Min Yo Garment Company Case Study
Min Yo Garment Company | October 19
2011
| Jonathan Clune, Kathleen Croyle, Alexander Eikenberry | BUSMGT 430 - Case Study 1 |
1. Evaluate the market needs of each product line and assess the capabilities of Min Yo operations to the market needs.
The total time it takes for Min Yo to complete weekly orders, assuming no technical problems arise is seen in Table 1 of Appendix 1. Taiwan’s labor laws allow for a 40 hour limit work week and Min Yo is currently 2.5 hours below this maximum. It can be determined Min Yo is not working at its peak capacity of 40 hours per week, but it is working at its optimal/normal capacity and is meeting the current demand of the product. It is safe to assume that if demand increases or equipment failures occur, demand will not be met. 2. Determining the Capacity Cushion
Producing below peak levels leaves room for a cushion and allows for maintenance or last minute orders. According to Min Yo, the company would like to never decline an order from their subcontractor for it may result in future loss of business; therefore, the 2.5 hour cushion is beneficial to the company’s strategy. 3. Analysis of Halving the Batch Size
In response to the Marketing and Sales report that customers are unhappy about the slow response time, Operations is obligated to evaluate the proposal of halving the batch size of each shirt type in order to run each per shirt type biweekly. A problem arising with this proposal is the potential loss of not meeting the weekly demand for each shirt. As seen in Table 2 of the Appendix, simply halving the batch sizes to speed up the response time is unacceptable because it exceeds the strict labor laws in Taiwan by 2 hours. This is a result of the extra set-up time of running the machines twice in a given week as compared to just once. As the V.P. of Operations of Min Yo Garment Company, a solution could be drawn up to where only the Licensed Brands and the Subcontracted Brands halved
2011
| Jonathan Clune, Kathleen Croyle, Alexander Eikenberry | BUSMGT 430 - Case Study 1 |
1. Evaluate the market needs of each product line and assess the capabilities of Min Yo operations to the market needs.
The total time it takes for Min Yo to complete weekly orders, assuming no technical problems arise is seen in Table 1 of Appendix 1. Taiwan’s labor laws allow for a 40 hour limit work week and Min Yo is currently 2.5 hours below this maximum. It can be determined Min Yo is not working at its peak capacity of 40 hours per week, but it is working at its optimal/normal capacity and is meeting the current demand of the product. It is safe to assume that if demand increases or equipment failures occur, demand will not be met. 2. Determining the Capacity Cushion
Producing below peak levels leaves room for a cushion and allows for maintenance or last minute orders. According to Min Yo, the company would like to never decline an order from their subcontractor for it may result in future loss of business; therefore, the 2.5 hour cushion is beneficial to the company’s strategy. 3. Analysis of Halving the Batch Size
In response to the Marketing and Sales report that customers are unhappy about the slow response time, Operations is obligated to evaluate the proposal of halving the batch size of each shirt type in order to run each per shirt type biweekly. A problem arising with this proposal is the potential loss of not meeting the weekly demand for each shirt. As seen in Table 2 of the Appendix, simply halving the batch sizes to speed up the response time is unacceptable because it exceeds the strict labor laws in Taiwan by 2 hours. This is a result of the extra set-up time of running the machines twice in a given week as compared to just once. As the V.P. of Operations of Min Yo Garment Company, a solution could be drawn up to where only the Licensed Brands and the Subcontracted Brands halved