Chapter09_ - MSB 354 9 Management of Quality 9-1 Big M...

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MSB 354 9 Management of Quality 9-1
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© The MacGraw-Hill Companies, Inc., 2008 Big M Company Transportation Problem The Big M Company produces a variety of heavy duty machinery at two factories . One of its products is a large turret lathe . Orders have been received from three customers for the turret lathe. Two activities : Producing activities (given), Shipping activities (unknown) Question : (shipping plan) How many lathes should be shipped from each factory to each customer?
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© The MacGraw-Hill Companies, Inc., 2008 3.3 The Distribution Network for Big M Company Find the best mix of shipping amount for various shipping lanes F1 C2 C3 C1 F2 12 lathe produced 15 lathes produced 10 lathes needed 8 lathes needed 9 lathes needed $700/lathe $900/lathe $800/lathe $800/lathe $900/lathe $700/lathe
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© The MacGraw-Hill 3.4 Algebraic Formulation (Mathematical Model) Let S ij = Number of lathes to ship from i to j ( i = F1, F2; j = C1, C2, C3). Minimize Cost = $700 S F1-C1 + $900 S F1-C2 + $800 S F1-C3 + $800 S F2-C1 + $900 S F2-C2 + $700 S F2-C3 subject to Factory 1: S F1-C1 + S F1-C2 + S F1-C3 = 12 Factory 2: S F2-C1 + S F2-C2 + S F2-C3 = 15 Customer 1: S F1-C1 + S F2-C1 = 10 Customer 2: S F1-C2 + S F2-C2 = 8 Customer 3: S F1-C3 + S F2-C3 = 9 and S ij ≥ 0 ( i = F1, F2; j = C1, C2, C3).
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Using Solver 9-5 Big M Company Distribution Problem Shipping Cost (per Lathe) Customer 1 Customer 2 Customer 3 Range Name Cells Factory 1 $700 $900 $800 OrderSize C15:E15 Factory 2 $800 $900 $700 Output H11:H12 ShippingCost C5:E6 Total TotalCost H15 Shipped TotalShippedOut F11:F12 Units Shipped Customer 1 Customer 2 Customer 3 Out Output TotalToCustomer C13:E13 Factory 1 10 2 0 12 = 12 UnitsShipped C11:E12 Factory 2 0 6 9 15 = 15 Total To Customer 10 8 9 = = = Total Cost Order Size 10 8 9 $20,500
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System Operation (tactical decision area) 9-6 Management of Quality, Quality control Supply chain management Inventory management Material requirement planning Just in time, Lean system Scheduling Project management Aggregate Planning
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9-7 Learning Objectives Define the term quality. Explain why quality is important and describe the consequences of poor quality. Identify the determinants of quality. Describe the costs associated with quality. Describe some of the current quality awards.
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9-8 Learning Objectives Discuss the philosophies of quality gurus. Describe TQM. Give an overview of problem solving. Give an overview of process improvement. Describe and use various quality tools. Chapter 9(Quality Management) : Chapter 10(Quality Control)
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Quality is Apparently Job One . .. at Hyundai http://articles.latimes.com/2004/apr/29/business/fi-jdpower29 Hyundai Motor co. 2 nd in 2004 , tying with Honda Motor Co, based on consumer complaints about all brands that a carmaker sells in quality survey conducted by J.D. Power and associates. Hyundai outpaced the quality of America and European automakers
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This note was uploaded on 12/06/2011 for the course MSB 354 taught by Professor Nam during the Fall '11 term at Korea Advanced Institute of Science and Technology.

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Chapter09_ - MSB 354 9 Management of Quality 9-1 Big M...

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