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Mr Pakicitd

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Submitted By pakicetid
Words 794
Pages 4
Dore - Dore
Background
Dore Dore, established by Jean Baptiste in 1819 was a world class manufacturer of fashionable knitted products. Its hosiery division produced socks and stockings for men, women and children & accounted for 88% of DD’s sales. Its knitwear division produced a line of children's knitwear such as play clothes, sweaters and nightclothes. It produced hose not only under its DD trademark, but also for famous designers like Yves St.Laurent, Nina Ricci and Chantal de Thomas.DD commanded a 30% to 40% market share in the high end hosiery segment. Operations
Its operations were divided between two main sites – MERY PLANT, which had all children’s knitwear operations; and GRES COMPLEX, which had the company’s headquarters and central hosiery factory. Currently they are facing problem of high manufacturing lead time and high inventory. For e.g. in Mery Plant lead time is three months. This increases risk of forecasting and change in fashion. So they are changing current layout to cellular layout to decrease manufacturing lead time (MLT).
Mery Plant- Knitwear operations
In children’s knitwear division, the company is presently using a product and process design layout to do the operations in the production. In sewing operation they are using product layout. Sewing operation consist of 42 workers 55 machines. As an experiment they have designed one cell with 6 workers which resulted into decreased in MLT from 3 weeks to 1 day. They can make 6 such cells as they have 42 workers.
PFD: Merry Plant

Knitting (Lead Time: 2 weeks)

Dyed Yarn Non Dyed Yarn

Dyeing
(Lead Time: 5 weeks)

Cutting
(Lead Time: 1 week)

Sewing & Finishing
(Lead Time: 3 weeks)

Sewing operation
For Previous layout:
Labor content: 10 mins, Workers: 42, Available time = 8 x 60 = 480 mins.
Capacity= 42 x 480/10 = 2016 units
Daily Output = 2000 units
MLT = 3 weeks = 15 days
WIP = MLT x Daily production = 15 x 2000 = 30000 units
Cellular Layout
Workers= 6, labour content: 10 mins per pair
Capacity per day = 6 x 480 / 10 = 288 units
No of cells = Total number of workers / No. of workers per cell = 42/6 = 7 Daily production capacity in sewing operation= 7 x 288 = 2016 units per day
MLT = 1 day
WIP = 2000 units

Similarly we can modify other processes into cellular manufacturing to decrease WIP and Inventory
| | |Previous layout |Cellular layout |
|1 |MLT |15 days |1 day |
|2 |Labor content |10 min |10 min |
|3 |Capacity |2016 units |2016 |
|4 |Production |2000 units |2000 units |
|5 |% Utilization |99.2 |99.2 |
|6 |WIP |30000 units |2000 units |

Advantages • Manufacturing lead time is decreasing so it will decrease the risk of forecasting & fashion. • Reduction in inventory thus decreases in inventory carrying cost. • Work balancing by the workers without supervisors. • Batches could move in the cell without supervisors. • Sense of togetherness in workers.

Gres Plant - Hosiery division
In Hosiery divisions they are converting post knitting processes into cellular layout. For this they are making one cell with 36 workers. They will work in two teams.

PFD: Gres’ Plant

Knitting
(Lead Time: 1 week)

Closing the Toe
(Lead Time: 1 week)

Ironing
(Lead Time: 1week)

Quality Control
(Lead Time: 1.25 weeks)

Previous Layout:
Knitting operation:
Cycle time = 7 minutes/pair, Available time = 24 x 60 = 1440 mins
Capacity = 1440/ 7 = 206 pair/machine/day
Actual production= 37000 pairs
No of machines = 37000/206 = 180
Closing the toe:
Cycle time= 1 min/pair, Available time= 1440 min
Labor content= 1 min/pair, Total labors= 92
Capacity = 92 x 8 x 60/1 = 44160 pairs
Actual production= 37000 pairs
% Utilization = 37000/44160= 83.78%
Ironing:
Labor content = 0.25 min/pair, Total labor = 12
Capacity = 12 x 8 x60/0.25 = 23040 pairs
Actual production = 37000 pairs
Quality Control and Packaging:
Actual production= 37000 pairs
No of workers = 107
Labor minutes available = 107 x 8 x 60 = 51360 min
Cycle time = 51360/37000 = 1.38 min

Daily production = 37000 pairs
Total MLT = 7 + 4.5 x 6 = 34 days
WIP = 34 x 37000 = 1258000 pairs

Cellular Layout:
They are converting post-knitting processes into cellular layout. a. Close the toe:
7 workers, Labor content = 1 min/pair
Capacity = 7 x 480 / 1 = 3360 pairs b. Quality control and packaging:
8 workers, labor content = 1.25 min/ pair
Capacity = 8 x 480/ 1.25 = 3072 pairs c. Ironing machine:
Capacity of ironing machine is increased to requirement.

Bottleneck = 3072 pairs/ team = 6144 pairs/cell
No of cells = (92 + 24 + 120)/36 = 6
Total capacity = 6144 x 6 = 36864 pairs

Calculations for post knitting processes:
| | |Previous layout |Cellular layout |
|1 |MLT |4.5 x 6= 27 days |1 day (expecting) |
|2 |Capacity |37000 pairs |36864 pairs |
|3 |Production |37000 pairs |37000 pairs |
|4 |WIP |37000 x 27 =999000 pairs |37000 pairs |

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