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Caso Executive Shirt Company

Automap top page - CASOS cmu - Carnegie Mellon University

Illinois He was born into a family in which the father, Robert Fitzgerald Williams, was a senior executive of Ford Motor Company's Lincoln Mercury Division and Executive Summary Music streaming use the service 1 The company has posted growth at a staggering rate

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Pontificia Universidad Católica del Ecuador

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Description

Camiseta ejecutivo de la compañía de análisis de cas

Pregunta 1

Calcular las siguientes cantidades para el proceso de producción actual,

así como de Mike y los planes de

El procesamiento por lotes actual Las ventas para el Shirt Company Ejecutivo están constituidos por sólo unos pocos est

Sólo tiene una máquina de corte,

que es controlado por ordenador y puede reducir hasta 60 capas de tela al mismo tiem tiempo de puesta a punto es muy importante

Se tarda 1,5 minutos para desplegar una capa de tela y así por 60 capas,

Número total de camisas de corte en una carrera = 60 * 8 = 480

Contenido de trabajo (minutos por camiseta) para el corte = 120/480 = 0

Question # 1 Actual Cycle Time (min/shirt) Manufacturing Lead Time (days) WIP inventory (shirts) Production Capacity (Shirts/day) Current Production(Shirts/day) Capacity utilization Direct Labor Content (min/shirt)

Tiempo de Ciclo Real (min/camisa) Tiempo de Manufactura ( dias ): WIP inventario ( camisas ) Cap

De produccion Teorica (camisas/dia) Cap

De Produción Actual ( camisas/dia) % Utilización de la Capacidad Contenido de MOD (min/camisa)

Actual Labor Time (min)

Horas de Trabajo MOD Totales (min)

Available Labor Time (min) Direct Labor Utilization Direct Labor Cost ($/Shirt) Camisas en sobretiempo Total Overtime (hrs dia necesarias) Total $/Overtim Total Labor ($)

Tiempo Disponible para labores (min) % Ut

MOD Costo MOD ( $/camisa) Camisas en sobretiempo / dia Total Hrs Extras (hrs/dia) Total labor ($) * Supone dia de 8 hrs de trabajo,

u 8 horas adicionales de sobretiempo si fuera necesario 16000 14400 1600 80

de la compañía de análisis de casos

des para el proceso de producción actual,

así como de Mike y los planes de Ike,

asumiendo los planes se implementan como se describe en el caso

as para el Shirt Company Ejecutivo están constituidos por sólo unos pocos estilos y colores básicos

De ahí que la compañía tiene un número limitado de variedades para producir

Por lo tant

ntrolado por ordenador y puede reducir hasta 60 capas de tela al mismo tiempo

También hasta 8 patrones se pueden cortar simultáneamente

El proceso de corte de la máquina en 30 min nte

Se tarda 1,5 minutos para desplegar una capa de tela y así por 60 capas,

sino que toma 90 minutos el tiempo de instalación

La máquina está siendo operada por 4 operarios y la empresa en una carrera = 60 * 8 = 480

Tiempo total / carrera = tiempo de instalación + ejecución = 90 + 30 = 120 minutos camisas Regulares

a) para el corte = 120/480 = 0

Katia tamayo Calculo cuello de botella WIP / Capacidad de Producción Corte + Otras Operaciones (minutos laborables) / cuello botella Prod

Mes / dias laborales mes Cap

Teorica ∑ de min incurridos por act

Actual mes) x (Contenido MOD)

Proceso Actual Camisas Regulares 0

51 21,208

Plan de Mike Camisas Regulares y a la Medida 0

01 23,409

(Hrs lab / dia) x ( 60 min) x Total personas Horas laborables Actuales / Horas dispon (min) Costo Total MOD / Prod actual dia

ras adicionales de sobretiempo si fuera necesario 80

úmero limitado de variedades para producir

Por lo tanto,

tiene grandes cantidades de cada tipo de camisa (tamaño y color)

El proceso de corte de la máquina en 30 minutos,

independientemente del número de patrones y el número de capas

Sin embargo,

el quina está siendo operada por 4 operarios y la empresa está utilizando su capacidad máxima,

Shirts Regular 0

51 21,208

34 2,634

94 80 0

888888889

Plan Ike`s Shirts Regular Shirts Customs 0

01 20608

23520 87

7680 33

Otras Operaciones MOD

Plan Ike`s Shirts Customs

ACTUALIDAD DATOS Maquina corte manual

Camisas / corrida

Procesos CORTE COSTURA INSPECCION PLANCHADO EMPAQUE

Capacidad actual / mes Dias laborables / mes Capacidad actual / dia

4 48 4 4

WIP ( # Lotes de 60 camisas) 16 144 12 12

WIP (Camisas) 960 8640 720 720

720 11760

El tiempo empleado por lote

Contenido para Camisas regulares (minutos / camisa)

El tiempo empleado por camisa (minutos)

Hacer Cuello Hacer puños Hacer Mangas Hacer frente Hacer espalda Unir hombros Pegar Cuello Pegar managas Puntear mangas Coser costura lateral Puegar Puños Hacer dobladillo Inspeccionar Planchar Doblar y empacar

Cuello de Botella

Operación

Contenido de MOD

Corte convencional Otras Operaciones

PROPUESTA MIKE ( Camisas regulares y a la medida ) Maquina corte manual

Camisas / corrida

Procesos CORTE COSTURA INSPECCION PLANCHADO EMPAQUE

Camisas Reg/mes Cap

Camisas medida/mes Total cap prod/mes Dias laborables / mes Capacidad actual / dia

Costo Total MOD $/dia

camisas camisas Camisas dias camisas/dia

Contenido para Camisas regulares (minutos / camisa)

Corte convencional

Corte a medida Hacer Cuello Hacer puños Hacer Mangas Hacer frente Hacer espalda Unir hombros Pegar Cuello Pegar managas Puntear mangas Coser costura lateral Puegar Puños Hacer dobladillo Inspeccionar Planchar Doblar y empacar

Operación

Otras Operaciones

Costo MOD $/hr

5 48 4 4

Corte convencional Corte automatico Otras Operaciones

PROPUESTA IKE ( Camisas regulares y a la medid Maq

Autom Camisas / corrida WIP ( # Lotes de 5 camisas) 36 288 24 24

WIP (Camisas) 180 1440 120 120

120 1980

Maquina corte manual

Camisas / corrida Procesos CORTE COSTURA INSPECCION PLANCHADO EMPAQUE

Camisas Reg/mes Cap

Camisas medida/mes Total cap prod/mes Dias laborables / mes Cap

Regular actual / dia Cap

A Medida actual / dia

CAMISAS REGULAR El tiempo empleado por lote

Costo MOD $/hr

Costo Total MOD $/dia

Operación Corte convencional

Otras Operaciones

El tiempo empleado por camisa (minutos)

Hacer Cuello Hacer puños Hacer Mangas Hacer frente Hacer espalda Unir hombros Pegar Cuello Pegar managas Puntear mangas Coser costura lateral Puegar Puños Hacer dobladillo Inspeccionar Planchar Doblar y empacar

Contenido de MOD

Corte convencional Corte automatico Otras Operaciones

CAMISAS A MEDIDA Operación Corte a medida

Otras Operaciones

Hacer Cuello Hacer puños Hacer Mangas Hacer frente Hacer espalda Unir hombros Pegar Cuello Pegar managas Puntear mangas Coser costura lateral Puegar Puños Hacer dobladillo Inspeccionar Planchar Doblar y empacar Contenido de MOD

Corte convencional Corte automatico Otras Operaciones

E ( Camisas regulares y a la medida ) 120

480 # Trab

4 36 3 3

Camisas / corrida # Maq

WIP ( # Lotes de 60 camisas) 16 108 9 9

WIP (Tradic

540 9060

WIP ( Medida)

5 36 3 3 3

Contenido para Camisas regulares (minutos / camisa)

El tiempo empleado por camisa (minutos)

El tiempo empleado por lote

Costo MOD $/hr

Cuello de Botella

Contenido para Camisas regulares (minutos / camisa)

El tiempo empleado por camisa (minutos)

El tiempo empleado por lote

Costo MOD $/hr

Cuello de Botella

Costo Total MOD $/dia

Costo Total MOD $/dia

16666667

MATERIA PRIMA

CORTE DISPOSICION DE CAPAS

Inputs + Inputs Hora WIP (Telas) (Telas)

Tiempo Actividad:

5 min/Tela

Tiempo Actividad:

Proceso :

Proceso :

Proceso : Inputs + Outputs Inputs WIP2 (Telas) (Telas/hra) (Telas)

Proceso : Inputs + Output Inputs WIP3 WIP 2 (Telas/hra) (Telas/hra) (Telas)

TRASLADO 0

# Recursos TOTAL Camisetas/ho ra

Output (Telas/hra)

Proceso : Cap

Proceso Total: Inputs + Inputs WIP3 (Camisas/hra) (Telas)

Output (Camisas/hra)

Case Analysis-The Executive Shirt Company (Gr (2011-05-01 21:03:10) Harvard Business School 9-696-071 Rev

March 11,

Mike's Plan Regular & Custom Shirts

Regular Shirts

All labor content / one less worker for each category while cutting is still 0

(WIP * Cycle 11,760 * 0

25 days

C) WIP Inventory (shirts) Average WIP * Batch size

Ike's Plan

(9060 * 0

58 days

Custom Shirts

5 / 5 = 0

With everything divided by 1,

(50 * 3

sewing + 5 units being cut + 15 60 * 151 sum of avg

units being finished = 396 * 5 = WIP = 50 WIP (given in 1980 shirts 9,060 shirts case)

D) Production Capacity 8 hours * 60 (shirts/day minutes / 480 / 0

E) Capacity Utilization Actual Produced / What could be produced

8 * 60 / 3

75% 111

cutting (90 + 30 (120 minutes 0

9 + 2 + 3

66 + 25

55 = 25

51 sum 1

51 + + 1

2777 = + 1

75 = + 1

75 = 25

62% = 33

($/shirt) Direct labor (Salary * hours worked) / shirts produced

67 = 53

6 minutes

04 49 * 8

Explanation 1

Regular shirt production process without custom shirt fabrication

Cycle time for each station = total station time / # of workers at station Cycle time for system = longest station cycle time Cuffs station = System CT = 2

5 minutes

Manufacturing Lead Time (MLT) = Cycle Time (CT) * Works in Progress (WIP)

5 minutes

WIP individual shirts = (196 batches * 60 shirts / batch) = 11,760 MLT in days = (0

25 days

Total individual shirts as WIP = Sum of average batches * 60 shirts per batch WIP shirts = 196 batches * 60 shirts per batch = 11,760 shirts as WIP

Production capacity of system at continuous 100% utilization (minutes)

Production capacity = minutes per day / CT of system Production capacity = 480 / 0

Production capacity utilization = monthly production / monthly production capacity

Current monthly production is 16,000 (given in case)

Total monthly capacity = 19,200 (920 per day * 20 days per month) Production utilization = 16,000 / 19,200 = 83%

Direct Labor content = sum of time at all stations + time per shirt for cutting

Sum of time at all stations = 25

A single cutting of 8 patterns on 60 layers of cloth produces (60 * 8) = 480 shirts

Total cutting time = (1

Cutting time per shirt = 120 minutes / 480 shirts = 0

25 = 25

Direct Labor Utilization = Total used labor time / Total labor time available

Total labor time available = 64 workers * 480 minutes per day = 30,720 minutes

Total time used = time per shirt * daily production (16,000 per month / 20 days) Total time used = 25

Total Direct labor cost = (64 * 8 * 6) / 800 (total daily production = 16,000 / 20 days) Total Direct Labor Cost = $3

84 / shirt

Mike’s plan for production of regular and custom shirts using existing facilities with the add

System CT remains unchanged = 0

Manufacturing Lead Time (MLT) = Cycle Time (CT) * Works in Progress (WIP)

06 days

Total individual shirts as WIP = Sum of average batches * 5 shirts per batch WIP shirts = 396 batches * 5 shirts per batch = 1,980 shirts as WIP

Production capacity of system at continuous 100% utilization (minutes)

Production capacity = minutes per day / CT of system

Production capacity = 480 / 0

Production capacity utilization = monthly production / monthly production capacity

Current monthly production is 16,000 regular + 2000 custom shirts (given in case)

Total monthly capacity = 18,000 (900 per day * 20 days per month) Production utilization = 18,000 / 19,200 = 93

5 minutes

Custom cutting time = 5 shirts / 2

Total cutting time = Weighted average of old & new machine cutting times

Total labor content (time) per shirt = 25

28 = 25

Direct Labor Utilization = Total used labor time / Total labor time available

Total labor time available = 65 workers * 480 minutes per day = 31,200 minutes

Total time used = time per shirt * daily production (18000 per month / 20 days) Total time used = 25

Total Direct Labor Cost per shirt = (# workers * 8 hours per day * $6 per hour) / 900

Total Direct labor cost = (65 * 8 * 6) / 900 (total daily production = 18,000 / 20 days) Total Direct Labor Cost = $3

47 / shirt

Ike’s plan for shifting labor from the regular assembly floor to create a separate assembly l

(A) Regular Shirt Production: a

System CT = 0

Manufacturing Lead Time (MLT) = Cycle Time (CT) * Works in Progress (WIP)

Total individual shirts as WIP = Sum of average batches * 60 shirts per batch WIP shirts = 151 batches * 60 shirts per batch = 9,060 shirts as WIP

Production capacity of system at continuous 100% utilization (minutes)

Production capacity = minutes per day / CT of system Production capacity = 480 / 0

Current monthly production is 16,000 regular shirts (given in case)

Total monthly capacity = 14,400 (720 per day * 20 days per month) Production utilization = 16,000 / 14,400 = 111%

Direct Labor content = sum of time at all stations + time per shirt for cutting

Sum of time at all stations = 25

A single cutting of 8 patterns on 60 layers of cloth produces (60 * 8) = 480 shirts

Total cutting time = (1

Cutting time per shirt = 120 minutes / 480shirts = 0

25 = 25

Direct Labor Utilization = Total used labor time / Total labor time available

         New direct labor available = 64 – 15 = 49 ii

Total labor time available = 49 workers * 480 minutes per day = 20,608 minutes

Total time used = time per shirt * daily production (16000 per month / 20 days)

Total time used = 25

Total Direct Labor Cost per shirt = (# workers * 8 hours per day * $6 per hour) / 800

Overtime is incurred for all employees in order to reach excess of normal hour production levels (calcu

       Overtime production = daily production – daily capacity = 800 – 720 = 80 shirts ii

OT (minutes) = 80 * CT = 80 * 0

67 = 53

OT cost = (53

OT cost = $393

Total Direct labor cost = (49 * 8 * 6) + 393

Custom shirt production on separate assembly line (15 workers + 1 new hire):

Cycle time for each station = total station time / # of workers at station Cycle time for system = longest station cycle time Cuffs station = System CT = 3

41 days

Total individual shirts as WIP = Sum of average batches * 5 shirts per batch WIP shirts = 30 shirts in sewing + 5 shirts in cutting + 15 shirts in finishing = 50 shirts as WIP (giv

Production capacity of system at continuous 100% utilization (minutes)

Production capacity = minutes per day / CT of system Production capacity = 480 / 3

Production capacity utilization = monthly production / monthly production capacity

Current monthly production is 2,000 (given in case)

Total monthly capacity = 2460 (123 per day * 20 days per month) Production utilization = 2000 / 2460 = 81

Total cutting time = 2

5 minutes

Cutting time per shirt = 2

50 = 26

Direct Labor Utilization = Total used labor time / Total labor time available

Total labor = 12 sewers + 3 finishers + 1 cutter = 16

Total labor time available = 16 workers * 480 minutes per day = 7680 minutes

Total time used = time per shirt * daily production (2000 per month / 20 days)

Total time used = 26

Total Direct Labor Cost per shirt = (# workers * 8 hours per day * $6 per hour) / 200 Total Direct labor cost = (16 * 8 * 6) / 200 (total daily production = 2000 / 20 days) Total Direct Labor Cost = $7

Recommendation to Management Using the calculations in Part A  it is possible to evaluate each of the two proposals in terms of their cost and 

The great disparity in cost between the two is mainly due to the efficiency of each proposal

Whilst Mike incre

Furthermore, when considering the logistics of each production line layout, Mike’s proposal is favourable over

Based upon our analysis, although both processes do essentially satisfy Dwight Collier’s production lead mana

ng existing facilities with the addition of a new cutting machine and one worker

r to create a separate assembly line dedicated to custom shirts,

thus separating the two streams of production

n finishing = 50 shirts as WIP (given in case)

proposals in terms of their cost and efficiency

 Firstly, to deduce the total cost for the custom shirts each month, the Direct Labour Cost

Whilst Mike increases the efficiency of both capacity and labour utilization in the factory (absorbing excess capacity

t, Mike’s proposal is favourable over Ike’s because it allows for more flexibility

 Whilst Mike retains the existing ‘process layout’ in the b

Dwight Collier’s production lead management time conditions, we would recommend that he should trial Mike’s plan

 If there does indee

 each month, the Direct Labour Cost from each plan can be multiplied by 2000 (the desired quantity produced)

 By doing this we learn 

factory (absorbing excess capacity and increasing efficiency from 83% to 93

the existing ‘process layout’ in the batch shop process, where similar operations are performed in common functional areas, Ike instead

 If there does indeed prove to be a market for mid price range custom shirts, then implementing Mike’s proposal is the

y produced)

 By doing this we learn that Ike’s total cost for custom shirts is $7

Ike over-utilizes capacity in his regular shirt production line and severely under-utilizes capacity in his

ommon functional areas, Ike instead adopts a ‘product layout’ structure, where the operations are located according to the progressive 

implementing Mike’s proposal is the company’s best shot at making a lucrative profit from this initiative

 This results in an $8,420 cost difference in favour of Mike’s plan

 Production of regular s

everely under-utilizes capacity in his custom shirts production line

The result of this is that he has to pay the workers on the regular sh

ocated according to the progressive steps involved in making a shirt

 Having only one worker completing each production task, as is the

f Mike’s plan

 Production of regular shirts on the other hand are cheaper using Ike’s process, that is Ike’s labour costs are $3

to pay the workers on the regular shirt line overtime whilst the workers on the custom shirt line are frequently starved and sitting idle

leting each production task, as is the case in Ike’s plan, means that if one worker is slowed down for any reason or needs to take a brea

 Ike’s labour costs are $3

e frequently starved and sitting idle

r any reason or needs to take a break, then there is no one to pick up the slack

 As a result, the whole process is negatively affected

h Mike’s labour costs of $3

 The difference between the two is only $640, which is fairly insignificant, and leaves

hole process is negatively affected

 An ideal assembly line should allow workers to trade elements of work and it should be unproblemat

hich is fairly insignificant, and leaves the total cost difference between the two plans at $7,780 in favour of Mike

f work and it should be unproblematic to add workers to the line to increase efficiency, however the straight-line layout of Ike’s plan do

 straight-line layout of Ike’s plan does not satisfy these requirements