Dore Dore company case study

1. DORE’ DORE’DORE’ DORE’
A STUDY ON IMPLEMENTING THEA STUDY ON IMPLEMENTING THE
CELLULAR DESIGN PROCESS INCELLULAR DESIGN PROCESS IN
THE ORGANISATION.THE ORGANISATION.

2. BackgroundBackground
 Dore Dore was established by Jean Baptiste in 1819Dore Dore was established by Jean Baptiste in 1819
 It was the world class manufacturer of fashionableIt was the world class manufacturer of fashionable
knitted productsknitted products
 Its hosiery division produced socks and stockings forIts hosiery division produced socks and stockings for
men, women and children & accounted for 88% ofmen, women and children & accounted for 88% of
DD’s salesDD’s sales
 Its knitwear division produced a line of children'sIts knitwear division produced a line of children's
knitwear such as play clothes, sweaters andknitwear 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 trademark,It produced hose not only under its DD trademark,
but also for famous designers.but also for famous designers.
 DD commented a 30% to 40% market share in thisDD commented a 30% to 40% market share in this
segmentsegment
 One of DD’s competitive strengths was its superiorOne of DD’s competitive strengths was its superior
customer service for hosiery.customer service for hosiery.

3. Operations & Problems & Planning.Operations & Problems & Planning.
 Its operations were divided between two main sitesIts operations were divided between two main sites
– MERY PLANT, which encompasses all children’s– MERY PLANT, which encompasses all children’s
knitwear operations; and GRES COMPLEX, whichknitwear operations; and GRES COMPLEX, which
encompasses the company’s headquarters andencompasses the company’s headquarters and
central hosiery factory.central hosiery factory.
 Each season DD produced each style in two seasonsEach season DD produced each style in two seasons
in hosiery and preset production for Knitwearin hosiery and preset production for Knitwear
division.division.
 Forecasts were uncertain; all production took placeForecasts were uncertain; all production took place
before observing consumers demand in Hosierybefore observing consumers demand in Hosiery
Division.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 DesignThe company wanted to get into Cellular Design
Layout for better Production And OperationalLayout for better Production And Operational
Utilization. (for instance Part A & Part B shownUtilization. (for instance Part A & Part B shown
below)below)

4. COMPANY’S DESIGN LAYOUTCOMPANY’S DESIGN LAYOUT
(Part A)(Part A)
 In children’s knitwear division, theIn children’s knitwear division, the
company is using presently acompany is using presently a productproduct
designdesign layout to do the operations in thelayout to do the operations in the
production.production.

5. Observations Part AObservations Part A
 In knitwear Division, same style andIn knitwear Division, same style and
same orders were placed every time andsame orders were placed every time and
the delivery was in advance. So, bythe delivery was in advance. So, by
focusing on innovations, the impact offocusing on innovations, the impact of
cellular design process on Hosierycellular design process on Hosiery
Division was studied.Division was studied.
 The observations stated in this, cameThe observations stated in this, came
out with these results which are shownout with these results which are shown
below:below: ( As per values given in the case( As per values given in the case
we have taken sewing & finishingwe have taken sewing & finishing
operation into account.)operation into account.)

6. PRODUCT DESIGN VERSUS PROCESSPRODUCT 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
4
PERCENTAGE 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

7. Considerations & Results Part AConsiderations & Results Part A
 The company is presently doing 200 sameThe company is presently doing 200 same
styles and same colors in the productionstyles and same colors in the production
with an advance booking of orders aswith an advance booking of orders as
usual, So the PRODUCT DESIGN ANDusual, So the PRODUCT DESIGN AND
THE PROCESS DESIGN ARE RUNNINGTHE PROCESS DESIGN ARE RUNNING
PARALLEL AT THIS STAGE.PARALLEL AT THIS STAGE.
 The number of workers utilized remainedThe number of workers utilized remained
same even after the process design.same even after the process design.
 The output per worker remained roughlyThe output per worker remained roughly
the same.the same.

8. Considerations & Results Part AConsiderations & Results Part A
 Decreased Throughput time and as aDecreased Throughput time and as a
result increased percentage value addedresult increased percentage value added
time were the positive sides of thetime were the positive sides of the
process.process.
 The factory’s sewing machines utilization,The factory’s sewing machines utilization,
though can’t be calculated but stillthough can’t be calculated but still
increased with the increase in number ofincreased with the increase in number of
batch size in the cells.batch size in the cells.
 Workers tried to learn on their own andWorkers tried to learn on their own and
settled their differences by workingsettled their differences by working
together.together.

9. Advantages of using cellular designAdvantages of using cellular design
 Work balancing by the workers withoutWork balancing by the workers without
supervisors.supervisors.
 Decreased throughput time in children’s wearsDecreased throughput time in children’s wears
could be a good innovative process in the futurecould be a good innovative process in the future
when the demand is more.when the demand is more.
 Increased efficiency due to machines layout.Increased efficiency due to machines layout.
 Batches could move in the cell withoutBatches could move in the cell without
supervisors.supervisors.
 Sense of togetherness.Sense of togetherness.
 Inventories are low.Inventories are low.

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

11. Design layout as per work taskDesign layout as per work task
TOTAL NO OF TASKS ARE SIXTOTAL NO OF TASKS ARE SIX

12. 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

13. INFORMATION FOR CALCULATIONS (as given)INFORMATION FOR CALCULATIONS (as given)
 The number of units given for HosieryThe number of units given for Hosiery
production is 120 pairs.production is 120 pairs.
 The total number of working hours are 24The total number of working hours are 24
and the work is done 7 days a week.and the work is done 7 days a week.
 The total throughput time includingThe total throughput time including
Embroidery is 7 weeks or 49 days with theEmbroidery is 7 weeks or 49 days with the
traditional process and 8 days with thetraditional process and 8 days with the
cellular design process layout.cellular design process layout.

14. CalculationsCalculations
Cycle time = production time per day/ outputCycle time = production time per day/ output
per day.per day.
or 24 x60 / 120= 12 min per unit.or 24 x60 / 120= 12 min per unit.
(Sum of tasks time as calculated earlier is(Sum of tasks time as calculated earlier is
14 min.)14 min.)
No. of work stations= sum of task time/No. of work stations= sum of task time/
cycle time.cycle time.
Or 14/12= 1.16 or 2 work stations.Or 14/12= 1.16 or 2 work stations.

15. CalculationsCalculations
 As per rule we have to chooseAs per rule we have to choose
the activity with the largestthe activity with the largest
task time first.task time first.
 (we therefore assign task 1(we therefore assign task 1
knitting as workstation A andknitting as workstation A and
others as B)others as B)
 Since task 1 or knitting isSince task 1 or knitting is
essentially the first task, so theessentially the first task, so the
total idle time is considered tototal idle time is considered to
be more as compared with thebe more as compared with the
idle time of other 5 tasks.idle 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 %

16. CalculationsCalculations
 To calculate the assembly line efficiency,To calculate the assembly line efficiency,
 Or Factory Machine utilization (FMU)=Or Factory Machine utilization (FMU)=
total machine time or task time used/ totaltotal machine time or task time used/ total
total machine time available.total machine time available.
 Total machine time available is = no ofTotal 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 %

17. Conclusions & setting alternativesConclusions & setting alternatives
 With the 58 % efficiency the factory is suffering aWith the 58 % efficiency the factory is suffering a
heavy depreciation cost on the costly machinesheavy depreciation cost on the costly machines
incorporated in Hosiery Division.incorporated in Hosiery 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 min)Total time used in the tasks or 24 – 14 = 10 min)
The company offers 365 different stylesThe company offers 365 different styles
throughout the year with fluctuating demand, sothroughout the year with fluctuating demand, so
the inventory costs become very high.the inventory costs become very high.

18. RecommendationsRecommendations
 To avoid less seasonal demand, the QuickTo avoid less seasonal demand, the Quick
Response of Process Layout is designed.Response of Process Layout is designed.
(To produce as and when required).(To produce as and when required).
By skipping one or two tasks likeBy skipping one or two tasks like
embroidery, an efficient cellular designembroidery, an efficient cellular design
layout can be formed.layout can be formed.

19. New Design LayoutNew Design Layout
 Choosing the minimum possible change inChoosing the minimum possible change in
the designing of tasks.the designing of tasks.

20. 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

21. 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

22. CalculationsCalculations
 To calculate the assembly line efficiency,To calculate the assembly line efficiency,
 Or Factory Machine utilization (FMU)=Or Factory Machine utilization (FMU)=
total machine time or task time used/ totaltotal machine time or task time used/ total
total machine time available.total machine time available.
 Total machine time available is = no ofTotal machine time available is = no of
work stations x cycle time. or = 1 x 12work stations x cycle time. or = 1 x 12
= 12 min.= 12 min.
So FMU= (11/12) x 100 = 92 %So FMU= (11/12) x 100 = 92 %

23. Results:Results:
 By Skipping the operation of Embroidery,By Skipping the operation of Embroidery,
the organization can increase its efficiencythe organization can increase its efficiency
to the maximum.to the maximum.
 So Quick Response Process can beSo Quick Response Process can be
designed.designed.
 High Inventory costs will be saved.High Inventory costs will be saved.
 Depreciation of the costly machines willDepreciation of the costly machines will
also be reduced.also be reduced.