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

Sewing

Inspection

Iron

Package

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 Make Collar Make Cuffs Make Sleeves Make Front Make Back Join Shoulder Attach collar Attach sleeves Stitch Down sleeves Sew Side seam Attach cuffs Hem Button Inspect Iron

Regular Shirt Labour Content 3.90 2.00 0.65 2.50 1.70 0.66 1.65 1.55 0.65 1.80 1.55 1.70 1.50 1.95

Number of workers 8 4 2 6 4 2 4 4 2 4 4 4 4 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 Make Collar Make Cuffs Make Sleeves Make Front Make Back Join Shoulder Attach collar Attach sleeves Stitch Down sleeves Sew Side seam Attach cuffs Hem Button Inspect Iron

Regular Shirt Labour Content 3.90 2.00 0.65 2.50 1.70 0.66 1.65 1.55 0.65 1.80 1.55 1.70 1.50 1.95

Number of workers 7 3 1 5 3 1 3 3 1 3 3 3 3 3

Operation Make Collar Make Cuffs Make Sleeves Make Front Make Back Join Shoulder Attach collar Attach sleeves Stitch Down sleeves Sew Side seam Attach cuffs Hem Button Inspect Iron

Regular Shirt Labour Content 3.90 2.00 0.65 2.50 1.70 0.66 1.65 1.55 0.65 1.80 1.55 1.70 1.50 1.95

Number of workers 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Operation

Regular Number Time Shirt of required/lbr/s Labour workers hrt (in min) Content 3.90 2.00 0.65 2.50 1.70 0.66 1.65 1.55 0.65 1.80 1.55 1.70 1.50 1.95 1.75 8 4 2 6 4 2 4 4 2 4 4 4 4 4 4 .4875 .5 .325 .41 .42 .33 .41 .39 .32 .45 .39 .42 .38 .49 .42

Make Collar Make Cuffs Make Sleeves Make Front Make Back Join Shoulder Attach collar Attach sleeves Stitch Down sleeves Sew Side seam Attach cuffs Hem Button Inspect Iron Fold Package

Type of Operation

No. Of Workers

No. Of Avg Machines WIP(Num. Of 60 shirt batches) 1 48 4 16 144 12 12 12

Cutting Sewing Inspection Ironing Packaging

4 48 4 4 4

Type of Number of No. Of Operation Workers Machines

Average WIP(No. Of 5 shirts Batches) 36 288 24 24 24

Cutting Sewing Inspection Ironing Packaging

5 48 4 4 4

2 48 4

Type of Number of No. Of Operation Workers Machines

Average WIP(No. Of 5 shirts Batches) 16 108 9 9 9

Cutting Sewing Inspection Ironing Packaging

4 36 3 3 3

1 36 3

Operation

Regular Number Time Shirt of required/lbr/s Labour workers hrt (in min) Content 3.90 2.00 0.65 2.50 1.70 0.66 1.65 1.55 0.65 1.80 1.55 1.70 1.50 1.95 1.75 7 3 1 5 3 1 3 3 1 3 3 3 3 3 3 .56 .67 .65 .5 .57 .66 .55 .52 .65 .6 .52 .57 .5 .65 .59

Make Collar Make Cuffs Make Sleeves Make Front Make Back Join Shoulder Attach collar Attach sleeves Stitch Down sleeves Sew Side seam Attach cuffs Hem Button Inspect Iron Fold Package

Operation

CUSTOM Number Time Shirt of required/lbr/s Labour workers hrt (in min) Content 3.90 2.00 0.65 2.50 1.70 0.66 1.65 1.55 0.65 1.80 1.55 1.70 1.50 1.95 1.75 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3.90 2.00 0.65 2.50 1.70 0.66 1.65 1.55 0.65 1.80 1.55 1.70 1.50 1.95 1.75

Make Collar Make Cuffs Make Sleeves Make Front Make Back Join Shoulder Attach collar Attach sleeves Stitch Down sleeves Sew Side seam Attach cuffs Hem Button Inspect Iron Fold Package

Regular shirts

Raw materials Direct labor Indirect labor Other Indirect Cost Total manufacturing Cost Retail price Profit/shirt Profit for 800 shirts

Mikes plan $7.00 $3.46 $.66 $4.50 $15.62 $50 $34.38 $27504

Ikes plan $7 $3.32 $.66 $4.50 $15.48 $50 $34.52 $27616

Custom shirts

Mikes plan Raw materials $7.7 Direct labor $3.46 Indirect labor $.66 Other Indirect Cost $4.50 Total manufacturing Cost $16.32 Retail price Profit Profit for 100 shirts $87.5 $71.18 $34622

Ikes plan $7.7 $7.68 $.66 $4.50 $20.54 $87.5 $66.96 $34312