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Delta Synthetic Fibres Britlon project - Operations management.

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Introduction

Delta Synthetic Fibres Britlon project Operations management CB514 Assignment 2 08/01/2004 Caecilia Bi�rer cmeb2 ID: 07998042 Table of content 1. Introduction. 1.1 background 1.2 Purpose 1.3 Limitations 1.4 Assumptions 2. Order of schedule proposed for conversions and new plant. 2.1 Conversion 2.2 New plant 2.3 Combination of conversion and new plant 3. Location for new plants. 3.1 Influences 3.2 Technical method 4. Danger threatening Delta Synthetic Fibres. 1. Introduction 1.1 Background Delta Synthetic Fibres is a company in England which produce some man-made fibre. Its main product is Britlene which is used in heavy-duty clothing and to produce industrial good. The company had thought of introducing a new product: Britlon. This product is the same that the first with added qualities such as heat-resistant. DSF has already five plants in three different sites, but it will need to convert and build new plants to meet its forecast demand for the two products. 1.2 Purpose This report is made to provide DSF's managers with advises in order to make decisions for the order of schedule to convert and new plant, for the possible location of these new plants. It also analyse the main dangers that DSF may be facing in the future. 1.3 Limitations This report could be more deeply analysed but a word limit was imposed. ...read more.

Middle

In order to meet the forecast sales in 1999, DSF needs three plants to produce Britlene and one plant to produce some Britlon. So one of the plant will be ineffective and if the company closes two plants, there will be major loses. For the above reasons, it would not be recommendable to only build new plants in this project. 2.3 Combination of conversion and new plant. Forecast sales Britlene Britlon Stock left over Number of plants needed Conversion New plant 1996 24.7 - 0.3 5 0 0 1997 22 - 3 5 0 1 1998 20 - 0 4 1 1 1 1999 17 3 2 4 1 2 1 1 2000 13 16 3 5 2 1 2001 11 27 1 8 0 0 2002 10 29 0 8 0 0 This combination offers the best way for DSF to meet its demand today and in the future with the proper timing required to build and converse plant. The numbers next to the volume of sales that are in brackets are the number of plant needed to produce the quantity demanded, taking in account the stock not sold in previous years. By the year 2001, height plants will be needed to produce the quantity of product demanded. ...read more.

Conclusion

DSF is having a big change in its capacity its demand will go from 24.7m.kg in 1996 to 39m.kg in 2002. But those sales are only forecast, they assume that it will be this way with all the other variations unchanged. But a lot of obstacles may rise creating unplanned changes and making the company lose money. * Accuracy of prediction This is one of the main dangers. In making decisions for the future and forecast sales, assumptions have to be made. Those assumptions may change and change the whole demand or supply chain. * The external environment. The company does not control the external environment and it can change anytime. Government may introduce new regulations; competition may arise and take some clients away from them. Consumers may prefer Britlene instead of Britlon, so the sale of Britlon may not rise so fast. The cost of making raw material may go up. Inflation may be high when they need to sell stock in 1999. Technological changes may also affect the company. Conclusion In order to meet it forecast sales, DSF will need to convert three existing plants and build three new plants. The locations recommended are at the exiting sites: Teesside, Bradford and Dumfries so the management will not be divided and make the operations run more smoothly. DSF should also be aware of the danger they are facing with the uncertainty of the environment. ...read more.

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