Current Process Analysis

REG Labour
Operation No. of Workers
(min/shirt)
Make Collar 3.9 8
Make Cuffs 2 4

Make Sleeves 0.65 2

Make Front 2.5 6

Make Back 1.7 4

Join Shoulders 0.66 2

Attach Collars 1.65 4

Attach Sleeves 1.55 4

Stitch Down Sleeves 0.65 2

Sew Side Seams 1.8 4
Attach Cuffs 1.55 4
Hem Bottom 1.7 4
Inspect 1.5 4
Iron 1.95 4

Fold, Package 1.75 4

FOR IKE'S PROCESS

Regular
Operation Shirts Labour No. of Workers
(min/shirt)

Make Collar 3.9 7

Make Cuffs 2 3
Make Sleeves 0.65 1
 Make Front 2.5 5
Make Back 1.7 3
Join Shoulders 0.66 1
Attach Collars 1.65 3
Attach Sleeves 1.55 3
Stitch Down Sleeves 0.65 1
Sew Side Seams 1.8 3
Attach Cuffs 1.55 3
Hem Bottom 1.7 3
Inspect 1.5 3
Iron 1.95 3
Fold, Package 1.75 3
Mins/Shirt/Worker

0.49
0.5

0.33

0.42 1
0.43 2

0.33 3

0.41 4

0.39 5

0.33 6
0.45 7
0.39 8
0.43 9
0.38
0.49

0.44

No. of
Mins/Shirt/Worker(
Mins/Shirt/Worker Workers(Custom
custom)
)

0.56 1 3.9
0.67 1 2
0.65 1 0.65
 0.5 1 2.5
0.57 1 1.7
0.66 1 0.66
0.55 1 1.65
0.52 1 1.55
0.65 1 0.65
0.6 1 1.8
0.52 1 1.55
0.57 1 1.7
0.5 1 1.5
0.65 1 1.95
0.58 1 1.75
working days 20
working hours in a day 8
minutes in an hour 60

REG
IDEAL CYCLE TIME 0.5
Actual production rate 16000

shirts produced per minute 1.666667

actual cycle time 0.6

WIP Inventory 11760

production capacity 960

actual production capacity used 800

capacity utilized 83.33333

lead time 14.7

COMPARISION BETWEEN MIKE 'S PLAN AND IKE'S PLAN

Mike(C
Mike(REG)
US)

number of shirts 16000 2000

cost per shirt
raw material cost 7 7.7
total labour cost 4.5 4.5
indirect cost 4.5 4.5
Total Manufacturing Cost 16 16.7
wholesale price 25 35
Profit 180600
 reg+custom Given

MIKE IKE(REG) IKE (CUSTOM) working hours

min/shirt 0.5 0.67 3.9 WORKERS
shirts/month 18000 16000 2000 wage per hour

shirts/minute 1.875 1.666666667 0.2083333333 overtime wage

min/shirt 0.533333 0.6 4.8

shirts 1980 50
shirts/day 960 123.0769230769

shirts/day 900 800 100

% 93.75 81.25

days 2.2 0.5

MIKE 'S PLAN AND IKE'S PLAN

Ike(cu
Ike(reg)
s)

16000 2000

7 7.7
 5 4.5
4.5 4.5
16.5 16.7
25 35
172600
Given

8hrs work day

64
6$

9$
time taken for various process Column1 per shirt
cutting 120 0.25
other operation(sewing+inspection+ironing) 25.51

DLC 26.51
DLU 69.03646
MONEY PAID 3072

DLC 3.84
Column2 IKE(REG) IKE(CUS)
0.25 0.5
25.51 25.51

26.51 26.01
% 81.15387276 33.8671875
dollars per day 2743.9755 768

dollars per shirt 3.429969375 7.68

MIKE
LASER CUTTING MACHINE 0.5
TOTAL TIME 27.01

77.91346
3120

3.466667