Batch Processing of Executive Shirt Company
Executive Shirt Company (ESC) is currently following a certain process that it had been using for a long time to produce regular shirts. The company’s manager has recently decided to add a new product to his company which is custom shirts believing that this will attract more profits to the company. To achieve this, the manager ordered a new cutting machine, asked two of his assistants to come up with different plans to implement the new product line and set only two constraints: 1. The Company should produce 16,000 regular shirts and 2,000 custom shirts per month and 2. The lead time for the custom shirt should not exceed 5 working days.
This document is intended to analyze the two different plans developed by the manager’s assistants Mike and Ike. In analyzing these plans, the focus will be on the following criteria:
1. Producing the required number of shirts.
2. Fulfilling the 5 days lead time condition for the custom shirt.
3. Cost impact by each of the two plans.
4. The efficiency of the process (i.e. which process better utilizes the machines and the labor in the company).
The analysis will proceed as follows:
1. Basic findings
2. Analysis of the current process implemented in the company for regular shirts.
3. Analysis of each of the two proposed plans, discussing the pros and cons of each plan.
4. Comparison of the two proposed plans with reference to the standard process
5. Conclusion and recommendations.
BASIC FINDINGS:
A general analysis to the standard process revealed the following:
1. The manufacturing lead time is very long
2. The current labor utilization is low
3. The company is working with 83% of its capacity
4. The inventory is very high
Main reasons for the above facts were:
1. Work was done in batches (not shirt by shirt)
2. Batch size was large (60 shirts per batch)
3. The cutting process produces 480 shirts every 2 hours (i.e. 8 batches at the same time)
4. The
This document is intended to analyze the two different plans developed by the manager’s assistants Mike and Ike. In analyzing these plans, the focus will be on the following criteria:
1. Producing the required number of shirts.
2. Fulfilling the 5 days lead time condition for the custom shirt.
3. Cost impact by each of the two plans.
4. The efficiency of the process (i.e. which process better utilizes the machines and the labor in the company).
The analysis will proceed as follows:
1. Basic findings
2. Analysis of the current process implemented in the company for regular shirts.
3. Analysis of each of the two proposed plans, discussing the pros and cons of each plan.
4. Comparison of the two proposed plans with reference to the standard process
5. Conclusion and recommendations.
BASIC FINDINGS:
A general analysis to the standard process revealed the following:
1. The manufacturing lead time is very long
2. The current labor utilization is low
3. The company is working with 83% of its capacity
4. The inventory is very high
Main reasons for the above facts were:
1. Work was done in batches (not shirt by shirt)
2. Batch size was large (60 shirts per batch)
3. The cutting process produces 480 shirts every 2 hours (i.e. 8 batches at the same time)
4. The