cost and
The great disparity in cost between the two is mainly due to the efficiency of each proposal. Whilst Mike incre
Furthermore, when considering the logistics of each production line layout, Mike’s proposal is favourable over
Based upon our analysis, although both processes do essentially satisfy Dwight Collier’s production lead mana
hirt Company (Group Project)
gress (WIP)
ts per batch
us 100% utilization
oduction capacity
t for cutting
8) = 480 shirts
g) = 120 minutes
tes per shirt
30,720 minutes
onth / 20 days)
vailable = 67.08%
* $6 per hour) / 800
n = 16,000 / 20 days)
ng existing facilities with the addition of a new cutting machine and one worker.
e longest station CT)
gress (WIP)
100% utilization
oduction capacity
ts (given in case)
t for cutting
es per shirt
31,200 minutes
nth / 20 days)
vailable = 74.39%
* $6 per hour) / 900
n = 18,000 / 20 days)
r to create a separate assembly line dedicated to custom shirts, thus separating the two streams of production.
T @ 2.0 min / 3 workers )
gress (WIP)
(for regular shirts)
ts per batch
ous 100% utilization
oduction capacity
t for cutting
8) = 480 shirts
g) = 120 minutes
tes per shirt
20,608 minutes
th / 20 days)
vailable = 87.62%
* $6 per hour) / 800 normal hour production levels (calculated above @ 11% above capacity)
20 = 80 shirts
oduction = 18,000 / 20 days)
ers + 1 new hire):
utes (collar station)
gress (WIP)
n finishing = 50 shirts as WIP (given in case)
ous 100% utilization
oduction capacity
t for cutting
tes per shirt
7680 minutes
h / 20 days)
able = 33.87%
* $6 per hour) / 200
n = 2000 / 20 days)
proposals in terms of their cost and efficiency. Firstly, to deduce the total cost for the custom shirts each month, the Direct Labour Cost
y of each proposal. Whilst Mike increases the efficiency of both capacity and labour utilization in the factory (absorbing excess capacity
t, Mike’s proposal is favourable over Ike’s because it allows for more flexibility. Whilst Mike retains the existing ‘process layout’ in the b
Dwight Collier’s production lead management time conditions, we would recommend that he should trial Mike’s plan. If there does indee
treams of production.
each month, the Direct Labour Cost from each plan can be multiplied by 2000 (the desired quantity produced). By doing this we learn
factory (absorbing excess capacity and increasing efficiency from 83% to 93.75% as well as improving labour efficiency by 7.31%), Ik
the existing ‘process layout’ in the batch shop process, where similar operations are performed in common functional areas, Ike instead
trial Mike’s plan. If there does indeed prove to be a market for mid price range custom shirts, then implementing Mike’s proposal is the
y produced). By doing this we learn that Ike’s total cost for custom shirts is $7.68 x 2000 = $15,360, compared to Mike’s $3.47 x 2000
ving labour efficiency by 7.31%), Ike over-utilizes capacity in his regular shirt production line and severely under-utilizes capacity in his
ommon functional areas, Ike instead adopts a ‘product layout’ structure, where the operations are located according to the progressive
implementing Mike’s proposal is the company’s best shot at making a lucrative profit from this initiative.
0, compared to Mike’s $3.47 x 2000 = $6,940. This results in an $8,420 cost difference in favour of Mike’s plan. Production of regular s
everely under-utilizes capacity in his custom shirts production line. The result of this is that he has to pay the workers on the regular sh
ocated according to the progressive steps involved in making a shirt. Having only one worker completing each production task, as is the
f Mike’s plan. Production of regular shirts on the other hand are cheaper using Ike’s process, that is Ike’s labour costs are $3.43 x 16,00
to pay the workers on the regular shirt line overtime whilst the workers on the custom shirt line are frequently starved and sitting idle.
leting each production task, as is the case in Ike’s plan, means that if one worker is slowed down for any reason or needs to take a brea
Ike’s labour costs are $3.43 x 16,000 (desired quantity of regular shirts) = $54,880 compared with Mike’s labour costs of $3.47 x 16,0
e frequently starved and sitting idle.
r any reason or needs to take a break, then there is no one to pick up the slack. As a result, the whole process is negatively affected. A
h Mike’s labour costs of $3.47 x 16,000 = $55,520. The difference between the two is only $640, which is fairly insignificant, and leaves
hole process is negatively affected. An ideal assembly line should allow workers to trade elements of work and it should be unproblemat
hich is fairly insignificant, and leaves the total cost difference between the two plans at $7,780 in favour of Mike.
f work and it should be unproblematic to add workers to the line to increase efficiency, however the straight-line layout of Ike’s plan do
vour of Mike.
straight-line layout of Ike’s plan does not satisfy these requirements.
View more...
Comments
