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# EXECUTIVE SHIRTS

COMPANY
Group 1
Introduction
Mr. Dwight Collier, Gen. Manager of Executive Shirt Company (ESC) is planning to introduce customized shirts in his current
production facility since they can fetch 75% more price as compared to regular shirts. Currently, ESC is manufacturing 16,000
shirts per month and they plan to manufacture 2,000 customized shirts per month without hampering the current production.

## The company has 5 departments, namely,

Cutting: 1 Machine, 4 Workers
Sewing: 48 Machines, 48 Workers
Inspection: 4 workers
Ironing: 4 Machines, 4 Workers
Packaging: 4 workers
Indirect Workers (material handlers) : 4 Workers

Mr. Collier introduced a change in the manufacturing process by introducing a Laser Cutting Machine for customized shirt.
So he requested two of his managers, Mike and Ike to devise a production plan to maximize the profit from both the
products.
The highlights of their plans are

Mike’s Plan: To go with one production line manufacturing both the products simultaneously (other than the cutting process)
o Eight Batches of regular shirts with 5 shirts each
o One batch of 5 custom shirts
Ike’s Plan: To go for a separate production line for regular and customized shirt
o Eight Batches of regular shirts with 6o shirts each
o One batch of 5 custom shirts
Current Production Process
Analysis for current production process
Time required for producing one unit from laying and
cutting operation=120/60*8=0.25 min
Mike’s production process
Mike’s Production Plan
Time required for producing one unit from laying
and cutting operation=120/60*8=0.25 min
whereas the cycle time of laser cutting machine is
2.5/5=0.5
ike’s production
process

## Regular t-shirt Custom t-shirt

Ike’s Production Plan
Regular Shirt Production
Ike’s Production Plan calculation

## Quantity Obtained value (regular shirts)

Actual cycle time Bottle neck time Bottle neck time = 0.67 per shirt
0.67 min per shirt

## Production Bottle neck time Bottle neck = 0.67 480/0.67=720

capacity min per shirt units

operations

## Capacity Actual production 800/720 111.11%

utilisation :production
capacity

## Direct labour Direct labour per Cutting +other 25.51+4*.25=26.5

utilisation time operations 1
(min/shirt)

## Direct labour Total labour cost Including overtime 3.43

cost(\$/shirt) per unit time

## Direct labour Labour utilised 800*26.51/49*8*60 81.1%

utilisation *1.11
Comparison of Mike’s and Ike’s
Production Plan

## Now let us see about the various

constants taken in the various plans

81.1%
Cost Comparison of Mike’s and Ike’s Plan

\$3.43

\$15.59

\$34.41
Conclusion
From the cost comparison table of Mike’s and Ike’s Plan, we can see that the total
profit per shirt from Mike’s plan is greater \$4.19.