Enhancing Production Capacity in the Luxury Fashion Industry: An Analytical and Economic Assessment

Efficient management of production capacity is a key factor in ensuring com- petitiveness and responsiveness in modern manufacturing systems. This thesis focuses on a structured approach to increasing the output capacity of a specific production area within a high-end leather goods company operating in the lux- ury fashion sector. The department under analysis, referred to as the Mignon area, is responsible for the production of various types of leather welts, which serve as essential semi-finished components later integrated into final products. The study begins with a detailed assessment of the current production con- figuration, highlighting technical constraints and organizational inefficiencies that limit performance. Building on this analysis, structural capacity expan- sion is explored through targeted investments in new machinery and additional workforce. To support decision-making, both technical and economic feasi- bility analyses are carried out, comparing alternative investment scenarios and evaluating potential benefits in terms of productivity increase and return on in- vestment. This approach provides practical insight into how production capacity can be strengthened through methodical planning and data-driven evaluation. The find- ings offer concrete support for future strategic decisions, ensuring sustainable growth and responsiveness in an increasingly dynamic and demanding market.