Time required for setting up of the machine = 90min for 60 layers

Time required for cutting of pieces for 8 patterns = 30min

Total number of shirt manufactured above = 60x8 = 480
Thus time taken to manufacture 480 shirts = 120min
Thus time taken to manufacture 1 shirt = 0.25min
Current Production Plan
Operation

Labour
content(Minutes per
shirt)

No.of Workers

Time taken by one

worker per shirt

Make collar

3.9

0.4875

Make cuffs

0.5

Make sleeves

0.65

0.325

Make front

2.5

0.4167

Make back

1.7

0.425

Join shoulders

0.66

0.33

Attach collar

1.65

0.4125

Attach sleeves

1.55

0.3875

Stitch down sleeves

0.65

0.325

Sew side seam

1.8

0.45

Attach cuffs

1.55

0.3875

Hem bottom

1.7

0.425

Inspect

1.5

0.375

Iron

1.95

0.4875

Fold,package

1.75

0.4375

Total time

25.51

60

From above table Making cuffs takes the longest time and hence affects the process cycle time.
It is given that 16000 shirts are produced in a given month. And the workers work for 20 days a
month. So no.of shirts produced per day = 16000/20 = 800
Total no.of mins available in a day = 8x60 = 480min
Flow rate = 800/480
So, Actual Cycle Time= 1 / flow rate = 1 / (800 / 480) = 1 / 1.667 = 0.60 min / shirt
WIP inventory = Total WIP x batch size = (16 + 144 + 12 + 12 + 12) x 60= 196 x 60 = 11760
shirts
Manufacturing lead time is the total time taken to manufacture an item.
Thus Manufacturing lead time = WIP inventory / flow rate = 11760 / 800 = 14.70 days
Production capacity = Total no.of minutes in a day / bottleneck = 480/0.5 = 960
Capacity Utilization = Actual no.of shirts produced / Production capacity = 800 / 960 = 83.33%
Direct Labour Content / shirt = Direct labour time / unit= Cutting + Operation process time
Cutting time = 0.25 x 4 machines = 1min
Direct Labour Content / shirt= 1+25.51 min = 26.51 min / shirt
Direct labour cost = Total labour x wages/hour x no.of hours worked = (60+4) x 6 x 8 = $3072
Direct labour cost / shirt = 3072/800 = $3.84
Direct labour utilisation = Labour utilized/ Labour Available = (800 x 26.51)/(8x60x64) =
69.03%

Mikes Plan
Thus time taken to manufacture 5 shirt by laser cutting machine = 2.5min
Thus time taken to manufacture 1 shirt by laser cutting machine = 2.5/5 = 0.5min
Since Mikes Plan proposes to use current production facilities for custom made shirts also the
operating time remains the same.

It is given that 16000 standard sized shirts and 2000 custom made shirts are produced in a given
month. And the workers work for 20 days a month. So no.of shirts produced per day =
(16000+2000)/20 = 900
Total no.of mins available in a day = 8x60 = 480min
Flow rate = 900/480
So, Actual Cycle Time= 1 / flow rate = 1 / (900 / 480) = 1 / 1.875 = 0.533 min / shirt
WIP inventory = Total WIP x batch size = (36 + 288 + 24 + 24 + 24) x 5= 396 x 5 = 1980 shirts
Thus Manufacturing lead time = WIP inventory / flow rate = 1980 / 900 = 2.2 days
Production capacity = Total no.of minutes in a day / bottleneck = 480/0.5 = 960
Capacity Utilization = Actual no.of shirts produced / Production capacity = 900 / 960 = 93.75%
Direct Labour Content / shirt = Direct labour time / unit= Cutting + Operation process time
We take cutting time as that of new machine= 0.5min because this is greater than that of the
existing machine (0.25min)
Custom Direct Labour Content / shirt= 0.5 +25.51 min = 26.01 min / shirt
Regular Direct Labour Content / shirt= ((1.5 x 8 x 5) +30)/ (8 x 5) +25.51 min = 27.76 min / shirt
Weighted average = (26.01*100+27.76*800)/900 = 27.57
Direct labour cost = Total labour x wages/hour x no. of hours worked = (60+1+4) x 6 x 8 =
$3120
Since an extra person is needed to operate the new machine
Direct labour cost / shirt = 3120/900 = $3.47
Direct labour utilisation = Labour utilized/ Labour Available = (900 x 27.57)/(8x60x65) =
79.52%

Ikes Plan
Table for regular shirt
Operation

Labour
content(Minutes per
shirt)

No. of Workers

Time taken by one

worker per shirt

Make collar

3.9

0.557

Make cuffs

0.67

Make sleeves

0.65

0.65

Make front

2.5

0.5

Make back

1.7

0.567

Join shoulders

0.66

0.66

Attach collar

1.65

0.55

Attach sleeves

1.55

0.5167

Stitch down sleeves

0.65

0.65

Sew side seam

1.8

0.6

Attach cuffs

1.55

0.5167

Hem bottom

1.7

0.567

Inspect

1.5

0.5

Iron

1.95

0.65

Fold,package

1.75

0.583

Total

25.51

45

Operation

Labour
content(Minutes per
shirt)

No.of Workers

Time taken by one

worker per shirt

Make collar

3.9

3.9

Make cuffs

Make sleeves

0.65

0.65

Make front

2.5

2.5

Table for custom made shirt

Make back

1.7

1.7

Join shoulders

0.66

0.66

Attach collar

1.65

1.65

Attach sleeves

1.55

1.55

Stitch down sleeves

0.65

0.65

Sew side seam

1.8

1.8

Attach cuffs

1.55

1.55

Hem bottom

1.7

1.7

Inspect

1.5

1.5

Iron

1.95

1.95

Fold,package

1.75

1.75

Total

25.51

15

For regular shirts

It is given that 16000 shirts are produced in a given month. And the workers work for 20 days a
month. So no.of shirts produced per day = 16000/20 = 800
Total no.of mins available in a day = 8x60 = 480min
Flow rate = 800/480
So, Actual Cycle Time= bottleneck time (time to make cuffs minutes/shirt/worker) = 0.67 min /
shirt
WIP inventory = Total WIP x batch size = (16 + 108 + 9 + 9 + 9) x 60= 151 x 60 = 9060 shirts
Manufacturing lead time = WIP inventory / flow rate = 9060 / 800 = 11.325 days
Production capacity = Total no.of minutes in a day / bottleneck = 480/0.67 = 720 shirts/day
Capacity Utilization = Actual no.of shirts produced / Production capacity = 800 / 720 = 111.08%
Direct Labour Content / shirt = Direct labour time / unit= Cutting + Operation process time

Cutting time = 0.25 x 4 machines = 1min

Direct Labour Content / shirt= 1+25.51 min = 26.51 min / shirt
Flow rate = 720 shirts/day
Demand = 16000/20 working days per month = 800 shirts/day
Labour used = 800 shirts * 26.51 mins/shirts = 21208 mins
Overtime labour used = 80*0.67 mins/shirt = 53.36 mins = 0.89 hours
Total Hours worked = 8 regular hours + 0.89 overtime hours = 8.89 hours = 533 mins
Labour available = 49*533 mins = 26117 mins
Direct labour cost = Total labour x wages/hour x no.of hours worked = (49 x 6 x 8) + (49 x 9 x
0.89)= $2744.5
Direct labour cost / shirt = 2744.5/800 = $3.43
Direct labour utilisation = Labour utilized/ Labour Available = 21208/26117 = 81.20%

For custom made shirts

It is given that 2000 custom made shirts are produced in a given month. And the workers work
for 20 days a month. So no.of shirts produced per day = 2000/20 = 10
Total no.of mins available in a day = 8x60 = 480min
Flow rate = 100/480
So, Actual Cycle Time= 1 / flow rate = 1 / (100 / 480) = 1 / 1.875 = 4.8 min / shirt
Since it is given that average of 3 shirts for each of the 15 workers would be on the line and 5
shirts would be on the laser cutting machine WIP inventory would be = 45+5 = 50
Thus Manufacturing lead time = WIP inventory / flow rate = 50/100 =0.5 days
Production capacity = Total no.of minutes in a day / bottleneck = 480/3.9 = 123
Capacity Utilization = Actual no.of shirts produced / Production capacity = 100 / 123 = 81.30%
Direct Labour Content / shirt = Direct labour time / unit= Cutting + Operation process time
Direct Labour Content / shirt= 0.5+25.51 min = 26.01 min / shirt

Direct labour cost = Total labour x wages/hour x no.of hours worked = 16 x 6 x 8 = $768
Direct labour cost / shirt = 768/100 = $7.68
Direct labour utilisation = Labour utilized/ Labour Available = (100 x 26.01)/(8x60x16) =
33.86%

Current
Process

Mikes Plan
(Regular and
custom shirts)

Actual Cycle time(min/shirt)

0.6

Manufacturing Lead
Time(days)

Ikes Plan
Regular
shirts

Custom
Shirts

0.533

0.67

4.8

14.7

2.2

11.33

0.5

WIP inventory (shirts)

11760

1980

9060

50

Production Capacity
(shirts/day)

960

960

720

123

Capacity utilisation

83.33%

93.75

111.08%

81.30%

Direct Labour Content

(min./shirt)

26.51

27.57

26.51

26.01

Direct Labour Utilisation

69.03%

79.52

81.20%

33.87%

Direct Labour Cost ($/shirt)

3.84

3.47

3.43

7.68