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Dore Dore Case

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Dore-Dore Discussion Questions

The teaching objectives of the case are as follows:

a. Provide an opportunity to review and reinforce basic process measurements such as throughput time, cycle time, work-in-process inventory, labor utilization, and machine utilization in two different operating environments.
b. Introduce the reader to a useful application of “Little’s Law,” relating work-in-process inventory and throughput time to cycle time or output rate.
c. Introduce the concept and operations of cellular manufacturing system. Emphasize the human resource changes that must accompany the physical reconfiguration of the operations.
d. Identify the impact of cellular manufacturing on various plant performance measures, such as labor productivity, equipment productivity, inventory levels, throughput time, and quality. Provide an opportunity for reader to assess the costs and benefits of a cellular manufacturing system.

1. a. Describe in words the traditional layout and then the cellular layout and evaluate the changes Dore-Dore has made in its children’s knitwear division. b. How does the performance of the traditional operation and the cellular manufacturing system differ? For example, how does work-in-process inventory change when cells are implemented? c. Estimate the value of inventory reduction given that knitwear account for 12% of sales (assume an annual inventory carrying cost of 22.5%). In other words, estimate the WIP inventory value of the traditional layout and the respective cost and then estimate the WIP inventory value and costs of the cellular layout and then compare the costs. What are the implications of reducing how much WIP inventory appears on the floor?

These formulas will be helpful (it is easier if you use “days” in Throughput time instead of “weeks” below) for ascertaining the performance for each layout:

Work-in-Process (WIP)…...

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