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