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MGT 6240

MGT 6240

Operations Management

Operations Management

Section 2

Section 2

Case Presentation: Group 1

Case Presentation: Group 1

Cecil Rice Export

Cecil Rice Export

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Zainal

Zainal Abidin

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G1039829

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(2)
(3)

Company Profile

Company Profile

 Cecil Rice Export produces white rice in 70

 Cecil Rice Export produces white rice in 70

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international markets.

international markets.

 The com

The company

pany have bee

have been grow

n growing fast kn

ing fast known

own

for

for low

low cost

cost and

and high

high value.

value.

 To acco

To accomod

modate grow

ate growth, they have expa

th, they have expande

nded

d

from single shift in 2005 to three shifts in

from single shift in 2005 to three shifts in

2009.

2009.

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and lean techniques.

(4)

II

ssues to be addressed

ssues to be addressed

 Dete

Determine w

rmine whethe

hether the produ

r the production p

ction proces

rocess is

s is

in control or out of control.

in control or out of control.

 A

 An

na

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arrtts

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differentiate differences among the shifts.

differentiate differences among the shifts.

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shifts in order to provide incentives to senior 

shifts in order to provide incentives to senior 

personnel to rotate among three

(5)

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

(6)

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).

(7)

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.

(8)

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 is not properly

calibrated.

(9)

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

and

underweight bags are the customer service issue.

(10)

 Analysis:

Determine control chart

 Data is variables with infinite possibilities and

are continuous therefore we need to use

X-bar 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.

(11)

 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.

(12)

 Analysis

 x

 z 

 x

W

U

pper Control Limit (

U

CL) =

Lower Control Limit (

U

CL) =

 x

 z 

W

x

 x

= mean of the sample means

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

 x

 W

= standard deviation of the sample means =

 Z 

X-

bar Charts

n

/

 W

n

= sample size

(13)

 Analysis (Cont¶d)

Mean population: 70 pounds

Standard Deviation: 1 pound

Sample Size: 5

(14)

Cecil Rice Export (Pounds)

Smallest Largest Average UCL LCL

Monday 0:00 70.4 71.8 71.7 70.575 0.447 71.92 69.23 1:00 67.9 70.3 69.2 2:00 70.1 70.6 70.3 3:00 69.2 70 69.5 4:00 69.6 70.6 70.1 5:00 69.7 69.8 69.8 6:00 70.7 72.9 72.6 7:00 69.8 71.5 71.4 Tuesday 0:00 69.1 70.3 69.5 69.8875 0.447 71.23 68.55 1:00 69.6 72.8 70.4 2:00 67.8 70.2 68 3:00 70.5 70.6 70.5 4:00 69.5 71.6 71.3 5:00 70 70.5 70.2 6:00 69.1 70.9 69.3 7:00 69.4 70.8 69.9 Wednesday 0:00 70.7 70.9 70.8 70.4125 0.447 71.75 69.07 1:00 70 71.4 70.6 2:00 68.6 71 70.3 3:00 69.6 71.5 70.2 4:00 68.9 69.2 69.1 5:00 71.1 71.6 71.3 6:00 68.6 69.6 68.8 7:00 69.1 72.4 72.2  x W  x

1st Shift (00:00 ± 08:00)

(15)

Tuesday

Monday

Wednesday

68 68.5 69 69.5 70 70.5 71 71.5 72 72.5 73 1 2 3 4 5 6 7 8 Average Means UCL LCL Mean of samples mean 68 68.5 69 69.5 70 70.5 71 71.5 72 72.5 73 1 2 3 4 5 6 7 8 Average Means UCL LCL Mean of samples mean 68 68.5 69 69.5 70 70.5 71 71.5 72 72.5 73 1 2 3 4 5 6 7 8 Average Means UCL LCL Mean of samples mean

(

X-

bar) 1st

S

hift

(16)

Cecil Rice Export (Pounds)

Smallest Largest Average UCL LCL

Monday 8:00 70.0 72.6 71.8 70.0125 0.447 71.35 68.67 9:00 68.2 70.8 68.7 10:00 68.9 69.3 69.1 11:00 69.5 69.7 69.6 12:00 70.5 72 71 13:00 69.7 70.7 70.6 14:00 69.5 70.1 69.7 15:00 69.5 70.8 69.6 Tuesday 8:00 68.3 69.8 68.4 69.8125 0.447 71.15 68,47 9:00 68.7 69.1 68.8 10:00 68.9 71.8 71.4 11:00 70 70.6 70.2 12:00 68.8 70.3 69.7 13:00 68.9 69.7 69.2 14:00 69.7 71.8 70.5 15:00 70 70.6 70.3 Wednesday 8:00 69.7 71.1 70.3 70.2 0.447 71.54 68.86 9:00 70.5 71.3 70.7 10:00 69.3 70.7 69.6 11:00 68.3 71.2 70.8 12:00 68.4 69.9 69.2 13:00 70.1 70.6 70.4 14:00 69.9 70.4 70.2 15:00 70.1 71.1 70.4  x Wx

2nd Shift (08:00 ± 16:00)

(17)

Monday

Wednesday

Tuesday

68 68.5 69 69.5 70 70.5 71 71.5 72 72.5 73 1 2 3 4 5 6 7 8 Average Means UCL LCL Mean of samples mean 68 68.5 69 69.5 70 70.5 71 71.5 72 72.5 73 1 2 3 4 5 6 7 8 Average Means UCL LCL Mean of samples mean 68 68.5 69 69.5 70 70.5 71 71.5 72 72.5 73 1 2 3 4 5 6 7 8 Average Means UCL LCL

Mean of samples mean

(18)

Cecil Rice Export (Pounds)

Smallest Largest Average UCL LCL

Monday 16:00 69.5 69.9 69.6 70.125 0.447 71.47 68.78 17:00 68.8 71.9 70.7 18:00 71.1 71.3 71.2 19:00 71.1 71.4 71.3 20:00 70.4 71.2 70.8 21:00 68.9 70.3 69.7 22:00 68.4 68.5 68.5 23:00 69.1 69.3 69.2 Tuesday 16:00 70.2 70.7 70.6 69.6875 0.447 71.03 68,35 17:00 68.5 69.6 69.2 18:00 70.3 70.3 70.3 19:00 69.8 72 69.9 20:00 68.4 70 68.9 21:00 70.1 72.2 70.8 22:00 68.2 69 68.6 23:00 69 69.3 69.2 Wednesday 16:00 69.7 70.1 69.9 69.6625 0.447 71.00 68.32 17:00 68.3 71.4 69.7 18:00 68 71.6 68.1 19:00 70 71.1 70.8 20:00 68.5 71.3 69.2 21:00 67.7 71.2 67.8 22:00 71 71.1 71 23:00 70.5 71.1 70.8  x Wx

3rd Shift (16:00 ± 23:00)

(19)

Wednesday

Monday

Tuesday

68 68.5 69 69.5 70 70.5 71 71.5 72 72.5 73 1 2 3 4 5 6 7 8 Average Means UCL LCL

Mean of samples mean

68 68.5 69 69.5 70 70.5 71 71.5 72 72.5 73 1 2 3 4 5 6 7 8 Average Means UCL LCL

Mean of samples mean

67 67.5 68 68.5 69 69.5 70 70.5 71 71.5 72 1 2 3 4 5 6 7 8 Average Means UCL LCL

Mean of samples mean

(20)

 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.

(21)

R-Charts

 R

 D

UCL

 R

!

4

 R

 D

 LCL

 R

!

3

 R

UCL

=

U

pper Control Chart Limit for the Range

 R

 LCL

3

 D

 R

4

 D

= Lower Control Chart Limit for the Range

= From 3

S

igma Table

= From 3

S

igma Table

= Average Range of the

S

amples

(22)
(23)

Cecil Rice Export Data (pounds)

day time smallest largest average Range Average of Range/shift Upper Limit Lower Limit

Monday 0:00 70.4 71.8 71.7 1.4 2.67 2.3533 0 1:00 67.9 70.3 69.2 2.4 2:00 70.1 70.6 70.3 0.5 3:00 69.2 70 69.5 0.8 4:00 69.6 70.6 70.1 1 5:00 69.7 69.8 69.8 0.1 6:00 70.7 72.9 72.6 2.2 7:00 69.8 71.5 71.4 1.7 Tuesday 0:00 69.1 70.3 69.5 1.2 3.36 2.9591 0 1:00 69.6 72.8 70.4 3.2 2:00 67.8 70.2 68 2.4 3:00 70.5 70.6 70.5 0.1 4:00 69.5 71.6 71.3 2.1 5:00 70 70.5 70.2 0.5 6:00 69.1 70.9 69.3 1.8 7:00 69.4 70.8 69.9 1.4 Wednesday 0:00 70.7 70.9 70.8 0.2 2.91 2.5630 0 1:00 70 71.4 70.6 1.4 2:00 68.6 71 70.3 2.4 3:00 69.6 71.5 70.2 1.9 4:00 68.9 69.2 69.1 0.3 5:00 71.1 71.6 71.3 0.5 6:00 68.6 69.6 68.8 1 7:00 69.1 72.4 72.2 3.3

1st Shift (00:00 ± 07:00)

(24)

(R-Chart) 1

st

shift

Monday

Tuesday

Wednesday

0 0.5 1 1.5 2 2.5 3 1 2 3 4 5 6 7 8 Sample Range UCL LCL avg R 0 0.5 1 1.5 2 2.5 3 3.5 4 1 2 3 4 5 6 7 8 Sample Range UCL LCL Avg R 0 0.5 1 1.5 2 2.5 3 3.5 1 2 3 4 5 6 7 8 Sample Range UCL LCL Avg R

(25)

Cecil Rice Export Data (pounds)

day time smallest largest average Range Average of Range/shift Upper Limit Lower Limit

Monday 8:00 70 72.6 71.8 2.6 2.7 2.3766 0 9:00 68.2 70.8 68.7 2.6 10:00 68.9 69.3 69.1 0.4 11:00 69.5 69.7 69.6 0.2 12:00 70.5 72 71 1.5 13:00 69.7 70.7 70.6 1 14:00 69.5 70.1 69.7 0.6 15:00 69.5 70.8 69.6 1.3 Tuesday 8:00 68.3 69.8 68.4 1.5 2.75 2.4232 0 9:00 68.7 69.1 68.8 0.4 10:00 68.9 71.8 71.4 2.9 11:00 70 70.6 70.2 0.6 12:00 68.8 70.3 69.7 1.5 13:00 68.9 69.7 69.2 0.8 14:00 69.7 71.8 70.5 2.1 15:00 70 70.6 70.3 0.6 Wednesday 8:00 69.7 71.1 70.3 1.4 2.64 2.3300 0 9:00 70.5 71.3 70.7 0.8 10:00 69.3 70.7 69.6 1.4 11:00 68.3 71.2 70.8 2.9 12:00 68.4 69.9 69.2 1.5 13:00 70.1 70.6 70.4 0.5 14:00 69.9 70.4 70.2 0.5 15:00 70.1 71.1 70.4 1

2nd Shift (08:00 ± 16:00)

(26)

(R-Chart) 2

nd

Shift

Monday

Tuesday

Wednesday

0 0.5 1 1.5 2 2.5 3 3.5 1 2 3 4 5 6 7 8 Sample Range UCL LCL Avg R 0 0.5 1 1.5 2 2.5 3 1 2 3 4 5 6 7 8 Sample Range UCL LCL Avg R 0 0.5 1 1.5 2 2.5 3 3.5 1 2 3 4 5 6 7 8 Sample Range UCL LCL Avg R

(27)

Cecil Rice Export Data (pounds)

day time smallest largest average Range Average of Range/shift Upper Limit Lower Limit

Monday 16:00 69.5 69.9 69.6 0.4 1.72 1.5145 0 17:00 68.8 71.9 70.7 3.1 18:00 71.1 71.3 71.2 0.2 19:00 71.1 71.4 71.3 0.3 20:00 70.4 71.2 70.8 0.8 21:00 68.9 70.3 69.7 1.4 22:00 68.4 68.5 68.5 0.1 23:00 69.1 69.3 69.2 0.2 Tuesday 16:00 70.2 70.7 70.6 0.5 2.27 2.0038 0 17:00 68.5 69.6 69.2 1.1 18:00 70.3 70.3 70.3 0 19:00 69.8 72 69.9 2.2 20:00 68.4 70 68.9 1.6 21:00 70.1 72.2 70.8 2.1 22:00 68.2 69 68.6 0.8 23:00 69 69.3 69.2 0.3 Wednesday 16:00 69.7 70.1 69.9 0.4 4.02 3.5416 0 17:00 68.3 71.4 69.7 3.1 18:00 68 71.6 68.1 3.6 19:00 70 71.1 70.8 1.1 20:00 68.5 71.3 69.2 2.8 21:00 67.7 71.2 67.8 3.5 22:00 71 71.1 71 0.1 23:00 70.5 71.1 70.8 0.6

3rd Shift (16:00 ± 23:00)

(28)

(R-Chart) 3

rd Shift

Monday

Tuesday

Wednesday

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 1 2 3 4 5 6 7 8 Sample Range UCL LCL Avg R 0 0.5 1 1.5 2 2.5 3 3.5 1 2 3 4 5 6 7 8 Sample Range UCL LCL Avg R 0 0.5 1 1.5 2 2.5 1 2 3 4 5 6 7 8 Sample Range UCL LCL Avg R

(29)

 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

(30)

 x

 z 

 x

W

U

CL =

LCL =

 x

 z 

W

x

= 71.34

= 68.65

 x

=

Q

= 70

References

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