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DORE’ DORE’ DORE’ DORE’ A STUDY ON IMPLEMENTING THE A STUDY ON IMPLEMENTING THE CELLULAR DESIGN PROCESS IN THE CELLULAR DESIGN PROCESS IN THE ORGANISATION. ORGANISATION.
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Dore Dore case study

Dec 05, 2014

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Rupam Jash

Dore Dore company case study
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Page 1: Dore Dore case study

DORE’ DORE’DORE’ DORE’

A STUDY ON IMPLEMENTING THE A STUDY ON IMPLEMENTING THE CELLULAR DESIGN PROCESS IN CELLULAR DESIGN PROCESS IN

THE ORGANISATION.THE ORGANISATION.

Page 2: Dore Dore case study

BackgroundBackground Dore Dore was established by Jean Baptiste in Dore Dore was established by Jean Baptiste in

18191819 It was the world class manufacturer of It was the world class manufacturer of

fashionable knitted productsfashionable knitted products Its hosiery division produced socks and stockings Its hosiery division produced socks and stockings

for men, women and children & accounted for for men, women and children & accounted for 88% of DD’s sales88% of DD’s sales

Its knitwear division produced a line of children's Its knitwear division produced a line of children's knitwear such as play clothes, sweaters and knitwear such as play clothes, sweaters and nightclothes.nightclothes.

It focused on both quality and fashionIt focused on both quality and fashion It produced hose not only under its DD It produced hose not only under its DD

trademark, but also for famous designers.trademark, but also for famous designers. DD commented a 30% to 40% market share in DD commented a 30% to 40% market share in

this segmentthis segment One of DD’s competitive strengths was its One of DD’s competitive strengths was its

superior customer service for hosiery.superior customer service for hosiery.

Page 3: Dore Dore case study

Operations & Problems & Planning.Operations & Problems & Planning. Its operations were divided between two main Its operations were divided between two main

sites – MERY PLANT, which encompasses all sites – MERY PLANT, which encompasses all children’s knitwear operations; and GRES children’s knitwear operations; and GRES COMPLEX, which encompasses the company’s COMPLEX, which encompasses the company’s headquarters and central hosiery factory.headquarters and central hosiery factory.

Each season DD produced each style in two Each season DD produced each style in two seasons in hosiery and preset production for seasons in hosiery and preset production for Knitwear division.Knitwear division.

Forecasts were uncertain; all production took Forecasts were uncertain; all production took place before observing consumers demand in place before observing consumers demand in Hosiery Division.Hosiery Division.

High inventory costs were incurred.High inventory costs were incurred. Many items were left unsold.Many items were left unsold. The company wanted to get into Cellular Design The company wanted to get into Cellular Design

Layout for better Production And Operational Layout for better Production And Operational Utilization. (for instance Part A & Part B shown Utilization. (for instance Part A & Part B shown below)below)

Page 4: Dore Dore case study

COMPANY’S DESIGN LAYOUT COMPANY’S DESIGN LAYOUT (Part A)(Part A)

In children’s knitwear division, the In children’s knitwear division, the company is using presently a company is using presently a product designproduct design layout to do the layout to do the operations in the production.operations in the production.

Page 5: Dore Dore case study

Observations Part AObservations Part A In knitwear Division, same style and In knitwear Division, same style and

same orders were placed every time same orders were placed every time and the delivery was in advance. So, and the delivery was in advance. So, by focusing on innovations, the by focusing on innovations, the impact of cellular design process on impact of cellular design process on Hosiery Division was studied.Hosiery Division was studied.

The observations stated in this, The observations stated in this, came out with these results which came out with these results which are shown below: are shown below: ( As per values ( As per values given in the case we have taken given in the case we have taken sewing & finishing operation into sewing & finishing operation into account.)account.)

Page 6: Dore Dore case study

PRODUCT DESIGN VERSUS PROCESS PRODUCT DESIGN VERSUS PROCESS DESIGN (In Sewing & Finishing)DESIGN (In Sewing & Finishing)

SRL NO TO CALCULATE: PRESENT LAYOUT PROPOSED LAYOUT

1 WIP INVENTORY (PCS) 720 48

2 NO OF BINS IN THE PROCESS* 29 2

3 NO OF BINS WITH EACH WORKER 1 1 PER 20 WORKERS

4PERCENTAGE VALUE ADDED TIME

(%)0.14 2.10

5 FACTORY CYCLE TIME (MIN/PC) CAN’T BE CALCULATED CAN’T BE CALCULATED

6 FACTORY LABOUR UTILIZATION SAME SAME

7 FACTORY MACHINE UTILIZATION CAN’T BE CALCULATED CAN’T BE CALCULATED

Page 7: Dore Dore case study

Considerations & Results Considerations & Results Part APart A

The company is presently doing 200 The company is presently doing 200 same styles and same colors in the same styles and same colors in the production with an advance booking of production with an advance booking of orders as usual, So the PRODUCT orders as usual, So the PRODUCT DESIGN AND THE PROCESS DESIGN ARE DESIGN AND THE PROCESS DESIGN ARE RUNNING PARALLEL AT THIS STAGE.RUNNING PARALLEL AT THIS STAGE.

The number of workers utilized The number of workers utilized remained same even after the process remained same even after the process design.design.

The output per worker remained roughly The output per worker remained roughly the same.the same.

Page 8: Dore Dore case study

Considerations & Results Considerations & Results Part APart A

Decreased Throughput time and as a Decreased Throughput time and as a result increased percentage value result increased percentage value added time were the positive sides of added time were the positive sides of the process.the process.

The factory’s sewing machines The factory’s sewing machines utilization, though can’t be calculated utilization, though can’t be calculated but still increased with the increase but still increased with the increase in number of batch size in the cells.in number of batch size in the cells.

Workers tried to learn on their own Workers tried to learn on their own and settled their differences by and settled their differences by working together.working together.

Page 9: Dore Dore case study

Advantages of using cellular Advantages of using cellular designdesign

Work balancing by the workers without Work balancing by the workers without supervisors.supervisors.

Decreased throughput time in children’s Decreased throughput time in children’s wears could be a good innovative process in wears could be a good innovative process in the future when the demand is more.the future when the demand is more.

Increased efficiency due to machines layout.Increased efficiency due to machines layout. Batches could move in the cell without Batches could move in the cell without

supervisors.supervisors. Sense of togetherness.Sense of togetherness. Inventories are low.Inventories are low.

Page 10: Dore Dore case study

COMPANY’S DESIGN LAYOUT COMPANY’S DESIGN LAYOUT (Part B) The HOSIERY DIVISION.(Part B) The HOSIERY DIVISION. Designing a Process Layout in the Designing a Process Layout in the

organisation.organisation.

Page 11: Dore Dore case study

Design layout as per work Design layout as per work tasktask

TOTAL NO OF TASKS ARE SIXTOTAL NO OF TASKS ARE SIX

Page 12: Dore Dore case study

SUM OF TASK TIMESUM OF TASK TIME

WORK TASK TIME (MIN) IMMEDIATE PREDESSOR

1 7 MIN none

2 1 MIN 1

3 1 MIN 1

4 1 MIN 2 , 3

5 2 MIN 4

6 2 MIN 4, 5

TOTAL TIME 14 MIN

Page 13: Dore Dore case study

INFORMATION FOR CALCULATIONS (as INFORMATION FOR CALCULATIONS (as given)given)

The number of units given for Hosiery The number of units given for Hosiery production is 120 pairs.production is 120 pairs.

The total number of working hours are The total number of working hours are 24 and the work is done 7 days a 24 and the work is done 7 days a week.week.

The total throughput time including The total throughput time including Embroidery is 7 weeks or 49 days with Embroidery is 7 weeks or 49 days with the traditional process and 8 days the traditional process and 8 days with the cellular design process with the cellular design process layout.layout.

Page 14: Dore Dore case study

CalculationsCalculationsCycle time = production time per day/ Cycle time = production time per day/

output per day.output per day.

or 24 x60 / 120= 12 min per unit.or 24 x60 / 120= 12 min per unit.

(Sum of tasks time as calculated (Sum of tasks time as calculated earlier is 14 min.)earlier is 14 min.)

No. of work stations= sum of task No. of work stations= sum of task time/ cycle time.time/ cycle time.

Or 14/12= 1.16 or 2 work stations.Or 14/12= 1.16 or 2 work stations.

Page 15: Dore Dore case study

CalculationsCalculations

As per rule we have to As per rule we have to choose the activity with choose the activity with the largest task time first.the largest task time first.

(we therefore assign task 1 (we therefore assign task 1 knitting as workstation A knitting as workstation A and others as B)and others as B)

Since task 1 or knitting is Since task 1 or knitting is essentially the first task, so essentially the first task, so the total idle time is the total idle time is considered to be more as considered to be more as compared with the idle compared with the idle time of other 5 tasks.time of other 5 tasks.

WORK STATIONS TASKS TOTAL TIME IDLE TIME IDLENESS

A 1 7 MIN 5 MIN 42 %

B 2,3,4,5,6 7 MIN 5 MIN 42 %

Page 16: Dore Dore case study

CalculationsCalculations To calculate the assembly line To calculate the assembly line

efficiency, efficiency, Or Factory Machine utilization (FMU)= Or Factory Machine utilization (FMU)=

total machine time or task time used/ total machine time or task time used/ total total machine time available.total total machine time available.

Total machine time available is = no of Total machine time available is = no of work stations x cycle time. or = 2 x 12work stations x cycle time. or = 2 x 12

= 24 min.= 24 min.

So FMU= (14/24) x 100 = 58 %So FMU= (14/24) x 100 = 58 %

Page 17: Dore Dore case study

Conclusions & setting Conclusions & setting alternativesalternatives

With the 58 % efficiency the factory is With the 58 % efficiency the factory is suffering a heavy depreciation cost on the suffering a heavy depreciation cost on the costly machines incorporated in Hosiery costly machines incorporated in Hosiery Division.Division.

The total idle time in a cycle is 10 min.The total idle time in a cycle is 10 min.

(( Since the Total Idle time = Total available time Since the Total Idle time = Total available time – Total time used in the tasks or 24 – 14 = 10 – Total time used in the tasks or 24 – 14 = 10 min)min)

The company offers 365 different styles The company offers 365 different styles throughout the year with fluctuating demand, throughout the year with fluctuating demand, so the inventory costs become very high.so the inventory costs become very high.

Page 18: Dore Dore case study

RecommendationsRecommendations To avoid less seasonal demand, the To avoid less seasonal demand, the

Quick Response of Process Layout is Quick Response of Process Layout is designed.designed.

(To produce as and when required).(To produce as and when required).

By skipping one or two tasks like By skipping one or two tasks like embroidery, an efficient cellular embroidery, an efficient cellular design layout can be formed.design layout can be formed.

Page 19: Dore Dore case study

New Design LayoutNew Design Layout Choosing the minimum possible Choosing the minimum possible

change in the designing of tasks.change in the designing of tasks.

Page 20: Dore Dore case study

SUM OF TASK TIMESUM OF TASK TIME

WORK TASK TIME (MIN) IMMEDIATE PREDESSOR

1 7 MIN none

2 or 3 1 MIN 1

4 1 MIN 2 or 3

5 2 MIN 4

TOTAL TIME 11 MIN

Page 21: Dore Dore case study

Calculations.Calculations.

WORK STATIONS TASKS TOTAL TIME IDLE TIME IDLENESS

A 1, 2 or 3, 4, 5 11 1 9.00%

Total task time 11 min.

No. Of work Stations = sum of task

time/cycle time or 11/ 12= .91 or 1

Page 22: Dore Dore case study

CalculationsCalculations To calculate the assembly line To calculate the assembly line

efficiency, efficiency, Or Factory Machine utilization (FMU)= Or Factory Machine utilization (FMU)=

total machine time or task time used/ total machine time or task time used/ total total machine time available.total total machine time available.

Total machine time available is = no Total machine time available is = no of work stations x cycle time. or = 1 x of work stations x cycle time. or = 1 x 1212

= 12 min.= 12 min.

So FMU= (11/12) x 100 = 92 %So FMU= (11/12) x 100 = 92 %

Page 23: Dore Dore case study

Results:Results:

By Skipping the operation of By Skipping the operation of Embroidery, the organization can Embroidery, the organization can increase its efficiency to the increase its efficiency to the maximum.maximum.

So Quick Response Process can be So Quick Response Process can be designed.designed.

High Inventory costs will be saved.High Inventory costs will be saved. Depreciation of the costly machines Depreciation of the costly machines

will also be reduced.will also be reduced.