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 Regular Shirt Labour Number of workers
Content
Make Collar 3.90 8
Make Cuffs 2.00 4
Make Sleeves 0.65 2
Make Front 2.50 6
Make Back 1.70 4
Join Shoulder 0.66 2
Attach collar 1.65 4
Attach sleeves 1.55 4
Stitch Down sleeves 0.65 2
Sew Side seam 1.80 4
Attach cuffs 1.55 4
Hem Button 1.70 4
Inspect 1.50 4
Iron 1.95 4
Fold 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 Number of workers
Content
Make Collar 3.90 7
Make Cuffs 2.00 3
Make Sleeves 0.65 1
Make Front 2.50 5
Make Back 1.70 3
Join Shoulder 0.66 1
Attach collar 1.65 3
Attach sleeves 1.55 3
Stitch Down sleeves 0.65 1
Sew Side seam 1.80 3
Attach cuffs 1.55 3
Hem Button 1.70 3
Inspect 1.50 3
Iron 1.95 3
Fold Package 1.75 3
 Operation Regular Shirt Labour Number of workers
Content
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 Number Time
Shirt of required/lbr/shr
Labour workers t (in min)
Content
Make Collar 3.90 8 .4875
Make Cuffs 2.00 4 .5
Make Sleeves 0.65 2 .325
Make Front 2.50 6 .41
Make Back 1.70 4 .42
Join Shoulder 0.66 2 .33
Attach collar 1.65 4 .41
Attach sleeves 1.55 4 .39
Stitch Down sleeves 0.65 2 .32
Sew Side seam 1.80 4 .45
Attach cuffs 1.55 4 .39
Hem Button 1.70 4 .42
Inspect 1.50 4 .38
Iron 1.95 4 .49
Fold Package 1.75 4 .42
 Type of No. Of No. Of Avg
Operation Workers Machines WIP(Num.
Of 60 shirt
batches)
Cutting 4 1 16
Sewing 48 48 144
Inspection 4 12
Ironing 4 4 12
Packaging 4 12
Type of Number of No. Of Average
Operation Workers Machines WIP(No. Of
5 shirts
Batches)
Cutting 5 2 36
Sewing 48 48 288
Inspection 4 24
Ironing 4 4 24
Packaging 4 24
Type of Number of No. Of Average
Operation Workers Machines WIP(No. Of
5 shirts
Batches)
Cutting 4 1 16
Sewing 36 36 108
Inspection 3 9
Ironing 3 3 9
Packaging 3 9
 Operation Regular Number Time
Shirt of required/lbr/s
Labour workers hrt (in min)
Content
Make Collar 3.90 7 .56
Make Cuffs 2.00 3 .67
Make Sleeves 0.65 1 .65
Make Front 2.50 5 .5
Make Back 1.70 3 .57
Join Shoulder 0.66 1 .66
Attach collar 1.65 3 .55
Attach sleeves 1.55 3 .52
Stitch Down 0.65 1 .65
sleeves
Sew Side seam 1.80 3 .6
Attach cuffs 1.55 3 .52
Hem Button 1.70 3 .57
Inspect 1.50 3 .5
Iron 1.95 3 .65
Fold Package 1.75 3 .59
 Operation CUSTOM Number Time
Shirt of required/lbr/s
Labour workers hrt (in min)
Content
Make Collar 3.90 1 3.90
Make Cuffs 2.00 1 2.00
Make Sleeves 0.65 1 0.65
Make Front 2.50 1 2.50
Make Back 1.70 1 1.70
Join Shoulder 0.66 1 0.66
Attach collar 1.65 1 1.65
Attach sleeves 1.55 1 1.55
Stitch Down 0.65 1 0.65
sleeves
Sew Side seam 1.80 1 1.80
Attach cuffs 1.55 1 1.55
Hem Button 1.70 1 1.70
Inspect 1.50 1 1.50
Iron 1.95 1 1.95
Fold Package 1.75 1 1.75
 Regular shirts

Mikes plan Ikes plan

Raw materials $7.00 $7
Direct labor $3.46 $3.32
Indirect labor $.66 $.66
Other Indirect Cost $4.50 $4.50
Total manufacturing Cost $15.62 $15.48
Retail price $50 $50
Profit/shirt $34.38 $34.52
Profit for 800 shirts $27504 $27616
 Custom shirts

Mikes plan Ikes plan

Raw materials $7.7 $7.7
Direct labor $3.46 $7.68
Indirect labor $.66 $.66
Other Indirect Cost $4.50 $4.50
Total manufacturing Cost $16.32 $20.54
Retail price $87.5 $87.5
Profit $71.18 $66.96
Profit for 100 shirts $34622 $34312