PROBLEM
Contract to be awarded to the best tender proposal for a new facility design and to supply certain equipment for the intermediate storage of spent nuclear fuel rods with the following requirements:
• 420 brass connectors delivered every 4wk month for 3 years
• Connectors need to be machined and then heat treated.
• First batch 100% inspection, must achieve a process capability of CpK 2.0
• After that 10% of rollers to be inspected, must achieve a process capability of
CpK 2.0 otherwise 100% inspection required.
CpK 2.0 otherwise 100% inspection required.
CZ114 Brass Connectors to be Manufactured
SOLUTION
Using Microsoft Excel, many iterations were produced in order to find the best solution for the tender proposal
• Different manufacturing processes were explored to find the optimum method to reduce material wastage.
• Fast start of 3 machines and operators to meet initial demand to produce 500 parts. Later reduced to 2 machine and operators after 2 weeks to increase profit and sustainability.
• Great attention placed on Cpk to ensure all parts met the high quality standards and are within tolerance.
Final Tender Proposal
SCHEDULE & MILESTONES
• Machine 189 parts from month 2(wk4) to month 3(wk1).
• Machine 126 parts from week 2 of month 3.
• Deliver at the start of each month.
• Order 90 parts per tool at week 3 of every month.
• Machine 126 parts from week 2 of month 3.
• Deliver at the start of each month.
• Order 90 parts per tool at week 3 of every month.
• Finish manufacture week 3 of month 6 in 2022
RISKS
In order to ensure the resilience of the tender, we thought about possible risks.
Supplier Issue: Use alternative local supplier with an increased part cost of 9p.
Buffer Time: Problems such as strikes, machine failures could push back production. 24 week buffer period added.
Delivery: To ensure this is met, there is a one week time slot put in the schedule.
CASH FORECAST
This chart shows the predicted cash flow. Showing the final cash flow outcome of £240,652.71 with a total return of 85.12%.
• First bank loan in 2019, month 1.
• First profit gained is 2021, month 1.
• Positive cash flow in 2022, month 2.
QUALITY
• Using the sample data, variation range totals at 0.023, and with a tolerance limit of 0.050 this leads to a CPK of 2.128.
• Therefore all parts made will be delivered - it is very unlikely for a part to be manufactured outside of these tolerance limits.
• If a part is identified too low quality, these will be replaced by new parts taken from the stock-holding.
