My new product to be produced at Peter Scott is a dress, which is comprised of a Jersey skirt and a cashmere jumper top. There are several areas in which to consider, when implementing changes in the production at Peter Scott to accommodate my new product.. The main aspects I am going to go over, are the workforce and ergonomics, the building layout and method of manufacture, out-sourcing, quality and method study.
Peter Scott has been producing knitwear for 150 years, and yet they still have many faults. Currently the factory works using batch and bespoke methods of manufacture, and to be frank, couldn't mass produce even if they wanted to. It's quality over quantity. Whilst this is all very well there needs to be a leap from 20000 a week, 240,000 a year, to 2.4 million a year. To be honest that's not a leap, it's more like being shot out of a canon. Referring to the 6 Ms of production there are several steps to take in ensuring that Peter Scott will produce 10 times its current production level.
OUTSOURCING: MATERIAL
My Plan in undertaking the new product is to produce knitted garments at peter Scott whilst simultaneously outsourcing product. The jumper part of the dress can easily be produced at Peter Scott - the equipment and necessary skills have already been cultivated. For the Jersey part of the skirt, I intend to outsource it, most likely to China. It would allow us to optimize Peter Scott's current work capacity without investing in new equipment or re training of staff. Bangladesh would be cheaper but we could lose customers due to recent issues surrounding garment made in Bangladesh. Even if we choose to produce elsewhere then it will involve carefully investigating the company to avoid bad press. We will also have to implement quality controls, perhaps one similar to Peter Scott's current model, utilizing the sign off sheets. China is cheaper than the UK and already has the resources necessary for mass production. Therefore the jumper part can be assembled in Hawick, the skirt could be created in China with the full garment assembly being created there too. The majority of Peter Scott's consumers are in Asia via the () group so this would save money on unnecessary shipping.
OPTIMIZING THE CURRENT WORKFORCE: MEN
One of the most significant changes to be made is to the workforce. It needs to more incentivised, more skilled, and just MORE. Currently there is a lack of staff at Peter Scott due to teh lack of skilled individuals available. The workers currently staffed are too lax and lacking in incentives. There is no stick at Peter Scott, and so workers are not producing the maximum amount of garment and making the most of their time. The idea when encouraging someone is that's there's a carrot and a stick. Something to encourage you, a reward, your wages, and something to force you along: unemployment or a lack of pay. There is a happy medium here obviously we cannot pressure them too much. There are plenty of factories in the area and all are in need of skilled workers. If they feel unhappy at Peter Scott they will simply move on. Indeed I think this is what attracts workers to Peter Scott - the relaxed atmosphere. But relaxation will not allow workers to do their best. Likewise applying too much pressure can have negative impacts such increased injury. Patterson1 and Gravseth2 both agree that increased pressure leads to carelessness which then leads onto injuries. Levi conducted a study which suggested that workers under pressure exerted much more adrenaline and exhausted more quickly3. I suggest implementing an incentive scheme, perhaps giving a bonus to people who produce certain numbers. But without understanding how much they are capable of this kind of incentive scheme could backfire, moving onto my next topic.
STANDARD MINUTE VALUE and LEAN STRATEGY: MINUTES AND MONEY
Adding pressure and incentivising workers alone would be ineffective, and SMVs
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