Morning Sun Screen Printing Company Presented by: George Holk James Gemperle & Kim Dubois Morning Sun OP506 Company Overview Founded in 1986 425 Employees, $52M Annual Sales Product: Custom Screen Printed T-Shirts Market: Primarily Department Stores, and Some Smaller Retailers Batch Process, Make to Order Morning Sun OP506 Competitive Priorities High Quality Flexibility Speed of Delivery Morning Sun OP506 Plant Layout and Work Flow (Approximately 150,000 Square Feet) Warehouse Warehouse Sewing Screen Prep Printing Shipping Offices Art Morning Sun OP506 Embroidery Plant Operations & Methods of Supporting the Competitive Priorities of: Quality, Flexibility and Speed Morning Sun OP506 Raw Materials Inventory JIT System Strong Supplier Relationships Quality Inspections Performed Orders Stacked by Design and Size Scale Morning Sun OP506 Art and Screen Preparation Designs 200 by In-House Art Department In Stock Designs (Down from 500) Frames Design Morning Sun OP506 and Screens are Constructed Image “Positive” is Burned onto Screen Competitive Priorities Quality -Supplier Relationships -Raw Material Inspection -Design Engineering Speed, Flexibility -Reducing Inventories (JIT) -Fewer Designs Morning Sun OP506 Screen Printing Two Types of Screen Press Machines Used -Hand Press -Auto Press Dryer Oven Belt Shirts Inspected for Quality Foiling, Embroidery To Sewing for Final Work Morning Sun OP506 Screen Printing CP Support Quality -Quality Inspections, Run Set-Up Testing and Fail Safing Delivery Speed -Reduction of Set Up Times -Combining Processes -New Embroidery Machines Flexibility “Mass Customization” -All Machinery on Wheels -Hand Presses for Special Orders Morning Sun OP506 Sewing Labels and Collars -Formerly Outsourced Capacity -20 Machines /3 Shifts Bottleneck Morning Sun OP506 Sewing (cont.) Identified How as “Herbie” to Move Herbie Upstream -Collars -Smaller Batches -QC Runners Morning Sun OP506 Sewing cont. Other Changes Made: -Pay for Performance -Purchase of 10 New Machines -Limit Order to Size Scale Morning Sun OP506 Sewing- Competive Priorities Quality -QC Runners Speed and Flexibility -Additional Machines -Improved Throughput Morning Sun OP506 Summary - Operations Support of Competitive Priorities Quality -Inspections, QA Dept. Flexibility -Mobile Production Equipment -Order Size Variance Speed -JIT, Moving /Combining Processes Morning Sun OP506