JAIKUMAR-TEXTILES Ltd. Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

JAIKUMAR-TEXTILES Ltd. Case Solution

Problem statement

The company has to decide the production plan for the month of May. N.S Kadiyala and his staff have to determine an optimal production plan along considering some other factors such as memos and market rates. They have to decide what quantity to produce and sold of deniers 15/1g and deniers 84/21 fd for the month. Before this they have to analyze memos and related information and incorporate such in the decision making. These memos indicate some limiting factors that would affect the production plan as well as market situations and other factors that are expected to effect the decision regarding production plan. The limiting factors that would affect the production plan and need to be considered are the draw twisting time and spinning time, which are two major part of the manufacturing process with the other polymerization and packing & testing which are the resources that are available in abundant. The management has to make an optimal production plan along considering these limited resources.

Memo-1

The production head of draw twisting has specified that there a major mechanical breakdown happened in the draw twisting area which resulted in the reduced capacity and less available hours for draw twisting for the manufacturing of deniers. This breakdown has significantly reduced the capacity and the available capacity will be only 1000 hours of draw twisting in the month of May for the production.
This has created a major drawback and will significantly affect the production plan. The required hours that are available for draw twisting are 1600 hours as per the standard. Now the available hours are only 1000 and this has created a limiting factor for the production of deniers 15/1g and deniers 84/21fd for the month. Kadiyala has to make a decision based on the limited draw twisting time, and how much each product would be produced to maximize profit. This will have significant effect on the decision making for the production plan. The product giving the maximum contribution should be produced more than the other. There are many aspects that need to be considered such as time of draw twisting used by the manufacturing of one unit of the product etc.

Memo-2

This memorandum is from the production head of the spinning department. The memo is concerned with the increment of the spinning hours. The production heads have specified that the spinning time can be increased by renting it from a competitor. However, he has only specified such opportunity but no decision has been taken yet. He is demanding to call a meeting for price and amount to be ascertained.

Since there is no indication whether the decision has been taken or not, we take this as no increase in spinning time for the month. The impact of this memo is that for any reason the spinning time requires to be extended due to some other factor which could be out of the total spinning time that is expected to be used by the other product so that less spinning time will be left for the deniers 15/1g and deniers 84/21 fd. By our analysis we have calculated the optimum production plan through excel solver add-in, and it reveals that the spinning time has been a limiting factor for the production. The management is less efficient and the spinning time should have been increased since the opportunity was there to adopt the contract of outsourced spinning time.However, this does not have a major weakness since even if the spinning time was increased; the other limiting factor that is draw twisting has restricted the production that could be achieved through more spinning time. ......................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.