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Revenue per day = No. candles produced per day * % good candles * Selling Prices per candle
Profit = revenue per day - No. candles produced per day * Production Cost per candle
The total revenue per day possible with no yield loss is 10000 * 2.59 = 25900 EUR/day. Subtract the actual revenue per
day to get the revenue lost per day
What does this cost the company per month in revenue loss (assume average 23 working days per month)? (23 working
days * revenue loss per day)
Flow chart Decorating Washing Roasting Hulling Salting Packaging
Analyze: Fishbone:
Man Machine Material Method Shift Operator, Age of roasting machine, Size of tray, Amount of
Measurement Environment water used, Reliability of measurements, Weather Moisture%
DPU: Defects per Unit, the average number of defects per unit of product
•DPMO: Defects per Million Opportunities
if there is only 1 defect possible per unit, then the #defects will be equivalent to the # of defective units (every defect will prod
DPMO = Totakl # of Defectives×1000000 /Total # of Units×(1)= ppm
The mean (µ) represents the center point around which the data (population) is distributed
• The standard deviation (σ) represents the amount of variability (dispersion) in the data about the center point
• The square of the standard deviation is the variance (σ2)
Little Law:
Inventory=Flow rate * Flow Time
I=RT
R= Flow rate, Throughput
T=Flow time, Lead Time, Cycle time