CASE STUDY Easy Sew Peasy is a medium-sized, Cape Town based, family business that produces a various winter jackets and tracksuits

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CASE STUDY Easy Sew Peasy is a medium-sized, Cape Town based, family business that produces a various winter jackets and tracksuits. To improve the efficiency of their operation they purchase cotton, nylon, polyester, leather, pleather, rubber and elastic bands, wool, silk, zippers and buttons from various suppliers. Their waterproof tracksuits are particularly popular during the winter rainy season. This demand is seasonal, which means their factory is much busier in winter. In an attempt to improve customer relations and storage utilisation, the general manager, Dave Pea, as considered purchasing an MRP-system program. To accommodate the increased demand during winter, the business forecasts the demand and tries to manufacture as many jackets as possible during low demand periods, such as summer.

 

The South African textile manufacturing industry has become increasingly competitive since Easy Sew Peasy was first founded in 1990. Not only does the business have to compete with local clothing producers, it also has to compete with cheaper articles of clothing imported form Chinese manufacturers. To differentiate Easy Sew Peasy's brand, quality has always been the foundation of their strategic decision making.

 

Despite the success that Mr. Pea has enjoyed in recent years, there are still some operational issues that perturb him. For instance, business hours are supposed to start at 08h00, but on most days the local staff bus driver arrives at 08h15 which eats away at production time and causes some of the rest of the personnel to aimlessly wait around. The previous general manager had a free modification and customisation policy applicable to certain customers. Mr. Pea believe that this practice does not add value to the vast majority of customers, but he is forced to keep it since the previous general manager was his father. The layout of the factory causes unnecessary handling of WIP-goods during peak production cycles. During these high production times, the business also receives a disproportionate amount of customer complaints and returns due to orders not being compliant with the specifications given on the invoice. Some employees have started complaining about the repetitive nature of their work. Additionally, Mr. Pea as noticed that these employees often alleviate their boredom by unduly moving manufacturing goods and materials between work centres. Danica Pea, the procurement manager and Mr. Pea's daughter has also announced that he would like to peruse a career more aligned with her BA in Historical Arts degree.

 

QUESTION 1

                                 

Despite the success that Easy Sew Peasy has enjoyed in recent years, there are still some operational issues that can be improved upon in an attempt to eventually achieve lean status.

 

a) The methodology of lean production has identified eight common wastes that are present in every process. Discuss one (1) the types of common wastes present in the business above.                                                                                                                                              

 

b) Discuss the costs incurred as a result of the wastes discussed in Question a

 

QUESTION 2

 

With the business' recent grout spout, it has become apparent that there is a need for the implementations of a quality management system. Mr. Pea is unsure whether the business should implement an ISO 9000 system or opt for SHEQ management.

 

a) Convince him to choose SHEQ management by highlighting the advantages of this system.

 

b) Suggest and explain the implementation of an applicable quality improvement technique for the Easy Sew Peasy operation.