OPERATIONS MANAGEMENT
EXECUTIVE SHIRT COMPANY CASE
PGP1 – Section A
Group 13
Manohar Vankadara
Darshan Karkera
Sukvinder Singh
Sunil Kumar
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.
Solution:
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.
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The cycle time / shirt = 30 / 60 = 0.5 min / shirt.
The work-in-process inventory = Total number of batches in all operations * Batch size
= (16 + 144 + 12 + 12 + 12) * 60
= 196 * 60 = 11760 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
= 11760 * 0.5
= 5880 minutes
Since production goes on for 8 hrs per day, manufacturing lead time = 5880 / (8 * 60)
= 12.25 days
Total number of shirts produced per month is 16,000. The company works for 20 days a month.
So, the output per day = 16000 / 20 = 800 shirts.
In, 8 hours a day, the company can produce 60 * 8 * (1/0.5) = 960 shirts, which is the current production capacity. But it needs to produce only 800 shirts.
So, the capacity utilization = (800 / 960) * 100 = 83.33%
The actual labor utilized = Number of shirts produced * Direct labor content
= 800 * 25.76
= 20608 minutes
The available labor for utilization = Total number of workers * Hours per day *
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