make project report on all

Indifference Point) 2.2 Indiference Point and BEP - Finding out missing figures M 12 XY Ltd makes two products X and Y, whose respective Fixed Costs are Fi and F2. You are given that the Unit Contribution of Y To one fifth less than the Unit Contribution of X, that the total of F1 and Fz is * 1,50,000, that the BEP of X is 1,800 units (for BEP of X, F2 is not considered) and that 3,000 units is the Indifference Point between X and Y.fi.e. X and Y make equal profits at 3,000 unit volume, considering their respective Fixed Costs). There is no inventory build up as whatever is produced is sold. ou are required to find out the values of F1, and Fz and Unit Contributions of X and Y. % Note: Grey Area Costs have been re-allocated to VA and NVA as 65% and 35% 2. Computation of Target Cost RTP You are the Manager of XYZ Paper Mills and have recently come across a particular type of paper, which is being sold at a substantially lower rate (by another Company ABC Ltd) than the price charged by your own mill. The Value Chain for one use of tonne of such paper for ABC Ltd is: ABC Ltd. Merchant Printer Customer. ABC Ltd sells this particular paper to Merchant at the rate of 3 1,466 per Tonne. ABC Ltd pays for the Freight which amounts to 30 per Tonne. Average Returns and Allowances amount to 4% of Sales and approximately equals 160 per Tonne. The Value Chain of your Company, through which the paper reaches the ultimate customer is similar to that of ABC Ltd. However, your Mill does not sell directly to the Merchant, the latter receiving the paper from huge Distribution Centre maintained by your Company at Haryana. Shipment Costs from the Mill to the Distribution Centre is 11 per Tonne while the Operating Costs in the Distribution Center are estimated at 25 per Tonne. The Return on Investment required by the Distribution Centre for the investments made, amount to an estimate 58 per Tonne. Calculate the "Mill Manufacturing Target Cost" for this particular paper for XYZ Ltd. Assume that the return on the investment expected by XYZ Ltd is 120 per tonne of paper. 7.16 6.3.1 Traditional Performance Measures not usable in JIT (1) Machine Utilisation or Machine Capacity, (2) Labour Some traditionally used Performance Measurement Criteria are - Cost per unit of output or Output per Employee, and (3) Direct Labour Time Keeping and Time Booking. These are not useful in a JIT Environment due to the following reasons Nature of Performance Measurement measure Why not applicable in JIT? This system forces Production Managers to produce as much Machine Utilisation: output as possible, resulting in large amount of inventory piling To ensure that every asset a Company up in the warehouse. purchases is being thoroughly utilized. In JIT systems, producing only what is actually needed is the To confirm that substantial investment in underlying rule. Machinery should be used to the utmost. Machine Cells in a JIT system are smaller and less costly. Hence justification of investment is not compulsory. JIT System focusses on producing only what is needed, so an Labour Cost per unit of output: Employee who has incentives to create vast piles of parts, To optimise Labour Cost per unit by increasing operates contrary to the rules of the system. Output per Employee. JIT focusses not on output quantity, but on the quality of output or the number of employee suggestions for improving the system. Direct Labour Efficiency or Time Booking: JIT System does not focus on how fast an Employee works, but only on the quality of the products manufactured. To monitor employee time and productivity. Procedures like filling up time cards, using punch cards to record To compute Labour Efficiency Variance, Mix time, etc. are Non-Value Added activities, which are avoided Variance, Idle Time Variance, etc. under JIT as unnecessary. Tactice 1. OEE and TPM From the following, compute OEE. Also describe the philosophy under which OEE is used for performance Measurement Standard Cycle Time = 2.5 minutes per unit Plant operates for 2 shifts a day, consisting of 8 hours with 30 minutes lunch break and 15 minutes tea break. Breakdown, Repair and Start-Up Time = 68 minutes Total Quantity produced = 280 units. Quality Loss due to Scrap Rework and Rejection = 50 units. 2. Six Sigma - DMADV Carry-in-Style" (CIS) is a leading manufacturer of stylish luggage bags for the style-conscious people around the globe. CIS has two independent divisions in its Headquarters in India. Division X performs all manufacturing and packaging operations. All sales are made through Division Y which has 11 Retail Stores across India, as well as through CIS's own well-developed website. CIS has also Retail Operations in other selected places viz. Dubai, Kuala Lumpur, Bangkok and Singapore. These Overseas Businesses operate as Independent Subsidiaries within the Division Y. CIS had revolutionized the industry by offering cheap but stylish luggage bags. CIS is able to keep its prices low by offering a very basic level of service. Luggage Bags are sold in boxes for customers to assemble themselves and all deliveries are made through a Third Party Distributor. CIS's Managing Partner is bothered about increasing sales returns and massive complaints about product purchased from CIS, on the social media. With this concern, the Partners have appointed you as the Performance Management Expert to help the Firm to execute Six Sigma Technique to reduce number of sales returns and to evaluate the Firm's existing performance. The Managing Partner has heard that Six Sigma analysis involves large quantities of data. She stated- "I'm not confident on our current IT systems. I doubt whether the system would be able to identify the required data related to cutting, preparation, closing, etc. These manufacturing sub-divisions may be the root causes of the problem. Further, quarterly compiled sales return data has not enough detail. We may need to do more analysis on customer satisfaction and manufacturing quality." You have been given access to feedback given by customers for returning goods to measure existing performance in this area as under