Cheswa Review

dua mfr has the following forecast for pumps to be made for next yr month level prod inv inv costt reg prod ot prod contractingreg cost ot cost 1 3006 3013 1107 22140 2500 250 263 100000 25000 2 2400 3013 1720 34400 2500 250 263 100000 25000 3 3400 3013 1333 26660 2500 250 263 100000 25000 4 4000 3013 346 6920 2500 250 263 100000 25000 5 1900 3013 1459 29180 2500 250 263 100000 25000 6 5000 3013 -528 132000 2500 250 263 100000 25000 7 1700 3013 785 15700 2500 250 263 100000 25000 8 2900 3013 898 17960 2500 250 263 100000 25000 9 3700 3013 211 4220 2500 250 263 100000 25000 10 5250 3013 -2026 506500 2500 250 263 100000 25000 11 2500 3013 -1513 378250 2500 250 263 100000 25000 12 1500 3013 0 0 2500 250 263 100000 25000 3013.00 backlog emp =100 full time -4067 back log costt 1016750 inv holding cost =$20 per unit cos of inv 157180 263 < 15% of 2500 contracting out is allowed but cost $120 per unit overtime is allowed and costs 100 per unit cost per unit reg = 1000/25 back order penalty =$250 per unit full time salary per month = 1000 dollars during regular time emp can produce 25 units per month contracting out can not be more than 15% of regular prod in any month overtime production can not be more than 10% of reg production in any month starting inventory =1100 use level strategy to solve backlog total?

contracting cost 31560 31560 31560 31560 31560 31560 31560 31560 31560 31560 31560 31560 so all good 40 best cost so we use up reg cap 1st also as we pay workers no matter what use i then 100 O T only then 120 contracting out

shirt making company weekly quality tested by choosing 5 shirts each week parameter checked is legth defects sample # length of the shirt in inches x barrange 1 28.2 28.94 28.61 28.55 28.29 28.5 0.8 2 28.2 28.3 28.07 28.85 28.01 28.3 0.8 3 28.3 28.69 28.62 28.16 28.56 28.5 0.5 4 28.4 28.99 28.26 28.07 28.79 28.5 0.9 5 28.5 28.16 28.11 28.33 28.72 28.4 0.6 6 28.9 28.19 28.28 28.47 28.94 28.6 0.7 7 28.3 28.22 28.09 28.34 28.9 28.4 0.8 8 29.0 28.19 28.24 28.93 28.99 28.7 0.8 9 28.6 28.86 28.84 28.82 28.28 28.7 0.6 10 28.9 28.39 28.74 28.06 28.06 28.4 0.8 x bar bar 28.5 rbar 0.7 x bar chart r chart UCL =xbarbar+A2*rbar 28.91 UCL =D4 *R CL 28.5 CL 0.7 LCL X bar bar-A2 Rbar 28.05 LCL D3* rba q1) how can we improve quality in this situatation? a) measure quality by creating a control chart what type : variable chart; xbar chart x bar chart optimal n = 4

as the quality improves the r chart will show points moving clos as the quality improves the x bar chart will show points moving

bar 1.576 ar 0 n= 5