Free Essay

Taps

In: Business and Management

Submitted By tamaraazzopardi
Words 363
Pages 2
Trans European plastics:
What is TEP? * Manufacturer of plastic household items * Europe’s largest * More than 500 different types of products * Orders are dispatched within 24 hours * 24 large injection moulding machines

Problem with TEP: * Current high demand for many products leads to a backlog of work for planned stock replenishment
Why is TEP unable to delivery within one week? * Increasing demand for many products * Enlarged range of products * Unflexible re order quantities * This might affect distributors due to a loss of confidence

What batch size would you recommend? * EBQ- economic batch quantities * * *

How long will each batch take to produce: * 8571/90 * = 95,23 hours * + 3 hours * = 98,23 hours
How many batches per year will be made? * 50.000/8.571 * = 5,833 * 6 batches per year

What happens if the costs decreases by 50% and the holding costs increases by 40%?

What internal problems result from the current planning and control policies? Analyse stock turns and availability e.g. high and low levels * From the table we can tell that the physical inventory is less that the re order quantity

Would the Pareto analysis be useful for categorizing and controlling? * Pareto analysis is a statistical technique in decision making used for the selection of al imited number of tasks that produce significant overall effect. It uses the pareto principle – also known as the 80/20 rules – the idea that by doing 20% of the work you can generate 80% of the benefit of doing the entire job * In terms of quality improvement, a large majority of problems 80% are produced by a few causes 20%. Aka as vital few and trivial many * It is used essentially for the measurement of quality control * It is used to guide corrective action and to help the project team take action to fix the problems that are causing the greatest number of defects * In relation to the case study: * A items- 57.67% of value and 20% of items * B items- 27.92% of value and 30% of items * C items- 14.41% of value and 50% of items * ^^ allows the business to see where effort should be focused to achieve the greater improvement-

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