Presentation Group 1

MGT 6240 Operations Management Section 2 Case Presentation: Group 1

Cecil Rice Export Mohamm ammed K. Zaman

G103 G1037 7723

Mohamad bin Ghani

G1025441

Zainal Abidin

G1039829

Hasan Ali Assegaf

G1033871

Company Profile  Cecil Rice Export produces white rice in 70 pounds grain bags and exports to international markets.  The company company have been been growing growing fast known known for low cost and high value.  To accomod accomodate ate growth, growth, they have expande expanded d from single shift in 2005 to three shifts in 2009.  Ha Have a good record in the past due to conc concen entr trat atio ion n on cont contin inuo uous us impr improv ove ement ment and lean techniques.

Issues

to be addressed

 Determine Determine whethe whetherr the production production proces process s is in control or out of control.  An Analyze control charts for each shift to differentiate differences among the shifts.  Devel velop uni unifor form con control trol cha chart for for all all thre hree shifts in order to provide incentives to senior  personnel to rotate among three shifts.

Expanding the number of Shift

2005  08:00-16:00

2007  04:00-12:00  12:00-20:00

2009  00:00-08:00  08:00-16:00  16:00-00:00

Case Summary  Most of the more experienced employees choose to remain on the day shift (2nd shift).  When the new shift introduced, most employees choose the 16:00 to 00:00 (3rd shift).  The new employees left to the 00:00 to 08:00 (1st shift).

Case Summary (Cont¶d)  When the shift were added some senior  personnel were assigned to the new shift to break in to the new workforce but they choose to their preferred day shift.

Case Summary (Cont¶d)  The bagging machine fill bags to a specific weight.  This machine is very sensitive. It requires calibration by trained personnel.  When there was only one shift, there was no problem in weight.  Due to increases in production company facing weight problem.  The machine calibrated.

is

not

properly

Case Summary (Cont¶d)  The ship officer have detected abnormalities .  The pallets are loaded with 30 bags each and suppose to weight 2100 pounds.  Plant manager suspected the bagging operation has resulted in over or underweight bags.  Overweight bags decrease the revenue underweight bags are the customer service issue.

and

 Analysis: Determine control chart  Data is variables with infinite possibilities and are continuous therefore we need to use Xbar chart and R-chart.  We are to use X-bar charts to determine whether changes occured in central tendency of the process with 99.73% accuracy.  X-bar charts shows whether process averages is in control or out of control.

 Analysis: Determine control chart  To better understand the variance in each bags we need to analyze the data through Range charts.  Range charts point out more or less in dispersion of the sample means during the production process.

 Analysis X-bar Upper

Charts Control Limit (UCL) =

Lower Control Limit (UCL) =

 x   z W x

 x   z Wx

 x

= mean of the sample means

 Z 

= number of normal standard deviations (2 for 95.45% confidence, 3 for 99.73%)

 W x

n

= standard deviation of the sample means =

= sample size

 W

/

n

 Analysis (Cont¶d) Mean population: 70 pounds Standard Deviation: 1 pound Sample Size: 5 Desired Control Limit: 99.73%

1st Shift (00:00 ± 08:00) Cecil Rice Export (Pounds) Smallest

Monday

Tuesday

Wednesday

0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00

70.4 67.9 70.1 69.2 69.6 69.7 70.7 69.8

Largest 71.8 70.3 70.6 70 70.6 69.8 72.9 71.5

0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00

69.1 69.6 67.8 70.5 69.5 70 69.1 69.4

70.3 72.8 70.2 70.6 71.6 70.5 70.9 70.8

0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00

70.7 70 68.6 69.6 68.9 71.1 68.6 69.1

70.9 71.4 71 71.5 69.2 71.6 69.6 72.4

Average 71.7 69.2 70.3 69.5 70.1 69.8 72.6 71.4

 x

W x

UCL

LCL

70.575

0.447

71.92

69.23

69.5 70.4 68 70.5 71.3 70.2 69.3 69.9

69.8875

0.447

71.23

68.55

70.8 70.6 70.3 70.2 69.1 71.3 68.8 72.2

70.4125

0.447

71.75

69.07

(X-bar) 1st Shift Monday

Wednesday

73 72.5 72 71.5 71 70.5 70 69.5 69 68.5 68

Average Means

UCL

LCL

Mean of samples mean

1

2

3

4

5

6

7

8

73 72.5 72 71.5 71 70.5 70 69.5 69 68.5 68

Average Means

UCL

LCL

Mean of samples mean

2

3

4

5

6

7

Average Means

UCL

LCL

Mean of samples mean

1

Tuesday

1

73 72.5 72 71.5 71 70.5 70 69.5 69 68.5 68

8

2

3

4

5

6

7

8

2nd Shift (08:00 ± 16:00) Cecil Rice Export (Pounds) Smallest

Monday

Tuesday

Wednesday

8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00

70.0 68.2 68.9 69.5 70.5 69.7 69.5 69.5

Largest 72.6 70.8 69.3 69.7 72 70.7 70.1 70.8

8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00

68.3 68.7 68.9 70 68.8 68.9 69.7 70

69.8 69.1 71.8 70.6 70.3 69.7 71.8 70.6

8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00

69.7 70.5 69.3 68.3 68.4 70.1 69.9 70.1

71.1 71.3 70.7 71.2 69.9 70.6 70.4 71.1

Average 71.8 68.7 69.1 69.6 71 70.6 69.7 69.6

 x

Wx

UCL

LCL

70.0125

0.447

71.35

68.67

68.4 68.8 71.4 70.2 69.7 69.2 70.5 70.3

69.8125

0.447

71.15

68,47

70.3 70.7 69.6 70.8 69.2 70.4 70.2 70.4

70.2

0.447

71.54

68.86

(X-bar) 2nd Shift Monday

Wednesday

73 72.5 72 71.5 71 70.5 70 69.5 69 68.5 68

Average Means

UCL

LCL

Mean of samples mean

1

2

3

4

5

6

7

8

73 72.5 72 71.5 71 70.5 70 69.5 69 68.5 68

Average Means

UCL

LCL

Mean of samples mean

2

3

4

5

6

7

Average Means

UCL

LCL

Mean of samples mean

1

Tuesday

1

73 72.5 72 71.5 71 70.5 70 69.5 69 68.5 68

8

2

3

4

5

6

7

8

3rd Shift (16:00 ± 23:00) Cecil Rice Export (Pounds) Smallest

Monday

Tuesday

Wednesday

16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

69.5 68.8 71.1 71.1 70.4 68.9 68.4 69.1

Largest 69.9 71.9 71.3 71.4 71.2 70.3 68.5 69.3

16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

70.2 68.5 70.3 69.8 68.4 70.1 68.2 69

70.7 69.6 70.3 72 70 72.2 69 69.3

16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

69.7 68.3 68 70 68.5 67.7 71 70.5

70.1 71.4 71.6 71.1 71.3 71.2 71.1 71.1

Average 69.6 70.7 71.2 71.3 70.8 69.7 68.5 69.2

 x

Wx

UCL

LCL

70.125

0.447

71.47

68.78

70.6 69.2 70.3 69.9 68.9 70.8 68.6 69.2

69.6875

0.447

71.03

68,35

69.9 69.7 68.1 70.8 69.2 67.8 71 70.8

69.6625

0.447

71.00

68.32

(X-bar) 3rd Shift Wednesday

Monday 73 72.5 72 71.5 71 70.5 70 69.5 69 68.5 68

Average Means UCL

LCL Mean of samples mean

1

2

3

4

5

6

7

8

73 72.5 72 71.5 71 70.5 70 69.5 69 68.5 68

Average Means UCL

LCL Mean of samples mean

2

3

4

5

6

7

Average Means UCL

LCL Mean of samples mean

1

Tuesday

1

72 71.5 71 70.5 70 69.5 69 68.5 68 67.5 67

8

2

3

4

5

6

7

8

 Analysis: X-bar Charts Summary  We find production is erratic and out of control especially for the 1st shift We conclude that there are assaignable causes in production process for erratic weights in the bags of rice.

 Analysis: Setting Control Limit R-Charts

Upper

UCL R

!

 D 4 R

 LCL R

!

 D 3 R

UCL R

=

Control Chart Limit for the Range

 LCL R

= Lower Control Chart Limit for the Range

 D 3

= From 3Sigma Table

 D 4

= From 3Sigma Table

 R

= Average Range of the Samples

Three Sigma Table

1st Shift (00:00 ± 07:00) day Monday

Cecil Rice Export Data (pounds) time smallest largest average Range Average of Range/shift

Upper

Limit

Lower Limit

0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00

70.4 67.9 70.1 69.2 69.6 69.7 70.7 69.8

71.8 70.3 70.6 70 70.6 69.8 72.9 71.5

71.7 69.2 70.3 69.5 70.1 69.8 72.6 71.4

1.4 2.4 0.5 0.8 1 0.1 2.2 1.7

2.67

2.3533

0

0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00

69.1 69.6 67.8 70.5 69.5 70 69.1 69.4

70.3 72.8 70.2 70.6 71.6 70.5 70.9 70.8

69.5 70.4 68 70.5 71.3 70.2 69.3 69.9

1.2 3.2 2.4 0.1 2.1 0.5 1.8 1.4

3.36

2.9591

0

Wednesday 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00

70.7 70 68.6 69.6 68.9 71.1 68.6 69.1

70.9 71.4 71 71.5 69.2 71.6 69.6 72.4

70.8 70.6 70.3 70.2 69.1 71.3 68.8 72.2

0.2 1.4 2.4 1.9 0.3 0.5 1 3.3

2.91

2.5630

0

Tuesday

(R-Chart) 1st shift Monday

Wednesday

3

3.5

2.5

3 2.5

2

Sample

1.5

Range

UCL

LCL

1

avg R

0.5

UCL

1.5

LCL

1

Sample

2

Avg R

0.5

0

0 1

2

3

4

5

6

7

8

1

Tuesday 4 3.5 3 2.5

Sample

2

UCL

1.5

LCL

1

Avg R

0.5 0 1

2

3

4

5

6

7

8

Range

2

3

4

5

6

7

8

Range

2nd Shift (08:00 ± 16:00) Cecil Rice Export Data (pounds) smallest largest average Range Average of Range/shift

day

time

Monday

8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00

70 68.2 68.9 69.5 70.5 69.7 69.5 69.5

72.6 70.8 69.3 69.7 72 70.7 70.1 70.8

71.8 68.7 69.1 69.6 71 70.6 69.7 69.6

2.6 2.6 0.4 0.2 1.5 1 0.6 1.3

2.7

2.3766

0

8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00

68.3 68.7 68.9 70 68.8 68.9 69.7 70

69.8 69.1 71.8 70.6 70.3 69.7 71.8 70.6

68.4 68.8 71.4 70.2 69.7 69.2 70.5 70.3

1.5 0.4 2.9 0.6 1.5 0.8 2.1 0.6

2.75

2.4232

0

8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00

69.7 70.5 69.3 68.3 68.4 70.1 69.9 70.1

71.1 71.3 70.7 71.2 69.9 70.6 70.4 71.1

70.3 70.7 69.6 70.8 69.2 70.4 70.2 70.4

1.4 0.8 1.4 2.9 1.5 0.5 0.5 1

2.64

2.3300

0

Tuesday

Wednesday

Upper

Limit

Lower Limit

(R-Chart) 2nd Shift Monday

Wednesday

3

3.5

2.5

3

2

Sample

1.5

Range

UCL

1.5

LCL Avg R

0.5

Sample

2

UCL

1

2.5

LCL

1

Avg R

0.5

0

0 1

2

3

4

5

6

7

8

1

Tuesday 3.5 3 2.5 Sample

2

UCL

1.5

LCL

1

Avg R

0.5 0 1

2

3

4

5

6

7

8

Range

2

3

4

5

6

7

8

Range

3rd Shift (16:00 ± 23:00) Cecil Rice Export Data (pounds) largest average Range Average of Range/shift

day

time

smallest

Monday

16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

69.5 68.8 71.1 71.1 70.4 68.9 68.4 69.1

69.9 71.9 71.3 71.4 71.2 70.3 68.5 69.3

69.6 70.7 71.2 71.3 70.8 69.7 68.5 69.2

0.4 3.1 0.2 0.3 0.8 1.4 0.1 0.2

1.72

1.5145

0

16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

70.2 68.5 70.3 69.8 68.4 70.1 68.2 69

70.7 69.6 70.3 72 70 72.2 69 69.3

70.6 69.2 70.3 69.9 68.9 70.8 68.6 69.2

0.5 1.1 0 2.2 1.6 2.1 0.8 0.3

2.27

2.0038

0

Wednesday 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

69.7 68.3 68 70 68.5 67.7 71 70.5

70.1 71.4 71.6 71.1 71.3 71.2 71.1 71.1

69.9 69.7 68.1 70.8 69.2 67.8 71 70.8

0.4 3.1 3.6 1.1 2.8 3.5 0.1 0.6

4.02

3.5416

0

Tuesday

Upper

Limit

Lower Limit

(R-Chart) 3rd Shift Monday

Wednesday

3.5

4.5

3

4

2.5

3.5 Sample

2

Range

UCL

2

LCL

1

Sample

2.5

UCL

1.5

3

LCL

1.5

Avg R

1

0.5

Avg R

0.5

0

0 1

2

3

4

5

6

7

8

1

Tuesday 2.5 2 Sample

1.5

UCL

1

LCL

0.5

Avg R

0 1

2

3

4

5

6

7

8

Range

2

3

4

5

6

7

8

Range

 Analysis Summary: R chart  Analysis)  From R-chart we find the variance of weights in bags across all shifts are beyond acceptable control limits  We also find that the production process needs checking in every shift

New

Control Limit for All Shifts = 70

 x

=

UCL

=

 x   z W x

LCL =

 x   z Wx

Q

= 71.34 = 68.65