Executive Shirt Co Case Study
Case analysis: executive shirt company
OPERATIONS MANAGEMENT
Case Introduction
The Executive Shirt Company (ESC) has seen a recent dip in their profit and so they had decided to expand the company’s product line to take advantage of what he thought was a tremendous opportunity in the custom-size dress shirt market.
Mr. Dwight Collier, Gen. Manager of Executive Shirt Company (ESC) is planning to introduce customized shirts in his current production facility since they can fetch 75% more price as compared to regular shirts. Material cost for customized shirts would be about 10% higher than for standardized shirts. ESC is manufacturing 16,000 shirts per month and they plan to manufacture 2,000 customized shirts per month without hampering the current production.
The company has 5 functional divisions for making shirts:
Cutting: 1 Machine, 4 Workers
Sewing: 48 Machines, 48 Workers
Inspection: 4 workers
Ironing: 4 Machines, 4 Workers
Packaging: 4 workers
Indirect Workers (material handlers) : 4 Workers
Process Flow Map
Mr. Collier introduced a change in the manufacturing process (cutting) by introducing a Laser Cutting Machine for customized shirt. He requested two of his managers, Mike and Ike to devise a production plan to maximize the profit from both the products. The highlights of their plans are:
Mike’s Plan: To go with one production line manufacturing both the products simultaneously (other than the cutting process)
5 shirts each in Eight Batches
One batch of 5 custom shirts
New worker for new Laser cutting Machine
Ike’s Plan: To go for a separate production line for regular and customized shirt 6o shirts each In Eight Batches
One batch of 1 shirt each
Regular shirts and custom shirts processes separately
Process Flow Map
A) Current Production Process
The calculations for the various parts are in the attached excel sheet:
Assumptions:
The order flow is continuous
100 % availability of all manpower and
OPERATIONS MANAGEMENT
Case Introduction
The Executive Shirt Company (ESC) has seen a recent dip in their profit and so they had decided to expand the company’s product line to take advantage of what he thought was a tremendous opportunity in the custom-size dress shirt market.
Mr. Dwight Collier, Gen. Manager of Executive Shirt Company (ESC) is planning to introduce customized shirts in his current production facility since they can fetch 75% more price as compared to regular shirts. Material cost for customized shirts would be about 10% higher than for standardized shirts. ESC is manufacturing 16,000 shirts per month and they plan to manufacture 2,000 customized shirts per month without hampering the current production.
The company has 5 functional divisions for making shirts:
Cutting: 1 Machine, 4 Workers
Sewing: 48 Machines, 48 Workers
Inspection: 4 workers
Ironing: 4 Machines, 4 Workers
Packaging: 4 workers
Indirect Workers (material handlers) : 4 Workers
Process Flow Map
Mr. Collier introduced a change in the manufacturing process (cutting) by introducing a Laser Cutting Machine for customized shirt. He requested two of his managers, Mike and Ike to devise a production plan to maximize the profit from both the products. The highlights of their plans are:
Mike’s Plan: To go with one production line manufacturing both the products simultaneously (other than the cutting process)
5 shirts each in Eight Batches
One batch of 5 custom shirts
New worker for new Laser cutting Machine
Ike’s Plan: To go for a separate production line for regular and customized shirt 6o shirts each In Eight Batches
One batch of 1 shirt each
Regular shirts and custom shirts processes separately
Process Flow Map
A) Current Production Process
The calculations for the various parts are in the attached excel sheet:
Assumptions:
The order flow is continuous
100 % availability of all manpower and