Exhibit3: Current Production of Regular Shirts

Type of
Number of Number of Average WIP
Operation Workers
Machines (in 60 shirt batch)
Cutting
4
1
16
Sewing
48
48
144
Inspection
4
12
Ironing
4
4
12
Packaging
4
12

1
2
4
5
6
7
8
9
10
11
12
13
14
15

Operation
Make Collar
Make Cuffs
3 Make sleeves
Make front
Make Back
Join shoulders
Attach collar
Attach sleeves
Stitch down sleeves
Sew Side seam
Attach cuffs
Hem bottom
Inspect
Iron
Fold, package

Regular shirt
Labour Content Number
(minutes/shirt) of Workers Cycle Tim
3.9
8
0.4875
2
4
0.5
0.65
2
0.325
2.5
6
0.4166667
1.7
4
0.425
0.66
2
0.33
1.65
4
0.4125
1.55
4
0.3875
0.65
2
0.325
1.8
4
0.45
1.55
4
0.3875
1.7
4
0.425
1.5
4
0.375
1.95
4
0.4875
1.75
4
0.4375
25.51
Bottleneck

Exhibit 4: Cost Structure of a Standard Sized Shirt

Raw Material
Total Labour (direc+Indirect)
Other Indirect Costs
Total Manufacturing Costs
Wholesale Price
Retail Price

7
4.5
4.5
16
25
50

0.5

Capacity (Shirts/day)
985
960
1477
1152
1129
1455
1164
1239
1477
1067
1239
1129
1280
985
1097

Exhibit 5: Mike's Plan for Regular and Custom Shirt

Type of
Number ofNumber ofAverage WIP
OperationWorkers Machines (in 60 shirt batch)
Cutting
4
2
36
Sewing
48
48
288
Inspection
4
24
Ironing
4
4
24
Packaging
4
24

Exhibit6: Ike's Plan for Regular and Custom Shirt

Type of
Number ofNumber ofAverage WIP
OperationWorkers Machines (in 60 shirt batch)
Cutting
4
1
16
Sewing
36
36
108
Inspection
3
9
Ironing
3
3
9
Packaging
3
9

Current
Process
Regular
Shirts
Actual Cycle Time (min/shirt)
Manufacturing Lead Time
WIP Inventory (shirts)
Production Capacity (shirts/day)
Capacity Utilization
Direct Labour Content (min/shirt)
Direct Labour Utilization
Direct Labour Cost ($/shirt)

Mike's Plan
Regular &
Custom
Shirts

Ike's Plan
Regular
Shirts

Ike's Plan
Custom
Shirts