This is a comprehensive case. This covers all essential concepts that we have covered so far plus other materials you will obtain independently.

Volta Apparel Inc. is contemplating of constructing a new facility to manufacture ladies apparel (shirts) at Keta. Mr. Kwaku Kobla is the newly appointed Plant Manager, who will be in charge of the Keta plant. You have been appointed as the Operations Consultant to advise him and assist him. Volta has another similar facility in Accra. The actualdemand of shirts (manufactured in the Accra plant for the last 4 years) is presented below:

Season and Year	Actual Demand
Quarter1 and 2005	482
Quarter2 and 2005	213
Quarter 3 and 2005	116
Quarter 4 and 2005	335
Quarter 1 and 2006	499
Quarter 2 and 2006	225
Quarter 3 and 2006	122
Quarter 4 and 2006	344
Quarter 1 and 2007	503
Quarter 2 and 2007	237
Quarter 3 and 2007	127
Quarter 4 and 2007	349
Quarter 1 and 2008	518
Quarter 2 and 2008	244
Quarter 3 and 2008	133
Quarter 4 and 2008	353

Based on the information given above, prepare a demand forecast for the year 2009 for the new facility at Keta. (Hint: You could use any forecasting technique. But you should have a sound rationale for your decision based on the type of data given to you. State assumptions, if any). Supposing if Kwaku comes up with a forecast to sell 300 units per quarter for the year 2009, do you think his forecast would be any better than your forecast? Explain.

The maximum number of units (of shirts) that Keta plant can ideally manufacture is 600 units per quarter. The number of units (of shirts) that Keta plant can manufacture after considering scheduling problems, quality issues etc is 350 units per quarter. Kwaku tells you that the fixed cost for running the Keta plant per year is estimated to be $100,000 and the variable cost per unit of production is estimated to be $80. Variable cost of production includes the material cost & machining cost only. Direct labor cost also needs to be considered. The average revenue per unit of sale is estimated to be $250.

Based on your overall production plan, calculate the efficiency and utilization levels (for each quarter in 2009) if you actually produced as per your overall production plan. (Hint: Use efficiency and utilization concepts to compute these values). By producing as per your production plan, do you think you can break-even in the year 2009? Explain how you got your break even point.

Kwaku also wants your help in deciding on the type of manufacturing process and the type of facility layout for the Keta facility. (Hint: There are four types of processes - Job Shop, Batch Shop, Assembly Line and Continuous Processing. There are four types of layouts - Product layout, process layout, cellular layout and fixed position layout). Explain your rationale clearly for choosing a particular process and a layout.