Executive Shirt Company

OPERATIONS  MANAGEMENT  -­‐  1  ASSIGNMENT   EXECUTIVE  SHIRT  COMPANY   PGP  –  1;  Section  –  B   Group  –  11  

Overview:   The   Executive   Shirt   Company   (ESC)   is   a   top   apparels   company   which   is   looking   to   expand   into   the   high   potential   custom-­‐sized   dress   shirt   market.   Customers   currently   had   a   problem   with   this   market   because   of   higher   prices   and   long   delivery   times   of   up   to   6   weeks.   If   these   factors   were   addressed,   ESC   had   the   opportunity   to   tap   into   the   highly   lucrative   market   where  customers  were  willing  to  pay  at  least  75%  more  than  standard  shirts.  

Identified  objective:   The   general   manager   Collier   wants   to   make   alterations   to   his   current   process   that   would   enable  him  to  make  both  custom-­‐sized  shirts  and  standard  shirts  using  his  resources  to  the   maximum  extent  possible.     Current  process  flow:   The   current   process   flow   in   ESC   is   as   shown   in   Figure   1.   Each   batch   consists   of   60   shirts   and   Work-­‐In-­‐Process   at   each   station   was   three   batches   per   worker.   Collier   purchases   a   new   cutting  machine  which  takes  only  2.5  minutes  for  the  entire  process.  But  the  batch  size  that   this   machine   can   handle   is   five   shirts.   Two   managers,   Mike   and   Ike   are   asked   to   present   their  plans  as  alternatives  to  the  current  process  flow.     Mike’s  plan:   Mike   proposes   a   plan   where   both   custom   and   standard   shirts   are   processed   together.   To   reduce  the  lead  time,  he  proposes  to  reduce  the  batch  time  from  sixty  to  five  shirts.  He  also   plans  to  increase  the  Work-­‐In-­‐Process  to  six  batches  per  worker  from  the  current  three.  The   process   flow   for   this   plan   is   the   same   as   the   previous.   Only,   an   extra   cutting   machine   is   added  for  the  Cutting  process.   Ike’s  plan:   Ike’s  proposal  is  to  separate  the  Custom  shirt  production  from  the  Standard  shirt  production   line   by   introducing   a   new   assembly   line.   One   worker   each   from   all   sewing   stations,   the   inspection  station,  the  ironing  station  and  the  packaging  station  are  proposed  to  be  moved   to  the  new  custom  line.  The  plan  seeks  to  implement  the  assembly  line  by  moving  twelve   sewing  machines  and  one  ironing  machine  from  the  current  assembly  line.  One  extra  worker        

Executive  Shirt  Company,  Inc.  

   

1  

is  employed  to  operate  the  laser  cutting  machine.  The  process  flow  for  the  standard  shirts  is   the   same   as   the   current   plan   with   a   batch   size   of   60.   The   process   flow   for   the   Custom   shirts   is  same  as  well,  except  that,  processing  is  done  one  shirt  at  a  time.     An  analysis  based  on  the  proposed  alternatives  from  Mike  and  Ike  will  help  in  making  the   ideal  choice  that  will  maximize  the  inherent  potential  of  the  custom-­‐shirts  business.  

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