Type of Operation Number of workers

Number of
Machines
Average WIP
(number of 60-
shirt batches
Cutting 4 1 16
Sewing 48 48 144
Inspection 4 12
Ironing 4 4 12
Packaging 4 12
64 196
Operation
Regular Shirts
Laber Content
(Minutes per shirt)
Number of
Workers
Capacity (No. of
shirts/day)
Cycle
Time
Cutting 30.00 4
Setup for Cutting 1.50 4 1920 0.250
1. Make Collar 3.90 8 985 0.488
2. Make cuffs 2.00 4 960 0.500
3. Make sleeves 0.65 2 1477 0.325
4. Make front 2.50 6 1152 0.417
5. Make back 1.70 4 1129 0.425
6. Join shoulders 0.66 2 1455 0.330
7. Attach collar 1.65 4 1164 0.413
8. Attach sleeves 1.55 4 1239 0.388
9. Stitch down sleeves 0.65 2 1477 0.325
10. Sew side seam 1.80 4 1067 0.450
11. Attach cuffs 1.55 4 1239 0.388
12. Hem bottom 1.70 4 1129 0.425
13. Inspect 1.50 4 1280 0.375
14.Iron 1.95 4 985 0.488
15. Fold, Package 1.75 4 1097 0.438
26.51 64.00
Labor Content for Cutting 1
Current Process Regular
Actual Cycle Time(min./shirt)* 0.60
WIP Inventory(shirts) 11760
Manufacturing Lead Time(days) 14.7
Production Capacity(shirts/day)** 960
Capacity Utilization 83.33
Direct Labor Content Req.(min./shirt) 26.51
Direct Labor Content Available(min/shirt) 38.4
Direct Labor Utilization 69.0
Direct Labor Cost($/shirt) 3.84
Exhibit 3 :Current production of Regular Shirts at ESC,Inc.
Exhibit 5 Mike's plan for Regular and Custom Shirts
Type of Operation
Number of
Workers
Number of
machines
Average
WIP (in
batches of 5
shirts each)
Cutting 5 2 36
Sewing 48 48 288
Inspection 4 24
Ironing 4 4 24
Packaging 4 24
65 396
Operation
Regular Shirts
Laber Content
(Minutes per
shirt)
Number of
Workers
Cutting 30.00 4
Setup for Cutting 1.50 4
Cutting(Custom shirts) 2.50 1
1. Make Collar 3.90 8
2. Make cuffs 2.00 4
3. Make sleeves 0.65 2
4. Make front 2.50 6
5. Make back 1.70 4
6. Join shoulders 0.66 2
7. Attach collar 1.65 4
8. Attach sleeves 1.55 4
9. Stitch down sleeves 0.65 2
10. Sew side seam 1.80 4
11. Attach cuffs 1.55 4
12. Hem bottom 1.70 4
13. Inspect 1.50 4
14.Iron 1.95 4
15. Fold, Package 1.75 4
25.51
Mike's Plan Regular&Custom
Actual Cycle Time(min./shirt)* 0.53
WIP Inventory(shirts) 1980
Manufacturing Lead Time(days) 2.2
Production Capacity(shirts/day)** 960
Capacity Utilization 93.75
Direct Labor Content required (min./shirt) 26.45 For Regular Shirt 26.51 For Custom Shirt
Direct Labor Content Available(min/shirt) 34.67
Direct Labor Utilization 76.31
Direct Labor Cost($/shirt) 3.467
For Custom Shirt 26.01
Exhibit 6 Ike's Plan for Regular and Custom Shirts
Type of Operation
Number of
workers
Number of
machines
Average WIP
(number of 60-
shirt batches)
Cutting 4 1 16
Sewing 36 36 108
Inspection 3 9
Ironing 3 3 9
Packaging 3 9
49 151
Operation
Regular Shirts
Laber Content
(Minutes per
shirt)
Number of
Workers for
Reg. shirts
Individual
Capacity (Reg.
shirts/day)
Number of
Workers for
Cust. shirts
Cutting 30.00 4
Setup for Cutting 1.50 4 1920
Cutting(Custom shirts) 2.50 1 960 1
1. Make Collar 3.90 7 862 1
2. Make cuffs 2.00 3 720 1
3. Make sleeves 0.65 1 738 1
4. Make front 2.50 5 960 1
5. Make back 1.70 3 847 1
6. Join shoulders 0.66 1 727 1
7. Attach collar 1.65 3 873 1
8. Attach sleeves 1.55 3 929 1
9. Stitch down sleeves 0.65 1 738 1
10. Sew side seam 1.80 3 800 1
11. Attach cuffs 1.55 3 929 1
12. Hem bottom 1.70 3 847 1
13. Inspect 1.50 3 960 1
14.Iron 1.95 3 738 1
15. Fold, Package 1.75 3 823 1
25.51 49 16
Ike's Plan Regular Custom
Actual Cycle Time(min./shirt)*
WIP Inventory(shirts)
Manufacturing Lead Time(days)
Production Capacity(shirts/day)**
Capacity Utilization
Direct Labor Content(min./shirt)
Direct Labor Content Available(min/shirt)
Direct Labor Utilization
Direct Labor Cost($/shirt)
Overtime (mins)
Regular Shirts
Individual
Capacity (cust.
shirts/day)
960
123
240
738
192
282
727
291
310
738
267
310
282
320
246
274
Exhibit 4 : Cost Structure for a Standard-Sized Shirt (current production process)
cost in $
Raw Materials 7.00
Total Labor(Direct + Indirect
*
) 4.50
Other Indirect Costs 4.50
Total Manufacturing Cost 16.00
Wholesale Price 25.00
Retail Price 50.00
* Indirect labor costs include costs of material handling and supervisory labor.