Regular shirts labour No.

workers Individual capacity Individual

Operation content (A) (B) (8*60/A*B) cycle time
min/shirt shirts/day mins/shirt
Make Collar 3.9 8 985 0.488
Make cuffs 2 4 960 0.500
Make sleeves 0.65 2 1477 0.325
Make front 2.5 6 1152 0.417
Make back 1.7 4 1129 0.425
Join shoulders 0.66 2 1455 0.330
Attach collar 1.65 4 1164 0.413
Attach Sleeves 1.55 4 1239 0.388
Stitch down sleeves 0.65 2 1477 0.325
Sew side seam 1.8 4 1067 0.450
Attach cuffs 1.55 4 1239 0.388
Hem bottom 1.7 4 1129 0.425
Inspect 1.5 4 1280 0.375
Iron 1.95 4 985 0.488
Fold, Package 1.75 4 1097 0.438
25.51 60 960 0.5
Direct labour No. of Capacity of the plant Cycle time of
excluding cutting workers the plant

No. of
Type of operation No. of workers Average WIP
machines
Cutting 4 1 16
Sewing 48 48 144
Inspection 4 12
Ironing 4 4 12
Packaging 4 12
196

Overall Capacity 960 shirts/day

Demand 800 shirts/day
Actual cycle time 0.6 mins/shirt
Cycle time of bottle neck 0.5 mins/shirt
WIP (Shirts) 11760 shirts
Manufacturing lead time 14.7 days 12.25
Capacity utilization 83.33 percent
Direct labour content required 26.51 mins/shirt 25.76 26.51
Total labour minutes available 38.4 mins/shirt
Direct labour utilization 69.04 percent
Direct labour cost (DLC) 3.84 $/shirt
Bottle neck
Current Production
16000 Shirts / month
20 days /month
800 shirts / day
 Regular shirts No. Individual Individual
Operation labour content workers capacity cycle time
min/shirt shirts/day mins/shirt
Cutting 30 4
Set up for cutting 1.5 4 1920 0.250
New Machine cutting 2.5 1 960 0.500
Make Collar 3.9 8 985 0.488
Make cuffs 2 4 960 0.500 Bottle neck
Make sleeves 0.65 2 1477 0.325
Make front 2.5 6 1152 0.417
Make back 1.7 4 1129 0.425
Join shoulders 0.66 2 1455 0.330
Attach collar 1.65 4 1164 0.413
Attach Sleeves 1.55 4 1239 0.388
Stitch down sleeves 0.65 2 1477 0.325
Sew side seam 1.8 4 1067 0.450
Attach cuffs 1.55 4 1239 0.388
Hem bottom 1.7 4 1129 0.425
Inspect 1.5 4 1280 0.375
Iron 1.95 4 985 0.488
Fold, Package 1.75 4 1097 0.438
25.51 65 960 0.5
Direct labour No. of Capacity of Cycle time of
excluding workers the plant the plant
cutting

No. of Average WIP

Type of operation No. of workers machines
Cutting 5 2 36
Sewing 48 48 288
Inspection 4 24
Ironing 4 4 24
Packaging 4 24
396

Overall Capacity 960 shirts/day

Demand 900 shirts/day
Actual cycle time 0.53 mins/shirt
Cycle time of bottle neck 0.5 mins/shirt
WIP (Shirts) 1980 shirts
Manufacturing lead time 2.2 days 2.2
Capacity utilization 93.75 percent
Direct labour content require 26.45 mins/shirt
Total labour minutes available 34.67 mins/shirt
Direct labour utilization 76.30 percent
Direct labour cost (DLC) 3.47 $/shirt

3120
 Current Production
16000 Shirts / month
20 days /month

800 shirts / day

2000 Shirts / month

20 days /month
100 shirts / day

16000
1000
17000
0.94444 26.45444444

26.510 21208
26.010 2601
23809
26.45444444
 Regular Shirts
Individual
Regular shirts No. Individual
Operation capacity
labour content (A) workers (B) cycle time
(8*60/A*B)
min/shirt shirts/day mins/shirt
Make Collar 3.9 7 862 0.557
Make cuffs 2 3 720 0.667
Make sleeves 0.65 1 738 0.650
Make front 2.5 5 960 0.500
Make back 1.7 3 847 0.567
Join shoulders 0.66 1 727 0.660
Attach collar 1.65 3 873 0.550
Attach Sleeves 1.55 3 929 0.517
Stitch down sleeves 0.65 1 738 0.650
Sew side seam 1.8 3 800 0.600
Attach cuffs 1.55 3 929 0.517
Hem bottom 1.7 3 847 0.567
Inspect 1.5 3 960 0.500
Iron 1.95 3 738 0.650
Fold, Package 1.75 3 823 0.583
25.51 45 720 0.667

Direct labour No. of Capacity of the Cycle time of

excluding cutting workers plant the plant

No. of
Type of operation No. of workers Average WIP
machines
Cutting 4 1 16
Sewing 36 36 108
Inspection 3 9
Ironing 3 3 9
Packaging 3 9
151
Regular Shirts
Overall Capacity 720 shirts/day
Demand 800 shirts/day
Actual cycle time 0.60 mins/shirt
Cycle time of bottle neck 0.667 mins/shirt
WIP (Shirts) 9060 shirts
Manufacturing lead time 12.58 days
Capacity utilization 111.11 percent
Direct labour content required 26.51 mins/shirt
Total labour minutes available 33.08 mins/shirt
Direct labour utilization 80.15 percent
Direct labour cost (DLC) 3.43 $/shirt

Overtime details
1 hour overtime for the workers 2352
Cost incurred is 441 $/day 53.36
2744 0.8893333333
768 8.004
3953 392.196
2744.196
3.430245
 Custom Shirts
Custom Individual
No. Individual
Operation shirts labour workers capacity
(B) cycle time
content (A) (8*60/A*B)
min/shirt shirts/day mins/shirt
Make Collar 3.9 1 123 3.900
Make cuffs 2 1 240 2.000
Make sleeves 0.65 1 738 0.650
Make front 2.5 1 192 2.500
Make back 1.7 1 282 1.700
Join shoulders 0.66 1 727 0.660
Attach collar 1.65 1 291 1.650
Attach Sleeves 1.55 1 310 1.550
Stitch down sleeves 0.65 1 738 0.650
Sew side seam 1.8 1 267 1.800
Attach cuffs 1.55 1 310 1.550
Hem bottom 1.7 1 282 1.700
Inspect 1.5 1 320 1.500
Iron 1.95 1 246 1.950
Fold, Package 1.75 1 274 1.750
25.51 15 123 3.900
Direct labour No. of Capacity of the Cycle time of
excluding workers plant the plant
cutting

No. of No. of
Type of operation Average WIP
workers machines
Cutting 1 1 5
Sewing 12 12 36
Inspection 1 3
Ironing 1 1 3
Packaging 1 3
50
Custom Shirts
Overall Capacity 123 shirts/day
Demand 100 shirts/day
Actual cycle time 4.80 mins/shirt
Cycle time of bottle neck 3.9 mins/shirt
WIP (Shirts) 50 shirts
Manufacturing lead time 0.5 days
Capacity utilization 81.25 percent
Direct labour content required 26.01 mins/shirt
Total labour minutes available 76.80 mins/shirt
Direct labour utilization 33.87 percent
Direct labour cost (DLC) 7.68 $/shirt
Current Production
16000 Shirts / month
20 days /month
800 shirts / day

2000 Shirts / month

20 days /month

100 shirts / day

 Ike
Current Process Mike Regular Custom
Overall Capacity 960.00 960.00 720.00 123.08
Actual Cycle Time 0.50 0.50 0.67 3.90
WIP (Shirts) 11,760.00 ### ### 50.00
Manufacturing lead time 12.25 2.06 12.58 0.41
Capacity utilization 83.33 93.75 111.11 81.25
Direct labour content requir 25.76 25.79 25.76 26.01
Total labour minutes availab 38.40 34.67 29.40 76.80
Direct labour utilization 67.08 74.39 87.62 33.87
Direct labour cost (DLC) 3.84 3.47 3.43 7.68