Submitted by: Submitted by lacrima1982
Views: 277
Words: 765
Pages: 4
Category: Business and Industry
Date Submitted: 01/26/2013 02:02 AM
Executive Shirt Company, Inc.
Questions 1:
Here is the table where the values are summarized. He calculations can be found below.
Calculations
Mike’s Plan
a) Actual Cycle Time (ACT)
There are 8h per working day, i.e. 8*60 = 480 minutes per working day.
The factory should produce 18,000 shirts per month (including the custom shirts), which means
18,000 shirts/20 days=900 shirts per day
ACT = 480 mins/900 shirts = 0,53 minutes per shirt
b) Manufacturing Lead Time (MLT)
MLT = ACT x WIP (see how we get WIP under point c) = 0,53 mins/shirt x 1980 shirts = 1049,4 mins = 17,49 h = 2,2 working days
c) WIP Inventory
WIP = (36+288+24+24+24)*5=1980 shirts
d) Production Capacity (PC)
Bottle neck is cuffs = 0,5 minutes per shirt (this is the cycle time)
PC = 480 mins prer day/0,5 mins per shirt = 960 shirts per day
e) Capacity Utilization (CU)
We produce 900 shirts er day, but we can produce 960 shirts per day
CU = 900/960 = 0,9375 = 93,75%
f) Direct Labour Content (DLC)
In order to find DLC, we need to know time for cutting on both machines.
For the old machine, time for cutting (Tc), would be
Tc = 1,5 mins * 60 layers + 30 mins = 120 mins
For the new machine, time for cutting (Tc) is given, Tc = 2,5 mins
The old machine cuts 8*60 = 480 shirts per 120 minutes. The cycle time (CT) for the old machine is CT = 120/480 = 0,25 mins per shirt.
The new machine cuts 5 shirts per 2,5 minutes, so the CT for the new machine is CT = 2,5/5 = 0,5 minutes.
The old machine is serviced by 4 workers, hence labour content for 1 shirt equals 0,25 * 4 = 1 minute, whereas the new machine is serviced by 1 worker, which gives 0,5 * 1 = 0,5 minute as the labour content for it.
Total labour content for cutting = 1 minute + 0,5 minute = 1,5 minutes
Total labour content for other steps = 25,51 minutes
DLC = 1,5 + 25,51 = 27,01 minutes per shirt
g) Direct Labour Utilization (DLU)
Total labour available = 480 mins per day * 65 workers/900 shirt s...