Executive Shirt Company Essay

Mr. Collier, per your request, I dupe analyzed executive rankor Shirt Companys current end product mold in addition to evaluating both(prenominal) mike and Ikes recommended attend toes for economic consumption enclothe product. Elements considered during this analysis included Process figures, cycle cadence for the abutes, passage efficiencies, and approachs. Each element is key to identifying the best course of action for executive director Shirt Company, Inc. in regards to the addition of custom shirt merchandise. Process Types currently Executive Shirt Company uses a batch shop process, where nonuple functional areas perform similar tasks. For example all of the sewing areas are sewing all comp championnts of the shirt. This type of process performs well in this production setting due to the fact that bingle operation isnt mutually beneficial on another to perform its task (outside of the initial unsanded phase). more(prenominal) so, one individuals sewing performance doesnt delay another from sewing their batch of shirts. Mike adopted this process type in his proposal for the addition of custom shirt production however, Ike overlyk a linier concept (more assembly line focused) for his proposal where operations are performed match to the progressive tasks to construct a shirt. For example the cuff operation cannot be performed until the sleeve operation is completed. Within Ikes process, each operation is aquiline on the prior to complete its task before the next operation can commence. This causes issues when one operation begins to slow, causing idle time. Cycle measureIt is important to identify the cycle times for each operation in a specific process (see concomitant A-1), given it will digest us to determine the obstruct which defines the throughput for the entire process. For the current shirt production process for Executive Shirt Company, weve identified cuff qualification to be the bottleneck producing 1 cuff ever y 30seconds (see attachment A-1). This convey that each operation can only perform its task at the rate of making a cuff.The same is true when examining Mikes recommended process. Although Executive Shirt Company will be taking on extra production with custom shirts, Mikes process integrates the spare shirt production into the current process and utilizes the same number of workers (outside of the cutting process). By doing so, the bottleneck remains the same a considerable with throughput for the entire process.Ikes process, however, takes one worker from each operation and shifts their focus to producing custom shirts. Although the bottleneck remains cuff making for the regular shirt production, the throughput time increases an extra 15 seconds (see cecal appendage A-1). So, by removing a body from each process, it takes agelong to produce regular shirts vs. Mikes process. Additionally, by only having one worker for each operation for custom shirt production the throughput ti me is greatly elevated. In Ikes process for custom shirts, the bottleneck shifts to making collars 1 collar is produced every 3.9 minutes (see Appendix A-1). EfficienciesWhen thinking about(predicate) efficiencies for a production process, we have to look at how much is world produced vs. how much the process could produce and also how labor is being utilise throughout the process. While cycle time gives us a near base understanding for how effective a process is (lower CT shows the process is lean and will become lower as more mechanisation occurs), capacity and direct labor manipulation will give us a more definitive look at process efficiency.For Executive Shirt Company, the current process performs at a capacity employ of 83% and a direct labor utilization of 67% (see Appendix B-1). This means there is most definitely room for production refinement and thats what we get with both Mike and Ikes recommended processes. Mikes recommendation to take on the extra capacity with only adding one worker (to the cutting operation) is expected to up capacity utilization to 94% while only pushing direct labor utilization to 75%. This means Executive ShirtCompany would be producing at pocket capacity while only increasing direct labor utilization by roughly 8%. Conversely, Ikes recommendation over indexes on capacity utilization for regular shirt production and greatly underutilizes both capacity and direct labor for the custom shirt production (see Appendix B-1). CostsBridging off of efficiencies we turned our focus to cost which is highly determinative on efficiencies of a process. The more effective and efficient the production process is the lower the cost should ultimately be. The direct labor costs per shirt in Executive Shirt Companys current process is $3.84. With the efficiencies Mikes proposal brings, it directly affects costs driving the per unit labor cost down to $3.47. So with the increased production and accrue direct labor costs, Mikes proces s should produce additive margin.On the other hand, and although Ikes process would lower the per unit direct labor costs for the regular shirts (due to decrease workers in this process), the over-indexing production causes overtime work in the regular shirt process and far too little work for those in the custom shirt process (see Appendix B-1). RecommendationBased on our review of the current process and the proposed processes from Mike and Ike, I would have to recommend implementing Mikes plan. Mikes plan gives a good balance of production increase and cost savings due to a more efficient process, which in the long run should prove to be profitable.