Bridgit Custom Gowns (UPDATED)

- Case Study - Bridgit Custom Gowns Lawrence Kinlin School of Business, Fanshawe College MGMT-6091 Operations Management Processes Submitted to: Professor Seyed A. Goosheh Submitted by: Group 2 No. Name Student no. Problem topic 1. Sulabh Bhattarai 1073208 Process efficiency 2. Emie Britos 0981533 Inventory Management 3. Mehul Chaudhary 1066983 Capacity management 4. Vipul Singh Chavda 1100943 Profitability Analysis November 10, 2023 P a g e 1 | 9

1.0- Synopsis and Challenges: Bridgit Custom Gowns is a well-known wedding boutique in Toronto, Ontario, founded by Bridgit Demelo, an immigrant to Canada in 1948, and now maintained by her child, Nancy Demelo. The shop specializes in personalized fancy event clothing and bridal attire with micro-crystal gem designs adding an individual element. It has expanded from a tiny tailor business to a luxurious bridal and formal attire store that serves affluent consumers while maintaining its unique bespoke glitter design over time. A large portion of the store's revenue is made up of three sorts of typical personalized commands: ball or A-line, tea or section, and monster or horn forms, which account for 80% of the total. The other orders are for dazzling designs. Bridgit began to share reservations. (Jay Heizer) (JAY HEIZER, 2020) . Challenges: 1. Process Efficiency. 2. Capacity Management. 3. Inventory Management. 4. Orders to accept that shall maximize the Profit. - linear equation. 2.0- Analysis and Solutions 2.1- Process efficiency (To find the bottleneck in the process) A customer must go through several steps of the process from start to end. The average time taken for each process is shown in the table 1 below: Processes Regular custom Design Sparkly Design Type 1 Type 2 Type 3 Operation Time Customer need 6 min Measurement 12 min Cutting / Rough Sewing 15 min Cut to size 10 min Fine Sewing / Rough sewing 40 min Rough sewing 15 min 12 min 15 min Fine sewing 20 min Stonework 60 min Fitting 15 min Table 1- Average time taken for each process. (Goosheh, 2023) P a g e 2 | 9

in stonework, which is 60 min. So, if we reduce the time taken for fine sewing and for stonework then we can increase the process efficiency. - 2.2- To determine the effective hourly capacity (Capacity management) To calculate effective hourly capacity for orders we need to find bottleneck time for the process (JAY HEIZER, 2020) For Customer-Design orders : The bottleneck time for this process is 20 min (Fine sewing/Needling) So, EHC = 60 min / Total time of bottleneck stage in minutes = 60 / 20 = 3 orders / Hour For Sparkly orders: The bottleneck time for this process is 60 min (Stonework) So, EHC = 60 min / Total time of bottleneck stage in minutes = 60 / 60 = 1 orders / Hour 2.3- Inventory Management- The objective of inventory management is to strike a balance between inventory investment and customer service. (Heizer, J., 2020) Bridgit Custom Gowns is facing a challenge in managing its fabric inventory due to the limited availability of four main fabrics: Crape, Organza, Chiffon, and Lace. The available fabric inventory is as follows: It is important to determine the Average Capacity to assess whether the store has effective fabric inventory management that will allow them to maximize its profitability while ensuring that customers receive the desired custom-designed and sparkly gowns. Average Capacity: Type 1 (Ball or A-line style)  Bottleneck=20 minutes (fine sewing/needling)  Effective Hourly Capacity=60/20  Effective Hourly Capacity=3 orders/hour P a g e 4 | 9

Type 2 Tea or Column Style)  Bottleneck=20 minutes (fine sewing/needling)  Effective Hourly Capacity=60/20  Effective Hourly Capacity=3 orders/hour Type 3 (Mermaid or Trumpet style)  Bottleneck=20 minutes (fine sewing/needling)  Effective Hourly Capacity=60/20  Effective Hourly Capacity=3 orders/hour Average Capacity for Custom Design= 2.4 orders/hour (3 orders/hour * 80%)  Type 1: 3 orders/hour  Type 2: 3 orders/hour  Type 3: 3 orders/hour Type 4 (Sparkly Gown)  Bottleneck= 60 minutes (fine sewing/needling)  Effective Hourly Capacity=60/60  Effective Hourly Capacity=1 order/hour Average Capacity for Sparkly Gown= 0.2 orders/hour (1 order/hour * 20%) 2.4- Profitability Analysis: P a g e 5 | 9

Objective: T1*3250 +T2* 3500 + T3*4000 + T4*3750. Constraint: 4T1 + 4T2 + 3T3 + 7T4 <= 100. 6T1 + 3T2 + 5T3 + 4T4 <= 100. 5T1 + 2T2 + 3T3 + 3T4 <= 100. 6T1 + 5T2 + 1T3 + 2T4 <= 100.  Sr. No. T1 T2 T3 T4 Objectiv e 3250 3500 4000 3750 100000 Subject 4 4 3 7 100 100   6 3 5 4 100 100   5 2 3 3 63.63636 4 100   6 5 1 2 100 100 0 18.18181 8 9.090909 1 1.776E-15 From the above calculation we can easily see that only type 2 and type 3 are giving some values. So, these types can give us maximum profit. 3.0- Conclusion and Recommendations Conclusion: Bridgit Custom Gowns faces critical challenges in process efficiency, average capacity, capacity management, and profitability analysis due to a complex operation involving various gown types and limited fabric inventory. The absence of a systematic approach hampers the store's ability to make informed decisions regarding order prioritization and effective hourly capacity. With a focus on naturally-gelled fabrics and the Italian supplier's delayed supply, the store's profitability and customer satisfaction are at risk.  Lack of clarity on fabric requirements and their impact on profit margins.  Inefficient process flow affecting order fulfillment and customer satisfaction.  Limited effective hourly capacity to meet customer demand efficiently. Recommendations: To overcome these challenges, Bridgit Custom Gowns should implement a strategic plan of fabric requirement calculations, optimized process flows, order prioritization strategies, and transparent customer communication. Outsourcing during high-demand periods should be considered, maintaining quality standards and customer satisfaction. Continuous evaluation and adjustment of operations will be crucial to navigate the complexities of limited fabric availability while maximizing profitability. P a g e 7 | 9

 Strategically calculate fabric requirements for each gown type to understand profit potential.  Optimize process flows to enhance efficiency and meet effective hourly capacity.  Prioritize orders based on fabric availability, profit margins, and customer demand.  Transparently communicate potential delays to manage customer expectations.  Consider outsourcing for high-demand periods, ensuring quality standards are maintained.  Continuously evaluate and refine operations to adapt to changing demands and maximize profitability within fabric constraints. P a g e 8 | 9