Its French factory makes a range of over 500 products that are sold to wholesaler and large retailers throughout Europe. The company dispatches orders within 24 hours of receipts using an international carrier. All consumers would expect received their requirements in tull within one week. The manufacturing operation Is based on batch production, employing 24 large Injection molding machines.
Mould changes (Set-ups’) take on average three hours, at an estimated cost of ‚¬ 500 per set-up. TEP had faced declining in delivery reliability, increased levels of flnlshed goods Inventory and falling productivity. Falling productlvlty apparently resulting from Split-betches’ where only part of a planned production batch is produces to overcome immediate shortages. Because of current high demand for many products, the backlog of work for planned stock replenishment currently averages two weeks and so all factory orders must be planned far In advance.
Recently. however, to minimize the total cost of set-ups and to maximize capacity utilization, all products are planned tor a minimum production run ot 20 ours. The factory operates on three seven-hour shift, Monday to Friday: 105 hours per week, for 50 weeks per year, Regular overtime, typically 15 hours on a Saturday, has been worked most of the last years. Sunday is never used for production, allowing access to machines for routines and major overhauls.
Speculate on what the company’s strategy appears to be. 6. Compute quality-sales indices and quality cost indices for each of the five years. Is it possible to access the effectiveness of the company’s quality-management program from these index values? (10 Marks) 7. List several examples of each quality-related cost; that is, prevention, appraisal, and internal and external failure that might result from the production of TEP products. Improvement and Strategy 8. Adapt an Implementation of six-sigma breakthrough strategy for TEP.
Explain each section of TEP six -sigma clearly. 9. Anticipate if the cost of fuel increased by 25% per liter it would greatly affect the overall of TEP cost of production, price per unit product, and many more. Do estimation of increased in cost on few of TEP product. Some of the product may be above its acceptable price range. And suggest action needed to be taken by TEP to strategize its company. 10. If TEP needed to boost up the positioning in the manufacturing industries.
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