Executive Shirt Company

From

Anurag Chaudhary

Exexcutive shirt company produces two types of shirts

a. Regular b.Custom

Custom shirts own the price 75 % more than the regular shirt

Delivery time of custom shirts is higher

Cutting

Package

Inspection

Iron

Sewing

• 4 workers

• 1 cutting machine

• 60 layers at a time

• 1 layer takes 1.5 min to roll

• 1 layer can accommodate 8 patterns

• 1 cutting machine

• 5 layers at a time

• 1 layer can accommodate 1pattern

• 2.5 min to cut 1 layer

Operation Regular Shirt Labour Content

Number of workers

Make Collar 3.90 8Make Cuffs 2.00 4Make Sleeves 0.65 2Make Front 2.50 6Make Back 1.70 4Join Shoulder 0.66 2Attach collar 1.65 4Attach sleeves 1.55 4Stitch Down sleeves 0.65 2Sew Side seam 1.80 4Attach cuffs 1.55 4Hem Button 1.70 4Inspect 1.50 4Iron 1.95 4Fold Package 1.75 4

Mike says that

Include 1 labor extra for cutting custom

shirts

Produce custom shirt in the same

assembly line

Ike says that

Include 1 labor extra for cutting custom

shirts

Exclude 1 worker from each operation

Different assembly line for custom shirts

Operation Regular Shirt Labour Content

Number of workers

Make Collar 3.90 7Make Cuffs 2.00 3

Make Sleeves 0.65 1Make Front 2.50 5Make Back 1.70 3

Join Shoulder 0.66 1Attach collar 1.65 3

Attach sleeves 1.55 3Stitch Down sleeves 0.65 1

Sew Side seam 1.80 3Attach cuffs 1.55 3Hem Button 1.70 3

Inspect 1.50 3Iron 1.95 3

Fold Package 1.75 3

Operation Regular Shirt Labour Content

Number of workers

Make Collar 3.90 1

Make Cuffs 2.00 1

Make Sleeves 0.65 1

Make Front 2.50 1

Make Back 1.70 1

Join Shoulder 0.66 1

Attach collar 1.65 1

Attach sleeves 1.55 1

Stitch Down sleeves 0.65 1

Sew Side seam 1.80 1

Attach cuffs 1.55 1

Hem Button 1.70 1

Inspect 1.50 1

Iron 1.95 1

Fold Package 1.75 1

Operation Regular Shirt

Labour Content

Number of

workers

Time required/lbr/shr

t (in min)

Make Collar 3.90 8 .4875Make Cuffs 2.00 4 .5

Make Sleeves 0.65 2 .325Make Front 2.50 6 .41Make Back 1.70 4 .42

Join Shoulder 0.66 2 .33Attach collar 1.65 4 .41

Attach sleeves 1.55 4 .39Stitch Down sleeves 0.65 2 .32

Sew Side seam 1.80 4 .45Attach cuffs 1.55 4 .39Hem Button 1.70 4 .42

Inspect 1.50 4 .38Iron 1.95 4 .49

Fold Package 1.75 4 .42

Type of Operation

No. Of Workers

No. Of Machines

Avg WIP(Num. Of 60 shirt batches)

Cutting 4 1 16Sewing 48 48 144

Inspection 4 12Ironing 4 4 12

Packaging 4 12

Type of Operation

Number of Workers

No. Of Machines

Average WIP(No. Of 5 shirts Batches)

Cutting 5 2 36Sewing 48 48 288Inspection 4 24Ironing 4 4 24Packaging 4 24

Type of Operation

Number of Workers

No. Of Machines

Average WIP(No. Of 5 shirts Batches)

Cutting 4 1 16Sewing 36 36 108Inspection 3 9Ironing 3 3 9Packaging 3 9

Operation Regular Shirt

Labour Content

Number of

workers

Time required/lbr/s

hrt (in min)

Make Collar 3.90 7 .56Make Cuffs 2.00 3 .67

Make Sleeves 0.65 1 .65Make Front 2.50 5 .5Make Back 1.70 3 .57

Join Shoulder 0.66 1 .66Attach collar 1.65 3 .55

Attach sleeves 1.55 3 .52Stitch Down

sleeves0.65 1 .65

Sew Side seam 1.80 3 .6Attach cuffs 1.55 3 .52Hem Button 1.70 3 .57

Inspect 1.50 3 .5Iron 1.95 3 .65

Fold Package 1.75 3 .59

Operation CUSTOM Shirt

Labour Content

Number of

workers

Time required/lbr/s

hrt (in min)

Make Collar 3.90 1 3.90Make Cuffs 2.00 1 2.00

Make Sleeves 0.65 1 0.65Make Front 2.50 1 2.50Make Back 1.70 1 1.70

Join Shoulder 0.66 1 0.66Attach collar 1.65 1 1.65

Attach sleeves 1.55 1 1.55Stitch Down

sleeves0.65 1 0.65

Sew Side seam 1.80 1 1.80Attach cuffs 1.55 1 1.55Hem Button 1.70 1 1.70

Inspect 1.50 1 1.50Iron 1.95 1 1.95

Fold Package 1.75 1 1.75

Mikes plan Ikes planRaw materials $7.00 $7

Direct labor $3.46 $3.32Indirect labor $.66 $.66

Other Indirect Cost $4.50 $4.50Total manufacturing Cost $15.62 $15.48

Retail price $50 $50Profit/shirt $34.38 $34.52

Profit for 800 shirts $27504 $27616

Regular shirts

Custom shirts

Mikes plan Ikes planRaw materials $7.7 $7.7

Direct labor $3.46 $7.68Indirect labor $.66 $.66

Other Indirect Cost $4.50 $4.50Total manufacturing Cost $16.32 $20.54

Retail price $87.5 $87.5Profit $71.18 $66.96

Profit for 100 shirts $34622 $34312