Executive Shirt Co.

Inc: Revisited
Course: Operational Management

Submitted by: Group 8 ANKIT DHAWAN 2012PGP044 K KARTHIK 2012PGP147 NIKLESHKUMAR DEVIPRASAD SHAHU 2012PGP228 RAHUL RATNESH 2012PGP289 SHETTI SRIDEVI ASHOK 2012PGP352 VIKAS SARANGAL 2012PGP437

Problem Statement: General Manager Dwight Collier had received the Mikes Plan and Ikes plan with necessary details in a table format asked in Question1 on Page No10 in the case. Collier looked at Mikes plan and Ikes plan and felt that Ikes plan could be improved upon since direct labor utilization for custom shirt line was very poor. On the other hand due to insufficient capacity, regular shirt production required overtime in Ikes plan. Therefore, he thought custom shirt production line could be re-designed based on his learning of assembly line concepts in operations course during the MBA programme. He also thought that additional worker released from custom line could be assigned to various operations on regular shirt production line in order to reduce or eliminate overtime. Question 1: Draw precedence diagram for custom shirt assembly line. Precedence Diagram, Custom Shirts, Ike Plan Activity Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Activity Laying and Cutting Make Collars Make Cuffs Make Sleeves Make Front Make Back Join Shoulders Attach Collars Attach Sleeves Stitch Down Sleeves Stitch Side Seems Attach Cuffs Hem Bottom Inspect Ironing Folding and Packing Time (minutes/shirt) 2.5 3.9 2 0.65 2.5 1.7 0.66 1.65 1.55 0.65 1.8 1.55 1.7 1.5 1.95 1.75 Predecessor 1 1 1 1 1 5,6 2,7 4,7 9 10 3,4,11 11 13 14 15

Question 2: Design custom shirt assembly line using assembly line balancing concept. Please mention assembly line balancing rules clearly Rules in Assembly line balancing: 1. Predecessor should be respected, i.e. before pursuing any activity; its predecessor must be completed. 2. Workers should be assigned only those activities that they can complete within the slot time of 4.8 minutes. 3. At any given time, select an activity that has the highest activity time (among those selectable). 4. In case two activities have same activity time, choose the one that has more followers. ASSEMBLY LINE BALANCING, CUSTOM SHIRTS, IKE'S PLAN WORKER NUMBER
1

AVAILABLE ACTIVITIES
1 3,4,6

CHOSEN ACTIVITY ACTIVITY TIME (mins)

1 3 2 4 5 6 7 8 9 10 11 13 12 14 15 16 2.5 2 3.9 0.65 2.5 1.7 0.66 1.65 1.55 0.65 1.8 1.7 1.55 1.5 1.95 1.75

REMAINING UNASSIGNED TIME ( mins )

4.8-2.5 = 2.3 2.3-2.0 = 0.3

IDLE TIME= 0.3

2 2,4,5,6 4 3 5,6 6 4 7 8,9 9 10 5 11 12,13 6 12 14 7 15 16 4.8-3.9 = 0.9 0.9-0.65 = 0.25

IDLE TIME= 0.25

4.8-2.5 = 2.3 2.3-1.7 = 0.6

IDLE TIME = 0.6

4.8 - 0.66 = 4.14 4.14 - 1.65 = 2.49 2.49 - 1.55 = 0.94 0.94-0.65 = 0.29

IDLE TIME = 0.29

4.8 - 1.8 = 3.0 3.0 - 1.7 = 1.3

IDLE TIME = 1.3

4.8 - 1.55 = 3.25 3.25 - 1.5 = 1.75

IDLE TIME = 1.75

4.8 - 1.95 = 2.85 2.85 - 1.75 = 1.1

IDLE TIME = 1.1

Explanation for assembly line: 1. Each worker can handle more than one activity. 2. This is done in order to reduce the idle times on the custom shirts assembly line. 3. Initially 16 workers were assigned to the custom shirts line. Each worker handled a separate activity.

4. By balancing the assembly line using precedence relations, we can reduce the number of workers needed from 16 to 7. 5. Each worker may have some idle time as shown in the table but it is considerably lesser than Ike's initial plan of 16 workers. 6. The extra 9 workers may be utilized in the standard shirt assembly line, thereby eliminating the overtime completely. Question 3: Can it be possible to avoid Overtime on Regular shirt production line by transferring workers from custom line? If Yes, Please show your analysis clearly. As per the analysis, upon shifting the 9 extra workers from custom line to regular line, the new bottleneck appears in Ironing, because of lack of machines (3 machines available). This translates into production capacity of 738 shirts per day, against the required 800. Therefore overtime can't be avoided unless we have a spare ironing machine available. The reassignment of worker is shown as follows: Regular Shirts Labour Content (Minutes per shirt)
2.50 3.90 2.00 0.65 2.50 1.70 0.66 1.65 1.55 0.65 1.80 1.55 1.70 1.50 1.95 1.75

Operation
Cutting(Custom shirts) 1. Make Collar 2. Make cuffs 3. Make sleeves 4. Make front 5. Make back 6. Join shoulders 7. Attach collar 8. Attach sleeves 9. Stitch down sleeves 10. Sew side seam 11. Attach cuffs 12. Hem bottom 13. Inspect 14.Iron 15. Fold, Package

Number of Workers for Reg. shirts

4 8 4 2 5 4 2 3 3 2 4 3 4 3 3 4

Individual Capacity (Reg. shirts/day)

960 985 960 1477 960 1129 1455 873 929 1477 1067 929 1129 960 738 1097

In current scenario, we have production capacity of 738 shirts, and an overtime of 40.33 minutes is required to achieve the desired production of 800 shirts per day.

Q4: Compare revised Ikes plan after line balancing with mikes plan. Which one of the plans would Dwight collier implement? Why? Mike's Plan (Regular & Custom)
Actual Cycle Time(min./shirt)* WIP Inventory(shirts) Manufacturing Lead Time(days) Production Capacity(shirts/day)** Capacity Utilization Direct Labor Content(min./shirt) Direct Labor Content Available(min/shirt) Direct Labor Utilization Direct Labor Cost($/shirt) Overtime (minutes) Theoretical Cycle time (mins/shirt) Required Cycle time (mins/shirt) Cost of production in $(normal hours) Cost of production in $(Overtime) Total cost of production($) 0.53 1980 2.2 960 93.75 24.9 34.67 71.82 3.467 0 0.5 0.53 62406 0 62406

Ike's Regular
0.65 9060 12.28 738 108.40 26.51 34.8 76.18 3.48 40.33 0.65 0.6 51364.8 7840 59204.8

Ike's Custom
4.8 7 0.07 100 100 28.01 33.6 83.36 3.36 0 4.8 4.8 6720 0 6720

Observations: Overtime still required in Ike's regular shirt plan. Labor utilization is more in Ike's Plan. Work is equitably distributed in either line for Ike's Plan. Overall cost of production is higher ($72592) in Ike's plan, but it overcomes the constraint of cutting 5 custom shirts at a time posed in Mike's Plan, thereby improving flexibility of operation.