ANALYSIS-PERFORMANCE IMPROVEMENT-Spinning Mill
CRITICAL ANALYSIS OF PERFORMANCE IMPROVEMENT OF A |
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Spinning Mill with 32400 spindles working on 100% cotton combed yarns |
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The data given below will help us to understand the impact on overall contribution by | ||||||||||
1. Utilisation of the plant | 2. Selling price increase | |||||||||
3. Cheaper rawmaterial for coarse counts | 4. selling price increase for coarse counts | |||||||||
5. Increased back process production | 6. Increased spindleage | |||||||||
7. Increased grams per spindle | 8. Working coarses counts | |||||||||
9. working finer counts | 10.Raw material price | |||||||||
ASSUMPTIONS: | ||||||||||
The selling prices is the actual net sales price for a reasonably good yarn produced in Indonesia. | ||||||||||
Product mix is decided by Linear programming which satisfies all the constraints given below | ||||||||||
Linear programming decides the maximum possible contribution meeting all the constraints. | ||||||||||
contrubution = Net sales price - clean raw material cost - packing and forwarding cost | ||||||||||
grams per | ||||||||||
market constraints | spindle | |||||||||
24sc should be less than 60 tons per month | 240 | utilisation | 97% | |||||||
20sc should be less than 510 tons per month | 280 | no of RFs | 45 | |||||||
30sc should be less than 90 tons per month | 170 | no spls/RF | 720 | |||||||
32sc should be less than 20 tons per month | 155 | |||||||||
36sc should be less than 20 tons per month | 135 | |||||||||
40sc should be less than 300 tons per month | 120 | |||||||||
Total no of ring frames should not be more than 45 | ||||||||||
utilised | total | avg | ||||||||
count | 24sc | 20sc | 30sc | 32sc | 36sc | 40sc | rfs | cotrbn | count | |
usd | ||||||||||
sell price | 1.96 | 1.90 | 2.10 | 2.14 | 2.30 | 2.40 | ||||
raw mat | 1.30 | 1.30 | 1.30 | 1.30 | 1.30 | 1.30 | ||||
packing | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | ||||
contrbn | 0.62 | 0.56 | 0.76 | 0.8 | 0.96 | 1.06 | ||||
12. 5 tons | 20.5 | 0 | 90 | 20 | 20 | 225 | 44.3 | 354291 | 36.09 | |
13.5 tons | 60 | 22.9 | 77.5 | 0 | 20 | 225 | 45 | 366179 | 34.39 | |
15 tons | 60 | 137 | 7.99 | 0 | 20 | 225 | 45 | 377470 | 31.4 | |
17 tons | 0 | 303 | 0 | 0 | 0 | 207 | 45 | 389117 | 28.12 | |
19 tons | 0 | 408 | 0 | 0 | 0 | 162 | 45 | 400217 | 25.69 | |
21 tons | 3.39 | 510 | 0 | 0 | 0 | 117 | 45 | 411308 | 23.72 | |
if the utilisation goes up by 1% I.e form 97% to 98% | ||||||||||
15 tons | 60 | 127 | 15.7 | 0 | 20 | 227 | 45 | 380179 | 31.68 | |
17 tons | 0 | 297 | 0 | 0 | 0 | 213 | 45 | 392156 | 28.36 | |
19 tons | 0 | 402 | 0 | 0 | 0 | 168 | 45 | 403256 | 25.9 | |
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if grams per spindle is increased by 5% | ||||||||||
15 tons | 60 | 88.6 | 45.6 | 0 | 20 | 236 | 45 | 390605 | 32.74 | |
17 tons | 60 | 171 | 90 | 0 | 20 | 169 | 45 | 399811 | 29.5 | |
19 tons | 60 | 276 | 90 | 0 | 20 | 124 | 45 | 410911 | 26.92 | |
if the selling price goes up 5% | ||||||||||
15 tons | 60 | 137 | 7.99 | 0 | 20 | 225 | 45 | 426494 | 31.4 | |
17 tons | 0 | 303 | 0 | 0 | 0 | 207 | 45 | 442743 | 28.12 | |
19 tons | 0 | 408 | 0 | 0 | 0 | 162 | 45 | 458418 | 25.69 | |
if the raw material price comes down by 3 cents | ||||||||||
15 tons | 60 | 137 | 7.99 | 0 | 20 | 225 | 45 | 390970 | 31.4 | |
17 tons | 0 | 303 | 0 | 0 | 0 | 207 | 45 | 404417 | 28.12 | |
19 tons | 0 | 408 | 0 | 0 | 0 | 162 | 45 | 417317 | 25.69 | |
if the rawmaterial for 20s, 24s and 30s is cheaper by 3 cents compared to other counts | ||||||||||
15 tons | 60 | 137 | 7.99 | 0 | 20 | 225 | 45 | 383634 | 31.4 | |
17 tons | 60 | 250 | 0 | 0 | 0 | 200 | 45 | 398281 | 28.3 | |
19 tons | 60 | 355 | 0 | 0 | 0 | 155 | 45 | 412531 | 25.84 | |
if grams per spindle comes down by 3% bec of cheaper raw mat for 20s,24s and 30s | ||||||||||
15 tons | 51.3 | 154 | 0 | 0 | 20 | 225 | 45 | 381512 | 31.15 | |
17 tons | 0 | 310 | 0 | 0 | 0 | 200 | 45 | 394824 | 27.84 | |
19 tons | 0 | 418 | 0 | 0 | 0 | 152 | 45 | 407902 | 25.35 | |
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if grams per spindle comes down by 10% bec of cheaper rawmat for 20s,24s and 30s | ||||||||||
15 tons | 0 | 212 | 0 | 0 | 19.8 | 218 | 45 | 375491 | 30.41 | |
17 tons | 0 | 326 | 0 | 0 | 20 | 164 | 45 | 385255 | 27.05 | |
19 tons | 0 | 441 | 0 | 0 | 20 | 109 | 45 | 395018 | 24.39 | |
if 40sc can not be sold more than 180 tons per month | ||||||||||
15 tons | 60 | 92.1 | 90 | 7.91 | 20 | 180 | 45 | 373479 | 31.45 | |
17 tons | 60 | 243 | 7.14 | 0 | 20 | 180 | 45 | 386071 | 28.3 | |
19 tons | 0 | 408 | 0 | 0 | 0 | 162 | 45 | 400217 | 25.69 | |
if 20sc can not be sold more than 300 tons per month | ||||||||||
15 tons | 60 | 137 | 7.99 | 0 | 20 | 225 | 45 | 377470 | 31.4 | |
17 tons | 3.39 | 300 | 0 | 0 | 0 | 207 | 45 | 389108 | 28.13 | |
19 tons | 60 | 300 | 90 | 0 | 20 | 97 | 45 | 395617 | 26.0 | |
if 20sc can not be sold more than 150 tons per month | ||||||||||
15 tons | 60 | 137 | 7.99 | 0 | 20 | 225 | 45 | 377470 | 31.4 | |
16 tons | 60 | 150 | 90 | 0 | 20 | 161 | 45 | 379760 | 29.79 | |
17 tons | 60 | 150 | 90 | 0 | 20 | 161 | 45 | 379760 | 29.79 | |
19 tons | 60 | 150 | 90 | 0 | 20 | 161 | 45 | 379760 | 29.79 | |
pleease note in this case it has not considerd more than 16 tons , even thought the option upto | ||||||||||
19 tons is given to choose | ||||||||||
if spindle installed is increased by 10% | ||||||||||
15 tons | 60 | 35.5 | 90 | 20 | 20 | 225 | 49 | 398660 | 33.76 | |
17 tons | 60 | 169 | 36.7 | 0 | 20 | 225 | 49.5 | 416621 | 30.62 | |
19 tons | 0 | 349 | 0 | 0 | 0 | 221 | 49.5 | 429693 | 27.75 | |
if grams/spl goes up by 5% for 40sc | ||||||||||
15 tons | 60 | 109 | 25.3 | 0 | 20 | 236 | 45 | 386556 | 32.29 | |
17 tons | 0 | 284 | 0 | 0 | 0 | 226 | 45 | 398527 | 28.86 | |
19 tons | 0 | 393 | 0 | 0 | 0 | 177 | 45 | 407582 | 26.20 | |
if grams/spl goes up by 5% for 20sc | ||||||||||
15 tons | 0 | 170 | 35.9 | 0 | 20 | 225 | 45 | 379457 | 31.49 | |
17 tons | 0 | 293 | 0 | 0 | 0 | 217 | 45 | 394340 | 28.53 | |
19 tons | 0 | 394 | 0 | 0 | 0 | 176 | 45 | 407251 | 26.18 | |
PLEASE NOTE THAT WHATEVER CONCLUSIONS, STATEMENTS, OPINIONS ARRIVED AT BASED ON |
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THE ABOVE DATA IS APPLICABLE ONLY FOR THE SAME DATA. CONCLUSIONS, RESULTS MAY VARY | ||||||||||
DEPENDING UPON THE PROUDCTIVITY OF DIFFERENT COUNTS, SELLING PRICE COMBINATIONS | ||||||||||
FOR DIFFERENT COUNTS, OVERALL QUANTITY ETC |
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