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 their batches each week and the Special Garments were left alone at only one batch being run each week. This would be an appropriate solution because Licensed Brands require prompt shipments and halving their batch size to speed up the response time would only help with the faster shipping. Subcontracted Brands will be halved to speed up the response time because although they need their orders and will not tolerate refusals, they also face uncertain demand. As a result, their response time would be faster and could save the company time and money if, per say, one week they did not need their estimated average of 500 shirts. Lastly, doing the Special Garments machine set up process only once per week, as opposed to twice, would save the company three extra hours per week, which, in turn, would put the company within the regulations of the labor laws of Taiwan. Also, Special Garments orders would seem to have the least complaints about fast response times because they are specialized shirt orders that are placed and only accepted if Min Yo is able to complete the order. Table 3 shows the results of splitting up the orders as explained above and how this would satisfy both the customers and the Min Yo Garment Company. 4. Consulting Recommendations to Improve the Business
Set-Up or Changeover Reduction Project (Dragon Shirts)
One of the key issues currently limiting the manufacturing processes at Min Yo is 3 and 1 hour set up times seen in the changeovers of Dragon Shirts and Thunder Shirts, respectively. The two changeover times are seen as bottlenecks in the system and cause Min Yo to lose approximately 4 hours of production time during the changeovers. Min Yo should target the elimination of getting supplies, setting up machinery, filling out paperwork and any other Non-Value Added activity when looking at ways to decrease set-up times. Through the reduction of set-up time, Min Yo will improve utilization, increase capacity, and create more volume; all...