In this case study, the following questions are addressed:
1) Compute the following quantities for the current production process, as well as for Mike‘s and Ike‘s plan.
2) Compare the two plans in terms of both regular shirt production and custom-shirt production.
Case result: 3/3 Poin...
Operations Management WS 22/23
Case Study: Executive Shirt Company
Question 1: Compute the following quantities for the current production process as well
as for Mike‘s and Ike‘s plan.
In the following, the individual formulas are described in more detail and set up to solve
the task.
Total available time per month (mins)
a) Actual cycle time = Total number of shirt produced per month
WIP Inventory (shirts)
b) Manufacturing Lead Time = Production capacity
units
c) WIP Inventory = ∑ ∅ WIP ∗ batch
Number of mins available in a day
d) Capacity =
cycle time
Actual Production capacity
e) Capacity Utilization = Ideal production capacity
f) Direct Labor Content = ∑ Assembly time + Cutting time
Direct Labor Content∗Actual Production capacity
g) Direct Labor Utilization = Total workers∗Labored time per day [mins]
Money paid to worker per day
h) Direct Labor Costs = Actual production
1
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