Student Case Analysis of Mr. Clean's Case
Problem: What Mr. Clean & Company does in order to increase its production at least to 600pcs of t-shirt per day to meet the $234 potential revenue?
Objective: • To decrease idle time by improving facility layout allowing for faster processing. • To allocate the time for arranging & pressing in the machines to meet the 75shirts/hour, to produce 600 t-shirts/day. • To determine whether additional operators are needed. • To determine whether to re-arrange the machines according to its activity importance to increase production.
Areas of consideration:
• Mr. Clean is a small dry cleaning & shirt laundering company serving the metropolitan New York area. • The company does its own shirt washing & pressing on its premises, but send out dry cleaning to other operators. • Mr. Clean & company, by zoning regulations is limited to no more than 5 employees. • Charges its wholesale customers 39c per shirt. • Two operators were used to operate their four machines. Each is paid $3.75/hr for an eight hour day. • Only 526 shirts were finished. Revenue was down $29 from expected full production of 600.
Alternative Courses of Actions:
1. Add additional operator without changing the original machine position but increasing the production to 600-750/day. 2. Add additional operators and at the same time change the original machine positions & ensuring the production to 75 shirts/day. 3. To maintain the number of operators present in the workplace, changing its machine position and its operator’s machine holding.
ANALYSIS AND CONCLUSION
ACA 1
Adding new machine operators will incur additional $60 per day labor cost. It may yield a fair return if the company would also increase its target production to 80 shirts/hr. An additional 5 shirts an hour. It is not proven that they can meet the proposed additional production but risk is always present. In order to have gain, it is quite
Objective: • To decrease idle time by improving facility layout allowing for faster processing. • To allocate the time for arranging & pressing in the machines to meet the 75shirts/hour, to produce 600 t-shirts/day. • To determine whether additional operators are needed. • To determine whether to re-arrange the machines according to its activity importance to increase production.
Areas of consideration:
• Mr. Clean is a small dry cleaning & shirt laundering company serving the metropolitan New York area. • The company does its own shirt washing & pressing on its premises, but send out dry cleaning to other operators. • Mr. Clean & company, by zoning regulations is limited to no more than 5 employees. • Charges its wholesale customers 39c per shirt. • Two operators were used to operate their four machines. Each is paid $3.75/hr for an eight hour day. • Only 526 shirts were finished. Revenue was down $29 from expected full production of 600.
Alternative Courses of Actions:
1. Add additional operator without changing the original machine position but increasing the production to 600-750/day. 2. Add additional operators and at the same time change the original machine positions & ensuring the production to 75 shirts/day. 3. To maintain the number of operators present in the workplace, changing its machine position and its operator’s machine holding.
ANALYSIS AND CONCLUSION
ACA 1
Adding new machine operators will incur additional $60 per day labor cost. It may yield a fair return if the company would also increase its target production to 80 shirts/hr. An additional 5 shirts an hour. It is not proven that they can meet the proposed additional production but risk is always present. In order to have gain, it is quite